A major relief to tax payer when the government on Wednesday introduced a new direct tax code that seeks to simplify the tax regime in India replacing the Income Tax Act 1961.
According to new tax code / new direct tax code 10% tax up to Rs. 10 Lakh Income.
See new income tax slab under new direct tax code
The government proposed major tax reforms through a draft code that aims at moderating income tax rates, abolishing Securities Transaction Tax (STT) and increasing deduction for savings up to Rs 3 lakh.
“We expect to have better compliance and better collection of taxes,” Mukherjee said.
See new income tax slab under new direct tax code
According to the new recommendations of the Code :
- 10 per cent tax rate should apply to an annual income of Rs 1.6-10 lakh per annum (Now 10 per cent is levied on incomes of Rs 1.6-3 lakh, 20 per cent on Rs 3-5 lakh and 30 per cent above Rs 5 lakh).
- 20 per cent rate rate should apply to an annual income to Rs 10-25 lakh per annum.
- The maximum rate of 30 per cent should apply to income above Rs 25 lakh per annum.
- Perquisites given to employees should be included in salary income (likely to inflate the taxable income of certain categories of salaried persons).
- Tax rates for companies should be reduced to 25 per cent for both domestic and overseas companies. Currently, domestic companies are taxed at 30 per cent with surcharge and cess coming later.
- Foreign companies should pay an additional tax of 15 per cent as branch profit tax.
- Abolition of the controversial STT (but the Code also suggests reintroduction of tax on long term capital gains on securities trading).
Note: Direct tax code to be implemented only by the end of 2011 or early 2012 after completed the process of debate and suggestion from public.
Related posts:
- Direct Tax Code 2011 Cleared by Cabinet
- Revised Draft Tax Code Favours Equity MFs Over Ulips
- Download Direct Tax Code Bill 2009
- New Income Tax Slab under New Direct Tax Code 2009
- How The New Tax Code Impacts On Real Estate
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{ 7 comments… read them below or add one }
It is not so cool. definitely it is a sugar coated pill. this is totally a burden on salaried class employees. the basic exemption limit should be increased from 160000/- to 350000/- approximately. we are not in favour of this new tax code.
We want explanation from government whether this law is for peoples’ favor or for govenment to get more tax .. . .
How is this going to help India grow .. . People to raise std of living .. .
Can someone explain .. . Anyone listening .. . the .. .
This will be of great relief for the MIG.
Pls reffer Direct Tax codes
I would like to know the slabs for females. Is it same or different
I wnat to know that what is the tax rate under direct tax code?
The Income Tax Act or DTC should provide for full tax exemption in case of low income individuals who undergo major surgical operations/hospitalisations during the assessment period so that they do not have to pay tax by borrowing money or depleting their life’s savings. The Government has totally ignored the plight of such weak sections of the society and made such poor individuals’ lives very difficult. For example an individual who gets Rs 300000 in a year has paid Rs 200000 for his own or his wife’s hospitalisation by borrowing money. Will he not get further impoverished by paying Income tax? Does he not deserve full tax exemption?