New Income Tax Policy of India - The Direct Tax Code

The Direct Tax Code known as DTC is the upcoming Tax Code of India. The DTC will replace the existing Income Tax act of India from the 1st Apr, 2012. The DTC will be applicable from the 2012-13 financial years in all over the India. In the opinions of the experts DTC will simplify the whole direct tax regime in the country.


Important Points of Direct Tax Code (DTC)

* This code will be applicable from 1st Apr, 2012.
* The Direct Tax Code will replace the existing Income Tax act of 1961.
* The Direct Tax Code will be applicable from the financial year of 2012-13.
* The Direct Tax Code will simplify the current tax calculations.
* The Direct Tax Code will removes majority of categories from the exempted income like Equity Mutual Funds, NSC, ULIPs, Long term infrastructures bonds, repayment of house loan and stamp duty etc.*
* In the Direct Tax Code education cess and Surcharge will be end.
* In the Direct Tax Code taxed will be applicable on only half of Short-term capital gains.
* In this DTC Tax exemption on LTA will be end.
* New tax slabs will be announced for income tax -
10% Tax for income between Rs. 2 lakh - Rs. 5 lakh
20% Tax for income between Rs. 5 lakh - Rs. 10 lakh
30% Tax for income over Rs. 10 lakh
* No changes in the corporate tax rate.
* Raised the limit for exemptions for salaried people is Rs. 2 lakh, while that for senior citizens is Rs. 2.5 lakh.