Impact of Direct Tax Code ( DTC ) on Resident Indian & NRI Individuals
Last week the cabinet approved the Direct Tax Code bill and forwarded it to the parliament for approval. This is a good sign of the changes happening in the modern India. The Income tax act which we follow today is more than 50 years old. The objective is to widen the tax base and make the tax law much simpler & more effective. These are some of the salient feature's of the DTC for Resident & NRI Investors. Tax slabs to be changed Slab 1: Upto INR 200000 the tax rate is NIL. ( Present Slab 1 is upto INR1.65 lacs @ NIL) Slab 2: INR 200,001 to INR 500,000 the tax rate is 10% ( Present slab 2 is INR 1.65 to 5 @ 10%). Slab 3: INR 500,001 to INR 1,000,000 the tax rate is 20% (Present Slab 3 is INR 5 to 8 @ 20%). Slab 4: INR 1,000,001 and above the tax rate is 30% ( Present Slab 4 is INR 8 & above @ 30%). In the case of a resident individual of the age of 65 years or above, the basic exemption limit to be INR 250,000 Corporate tax will come down f