HIGHLIGHTS OF DIRECT TAXES CODE BILL, 2010
- Separate threshold exemption limits for men and women done away with. Common threshold limit of Rs. 2,00,000. For resident senior citizens, threshold increased from Rs. 2,40,000 to Rs. 2,50,000.
- HRA exemption restored.
- Employer's contributions to NPS (not exceeding 10% of salary), to approved superannuation fund (no limit - limit of 1,00,000 done away with), to approved PF (not exceeding 12% of salary), interest credited to approved fund not to be included in salary.
- Only actual rent from house property to be taxed. Present system of taxing notional value called 'annual value' proposed to be done away with.
- Interest on loan taken to repay housing loan deductible in calculating income from house property. This is in line with judicial interpretations.
- Rent received in arrears to be included in the year of receipt, whether person in owner of property or not, after allowing 20% deduction towards repairs & maintenance.
- Consideration received from transfer of carbon credits to be taxed as business income.
- Remission or cessation of any liability by way of loan/deposit/advance/credit to be taxed as business income.
- Scientific Research and Development in house facility expenses - weighted deduction proposed to be increased from 150% to 200%.
- Transfer of land of a sick industrial company made under a scheme sanctioned under section 18 of SICA where such company is being managed by worker's co-operative not to attract capital gains tax.
- Reverse mortgage under notified scheme to continue to be exempt from capital gains tax.
- Exemption for long-term capital gains from equity shares/units of equity oriented mutual funds retained. STT to be retained.
- Short-term capital gains (where equity shares/units are held for 1 year or less) - deduction of 50% to be are allowed and balance 50% taxed. Likewise short-term capital loss to be scaled down by 50%.
- Deduction for interest on housing loan/loan taken for repair or renovation of house property upto limit of Rs. 1,50,000 in respect of one house pro-perty not let out. No deduction for re-payment of principal under the Code.
- Limit for tax audits for professionals increased from Rs. 15 lakhs to Rs. 25 lakhs. Limit for tax audit for business increased from Rs. 60 lakhs to Rs. 1 crore.
- TDS of 10% on payments in respect of life policies which are not exempt from tax from code.
- Amount received by employee from NPS trust is tax-free. Thus, NPS which is taxed on EET basis is proposed to be made EEE (Exempt-Exempt-Exempt) for employees.
- MAT rate - Increased from 15% of book profits to 20%. MAT Credit carry forward period increased from 10 years to 15 years.
- DDT on dividend of domestic company - 15%.
- DDT on incomedistributed by mutual fund/life insurance to unitholder/policy holder - 5%
- Wealth tax - threshold increased from Rs. 30,00,000 to Rs. 1 crore. Tax rate will be 1% of net wealth in excess of Rs. 1 crore.
Direct Taxes Code : Tax Tables
I. TAX PAYABLE AT VARIOUS LEVELS OF INCOME BY INDIVIDUALS (OTHER THAN WOMEN AND SENIOR CITIZENS) AND HUFs
| Income | Tax liability under the Act (excluding EC and SHEC) (Rs.) | Tax liability under the Code (excluding EC and SHEC) (Rs.) | Tax savings(Rs.) |
200000 | 4,000 | 0 | 4000 |
300000 | 14,000 | 10,000 | 4000 |
400000 | 24,000 | 20,000 | 4,000 |
500000 | 34,000 | 30,000 | 4000 |
600000 | 54,000 | 50,000 | 4000 |
700000 | 74,000 | 70,000 | 4000 |
800000 | 94,000 | 90,000 | 4000 |
900000 | 124,000 | 110,000 | 14000 |
1000000 | 154,000 | 130,000 | 24000 |
1100000 | 184,000 | 160,000 | 24000 |
1200000 | 214,000 | 190,000 | 24000 |
1300000 | 244,000 | 220,000 | 24000 |
1400000 | 274,000 | 250,000 | 24000 |
1500000 | 304,000 | 280,000 | 24000 |
1600000 | 334,000 | 310,000 | 24000 |
1700000 | 364,000 | 340,000 | 24000 |
1800000 | 394,000 | 370,000 | 24000 |
1900000 | 424,000 | 400,000 | 24000 |
2000000 | 454,000 | 430,000 | 24000 |
2100000 | 484,000 | 460,000 | 24000 |
2200000 | 514,000 | 490,000 | 24000 |
2300000 | 544,000 | 520,000 | 24000 |
2400000 | 574,000 | 550,000 | 24000 |
2500000 | 604,000 | 580,000 | 24000 |
2600000 | 634,000 | 610,000 | 24000 |
2700000 | 664,000 | 640,000 | 24000 |
2800000 | 694,000 | 670,000 | 24000 |
2900000 | 724,000 | 700,000 | 24000 |
3000000 | 754,000 | 730,000 | 24000 |
3100000 | 2,854,000 | 2,830,000 | 24000 |
II. TAX PAYABLE AT VARIOUS LEVELS OF INCOME BY WOMEN RESIDENT IN INDIA AND NOT ATTAINED THE AGE OF 65 YEARS DURING THE FINANCIAL YEAR
| Income | Tax liability under the Act (excluding EC and SHEC) (Rs.) | Tax liability under the Code (excluding EC and SHEC) (Rs.) | Tax savings(Rs.) |
1,90,000 | 0 | 0 | 0 |
2,00,000 | 1,000 | 0 | 1000 |
3,00,000 | 11,000 | 10,000 | 1000 |
4,00,000 | 21,000 | 20,000 | 1000 |
5,00,000 | 31,000 | 30,000 | 1000 |
6,00,000 | 51,000 | 50,000 | 1000 |
7,00,000 | 71,000 | 70,000 | 1000 |
8,00,000 | 91,000 | 90,000 | 1000 |
9,00,000 | 121,000 | 110,000 | 11000 |
10,00,000 | 151,000 | 130,000 | 21000 |
11,00,000 | 181,000 | 160,000 | 21000 |
12,00,000 | 211,000 | 190,000 | 21000 |
13,00,000 | 241,000 | 220,000 | 21000 |
14,00,000 | 271,000 | 250,000 | 21000 |
15,00,000 | 301,000 | 280,000 | 21000 |
16,00,000 | 331,000 | 310,000 | 21000 |
17,00,000 | 361,000 | 340,000 | 21000 |
18,00,000 | 391,000 | 370,000 | 21000 |
19,00,000 | 421,000 | 400,000 | 21000 |
20,00,000 | 451,000 | 430,000 | 21000 |
21,00,000 | 481,000 | 460,000 | 21000 |
22,00,000 | 511,000 | 490,000 | 21000 |
23,00,000 | 541,000 | 520,000 | 21000 |
24,00,000 | 571,000 | 550,000 | 21000 |
25,00,000 | 601,000 | 580,000 | 21000 |
26,00,000 | 631,000 | 610,000 | 21000 |
27,00,000 | 661,000 | 640,000 | 21000 |
28,00,000 | 691,000 | 670,000 | 21000 |
29,00,000 | 721,000 | 700,000 | 21000 |
30,00,000 | 751,000 | 730,000 | 21000 |
1,00,00,000 | 2,851,000 | 2,830,000 | 21000 |
III. TAX PAYABLE AT VARIOUS LEVELS OF INCOME BY SENIOR CITIZENS (I.E. INDIVIDUALS RESIDENT IN INDIA AND ATTAINED THE AGE OF 65 YEARS OR MORE ANYTIME DURING THE FINANCIAL YEAR)
| Income | Tax liability under the Act (excluding EC and SHEC) (Rs.) | Tax liability under the Code (excluding EC and SHEC) (Rs.) | Tax savings(Rs.) |
2,40,000 | 0 | 0 | 0 |
2,50,000 | 1,000 | 0 | 1000 |
3,00,000 | 6,000 | 5,000 | 1000 |
4,00,000 | 16,000 | 15,000 | 1000 |
5,00,000 | 26,000 | 25,000 | 1000 |
6,00,000 | 46,000 | 45,000 | 1000 |
7,00,000 | 66,000 | 65,000 | 1000 |
8,00,000 | 86,000 | 85,000 | 1000 |
9,00,000 | 116,000 | 105,000 | 11000 |
10,00,000 | 146,000 | 125,000 | 21000 |
11,00,000 | 176,000 | 155,000 | 21000 |
12,00,000 | 206,000 | 185,000 | 21000 |
13,00,000 | 236,000 | 215,000 |
Direct Taxes Code : TDS Tables
Sr. No. | Nature of Payment | Rates of TDS where deductee is a resident | Remarks | |
| The present rates | Proposed rates under the Code | |||
| 1. | Salary paid to employees | Rates as per the slabs and rates prescribed by the Finance Act | Average rate of tax on salary paid during the financial year | __ |
| 2. | Payment in respect of works contract | 1% (where deductee is individual/HUF) 2% (where deductee is person other than individual/HUF) | 2% | __ |
| 3. | Payment in respect of any service contract | __ | 2% | __ |
| 4. | Payment in respect of broadcasting and telecasting/advertising | 1% (where deductee is individual/HUF) 2% (where deductee is person other than individual/HUF) | 2% | __ |
| 5. | Supply of labour for carrying out any works, or service contract | 1% (where deductee is individual/HUF) 2% (where deductee is person other than individual/HUF) | 2% | __ |
| 6. | Payment in respect of carriage of goods and passengers by any mode of transport other than railways | 1% (where deductee is individual/HUF) 2% (where deductee is person other than individual/HUF) | 2% (No deduction of TDS in case of carriage of goods by road if deductee furnishes PAN) | __ |
| 7. | Interest | 10% | 10% | __ |
| 8. | Dividend other than dividend on which DDT is payable | 10% | 10% | __ |
| 9. | Commission, brokerage, remuneration or prize (by whatever name called) for rendering any services | 10% | 10% | __ |
| 10. | Fees for professional or technical services | 10% | 10% | __ |
| 11. | Payment for royalty or non-compete fees | 10% | 10% | __ |
| 12. | Compensation on compulsory acquisition of immovable property other than agricultural land | 10% | 10% | __ |
| 13. | Rent for the use of machinery or plant or equipment | 2% | 2% | __ |
| 14. | Rent for use of land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings | 10% | 10% | __ |
| 15. | Winning from any lottery or crossword puzzle or card game or other game of any sort | 30% | 30% | __ |
| 16. | Winnings from any horse race | 30% | 30% | __ |
| 17. | Income distributed by mutual fund on which income distribution tax is not paid | __ | 10% (where deductee is individual/HUF) 20% (where deductee is person other than individual/ HUF) | Threshold for not deducting TDS-where payment to unitholder does not exceed Rs. 10,000 in any financial year. TDS proposed to be introduced for 1st time. No TDS in 1961 Act at present on this payment. |
| 18. | Payment by a life-insurer where payment under life policy is not tax-exempt | __ | 10% (where deductee is individual/HUF) 20% (where deductee is person other than individual/HUF) | Threshold for not deducting TDS-where payment to policyholder does not exceed Rs. 10,000 in any financial year. TDS proposed to be introduced for 1st time. No TDS in 1961 Act at present on this payment. |
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