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Direct tax code


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Glimpse on DTC bill 2010 and Common man

Glimpse on DTC bill 2010 and Common man

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    Its time to pay back…
  • 2. WHAT IS IT????
    Taxes Classified broadly as
    - Direct Tax
    • Taxes Directly paid by a Person or Corporate directly to the Government Like Income Tax ,Wealth Taxes, Corporate Tax, Capital Gain Tax, Petroleum Profit Tax.
    - Indirect Tax
    • Undoubtedly its all about tax paid indirectly like Taxes on goods and Services, Excise Duties, Export & Import Duties, VAT etc
  • India And Tax Regime
    India an Middle income Country have an oriental Tax Regime Since Before DTC bill 2010.
    Being an 3rd Largest Economy in Asia and Emergent Global Economy .
    Tax GDP ratio increased from 2.97 at the beginning of this decade to 6.45 percent in 2009-2010.(Kudos to IT revolution)
  • 3. Current Position & What we Expect
    Income tax Payers Slab
    95.75 % of Tax Payers are in 1- 5 Lacs income group
    2% -Tax payers are in 5-8lacs income group
    2.2% - Tax Payers are in >8 lacs Income
    New Tax Code aimed at benefiting 1-5 Lacs Slab Significantly
    Let us c How…….
  • 4. Proposed Tax Regime- As Per DTC
    •    Tax for income between Rs. 2 lakh – Rs. 5 lakh: 10%•    Tax for income between Rs. 5 lakh – Rs. 10 lakh: 20%•    Tax for income over Rs. 10 lakh: 30%The limit for exemptions for salaried people is Rs. 2 lakh, while that for senior citizens is Rs. 2.5 lakh.
    Corporate Tax -30%
    Minimum Alternate Tax on book Profits -20%
  • 5. Reforms Under DTC bill(For Common Person)
    Positive Effects:
    • New Tax Regime ,Attractive Income TAX Slab for Middle Income Group
    Tax Exemption May Increased From 1lacs to 3Lacs
    (Plan more to Get Exemption Effectively)
    • Securities Transaction Tax may be Abolished.
    ……..R u an Share Market Savvy you may Benefited with a small Pie
  • 6. Minor Adverse Effect to Common Man
    Maturity Amount Received by - Provident Funds, Mutual Tax are Taxable. Currently no taxes are Levied
    (A better future planner will increase his investment to avoid cut on returns)
    • Interest Paid on Home Loans are Not Exempted
    Perks from Employer is taxable. Perks in Form of Interest free Loans, Free Lunch etc…
    Nobody can gain without a loss
  • 7. An Example – DTC & Common Man
    Name : Ajay PatelSalary : 8 lacs per yearInvestments : Investment of 30k in Mutual funds, 30k in EPF , 20k in PPF and 20k in Insurance Policy .Home Loan : Taken a Home loan and pays 80k as Principle and 1.4 lacs as Interest .
  • 8. How it works
    Tax as per Current System
    Amount Exempted = 1.4 lacs as home loan interest + 1 lac in 80C
    = 2.4 Lacs Taxable Income = 5.6 lacs Tax = 14k (10% from 1.6 to 3 lacs) + 40k (20% from 3 – 5 lacs) + 18k (30% on 5 – 5.6 lacs) = Rs 72,000
    Tax as per New Tax Code  Amount Exempted = 1 lac from (mutual funds , PPF , EPF , Insurance) + 80k as Home loan principle = 1.8 lacsTaxable Income = 6.2 lacsTax = Rs 44,000 (10% on 1.6 lacs – 6.2 lacs)
  • 9. It’s a time to think
    Are you Coming under Middle Income Group
    Plan Efficiently on Basic Investment Plan
    Increase your Efficiency on Personal Finance
    Prepare yourself to utilize Government Reforms
  • 10. Learn a Lot….Earn a Lot….
    Thank you
  • 11. All the Information are Shared from the Gained Knowledge through Internet
    Suggestion are Invited to tally the Errors with Correction
    Thanks For Valuable Information offered by