The DTC Bill, which
seeks to replace the archaic Income Tax Act, 1961, proposes to raise the Income Tax exemption limit from existing
Rs 1.6 lakh to Rs Two lakh, highly placed sources said. The Income Tax
exemption limit for senior citizens is proposed to be raised to Rs 2.5
lakh.
Under the moderate tax
slab suggested in the DTC Bill the government proposes tax rate
of
10 per cent for income
between Rs 2 lakh and Rs 5 lakh,
20 per cent for income
between Rs 5 lakh -
Rs 10 lakh and 30 per
cent for income over Rs 10 lakh.
Currently the Income Tax
rate is 10 per cent on income above Rs 1.6 lakh and upto Rs 5 lakh, 20 per cent
on income above Rs 5 lakh and upto Rs 8 lakh and 30 per cent on income above Rs
8 lakh.
Provisions of the
DTC Bill stipulating the tax rates in direct tax front
including Income tax and Corporate Tax will come into effect once it the
legislation is approved by both houses of Parliament.
The government plans to
implement various provisions of the DTC Bill with
effect from 1st April 2011.
It is learnt that the
government is likely to introduce the DTC Bill soon in both houses of
Parliament. After its introduction the draft DTC will be sent to Select
Committee of both houses for scrutiny.
After examining the
recommendations of the Select Committee the government will move the
DTC Bill for approval of Parliament in the Winter Session.
Source and
details: http://90paisa.blogspot.com/2010/08/union-cabinet-approved-direct-tax-code.html
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