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Enumerate the major tax reforms introduced in India in the recent times. Do you think that India should move towards a Direct Tax Code? Examine.

Topic: Inclusive growth and issues arising from it.

5. Enumerate the major tax reforms introduced in India in the recent times. Do you think that India should move towards a Direct Tax Code? Examine. (250 words)

Difficulty level: Moderate

Reference: Insights on India

Why the question:

The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2022 Secure timetable.

Key Demand of the question:

To write about major tax reforms in recent times and to examine the feasibility of direct tax code.

Directive word: 

Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.

Structure of the answer:

Introduction: 

Begin by stating the aims and objectives behind tax reforms.

Body:

First, in brief explain the major tax reforms introduced during recent times – GST, MAT rates, faceless assessment,  etc

Next, explain the concept of direct tax code and its components. Write about as to how it will be better than the existing mechanism and also write about it uncertainties and issues with respect to it.

Conclusion:

Conclude by stating a balanced opinion with regards to direct tax code.