What may be in store for taxpayers & businesses under DTC
March, 02nd 2012
Individuals with annual income up to Rs 5 lakh are now exempted from filing personal income tax return for the current financial year. This relief was proposed in the Union Budget last year.
However, a circular from the Central Board of Direct Taxes (CBDT) indicates that this relief has been extended for this financial year.
Budget being round the corner, the so called 'Aam Admi' would be curious to know if there will be any increase in their disposable income.
Every year there is a general expectation from the individual tax payers on the budget proposals relating to personal taxation, especially on the tax rates/tax slabs.
This expectation is further heightened this time due to the impact of global economic slowdown directly or indirectly impacting the growth in India and inflationary trends in the domestic market.
The DTC, which seeks to modernise the direct taxation system, will replace the Income Tax Act, 1961. Centre had planned to introduce the DTC from April 1, 2012.
The final contours of the direct taxes code are taking shape, but the new law will not be ready in time for the budget. Finance minister Pranab Mukherjee could still implement some of the proposals included in this ambitious recast of the country's direct taxes. ET takes a look at what could be in store for taxpayers & businesses.
1) Higher tax exemption for inflation hit aam aadmi