The Unoin Budget draft report suggests increasing the income tax exemption limit to Rs. 3 lakh a year against Rs. 2 lakh proposed in the Bill. Tax rates the standing committee is expected to propose are 10% for the slab of Rs 3 lakh to Rs 10 lakh, 20% for up to Rs. 20 lakh and 30% beyond.
Standing committee proposes to tax net wealth exceeding Rs. 10 crore at the rate of 1%. Currently, income of Rs 1.80 to RS. 5 lakh attracts 10% income tax, Rs. 5 to Rs.8 lakh 20% and above Rs. 8 lakh 30%.
Moreover the Direct Taxes Code (DTC) proposes to reduce the tax eligible time period of residency allowed to NRIs, which is currently at 182 days. It proposes to reduce it to 60 days.
With the standing committee expected to give its report in the upcoming Budget session, DTC could very much become a part of Budget 2012 which is to be presented on 12 March. However, the DTC may not be implemented from April 1, 2012 but only from April 1, 2013.
Standing committee proposes to tax net wealth exceeding Rs. 10 crore at the rate of 1%. Currently, income of Rs 1.80 to RS. 5 lakh attracts 10% income tax, Rs. 5 to Rs.8 lakh 20% and above Rs. 8 lakh 30%.
Moreover the Direct Taxes Code (DTC) proposes to reduce the tax eligible time period of residency allowed to NRIs, which is currently at 182 days. It proposes to reduce it to 60 days.
With the standing committee expected to give its report in the upcoming Budget session, DTC could very much become a part of Budget 2012 which is to be presented on 12 March. However, the DTC may not be implemented from April 1, 2012 but only from April 1, 2013.
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