Final DTC to see tweaks in Wealth tax, I-T slabs: Sources
April, 26th 2013
The new or revised direct tax code bill being worked upon by the finance ministry currently will see key changes in wealth tax, I-T slabs and definition of non profit organization, sources from Central Bureau of Direct Taxes (CBDT) informed CNBC-TV18's Aakansha Sethi.
Sources said that the threshold for wealth tax, which is currently at Rs1 crore is likely to be increased to Rs 5 crore, in line with the standing committee recommendation. The revised DTC could have investment linked deductions as well.
Also read: Tax mop up growth target of 18% realistic: FinMin aide
While the income tax rates are likely to continue at 10 percent, 20 percent, and 30 percent, the government may think of easing income tax slabs to provide relief to middle class. In the 2013-14 Budget income tax slabs and rates both were kept unchanged. The government may also consider introducing a new tax slab of Rs 5 crore, similar to the super-rich tax.
Corporate tax rate is likely to remain at 30 percent. Securities transaction tax (STT) is unlikely to be abolished and minimum alternative tax (MAT) on gross assets is unlikely to be brought back. There could be change in the definition of non-profit organisations (NPOs) as well.
The finance minister P Chidambaram is keen to introduce revised DTC bill in the budget session of parliament, however finance ministry officials believe it would be challenging.