Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: cpt :: form 3cd :: TDS :: empanelment :: TAX RATES - GOODS TAXABLE @ 4%
 
 
Direct Tax »
 GST is a transformational business process reform. All companies will have to change
 GST Council relaxes return filing rules for July-Aug
 Here's how self-employed individual can file tax return with ITR4
 CBDT mulling new system of jurisdiction-free I-T assessment to curb corruption
 CBDT draft notice on computing tax liability of foreign firms
 CBDT forms task force for jurisdiction-free income tax assessment system
 Aadhaar must for filing returns from July 1: CBDT
 Aadhaar mandatory for filing I-T returns and obtaining new PAN card from July 1: CBDT
 Central Board of Direct Taxes cuts profit margin for safe harbour rules
 What is TDS and how does it work?
 Income tax return: Do super senior citizens have to file returns?

Highlights of Direct Taxes Code Bill
September, 13th 2010

QUESTION: Direct Taxes Code Bill was introduced in Parliament. How far is it different from the draft Code, 2009?

ANSWER: The Bill is proposed to be effective only from April 1, 2012, so as to cover the income of the financial year 2011-12. It will also go to the Parliamentary Committee before it is taken up by Parliament.

This is welcome because it will no longer be rushed through as it was earlier apprehended. There have been some material changes from the draft Code, 2009. The proposal for tax on gross assets has been dropped but the tax on branch profits will remain requiring reconciliation with Double Tax Avoidance Agreements.

The proposals for substantial reduction in tax rates and in slab revision proposed in the draft Code are now replaced by practical return to the existing rates admittedly prompted by the need for calibrating the rates with expected revenue even as had been indicated in the Revision Paper. Tax rates under the existing law, the draft Code and the Bill may be analysed in the accompanying chart.

Women will lose the right to the special exemption to which they are entitled to under the existing law as well as the proposal in the first draft Code.

As regards firms and companies, the relief is only removal of surcharges and cesses which were even otherwise expected to be temporary.

The prevailing rate at 30 per cent will continue as against 25 per cent in the earlier draft. There is no change in the rate of tax on distributed dividend by a company, which will continue at 15 per cent. Minimum Alternate Tax for companies will continue with the tax rate jacked up to 20 per cent from 15 per cent. The new tax on branch profits would be 15 per cent.

There are proposals for new levies on income distributed to holders of equity-oriented units of mutual funds and the amount distributed under approved equity-oriented life insurance schemes at 5 per cent. The proposed EET scheme in the draft Code does not find a place in the Bill so that outright deductions for savings now available under Sec. 80C will continue, while the EET scheme will be limited to present provisions under Sec. 80CCC and 80CCD.

Exemption now available for long-term capital gains on transfer of listed shares, where securities transaction tax is suffered, will continue despite the earlier proposal to the contrary. Other changes can be considered in due course.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

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