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The Direct Tax Code 2025 is set to replace the outdated Income Tax Act of 1961, bringing long-awaited reforms to India's tax system. With a planned rollout in April 2025, this new code aims to simplify taxation, increase compliance, and modernize the regulatory framework. After years of development and delays, the Direct Tax Code 2025 is a significant step toward making tax laws more transparent and efficient. Why Was the Direct Tax Code 2025 Introduced? The need for a Direct Tax Code arose due to the complexities and outdated provisions of the Income Tax Act of 1961. The previous tax system had become overly intricate, with numerous exemptions, deductions, and provisions, which often led to confusion and non-compliance. Additionally, the government aimed to broaden the tax base, as only about 1% of India's population currently pays taxes. With the introduction of the Direct Tax Code 2025 , the government seeks to increase this number to 7.5%, significantly boosting tax rev...