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@article{189919,
        author = {L Narashimma Jainthan and S Vishnu Kavya},
        title = {Codification of Direct Tax Law in India: Promise and Perils of the Income Tax Code, 2025},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {12},
        number = {8},
        pages = {96-106},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=189919},
        abstract = {The codification of Direct Tax Law in India through the Income Tax Bill, 2025 represents a significant reform initiative aimed at simplifying, consolidating and modernizing the complex Income Tax framework. Over the decades, the Income Tax Act, 1961 has undergone significant amendments, leading to ambiguities in interpretation, procedural inefficiencies and increased litigation. The Income Tax Code, 2025 aims to address these challenges by adopting a principles-based drafting approach, reducing exemptions, streamlining tax rates, and aligning domestic tax laws with international best practices and digital governance standards. The promise of the Code is to increase legal certainty, improve tax compliance, promote transparency and promote an investor-friendly tax environment consistent with India's economic growth objectives. However, the reform also carries significant risks. The complexity of the transition, the risk of excessive delegation of legislative authority, the possible erosion of judicial precedents, and concerns about administrative discretion can compromise the intended objectives if not managed carefully. Furthermore, the balance between simplification and fairness, particularly for small taxpayers and vulnerable sectors, remains a major concern. This study critically examines the promises and dangers of codification of Direct Tax Law through the Income Tax Code, 2025 and assesses its impact on tax administration, taxpayers' rights and fiscal federalism in India.},
        keywords = {Income Tax Code, Direct Tax, Tax Reform, Simplification and Compliance, Fiscal Federalism.},
        month = {December},
        }