"We want to promote stability," the Finance Minister, Mr Pranab Mukherjee said, while releasing the Direct Tax Code.
This new code will be replacing the 1961 Income Tax and other direct tax laws.
The finance minister added, that the new code will provide for a simple structure for capital gains tax, savings instruments and non-profit organisations. He also added that there will be less scope for litigation.
"We expect to have better compliance and better collection of taxes," Mr Mukherjee was quoted as saying in a news agency report.