By CA Manoj Kohli 13thAugust.,2009 Today Minstry of Finance has released draft New Direct Tax Code.The new Direct Tax Code code will replace the year old Income tax Act- 1961.The new tax will be operational from Fy 2011-12.The salient features of the New direct taxcodes are given below
1. Tax rates will be uniform
2. Saving limit is proposed at 300000
3. Most of the exemption has been abolished ,however few of them is inserted in respective Income head instead of separate section as available in section 10.
4. STT proposed to be abolished.
5. No more Distinction between Long term capital gain/short term capital gain.
6. Business loss can be carried forward Indefinitely
7. Tax Rate slashed upto 10 lakh -10 % full rates given below
8. Company tax rates -25%
9. Exemption limit will remain 160000,190000,240000 for male,female and senior citizen respectively.
10. Alternative Mat rate 2% on gross assets in case of banking company .25 of gross assets