Friends, on Direct Tax Code, 2010 the Standing Committee on Finance has submitted 49th Report today. In this report Standing Committee on Finance advice NIL tax upto 300000 Income. For more silent features see details below:
Recommendation of Tax Slab by Standing Committee.
The Committee has suggested to raise the Income Tax exemption limit from Rs. 2.5 Lakhs to Rs. 3 lakh.
Rs. 0 to Rs. 300000 = NIL
Rs. 300000 to 1000000 = 10%
Rs. 1000000 to 2000000 = 20%
Rs. 2000000 to above = 30%
The Committee has suggested that the limit for total tax saving deductions, which include investment in provident fund, life insurance, children education and infrastructure bonds, be raised to Rs 2.5 lakh from Rs 1.2 lakh. At present,investments up to Rs 1 lakh in specified instruments are deducted while calculating the tax liability. In addition,investments up to Rs 20,000 in infrastructure bonds are also exempted from tax.
The Committee has stated that the wealth tax ceiling should be substantially increased to Rs 5 crore from Rs 1 crore currently to reflect the current realities, and beyond that limit, tax should be payable on slabs basis.
The Committee has suggested that the proposed 60 days stay for non-resident Indians to retain their non-residential status be relaxed and restored to the existing 182 days, subject to conditions.
The Committee has recommend that the definition of “house property‟ should be re-drafted so that the distinction between commercial and non-commercial property is clearly brought out.
No change in the 30 per cent tax rate on corporate proposed.
The Committee has recommended that the ministry could explore the possibility of abolishing the Securities Transaction Tax (STT), while correspondingly calibrating the Capital Gains Tax regime – both short term and long term. Accordingly, the distinction between listed and unlisted securities should be removed. It should also be ensured that companies do not escape paying capital gains tax on the basis of Double Taxation Avoidance Agreements (DTAAs). A large number of foreign institutional investors invest through Mauritius to avoid paying tax on capital gains in India.
Standing Committee Report Download
Recommendation of Tax Slab by Standing Committee.
The Committee has suggested to raise the Income Tax exemption limit from Rs. 2.5 Lakhs to Rs. 3 lakh.
Rs. 0 to Rs. 300000 = NIL
Rs. 300000 to 1000000 = 10%
Rs. 1000000 to 2000000 = 20%
Rs. 2000000 to above = 30%
The Committee has suggested that the limit for total tax saving deductions, which include investment in provident fund, life insurance, children education and infrastructure bonds, be raised to Rs 2.5 lakh from Rs 1.2 lakh. At present,investments up to Rs 1 lakh in specified instruments are deducted while calculating the tax liability. In addition,investments up to Rs 20,000 in infrastructure bonds are also exempted from tax.
The Committee has stated that the wealth tax ceiling should be substantially increased to Rs 5 crore from Rs 1 crore currently to reflect the current realities, and beyond that limit, tax should be payable on slabs basis.
The Committee has suggested that the proposed 60 days stay for non-resident Indians to retain their non-residential status be relaxed and restored to the existing 182 days, subject to conditions.
The Committee has recommend that the definition of “house property‟ should be re-drafted so that the distinction between commercial and non-commercial property is clearly brought out.
No change in the 30 per cent tax rate on corporate proposed.
The Committee has recommended that the ministry could explore the possibility of abolishing the Securities Transaction Tax (STT), while correspondingly calibrating the Capital Gains Tax regime – both short term and long term. Accordingly, the distinction between listed and unlisted securities should be removed. It should also be ensured that companies do not escape paying capital gains tax on the basis of Double Taxation Avoidance Agreements (DTAAs). A large number of foreign institutional investors invest through Mauritius to avoid paying tax on capital gains in India.
Standing Committee Report Download
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