Proposed Draft Code is likely to be present in parliament in winter session and will become operational from April 1, 2011
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Proposed Draft Code is likely to be present in parliament in winter session and will become operational from April 1, 2011 |
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| Proposed | Existing | This will reduce Tax Pay Out | |||||
| Income ( Rs) | Tax (%) | Income ( Rs) | Tax (%) | Income ( Rs.) | Existing | New | Saving |
| Upto 1.60L | Nil | Upto 1.60 L | Nill | 5 L | 18000 | 1,000 | 17,000 |
| 1.60L to 10L | 10 | 1.60L to 3 L | 10 | 10L | 1.68L | 51,000 | 1.17L |
| 10L to 25L | 20 | 3 L - 5L | 20 | 25L | 6.18L | 3.5L | 2.67L |
| Above 25L | 30 | Above 5L | 30 | 50L | 13.68L | 11.01L | 2.67L |
| Assuming Tax payer is male. Basic exemption Limit Rs. 1.90Lfor women, Rs. 2.40L for Senior Citizen | 1 Crore | 28.68L | 26.01L | 2.67L | |||
The Gains
The Tax Deduction from investments to be hiked from Rs. 1 lakh to Rs. 3 lakh
Wealth tax exemption up from Rs. 30 L to 50Cr
Base year for capital gain tax calculation shifted from 191 to 2000
Corporate tax rates to be cut to 25% from 30%
And the Pains
Tax bnefit upto Rs. 1.50L against home loan interset payment to go
EET( Exempt exempt tax ) to apply on savings u/s 80C ( mailnly PPF).
Such savings will be taxed on withdrawal, but only on sums acruing on or after April 1, 2011
Finanancial Assets like stocks and FDs to be part of wealth and taxed