New Direct Tax Code in 2011-2012, India

Government of India has proposed a new Direct Tax code or Direct Taxes Code to replace the old Indian Income Tax Act of 1961. This Direct Tax code is an attempt to simply the tax-life of an individual. The way it works is that the income tax slabs are increased, however several deductions (e.g. deduction on housing loan) and tax-breaks are taken away. A detailed post will be written about Direct Tax Code. Below you will find the proposed income tax slabs under the Direct Tax code will be debated in the Parliament and if approved, will be implemented in 2011-2012.

Income Tax rates or Tax Slabs under Direct Tax Code : Table

Education cess and surcharge on total income tax

It is not clear whether education cess and surcharge will be applicable on income tax collected under direct tax code. According to the current indian income tax act, in addition to the income tax calculated according to the above income tax slabs, a 3% of Education cess is charged on the total Income tax paid (not on the total taxable income). If the taxable income exceeds Rs. 10 lacs, a 10% surcharge on the total income tax (not on the total taxable income) is also charged.

COMMENT GUYS Does IT inCREase THE quantity of tax payers . does it fair , what effect on Infrastructure of india 

Thank you 4 info...

If these are applicable, there will be no question of black money.

thank you very much

Sorry but i feel there is one mistake.I am not sure.But the basic limit is enhanced to 2 lakhs and not 1 lakh 60000 for both ladies and gents.

Kindly confirm that as i am sure i heard this on news.

thanks for sharing

Thanks for sharing 

II. In case of individual being a woman resident in India and below the age of 65 years at any time during the previous year:-

III. In case of an individual resident who is of the age of 65 years or more at any time during the previous year:-

but for assesse other than company there is no surcharge levied

Originally posted by : Magnet
	Sorry but i feel there is one mistake.I am not sure.But the basic limit is enhanced to 2 lakhs and not 1 lakh 60000 for both ladies and gents.   Kindly confirm that as i am sure i heard this on news.

NO enhancement , i confirmed its 1.6 and 1.9 lacs