Tax reforms, GST improvements in income tax, taxpayers will also get benefit
With the envisioning of One Nation One Tax, after the implementation of GST for Indirect Taxes across the country, the Central Government is now in the process of making major changes in direct tax structure to repair the Income Tax rules. For this preparation, the Central Government has given a green signal to the new Income Tax Act (Direct Tax Code) by making major reforms in the Income Tax Act, 1961, forming a 6-member committee. Through the direct tax code, the Central Government will work to change the existing Income Tax Act, 1961. This code will replace the income tax law which has been running for more than 50 years and replaced with new law. The new law of income tax will be made keeping in view the country’s current needs and earnings structure.
The common man is expected to get relief from the new tax code prepared by the Central Government. According to the proposals in the tax code, a tax exemption can be made on an annual income of up to Rs 5 lakhs. In the tax code brought by the previous government, a tax of 10 per cent was made on income from Rs 2 lakh to 5 lakh rupees. At the same time, it is also hoped that the taxpayers who have been prepared by the Central Government will be able to reduce the maximum tax rate of 30 per cent to 25 per cent in the new tax code. Therefore, these provisions clearly show that the new tax code will provide relief to the common man and tax burden on the taxpayers of all the slabs will be reduced.