DIRECT TAX CODE IS “STILL BILL”:
- Income tax exemption limit proposed at Rs. 2,00,000 p.a., up from Rs. 1,60,000.
- 10 % tax on annual income between Rs. 2,00,000 -5,00,000, 20% on between Rs. 5,00,000-10,00,000, 30% for above Rs. 10,00,000.
- Tax burden at the highest level will reduce by Rs. 41,040 annually
- Proposal”to raise tax exemption for senior citizens to Rs. 2,50,000 from Rs. 2,40,000 currently.
- No proposal for tax exemption to women.
- Corporate tax to remain at 30% but with No surcharge and cess
- MAT (Minimum Alternative Tax) to be raised to 20% of book profit, up from 18%.
- Proposal to levy (DDT) dividend distribution tax at 15%
- Exemption for investment in approved funds and insurance schemes proposed at Rs. 1,50,000 annually, against Rs. 1,20,000 currently
Once enacted, DTC will replace the Existing Income Tax Act.