INCOME TAX

DIRECT TAX CODE IS “STILL BILL”:
  1. Income tax exemption limit proposed at Rs. 2,00,000 p.a., up from Rs. 1,60,000.
  2. 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.
  3. Tax burden at the highest level will reduce by Rs. 41,040 annually
  4. Proposal”to raise tax exemption for senior citizens to Rs. 2,50,000 from Rs. 2,40,000 currently.
  5. No proposal for tax exemption to women.
  6. Corporate tax to remain at 30% but with No surcharge and cess
  7. MAT (Minimum Alternative Tax) to be raised to 20% of book profit, up from 18%.
  8. Proposal to levy (DDT) dividend distribution tax at 15%
  9. 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.

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+Dilip Kumar