The Finance Minister unveiled new direct tax code, which will allow people to calculate their own taxes. Direct tax code that seeks to simplify the current tax provisions. cbdt, draft direct tax code, finance ministry, ministry of finance
The direct tax code would replace the Income Tax Act 1961, Chidambaram said. Adding that the new direct tax code would become a law only by 2011, The Central Board of Direct Taxes (CBDT) has presented the draft code to finance minister of india. The FM has already spent several hours with senior tax officials discussing further refinements.
Rewriting income tax law in simple English is the main goal.
Will the code lend certainty to the tax-treatment of income earned by FIIs from the sale of Indian shares? Chances are remote. Tax officers will go by the facts of each case to decide whether an FII is an investor or a trader in shares. Simply put, there may not be anything black and white in the code, at least on this issue. The government has been talking about ending exemptions for sometime. But resistance from India Inc has forced it to go slow. Even now, the effective tax rate for several companies is lower than the statutory rate of 33.99%.via
Direct Tax Laws are to become more "saral" for taxpayers as the government is to make a new direct tax code in a much simplified form which is going to simplify the tax payment scheme. However the new direct tax will be effective from 2011 only.Chidambaram said the new tax code would be a vast improvement over I-T Act 1961. Finance Minister Pranab Mukherjee released a draft of the code in the presence of home minister and former finance minister P Chidambaram, who initiated work on it during his tenure. reports bolmamabol.com
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The summary of the new direct tax code, are as follows:
* Slash income tax rates
* Most exemptions to go
* Interest on savings to be taxed
* Up to Rs 1.6 lakh: No tax
* 10 per cent tax for Rs 10 lakh income (Rs 1.2 lakh in hand)
* 20 per cent tax for Rs 25 lakh income (Rs 2.60 lakh more in hand)
* 30 per cent tax for income over Rs 25 lakh
* To raise deduction limits for savings upto Rs 3,00,000
* Corporate Tax: Down from 30 per cent to 25 per cent
* Wealth tax to be levied for wealth above Rs 50 crore
read complete details from http://finmin.nic.in/DTCode/Direct%20Taxes%20Code%20Bill%202009.pdf