Published on Mon, Aug 30, 2010 at 14:39 | Source : CNBC-TV18
Updated at Mon, Aug 30, 2010 at 17:03
Like this story, share it with millions of investors on M3
0
Like this story, share it with millions of investors on M3
FM introduces Direct Tax Code Bill in Parliament
According to the new Direct Tax Code (DTC) Bill, first returns should be filed after 31 March, 2013 reports CNBC-TV18 quoting sources. It is learnt that taxation for short-term capital gains will be in three slabs- 5%, 10% and 15%.
The Direct Tax Code (DTC) Bill has been tabled in the Parliament today. According to the new DTC Bill, first returns should be filed after 31 March, 2013 reports CNBC-TV18. It will be effective from April 1, 2012.
It is learnt that short-term capital gains will be taxed at income tax rates while short-term capital gains for companies is flat at 30%. Besides, the new DTC Bill will have dividend distribution tax of 5% for both equity mutual funds (MFs) and unit linked insurance policies (ULIPs).
According to it, minimum alternate tax (MAT) on book profit will be at 20% while Dividend Distribution Tax (DDT) will be levied at 15%. Also, income distributed by mutual funds to unit holders will be at 5%. Tax on branch profits is at 15%, on net wealth above Rs 1 crore is 1% while exemption limit hiked to Rs 2 Lakh.
The special economic zone (SEZs) will be allowed profit linked tax deduction under DTC. Also SEZs notified as on March 31,2012 will get tax break and that started by March 2014 will get also get tax subsidy.
