Direct Tax Code
The Direct Taxes Code (DTC) is a tax legislature proposed to be active in place of the Indian Income Tax Act of 1961. This direct tax code bill was put up in the parliament on 30th August 2010, to be reviewed and passed by it. But, till now, this bill has not been brought in force, and it is hoped that it will be made effective from April 2013. The lower section of this article gives more information about this direct tax code india. The main purpose of this direct tax code (india direct tax code) is to modify the existing tax act, in order to make it more suitable to the requirements of present and future India, in respect of proper economic and social development. This proposed bill comprises of 319 Sections and 22 Schedules, and contains a substantial part of the current income tax act. The existing tax act has lesser sections and schedules, just only 298 Sections and 14 Schedules. The most striking measures taken in this direct tax code india are increment in the threshold of tax exemption for the individuals, abolishment of surcharge and education cess, and removal of most of the categories of exempted income.
Direct Tax Code India 2012
The foregoing has already given answer to the question what is direct tax code in india. Now in this section will present the salient features of this direct tax code india 2012. On the whole, the new direct tax code of India seeks to offer some benefits to individuals falling under the category of middle income group, in addition to providing certain incentives for industrial and economic developments. The tax exemption limit is extended by this code to Rs.2 lakhs from Rs.1.8 lakhs, and for the senior citizens this exemption threshold is raised to Rs.2.5 lakhs from Rs. 2.4 lakhs at present. For annual income ranging from Rs. 2-5 lakhs and 5-10 lakhs, the payable tax is 10% and 20% respectively. For income above Rs. 10 lakhs the taxation rate applicable will be 30%. The tax levied on the annual income of corporate bodies will be at 30%, surcharge and education cess being abolished. One of the noticeable modifications in the taxation provisions is that this direct tax code of India removes tax exemption for majority of the income sources. As per this new tax code taxation will be levied on the income gained through equity mutual funds, unit linked insurance plans, term deposits, long term infrastructure bonds, possession of real estate property and the repayment of house loans, etc. Ours well-informed and sophisticated taxation attorneys can promptly provide the visitors full and discerning information about this direct tax code india.