Standing Committee report on Direct Tax code Submitted Download Now

On Sunday, March 11, 2012 | 7:50 PM

Today , Standing Committee on Finance  has submitted his report 49th report about Direct Tax code,2010


The salient points of the Report are the following: 

  1. The Committee has suggested raising the income tax exemption limit to Rs 3 lakh and also hiking deduction on savings to Rs 2.5 lakh.                                                         ..................................... 
    • 0--3,00,000================Nil
    • 300000-1000000============10%
    • 1000000-2000000===========20 %
    • 2000000 onward ============30%
  2. The Committee has suggested that the limit for total tax saving deductions, which include investment in provident fund, life insurance, children education and infrastructure bonds, be raised to Rs 2.5 lakh from Rs 1.2 lakh. At present,investments up to Rs 1 lakh in specified instruments are deducted while calculating the tax liability. In addition,investments up to Rs 20,000 in infrastructure bonds are also exempted from tax.
  3. The Committee has stated that the wealth tax ceiling should be substantially increased to Rs 5 crore from Rs 1 crore currently to reflect the current realities, and beyond that limit, tax should be payable on slabs basis.
  4. The Committee has suggested that the proposed 60 days stay for non-resident Indians to retain their non-residential status be relaxed and restored to the existing 182 days, subject to conditions.
  5. The Committee has recommend that the definition of “house property‟ should be re-drafted so that the distinction between commercial and non-commercial property is clearly brought out.
  6. No change in the 30 per cent tax rate on corporate proposed.
  7. The Committee has recommended that the ministry could explore the possibility of abolishing the Securities Transaction Tax (STT), while correspondingly calibrating the Capital Gains Tax regime – both short term and long term. Accordingly, the distinction between listed and unlisted securities should be removed. It should also be ensured that companies do not escape paying capital gains tax on the basis of Double Taxation Avoidance Agreements (DTAAs). A large number of foreign institutional investors invest through Mauritius to avoid paying tax on capital gains in India.
New Income Tax Limited suggested by committee is 

0--3,00,000================Nil
300000-1000000============10%
1000000-2000000===========20 %
2000000 onward ============30%

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3 comments:

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    1. interesting way of writing spam you bloody spammer

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  2. THIS IS INSANE. WHAT INDIAN GOVERNMENT DOES NOT WANT INDIANS TO COME HOME, DO THEY REALISE THAT NRI'S EVERY YEAR COME AND SUPPORT LOCAL ECONOMY IN BILLIONS OF DOLLARS? IF THIS IS THE CASE THAN WHY INDIAN GOVERNMENT GOING AFTER NRI INVESTMENT? THERE ARE SOME LUNETICS ARE SITTING IN GOVERNMENT THOSE WHO DO NOT HAVE ANY OTHER WORK BUT TO DICOURAGE NRI'S COMING HOME. GOVTMT. WILL ALSO LOSE LOTS OF DIRECT AND INDIRECT TAXES THAT THEY COLLECT. THIS SHOULD BE STOPPED.

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