Finance Minister Pranab Mukherjee introduced the the much-awaited Direct Taxes Code (DTC) Bill in the Lok Sabha on Monday that proposed a restructuring of income tax slabs—a move that will leave more money in the hands of people.
Once legislated, the bill will replace the archaic Income Tax Act by rationalising tax slabs. It is proposed to be introduced from April 1, 2012.
The bill has proposed to raise the basic exemption limit to R2 lakh per annum from R1.6 lakh per annum.
The bill has proposed to fix corporate income tax rate at 30 per cent inclusive of surcharges and cesses — down from 33 per cent at present.
{{/usCountry}}The bill has proposed to fix corporate income tax rate at 30 per cent inclusive of surcharges and cesses — down from 33 per cent at present.
{{/usCountry}}It has also proposed minimum alternate tax of 20 per cent, instead of 18 per cent, on book profits of companies.
After introduction in Parliament, the bill will be examined by a Standing Committee and based on its recommendations the government would consider further amendments in the bill.