Budget 2012, Budget 2012 income tax, Budget 2012 date india

Parliamentary panel recommends hiking income tax exemption limit to Rs 3 lakh:

If the government accepts these recommendations income tax exemption enjoyed by taxpayers would go upto Rs 6.20 lakh as against a maximum of Rs four.85 lakh including the rebate for housing loans. "The committee has adopted the document..." a member of Parliament who attended the meeting of committee told ET.

The Parliamentary standing committee on finance has recommended an increase in basic tax exemption limit to Rs three lakh and another Rs three.20 lakh rebate for eligible investments and spending in its document on the direct taxes code, or DTC. The panel is not for any relief for corporate tax payers and has recommended retaining the corporate tax rate at 30% as against 25% proposed.

If the recommendations are accepted by the government, the higher rebate will yield a saving of  Rs 42,000 a year for those in the highest tax bracket. Though, some members had favoured an increase in basic exemption to upto Rs five lakh in the work of discussions they converged on keeping it at Rs three lakh in the final document.

The Direct Taxes Code Bill had proposed the basic exemption limit of Rs two lakh. The document would be submitted to Parliament within a week, the MP, who did not require to be named, said.

The DTC Bill, introduced in Parliament in August 2010, seeks to replace the over 50 year elderly Income Tax Act, 1961. Though the bill is not likely to be passed by Parliament in the budget session, the government, pending could introduce some of its measures contained in the bill in the Budget for 2012-13 that will be introduced on March 16.

The senior BJP leader Yashwant Sinha headed panel that looked in to the bill has also asked the government to continue with higher exemption limit for ladies. The panel has suggested retaining the three-slab structure of 10%, 20% and 30% for personal income tax.
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