Surprise Surprise, DTC to be introduced this winter session – Initial provisions disappointing

The Direct Taxes Code (DTC) Bill, which seeks to replace the archaic Income Tax Act, is likely to be placed in Parliament during the winter session, finance minister P. Chidambaram said on Tuesday.“We are trying to bring DTC in the next session,” the minister told reporters here as reported by Live Mint. The winter session may start in early December, afterdownload the completion of assembly elections in five states.
The most disappointing part in the final draft of the DTC Bill, which has to be vetted by the cabinet, is no-change in the  income tax exemption limit at Rs.2 lakh for individuals. Also, it proposes to introduce a fourth slab with a 35% tax rate for those with an annual income of over Rs.10 crore, this would actually set in disappointment .  When DTC was talked about first, there was higher exemption limit proposed.

Among other things, the Bill proposes to levy a 10% tax on dividend income exceeding Rs.1 crore. The minimum alternate tax (MAT) may be levied on book profit and not on gross assets, sources said. Further, the securities transaction tax (STT) is likely to be retained, as against the recommendation of the standing committee on finance that the levy be abolished.

At present, tax is levied on income of Rs.2-5 lakh at 10%, Rs.5-10 lakh at 20%, and above Rs.10 lakh at 30%. Further, those earning more than Rs.1 crore have to pay a surcharge of 10%.
Read earlier article on this by
 Thanks for reading for this article. Please feel free to write to us, We want to hear it all!Suggestions? Complaints? Feedback? Requests?  at [] or call us at +91 88208208 11. We would be more than happy to assist you.