Posted: 16-May-10 in Finance by Sushil Kumar 2 Comments

Tax slabs to be increased for income above 10 lakhs

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People who earn more than Rs 10 lakh as their annual income, will no more enjoy the tax relief as originally proposed in the Direct Taxes Code. The Finance Ministry is planning to strengthen the weakened slabs to put up concessions in other sectors.

According to the first draft of Direct Taxes Code (DTC), all those who earn an income of Rs 10 lakh to Rs 25 lakh was to attract an income tax of 20% of their income. But now the final draft will slap 30% on any income above Rs 10 lakh per annum. With this, the Ministry will be able to extend to other areas like exempting long-term savings from tax at the time of withdrawal. And with this minimum alternate tax can be calculated. The Ministry also plans on retaining the current provision of exempt-exempt-exempt (EEE) model for long term savings.

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Comments/Queries
( 2 Comments so far )

  • Tax India
    May 16, 2010 at 01:00:pm

    But salaried class people was very happy toward this amendment in income tax slab. I think finance minister will gain look into this issue. The slab is very good if it will remain as it is in draft direct tax code. But he have to look into other matters like EEE.

  • ravi bansal
    Jul 25, 2010 at 04:34:pm

    What will be savings limit in the new tax code

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