New DTC or REVIEW of existing Income Tax Act, 1961

In the Budget Speech, 2024 FM Nirmala Sitharaman has announced a REVIEW of Income Tax Act, 1961. The Participation of Finance Minister in Income Tax Day celebrations, 2024 & comments made therein have further added fuel to the fire.

It may be noted that as per Budget Speech, 2024 There is no proposal for a New Direct Tax Code (DTC) or reenactment of Income Tax Act, (2024) as is being reported in by print amd electronic media and social media influencers.

As announced in Budget Speech, “a beginning” has already been made by making Amendments in Income Tax Act, 1961 relating to Reasessment Procedure, Tax Regime for Charity, TDS, Block Assessment in Search cases and Capital Gains.

It may be noted that similar exercises have been previously carried out, notably in 1987 w.e.f 1-4-1989.

The media frenzy over reenactment of Income Tax as DTC or otherwise should have died down by the statement of then FM Arun Jaitley 2015 Budget Speech but it continues unabated. FM Arun Jaitley dismissed the proposed Direct Tax Code (DTC) citing jurisprudence developed under the Income Tax Act & inclusion of proposals of DTC by amendments in the existing Income Tax Act.