The new Direct Tax Code will replace India's 61-year old Income Tax Act and aims to simplify the tax system. It introduces easier income tax slabs of 10%, 20%, and 30% for different income levels. It expands the tax base to include various perquisites and benefits. Contributions to certain savings instruments up to Rs. 3 lacs will be allowed as a deduction. Capital gains will be taxed as ordinary income at applicable rates, with indexation to account for inflation. The Code also reforms taxation of capital markets, property income, and introduces taxes on non-profits and high net worth individuals.