New Income Tax Slab for Individuals 
Tax Rates for the Different Types of Direct Tax 
Direct Tax Code Guide to the Direct Tax Codes 
Why direct taxes are better?
As the name suggests, a direct tax is one where the effect and the frequency are the same thing. A person or an organization pays the tax straight to the government agency that made them pay it. Someone else can't get the tax money; it has to be given to the government. 
 

Types of Direct Taxes 

India has a number of different types of direct taxes, which are listed below: 
Income Tax: People must pay income tax based on their age and how much money they make. The Indian government decides how much Income Tax people have to pay by putting them into different tax bands. Every year, the taxpayer has to make an Income Tax Return (ITR). No matter what their ITR says, people may get a return or have to pay a tax. People who don't file their ITR are subject to harsh punishments. 
Wealth Tax: This tax is due once a year and is based on how many properties a person owns and how much those properties are worth on the market. Anyone who owns property is required to pay wealth tax, and it doesn't matter if the land makes money or not. Depending on where they live, people, Hindu Undivided Families (HUFs), and businesses all have to pay wealth tax. The wealth tax does not have to be paid on gold deposit bonds, stocks, house property, commercial property that has been rented for more than 300 days, and house property that is owned for business and professional use. This tax is based on the amount of the estate, or the money someone leaves behind when they die. It is also known as Inheritance Tax. 
Corporate Tax: Companies in the United States will have to pay corporate tax, not just their owners. Companies from outside of India that make money in the country will also have to pay company tax. Any money you get from selling assets, expert service fees, interest, dividends, royalties, or selling assets is taxed in India. Under Corporate Tax, the following taxes are also included: 
Securities Transaction Tax (STT): This is a tax that needs to be paid on any taxable income from trading securities. 
Dividend Distribution Tax (DDT): In the United States, DDT is charged to companies that announce, give out, or get paid dividends by their shareholders. Some companies from other countries do have to pay DDT, though. 
Fringe perks Tax: This tax is paid by companies that give maids, drivers, and other workers extra perks. 
Minimum Alternate Tax (MAT): MAT is charged to companies that don't pay any taxes and have their books set up according to the Companies Act. 
What is the capital gains tax? It is a straight tax that you pay on the money you make when you sell assets or investments. Capital assets are things like farms, bonds, stocks, companies, art, and homes that people invest in. Tax can be put into two groups based on how long it is held: long-term and short-term. Things that are bought and then sold within 36 months are called short-term gains. This does not include securities. Long-term assets are taxed if they bring in any money from the sale of buildings that have been owned for more than 36 months. 

Rates of Tax for the Different Kinds of Direct Tax and Income Tax: 
Each person will be taxed at a different rate depending on their age and income. Here is a list of the three different tax plans: 

In addition to the above tax rates, Nirmala Sitharaman, the Finance Minister, has also put in place a new tax system that will start on February 1, 2020. But it's important to remember that the new income tax system is not required and can be used instead of the old one. To sum up the new income tax rates for FY 2020-21, we can say the following: 

Tax on Businesses: 
The following list shows the tax rates for both local and foreign businesses: 
Companies in the US: 
If a business makes less than Rs.250 crore in sales, it has to pay 25% business tax. If the company makes more than Rs.250 crore, on the other hand, it has to pay 30% business tax. 
Those with taxable income between Rs.1 crore and Rs.10 crore have to pay an extra 10% of that amount. 
A 12% fee is added to a company's taxable income that is more than 10 crore rupees. 
A 4% of the business tax is charged. 
When an international company makes less than Rs.1 crore, it has to pay a corporate tax of 41.2%. The business tax is made up of a 40% basic tax and a 3% education cess. 
This is the business tax that companies have to pay if they make more than Rs.1 crore. The business tax is made up of a 40% base tax, a 2% surcharge, and a 3% education cess. 
There is an extra 5% tax that companies have to pay if they make more than Rs.10 crore. 
Tax on Capital Gains 
As per the normal tax rates, short-term capital gains are taxed. 
If indexation is taken into account when figuring out the capital gains tax, the long-term capital gains are taxed at a rate of 20%. 
To figure out the Capital Gains Tax without taking into account the indexation benefit, long-term capital gains are taxed at 10%. 
Tax on Wealth 
income Tax is charged based on the amount of net income. To find net wealth, add up all of your taxed assets and subtract all of your debts. 
Net income is found by subtracting the total amount of debt from the total amount of assets. 
On March 31 of the year before the assessment year, the amount of net wealth is taken into account. 
But as of April 1, 2016, the Wealth Tax is no longer applied to wealth that was kept as of March 31, 2016. 
Tax Code Direct 
The Income Tax Act of 1961 was mostly replaced by the Direct Tax Code (DTC). The main goal of DTC is to make the direct tax system more fair, effective, and efficient. DTC was also written to change and stabilize all direct tax laws so that the tax-to-GDP ratio goes up and people are more likely to follow the rules on their own. 
A Look at the Direct Tax Codes 
Here are some of the most important parts of the Direct Tax Code: 
Each direct tax has its own code: A single, unified system for taxpayers can be set up by putting all direct taxes under one code. One code can also be used for all safety features. 
Being stable: At the moment, taxes are set by the Finance Act of the current year. The tax rates, on the other hand, are set between the first and fourth schedules of the Direct Tax Code. An Amendment Bill must be passed by the Parliament in order for any changes to the schedule to be made. 
Regulatory functions are taken away: All regulatory tasks must be done by other regulatory bodies. 
Giving to politics: 5% of the total amount of income that can be withheld will be used to give to politics. 
Flexibility: A law has been made so that changes and the need to bring the economy back up can be met without having to make changes all the time. 
There are no longer any problems with constant lawsuits. Extra care has been taken to make sure the code is not abused or misunderstood so that there are no contradictions or ambiguities. 
Fee-for-service tax: This tax is paid by workers, not employers. 
Why direct taxes are better 
Here are some of the best things about India's Direct taxes: Balance between the economy and society: The Indian government has set up fair tax rates based on a person's age and income. The economic state of the country is also taken into account when setting the tax rates. There are also exemptions in place to make sure that there are no differences in pay. 
Productivity: When the number of people who work and live in the neighborhood goes up, so do the direct tax returns. Because of this, direct taxes are thought to be very useful. 
The government raises taxes when prices are going up, which slows down inflation. The need for things and services goes down when taxes go up, which causes inflation to slow down. 
Because of direct taxes, both the government and the user feel like they know what will happen. The taxpayer and the government both know how much they need to pay and receive. 
There is a fair distribution of wealth: the government charges higher taxes to people or groups that can pay them. People in India who are poor and down on their luck get help with this extra money. 

Indian direct taxes are very important to the business, even though there are some problems with them. The right way to implement these taxes could make a big difference in keeping prices stable and stopping inflation.