Highlights of the DTC bill placed in the Lok Sabha
Following are the highlights of the Direct Tax Code bill placed in the Lok Sabha by Finance Minister Pranab Mukherjee on Monday.
* Income tax exemption limit proposed at Rs 2 lakh per annum, up from Rs 1.6 lakh
* 10 percent tax on annual income between Rs 2-5 lakh, 20 percent on between Rs 5-10 lakh, 30 percent for above Rs 10 lakh
* Tax burden at highest level will come down by Rs 41,040 annually
* Proposal to raise tax exemption for senior citizens to Rs 2.5 lakh from Rs 2.4 lakh currently
* No mention about tax exemption to women in proposed bill
* Corporate tax to remain at 30 per cent but without surcharge and cess
* MAT to be 20 percent of book profit, up from 18 percent
* Proposal to levy dividend distribution tax at 15 percent
* Exemption for investment in approved funds and insurance schemes proposed at Rs 1.5 lakh annually, against Rs 1.2 lakh currently
* Proposed bill has 319 sections and 22 schedules against 298 sections and 14 schedules in existing IT Act
* Once enacted, DTC will replace archaic Income Tax Act
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