Direct Taxes Code, or DTC Bill – Tax Slabs and more
Direct Taxes Code, or DTC Bill, will now replace the nearly 50-year-old income tax law, and it is likely to be introduced in Parliament Monday.
Tax Exempted
For Individual = Rs 2 lakh per annum (against the current Rs 1.6 lakh) from tax
For Female Individual and senior citizen (Rs 2.5 lakh) approx
Slab :
Rs 2 lakh and Rs 5 lakh at 10%,
Between Rs 5 lakh and Rs 10 lakh at 20%
Beyond Rs 10 lakh at 30%.
Rate of tax on corporate incomes will be 30%, against the 25% proposed originally, and the minimum alternate tax (MAT) for corporates at 20% of book profits. For individual taxpayers, withdrawal from provident funds will not be taxed deductions from taxable income will be available for interest on housing loans up to Rs 1.5 lakh per annum and on payments into PF and similar superannuation schemes up to Rs 1 lakh. Also available will be a deduction of up to Rs 50,000 for life insurance and health insurance premiums or tuition fees.