The Direct Tax Code (or DTC) has recently
been proposed by the Government of India, to bring about a change in
the whole taxation system of the country.
The new tax code aims to make the system more efficient and easy for
tax payers, with simplified rules and regulations.
It is a step towards replacing the four decade old Income Tax Act of India.
The new DTC would impact both individuals as well as corporate with changes in taxation slabs, Public Provident Funds, insurance policies, home loans, mutual funds and shares.
Drafts of the DTC
The first draft: The Finance Minister floated the first draft of the DTC in August 2009 Jelly”>Cialis Jelly and kept it open for public comments. Here is a peek on a few of the proposals made in the first draft:
- Proposal to exempt tax if income is Rs 1.6 l akhs in
a year.
The tax slabs further Pharmacy No Prescription Needed would be 10 per cent from Rs 1.6 lakhs to Rs 10 lakhs, 20 per cent between Rs 10 lakhs and Rs 25 lakhs, and 30 per cent above Rs 25 lakhs
- Deduction levels for savings raised to Rs 3,00,000
- Wealth tax to be levied on wealth over Rs 50 crore
- Proposal of a uniform corporate tax rate of 25 per cent
- Securities transaction tax abolished
The revised draft of the DTC
Fur ther to Omnicef Online Without Prescription the 1,600 comments received,
the second draft of the DTC was floated recently. It brought certain changes in retirement schemes, home loans and capital gains, to name a few.
DTC revised draft: What it offers investors
The Soft”>Kamagra Soft second draft of the DTC is much simpler and offers investors a whole deal of exemptions, unlike the first draft. The revised draft was aimed towards promoting long term savings.
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