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This paper attempts to evaluate direct tax code 2011 and its impact on the individual tax payers.The study aims at identifying the differences between the present Income tax act 1961 and the direct tax code 2011. A new tax code that overhauls the present Income tax act 1961, which was very complicated on account of innumerable amendments, has been overdue. The direct tax codes intends to moderate tax rates and simplify the tax laws and is meant to provide stability to tax regime as it is based on accepted principles of taxation and best international practices. Moderation of rates will result in increased tax compliance and thereby increase in revenue collections. The Direct Tax Code aims for a flexible structure so that, in the long run, there may not be a necessity to bring frequent amendments in the tax laws to take care of the changes in growing economy. The main objectives of the Direct Tax Code is to improve efficiency and equity of the system by eliminating distortions in the tax structure, introducing moderate levels of taxation and expending the tax base. This paper makes an attempt to provide an in-depth analysis about the significant amendments that has been proposed in the Direct Tax Code with particular emphasis on personal taxation and taxation on common man and to see how It will affect all. This paper aims to make an exploratory study of the new direct tax code focusing on its highlights.

Keywords

DTC, NPO, Residuary, Employment, House property, Capital Gain

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