Dalal Street Investments
Top

New Direct Tax Code Bill

August 30, 2010

Breaking NewsWe have been able to obtain a copy of the Direct Tax Code Bill as Introduced by the Government in the Lok Sabha. As discussed earlier by our Analysts, the content in the new bill is very similar. Major Changes apart from what is already discussed is,

  • Applicable from 1st March 2010. That means it will be applicable for Citizens filing IT returns on or after April-1st 2013.
  • 5% Dividend Income Distribution tax to be Paid by MutualFunds [AMCs] and ULIPs [Insurance companies]
  • The short-term capital gains tax, currently levied at 15%, would now be levied at 50% of the three income tax slabs of 10%, 20% and 30%, i.e. 5%, 10% and 15%. Additionally, status quo is maintained on long-term capital gains tax that would continue to attract no tax subject to the levy of Securities Transaction Tax (STT)
  • Exemption Limit goes up from Rs 100,000 + Rs 20,000 [Infra Bonds] to Rs 100,000 + Rs 50,000 [for Health and Life Insurance]

The Following Chart shows the Comparison of Existing Tax Code Vs New Direct Tax Code in India

Capital Gains for Resident Indians – In cases (non-equity related asset), long-term capital gains tax rate will increase to 30% (from the current 20%) for taxpayers in highest tax bracket or corporate tax payers, while short-term capital-gains tax rate remains unchanged.

You can download the entire bill as introduced in the parliament is here.

Comments

2 Responses to “New Direct Tax Code Bill”

  1. Download the New Direct Tax Code Bill Income Tax of India | FreePress India on August 30th, 2010 6:46 PM

    […] and some window dressing with new flexible legislative powers in the hands of finance Ministry. Dalal Street Investment Journal has the First and Best Review with the DTC Bill Made Available for D…. Related Posts:Indian Budget – Pranab Mukherjees Transcripts LiveNew Pension Scheme […]

  2. Karan Batra - Tax advisor on September 6th, 2010 12:02 AM

    I somehow wonder that was there any need to introduce a New Direct Tax Code??

    As in when only such minute changes were supposed to be brought in, they could have easily been brought in by making Amendments to the Existing Income Tax Act and there was no need of a New Direct Tax Code

Got something to say?






Bottom