Is new Tax regime is essential
There is great need and necessity of introducing new tax law in India i.e. there is need to replace income tax act, 1961 with new tax law ( Direct tax code )
As the present law i.e. income tax act, 1961 is very much vague, moreover it is one of the world’s most complex law which has undergone many changes i.e. amendments since it’s commencement.
Moreover, due to it’ s vagueness and complexity it is difficult to interpretate properly. Many of the provisions have a overriding effect and contradiction on each other , due to which there are chances of tax avoidance and evasion. Many of the situations are there where tax avoidance and evasion can occur like there is no provision in entire income tax act to tackle CFC’s but there is a provision in direct tax code which is a proposed tax bill in near future in India. To combat such avoidance of tax there is a need to amend existing tax law or to introduce new law containing such stringent provisions .
Due to passage of time and significance change in world economy, it is very much needed to change our tax law to combat with the world and to increase tax revenue in India by plugging loopholes in existing tax structure.
Also, there should be strict GAAR provisions in the law so that cases of tax avoidance can be reduced which will lead in increasing India’s tax base.
Present Government I.e. Modi government is currently working on proposed Direct tax code bill and this will surly help India and its person to develop, progress and will provide ease of compliance which is little bit difficult in present tax law.
The new tax law will surly prove boon to the Indian economy and business sector.
With best regards
Pushp Kumar sahu
M. No. 7694905887
Mail ID : pushpkumarsahu44@gmail.com