- A report on the new Direct Tax Code was submitted earlier this month
- The task force has proposed five tax income tax slabs, says a report
A government-appointed task force earlier this month submitted its report to the Finance Ministry on new Direct Tax Code, which seeks to replace the existing Income Tax Act. Though its details are yet to be made public, news agency IANS, citing sources, has reported that the task force has proposed many changes to the Income Tax Act, which dates back 58 years. The task force has not recommended raising of the income tax exemption limit from the current level of ₹2.5 lakh but has suggested five tax brackets of 5%, 10%, 20%, 30% and 35%, the report said. Currently, there are three tax slabs: 5%, 20% and 30%.
The tax force on Direct Tax Code has not suggested any change in the 5% tax bracket or the current rebate of ₹12,500, says the report.
Those earning between between ₹5 lakh and ₹10 lakh per year, says the report, may have to pay lower 10% income tax, if the recommendations of this high-level tax force are accepted.
The tax force has also recommended lowering of the personal income tax for those earning between ₹10 lakh to ₹20 lakh per year to 20%.
Source: Livemint
