Features of New DTC proposed

Following are the highlights of the Direct Tax Code bill placed in the Lok Sabha by Finance Minister Pranab Mukherjee on Monday (30.08.2010)

* Income tax exemption limit proposed at Rs. 2 lakh per annum, up from Rs. 1.6 lakh
* 10 percent tax on annual income between Rs. 2-5 lakh, 20 percent on between Rs. 5-10 lakh, 30 percent for above Rs. 10 lakh
* Tax burden at highest level will come down by Rs. 41,040 annually
* Proposal to raise tax exemption for senior citizens to Rs. 2.5 lakh from Rs. 2.4 lakh currently
* No mention about tax exemption to women in proposed bill
* Corporate tax to remain at 30 per cent but without surcharge and cess
* MAT to be 20 percent of book profit, up from 18 percent
* Proposal to levy dividend distribution tax at 15 percent
* Exemption for investment in approved funds and insurance schemes proposed at Rs. 1.5 lakh annually, against Rs. 1.2 lakh currently
* Proposed bill has 319 sections and 22 schedules against 298 sections and 14 schedules in existing IT Act