As a taxpayer you are likely to look out for good news whenever you hear that the policymakers are doing something regarding Income Tax. One such policy decision that is likely to affect you is the introduction of the DTC (Direct Tax Code).
Since the start of your professional life your well wishers including family members and friends might have told you, “Work Hard and Earn More”. You possibly made it the mantra of your life but the day you received your pan card and approached the income tax department, the mantra started to sound like a myth after your rendezvous with the demon called Income Tax. Now the mantra caption sounds like “Work Hard and Earn More to Pay More in Taxes”.
In such a scenario as a taxpayer you are likely to look out for good news whenever you hear that the policymakers are doing something regarding Income Tax. One such policy decision that is likely to affect you is the introduction of the DTC (Direct Tax Code). The Finance Minister has reassured that the DTC will be hopefully cleared in the winter session of Parliament and will be implemented from Apr 2012. Let’s look at what is in store based on the decisions that stand as of today.
The Good News
1. Enhancement of Tax Slab
2. Investor friendly Capital Gain Tax
3. Enhancement of Exemption limit from 1.2 Lakhs to 1.5 lakhs
4. EEE treatment of GPF, PPF and pure life insurance products
5. Enhancement of medical reimbursement limit
The Not So Good News
1. No Leave Travel allowance
2. No special treatment for being a woman
3. Reduction in tax exemption period of NRIs
DTC in its current form sounds to be tax payers friendly and let’s hope Indian Government carry’s on with tax reforms so that we start loving the Tax Daemon. For the time being “Thumbs Up” for the DTC.
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