Union
government tabled Direct Taxes Code bill in the Lok Sabha which
proposed to raise the exemption limit on income tax from the current Rs
1.6 lakh to Rs 2 lakh. Direct Taxes Code bill, introduced by the
finance minister, seeks to widen income tax slabs to levy 10% rate on
income between Rs 2 lakh to 5 lakh, 20% on between Rs 5-10 lakh and 30%
above Rs 10 lakh.
For senior
citizens, tax exemption is sought to be raised to Rs 2.5 lakh from Rs
2.40 lakh. Currently, income between Rs 1.6-5 lakh attracts 10% tax;
between Rs 5-8 lakh, 20% and beyond Rs 8 lakh, 30%. Proposed tax slabs
are much lower than originally suggested in the draft DTC bill 10% for
Rs 1.6 lakh to Rs 10 lakh, 20% between Rs 10-25 lakh and 30% for income
above Rs 30 lakh.
