Direct taxes code (dtc) bill likely in winter session: fm

Ketan (STUDENT) (1869 Points)

30 October 2013  

Direct Taxes Code (DTC) bill likely in winter session: FM

The Direct Taxes Code Bill, which seeks to replace the archaic
Income Tax Act, is likely to be placed in Parliament during the
winter session, Finance Minister P Chidambaram said today.

“We are trying to bring DTC in the next session,” the minister told
reporters here.

The winter session may start in early December, after the
completion of assembly elections in five states.

The final draft of the DTC Bill, which has to be vetted by the
Cabinet, keeps the income tax exemption limit unchanged at Rs 2
lakh for individuals. It proposes to introduce a fourth slab with a 35
per cent tax rate for those with an annual income of over Rs 10 crore.

Among other things, the bill proposes to levy a 10 per cent tax on dividend income exceeding Rs 1 crore.

The minimum alternate tax may be levied on book profit and not on gross assets, sources said. Further, the securities
transaction tax is likely to be retained, as against the recommendation of the Standing Committee on Finance that the levy
be abolished.

At present, tax is levied on income of Rs 2-5 lakh at 10 per cent, Rs 5-10 lakh at 20 per cent, and above Rs 10 lakh at 30
per cent. Further, those earning more than Rs 1 crore have to pay a surcharge of 10 per cent. (PTI)