Direct Tax Code Draft
The draft Direct Taxes Code
| PROPOSED SLABS | ||
| Income (Rs) | Existing | Proposed Tax |
| MALE | ||
| Up to 1,60,000 | Nil | Nil |
| 1,60,001 -3,00,000 | 10 | 10% of the amount by which the total income exceeds Rs 1,60,000 |
| 3,00,001-5,00,000 | 20 | 10% of the amount by which the total income exceeds Rs 1,60,000 |
| 5,00,001-10,00,000 | 30 | 10% of the amount by which the total income exceeds Rs 1,60,000 |
| 10,00,001-25,00,000 | 30 | Rs 84,000 plus 20% of the amount by which the total income exceeds Rs 10,00,000 |
| Above 25,00,000 | 30 | Rs 3,84,000 plus 30% of the amount by which the total income exceeds Rs 25,00,000 |
| FEMALE | ||
| Up to 1,90,000 | Nil | Nil |
| 1,90,001 - 3,00,000 | 10 | 10% of the amount by which the total income exceeds Rs 1,90,000 |
| 3,00,001-5,00,000 | 20 | 10% of the amount by which the total income exceeds Rs 1,90,000 |
| 5,00,001-10,00,000 | 30 | 10% of the amount by which the total income exceeds Rs 1,90,000 |
| 10,00,001-25,00,000 | 30 | Rs 81,000 plus 20% of the amount by which the total income exceeds Rs 10,00,000 |
| Above 25,00,000 | 30 | Rs 381,000 plus 30% of the amount by which the total income exceeds Rs 25,00,000 |
| SENIOR CITIZEN | ||
| Up to 2,40,000 | Nil | Nil |
| 2,40,001 - 3,00,000 | 10 | 10% of the amount by which the total income exceeds Rs 2,40,000 |
| 3,00,001-5,00,000 | 20 | 10% of the amount by which the total income exceeds Rs 2,40,000 |
| 5,00,001-10,00,000 | 30 | 10% of the amount by which the total income exceeds Rs 2,40,000 |
| 10,00,001-25,00,000 | 30 | Rs 76,000 plus 20% of the amount by which the total income exceeds Rs 10,00,000 |
| Above 25,00,000 | 30 | Rs 3,76,000 plus 30% of the amount by which the total income exceeds Rs 25,00,000 |
The finance ministry on Wednesday released the draft of direct tax
code that seeks to simplify the current tax provisions.
Former finance minister and now the home minister, P Chidambaram, who
had initiated work on the proposed code during his tenure, said the
direct tax code was outdated and it needed a revamp.
The direct tax code would replace the Income Tax Act 1961, Chidambaram
said. Adding that the new direct tax code would become a law only by
2011, Chidambaram said the new tax code would be a vast improvement
over I-T Act 1961.
Finance Minister Pranab Mukherjee said tax reform is a process, not an
event. To moderate tax rate and simplify tax laws, all direct taxes
including FBT and income tax would be brought under one code, he said.
The new code is aimed at eliminating the scope of litigation as far as
possible, Mukherjee said, adding that the government will have
informed discussion with stakeholders on the tax code.
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