Cabinet approves direct tax code bill
Expected Implementation Date : -1.04.2011
Main Feature
- New Direct Tax Code will replace Income Tax Act 1961 and subsequent changes thereon. It will simplify the procedure of Income Tax
- Raise in Income Tax Limit
- Housing Loan exemption retained at Rs. 1.5 lakh
- Corporate tax to be 30%, including cess, surcharge
- Capt Gains tax remains unchanged.
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MAT to be levied at 20% on book profits not gross assets
Income Tax Limit as per New Direct Tax Code:
FOR INDIVIDUALS (BOTH MALE AND FEMALE BELOW THE AGE OF 65 YEARS), HUF, AOP’S, BOI’S.
INCOME SLAB
- Where the total income does not exceed 2,00,000
- Where the total income exceeds 2,00,000 but does not exceed 5,00,000
- Where the total income exceeds 5,00,000 but does not exceed 10,00,000
- Where the total income exceeds 5,00,000
FOR SENIOR CITIZENS, TAX EXEMPTION IS UPTO RS. 2,50,000
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