India’s Union Finance Minister Pranab Mukherjee said on Monday that the new Direct Taxes Code (DTC) will come into effect in April next year in the country.

The new Direct Taxes Code (DTC) is aimed at modernizing the tax system. The government is also aiming to replace the Income Tax Act, 1961, with a new legislation for similar goals.

"The proposed Direct Taxes Code brings together the policy initiatives on direct taxes. It is slated to come into force from the next financial year," he said. Mukherjee was speaking at an international conference on 'Tax and Equality'.

He also said that the government is moving towards a national value-added tax system of Goods and Service Taxes at all levels for indirect taxes. The Finance Minister has also appealed for international collaboration to deal with tax evasion and block money, which is believed to cost a lot to the Indian economy.

"Tax evasion undermines the intended benefits of a progressive tax policy," the minister said, adding, "Resolution of these issues requires international cooperation and alignment of tax systems for better cross-border compliance."