New Delhi, Aug 27: The new Direct Tax Code Bill, which proposed to increase the basic exemption limit for individual tax payers from Rs 1.6 lakh to Rs 2 lakh, has been passed in the Union Cabinet on Thursday, Aug 26.
According the new bill, income with below Rs 2 lakh, people don't have pay any tax to the government.
For the senior citizens, the bill proposes to raise the exemption limit from Rs 1.4 lakh to Rs 2.5 lakh.
"Most probably on Monday, Aug 30, Direct Tax Code will be introduced in Parliament. It will be put on the website as soon as it's introduced in Parliament," informed Revenue official.
The Bill also seeks to remove surcharge and chess on corporate tax, providing relief to business houses. According to the new direct tax code corporate tax rate will be 30 percent including all taxes, down from the existing 33 percent.
Income between Rs 2-5 lakh is likely to attract a rate of 10 per cent, 20 per cent for Rs 5 -10 lakh bracket and 30 per cent above Rs 10 lakh.
The new Direct Tax Code will come into action from Apr 1, 2011.