NEW DIRECT TAX RATES NEW CODE

INCOME TAX RATES IN NEW TAX CODE
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By FREEWORKING

NEW RATES IN DIRECT TAX CODE

Ministry of Finance, has released a new DIRECT TAX CODE which will be applicaple in F.Y. 2011-12 and will replace the old act.The features of New direct tax code are:-

1-Tax rates will be uniform.

2-Saving limit will be 3 lakhs.

3-Most of the exemption will be abolished, and with some exemption there is the need to mention in Income head instead of showing another head.

4-STT(Security transaction tax) will be abolished.

5-Business loan can be carried forward.

6-Taxes rates are 10% upto 10 lakhs.

7-Company tax rates are 25% instead of 30%

8-Exemption limit will remain same 160000 for male,190000 for female and 240000 for senior citizen.


The direct taxes would be in new tax codde

FOR INDIVIDUAL man

UPTO 160000 NIL

160000 TO 1000000 10 %

1000000 TO 2500000 84000+ 20%<1000000

EXCESS 2500000 384000+30%<2500000

THE EXEMPTED RATES FOR WOMAN (LESS THAN 65 YEARS)IS 190000 SO 190000----NIL

190000 TO 1000000 10%

1000000 TO 2500000 81000+20%<1000000

EXCESS 2500000 381000+30%<2500000

SENIOR CITIZEN:

240000--NIL

2400000 TO 1000000 10%

1000000 TO 2500000 78000+20%<1000000

EXCESS 2500000 376000+<2500000