Implementation of DTC delayed by a year, no special concession for female tax payers
merisarkar news service
New Delhi, August 30, 2010
No sops for women: Sunil Mitra
The government has introduced the much-awaited Direct Taxes Code Bill in the Lok Sabha which proposed to raise the exemption limit on Income Tax from the current 1.6 lakh rupees to two lakh rupees. The Bill, which seeks to replace the five-decade old Income Tax Act, 1961, was introduced by Finance Minister Pranab Mukherjee in Lok Sabha on Monday.
The Bill will now be examined by the Standing Committee of Parliament. It will come into effect from 1st April, 2012, if passed by Parliament.
The Bill, seeks to widen Income Tax slabs to levy 10 per cent rate on income between 2 lakh to 5 lakh rupees, 20 per cent on between 5-10 lakh rupees and 30 per cent above 10 lakh rupees.
For senior citizens, tax exemption is sought to be raised to 2.5 lakh from the existing 2.40 lakh rupees. The Bill seeks to fix corporate tax at the current 30 per cent but without surcharge and cess. With surcharge and cess, the current tax liability on corporate comes to over 33 per cent.
Though senior citizens, persons above 65 years, will get additional benefit, women tax payers will not be accorded special treatment available to them in the IT Act. Cap on deduction on payment of interest on the home loan maintained at rupees 1.5 lakh. However, the Bill also proposes to do away with the tax exemption on the principal amount paid on housing loans.
Revenue Secretary Sunil Mitra told media persons in New Delhi that the proposed Bill will help simplify direct tax collection in the country.
