The Finance Minister on Wednesday unveiled the draft of a brand new direct tax code/law, which will replace the four-decade Income-Tax Act, “… to improve the efficiency and equity of our tax system by eliminating distortions in the tax structure, introducing moderate levels of taxation and expanding the tax base”, said finance minister Pranab Mukherjee.
The direct tax code would replace the Income Tax Act 1961, Chidambaram said. Adding that the new direct tax code would become a law only by 2011, Chidambaram said the new tax code would be a vast improvement over I-T Act 1961.
Finance Minister Pranab Mukherjee said tax reform is a process, not an event. To moderate tax rate and simplify tax laws, all direct taxes including FBT and income tax would be brought under one code, he said.
Download Direct Tax Code Bill 2009
Download Direct Taxes Code : Discussion Paper
Related posts:
- Draft of Direct Tax Code Released by FM
- Direct Tax Code 2011 Cleared by Cabinet
- New Income Tax Slab under New Direct Tax Code 2009
- Company Bill 2009 – Download
- More Tax on House Property Income under Direct Tax Code
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{ 12 comments… read them below or add one }
Dear Finance Minister:
I have few questions and require clarifications on the same:
1. The examption limit for man/women/sr citizes are different, inspite an adult man has to brough up a complete family consisting of wife,2 chinderen, old age parents. He has to incur expenses from 2 lakhs -5 lakhs. So min standard deduction should be 5 lakh for men, 4 Lakh for women, 3 Lakh for sr citizen.
2. Do GoI want the standard of living to falll below poverty line.
3. why can not every body every body pay tax, even a riksha puller also. why …
4. why incom tax rules are equal for all.
The rebate of Housing loan interest / Education Loan interest should be maintained to help infrastructure field and to facilitate those, who have already availed such loans for tax exemptions.
Further, rebate of House loan repayment should also be there, since lot of service class ppl have availed House loan, to save tax on H/L repayment. After huge repayment, they will not be able to invest further on any other nstruement. and their tax liability will be higher.
So FM should atleast maintain such rebate to people who have already availed such loans. and should fix a future date as a deadline.
Respected Finance Minister,
When you have taken so much trouble of drafting new code, please review some suggestions from our ( salaried class persons ) point of view too
Why Can’t we make one slab for everybody other than Corporates ?
If it is kept at say 10 %, everybody will prefer to pay tax instead of hidding the legal income or generating Black Money
If by paying 10% as tax, 90% is rolled in India itself instead of keeping in TAX Heavens, it will improve our economy too , you must be knowing better than me as I am a simple commerce graduate and don’t know much of economics.
Regarding Housing benefits taken out will be effective only if the property rates come down by 20 to 30%
Savings which gives less than 8 to 9 % returns should not be taxed on maturity, as these are hard earned money and not from any speculation kept for retirement.
Hope you understand our problems
Respected Finance Minister,
The tax slabs are different for Men, Women and Senior Citizen.
I appreciate the importance given to the senior citizens.
But the benefit given to the women goes as a double benefit to the same family. In Indian system, generaly, the bread winner of the family is man only. If woman is working means it is an additional income for the family. The benfit is given to the double incomed family. I think this should be cahnged.
1. Benefit should be given to the women who are only the bread winners of the family.
2. More benfit should be given to the Men who are the sole breadwinners of the family.
Hope this problem is taken care of.
respected sir,
now the new direct tax code is coming… Is there any major changes in tax laws and completely new sections are introduced.. or based tax laws are same as per income tax act 1961
Dear Richa,
Yes, this new tax code consists of new sections interms of section number and content of the section. But it is very much easy for reading and implementation the sections so be happy to read and follow the new tax code from the year 2011.
“The Housing Loan” side, will surely have to considered as most of the salaried class in India have availed housing loan, as it would save a considerable amount of tax. When the real estate market is trying hard to come up, any decision which removes the tax benefits got from Housing loans, will have a huge impact on the Real Estate sector across India. And, this is really an extra burden on the salaried class.
When there are so many small shops, agents, real estate brokers, micro businesses etc. where there is huge amount of earnings ‘not’ accounted for, something has to be done to ensure that tax is collected genuinely from these areas.
Please don’t burden the salaried class of people at this time, as they are the ones who ( with their buying capacity) will play a pivotal role to help the economic revival which is in its incessant stage
respected finance minister sir,
the new tax code which is coming is really appreciable..but as far as my view is concerned proportion between high earning person and low earning people should maintain…i think that middle class salaried person is paying more tax.please give them some relaxation…
Sir,
Daily Price rise, children education, medical expenses, Transport expenses, etc are great concern. Nil tax amount should be increased to the level Rs.3,50,000/=. Long term savings like insurance and provident fund should be EEE. In case of any hospitalisation expenses should be tax exempt. Retirement benefits should be totally exempt from tax. Corporates and salaried section beyond Rs.10,0,000/= no tax concession. I am studying in detail the direct tax code and further comments will be submitted.
Rs.10,0,000 read as Rs.10,00,000/=.
Dear Mr. FM:
I request you to reconsider the Housing Loan benifit for self occupied property in the new Direct Tax Code. Infact the interest component benifit should not be limited to just 150000 but the entire interest component should be tax free. This will encourage and incentivise the “Aam Aadmi” to secure “a roof of his own”.
It will also help in the revival of Real Estate sector where after agriculture most of the “BPL class” is employed. Thus bringing in a far more inclusive growth. Consider the benifit of Nation by enabling people to earn money on their own rather than donating them away in charity schemes like NREGS!
The New Direct Tax code Bill 2009 was proposed to be presented in the winter session of the Parliament.
Kindly let me know, whether this bill has been presented before the parliament ?