New Income tax code is coming in the place of 1961 income tax code. This new code will be simple. But this is under process. Let us see the special features in new codes.

In this new code, the income is divided into 2 categories. One is regular sources, and the second one is extra revenue sources. Regular sources means,
1.The revenue generated by doing job.Suppose, instead of salary, if they get profits or any gifts, will come under regular sources.
2.Revenue through houses.
3.Business revenue.
4. Revenue from capital gains.

The interest, Dividends which haven’t paid the Distribution tax, Royalty, Technical Service charges or fees, lottery revenue, betting revenue are considered as Other revenue sources.

New Features in New Income Tax Code:
-Foreign income, which is tax paid in other countries also should pay the tax in India. Because we have the dual tax agreement with the foreign countries.
-Business assets and investment assets are divided separately, such that to recognise the sources clearly.
-Mutual funds, Venture capital funds, Life Insurance companies are having ‘Pass Through’ facility. That means the income from these organisations will not have tax. But the investors of these organisations have to be pay the tax.
-One more proposal is there to cancel the tax on securities transactions.
-Banking organisations has to pay the 25% tax, or 0.25% on total assets.
-Tax on TA and DAs of government employees.
-Corporate companies has to pay the 25% of their profit or 2% of assets, which are high.