Direct Taxes Code The Direct Taxes Code (DTC) is said to replace the existing Indian Income Tax Act 1961. Common threshold Income Tax exemption limit for men and women proposed at Rs. 2 lakh per annum (proposed), up from Rs. 1.8 lakh 10 per cent tax on annual income between Rs. 2-5 lakh, 20 per cent on between Rs. 5-10 lakh, 30 per cent for above Rs. 10 lakh Tax burden at highest level will come down by Rs. 41,040 annually Proposal to raise tax exemption for senior citizens to Rs. 2.5 lakh from Rs. 2.4 lakh currently.(NOTE:- Union budget 2011-12 already has proposed it.) Corporate Tax to remain at 30 per cent but without surcharge and cess. MAT to be 20 per cent of book profit, up from 18.5 per cent. Proposal to levy dividend distribution tax at 15 per cent. Exemption for investment in approved funds and insurance schemes proposed at Rs. 1.5 lakh annually, against Rs. 1.2 lakh currently Proposed bill has 319 sections and 22 schedules against 298 sections and 14 schedules in existing IT Act. Once enacted, DTC will replace archaic Income Tax Act. However, many provisions in Income Tax Act will be a part of DTC as well. Mutual Funds/ULIP dropped from 80C [section 80C of Indian Income Tax Act]. deductions : Income from equity-oriented mutual funds or ULIP shall be subject to tax @ 5%. Fringe benefits tax will be charged to the employee rather than the employer. https://facebook/KIRANRAJ405.....
Posted on: Wed, 16 Oct 2013 09:08:13 +0000
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