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    20 Highlights of The New Direct Tax Code Is Given Below

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    The document summarizes key aspects of India's new direct tax code: 1. It increases tax exemption limits for individuals to Rs. 200,000 and Rs. 250,000 for senior citizens. Company tax rates are reduced to 30% from the previous rates. 2. Capital gains tax will now apply to assets held for over one year, and the indexation base year is changed to lower taxes. Tax will also apply to long-term capital gains from securities. 3. The new direct tax code is aimed at simplifying tax procedures, lowering rates, and increasing revenue by broadening the tax net. It is estimated to lower government revenue by over Rs. 50,000 crore annually.

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    20 Highlights of The New Direct Tax Code Is Given Below

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    sentvid
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    The document summarizes key aspects of India's new direct tax code: 1. It increases tax exemption limits for individuals to Rs. 200,000 and Rs. 250,000 for senior citizens. Company tax rates are reduced to 30% from the previous rates. 2. Capital gains tax will now apply to assets held for over one year, and the indexation base year is changed to lower taxes. Tax will also apply to long-term capital gains from securities. 3. The new direct tax code is aimed at simplifying tax procedures, lowering rates, and increasing revenue by broadening the tax net. It is estimated to lower government revenue by over Rs. 50,000 crore annually.

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    The document summarizes key aspects of India's new direct tax code: 1. It increases tax exemption limits for individuals to Rs. 200,000 and Rs. 250,000 for senior citizens. Company tax rates are reduced to 30% from the previous rates. 2. Capital gains tax will now apply to assets held for over one year, and the indexation base year is changed to lower taxes. Tax will also apply to long-term capital gains from securities. 3. The new direct tax code is aimed at simplifying tax procedures, lowering rates, and increasing revenue by broadening the tax net. It is estimated to lower government revenue by over Rs. 50,000 crore annually.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    124 views2 pages

    20 Highlights of The New Direct Tax Code Is Given Below

    Uploaded by

    sentvid
    The document summarizes key aspects of India's new direct tax code: 1. It increases tax exemption limits for individuals to Rs. 200,000 and Rs. 250,000 for senior citizens. Company tax rates are reduced to 30% from the previous rates. 2. Capital gains tax will now apply to assets held for over one year, and the indexation base year is changed to lower taxes. Tax will also apply to long-term capital gains from securities. 3. The new direct tax code is aimed at simplifying tax procedures, lowering rates, and increasing revenue by broadening the tax net. It is estimated to lower government revenue by over Rs. 50,000 crore annually.

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    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
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    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.

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