The Forum of Free Enterprise is a non-political organization founded in 1956 by A. D. Shroff, and has been established to educate public opinion in India on free enterprise and a democratic way of life. The Forum publishes booklets to further its objects. The following booklet titled “An Analysis of Direct Tax Laws (Amendment) Bill, 1988” was published on December 14,1988, and is authored by Mr. Dinesh Vyas. The paper analyses the Direct Tax Law (Amendment) Bill, 1988 by drawing upon the purported changes, shift from and return to the older regime that was witnessed in the light of the recently enacted Direct Tax Law (Amendment) Act, 1987 and the predecessor Income Tax Act, 1962. After locating the socio-political and legislative context of enacting the 1988 Amendment Act, the paper critically unpacks and analyses the new changes brought under the new law in an academic and detailed manner.