Download Available Direct Tax code Bill tabled in Lok Sabha

Friends,

Highlights of The New direct Tax code is given below

1. Tax exemption Limit enhanced for Individuals to 200000
2. For senior Citizen limit is 250000.
3. There is no addition limit for Women.
4. 200000-500000=10% ,500000-1000000=20% and more than 1000000 30 %
5. Company tax rate is 30%
6. There is no cess and surcharge new direct tax code
7. MAT(minimum alternative tax ) proposed at 20% present rate is 18% plus cess and surcharge
8. Capital gain Long term is now from asset hold more than one years.
9. Indexation Base year to be changed to 01.04.2000 from 01.04.1981 so no tax on gains realised between 1981 to 2000.
10. Tax applicable on capital gain from long term sale of securities ,presently it is exempted.
11. Proposed applicable date is 01.04.2012 (FY 2012-13)
12. The Government has also proposed to restore back the taxation of retirement savings, in the nature of provident fund contributions and pure life insurance and annuity products, to the Exempt-Exempt-Exempt scheme from the earlier proposition of Exempt-Exempt-Tax scheme under the revised discussion paper in the DTC
    
13. No Tax on Long term capital gain on securities & equity linked mUtual funds,For short term capital gain tax rate is 50 % of normal slab rate applicable to the asseessee.
14. in case of short term assets, there is no relaxation to the tax payer and tax will be required to paid as in case of any other ordinary income
    
15. The code introduces a Rs 50,000 enhanced deduction for savings in addition to old 100000 deduction.
16. Interest on house loan benefit continues ,HRA benefit also have a place in DTC .
    

You may download the Direct Tax code Bill from Link given below .

Download Direct tax code Bill as introduced in LokSabha On 30.08.2010

The government on Monday introduced in Parliament a bill to overhaul its archaic direct tax codes, a key reform aimed at simplifying procedures for investors and bring in more revenue by widening the tax net.

This switchover to DTC with higher exemption limits and lower corporate tax, Revenue Secretary Sunil Mitra says, will cost the government a revenue loss of Rs 53,172 crore on reduced rates and a loss of Rs 38,829 crore in the first year from corporate tax rate. “India's direct tax collection for 2011-12 is expected to be at Rs 5.27 lakh crore in the first year, if current rates hold,” he adds.The bill proposes to cut tax rates, replace profit-linked exemptions for companies with investment-linked incentives and simplify rules on corporate mergers, aimed at creating a tax code that can support growth in Asia's third-largest economy.

The dividend distribution tax (DDT) for holding companies has been removed up to any level and the securities transaction tax (STT) rate has been kept same at 0.25%. The new code would also scrap cess and surcharge.

The bill will now be applicable from April 1, 2012, instead of the earlier proposed March 1, 2011. This delay, Mitra says will allow time for switchover.