Cabinet Clears the Direct Tax Code (DTC) Bill in Parliament.
The Cabinet at its hour-long meeting chaired by the Prime Minister discussed at length various provisions of the DTC Bill, which will seek to bring about radical reforms and simplification in direct tax structure including the Income Tax rates and exemptions.
Features:* It will be effective From April 1, 2011.
* It will Replace the old Income Tax Act which is 50 years old.
* Employees have to pay less direct tax in each slab of income.
* Limit of exemption for salaries employees : 2 Lakhs.
* Limit of exemption for senior citizens: 2.5 Lakhs.
* Tax for income between Rs. 2 lakhs - Rs. 5 lakhs: 10%
* Tax for income between Rs. 5 lakhs - Rs. 10 lakhs: 20%
* Tax for income over Rs.10 Lakhs 30 %.
* Corporate Tax 30 %.
Share with the world !!
what about saving limit,is it one lakh or three lakh
what about women employees? what is their IT exemoption? the basic exemption will be reviewed at what intervel>
Thank you,
yours sincerely
V.Padmanabhan
TO
VCRC(ICMR)
pondicherry