DTC is all over the Indian media scene. The government had announced its intention revamp the archaic tax code that has been in use in the country for the last 50 years.
So, the question that comes to my mind is - What does it mean for you and me?
Tinkering with the rates of taxes is something that the government does every year, there is nothing new in it.
Overhauling of the DTC is all how the government will go about calculating and collecting its tax revenue.
The objective of DTC is to bring all direct taxes like income-tax, dividend distribution tax, fringe benefit tax and wealth-tax to "establish an economically efficient, effective and equitable direct tax system which will facilitate voluntary compliance and help increase the tax-GDP ratio".
To achieve this objective the government is setting out to update and rewrite the outdated rules in the income tax. It is designed to provide stability in the tax regime as it is based on well accepted principles of taxation and best international practices. It will eventually pave the way for a single unified taxpayer reporting system.