Worried About the New Direct Tax Code? Here’s Why You Should Not

You may have read blogs; you may have seen YouTube videos by “experts” or even may have seen memes regarding the new Direct Tax Code (DTC) and how it can affect your income. And this barrage of information might have left you worried, but you need to relax. This new tax code will be applicable in the year 2026. Much misinformation was spread regarding the application for the new DTC, but it will take some time. This time is enough for you to know and understand how it will affect your income and what steps you can take to save and invest as much as you can.

Why will the new DTC be applicable in 2026?
The current government announced in August 2024 that they will be ready with the new DTC by Dec 2024. But being ready does not mean it will immediately roll out. The laws need to be passed which can take some time. A conservative estimate would be 2 to 3 months. Once the code is passed, it becomes applicable from April 2025, meaning, it will affect your income in July 2026 when you file for an income tax return. So, you have enough time to understand the new DTC.

No Major Developments
Many portrayed the upcoming changes as some radical new tax regime that would change the way every income earner is taxed. But this is far from the truth. Yes, some changes are expected. Some changes might be beneficial, some may not be that beneficial, but the truth is, there won’t be any radical changes. There will still be tax slabs, the methods for filing taxes and returns may also be the same. So, the speculation of radical changes is baseless. The government is still working on the new DTC and it is going to take time.

To the Old System to Understand the New System
As mentioned earlier, there aren’t going to be any radical changes to the system. The new DTC will not be a complete abolishment of the old tax regime. Rather, it will use the old tax regime as a strong base to build the new DTC. Whatever the faults and loopholes in the old system were will get plugged and fixed to ensure a better taxation system. So, you have to first understand the current system has been working. Once you know and understand this, you will understand the new DTC better and you will be able to use it to your advantage.

So, stop worrying about what will happen in the future. Learn to discern between true financial experts like Money with Mansy and influencers who just want views through fear-mongering. Follow the right people, consult them regarding tax savings, and be prepared for a financially secure future.