direct taxes code

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 January 2010 With direct taxes code a reallity now, will all the withdrawals after 1.4.2010 to
31.3.2011 from Provident fund be taxed while in service and on retirement.

Pawan Periwal

Pawan Periwal (Expert)
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02 January 2010 Hi

Chances may effect from 01.04.2010 as per government Rules

Bad news
For salaried employee that every allowance & perquisites added in salary for tax purpose no tax benefit regarding any allowances and perquisites.

Income from House property
Now direct code is generate more tensions for assessee who have earn income from house property and taking housing loans for constructions of house.

Benefit of interest from self occupied property has withdrawn in Direct Tax Code.

Deductions-
80C-
This is deadly news for middle class assessee that limit will increase from 1 lakh to 3 lakh and graduation, post graduation studies now include in higher education for the purpose of deductions.

Exempt-Exempt-Tax (EET)- New tax regime for all provident funds, superannuation funds, life insurance and new pension scheme. These investments to be taxed on withdrawal.

Assessment Changes-
0-10 Lac 10%
10 Lac -25 Lac 20%
Above 25 Lac 30%

What I feel, for the salaried who have salary greater than 5 lakh are the most beneficial amoung all.