sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« News Headlines »
 What to do if you missed the (second) tax deadline
 Income-tax (5th Amendment) Rules, 2018 - Notification under section 9A (3) of the Income-tax Act, 1961 in respect of Fund Manager Regime
 Income Tax department warns salaried class again filing wrong ITRs
 ITR-1 form for AY 18-19 now available for e-filing
 New Income Tax Return Form for Salaried Class available in Portal
 Income Tax Return: ITR-1 ready for e-filing, says I-T department
 6 Tax changes you need to keep in mind while filing ITR for FY17-18 Income Tax Return efiling
 Income-tax (5th Amendment) Rules, 2018
 Last-minute tax tips for late filers
 What demonetisation did to tax collections
 Income–Tax (Fourth Amendment) Rules, 2018

Direct Tax Code to raise income tax exemption limit to R 3 lakh, introduces 'Super Rich' category
November, 14th 2013

In a time when high inflation is blowing holes in pockets of consumers, if a relaxation is granted on tax deduction, consumers will definitely get a reason to celebrate. Well, Ministry of Law and Justice has approved the proposal to raise annual income tax exemption limit from 2 lakh to 3 lakh, reports DB correspondent.

The Direct Tax Code (DTC) draft will now be sent to Cabinet for approval. Thereafter, the approved draft will be introduced in Parliament. According to an official of Ministry of Finance, Parliamentary Committee has nearly agreed to the tax exemption limit under the latest draft of future DTC bill.

The proposal was first drafted by the standing committee led by former Finance Minister Yashwant Sinha. The committee had raised the cap of annual tax exemption from Rs. 2 lakh to Rs. 3 lakh. Moreover, the committee has recommended maintaining the tax percentage at 10% for income group earning annual pay up to Rs. 10 lakh.

Current tax rates

Currently, income tax rate for income group of Rs. 2–5 lakh is 10%. Professionals earning annual income of Rs. 5–10 lakh are required to pay an income tax of 20%. Finally, the income group of Rs. 10 lakh above must 30% of their income as tax to the government.

'Super Rich' category

Yashwant Sinha has said that a new ‘Super Rich Category’ shall be introduced amongst the classes of taxable income groups. We are told that suggestions from various ministries have been incorporated in the draft that is due to be introduced in the Parliament. The Super Rich income group will have to pay more than 30% of their income as tax to the government.

Way through the Parliament

The DTC draft is expected to be introduced to the Winter Parliamentary Session commencing on 5 December. If the government is indeed keen to consider the DTC bill, it has to be introduced while the winter session. The bill shall not be delayed post the coming session, because in the following session Budget shall be presented to secure ‘vote on account’.

Finance Ministries

Three drafts of the DTC bill have already been prepared so far. The first draft was charted by P Chidambaram back in 2009, when he held the position of Finance Minister. The Ministry was however dissolved after that as the Ministry was taken over by Pranab Mukherjee. Mukherjee charted a fresh draft; however, neither of the two drafts could be taken forward.

Chidambaram is now a Finance Minister again and Pranab Mukherjee is now President of India. The Finance Minister has prepared a new draft on the proposal. It is now to be seen how far the proposal proceeds as there is little time left in general elections 2014.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions