P Chidambaram during the budget had said that work on the Direct Tax Code (DTC) Bill, which seeks to overhaul income tax laws, is in progress and the amended Bill will be introduced in the ongoing Budget session. He said that two of India's biggest tax reform initiatives — the Direct Taxes Code (DTC) and the Goods and Services Tax (GST) — has entered the final leg. The DTC is not intended to be an amended version of Income Tax Act, 1961 but a new code based on the international practices that will be compatible with the needs of a fast developing economy.
The minister told that the work on the DTC Bill, which seeks to overhaul income tax laws, is in progress and the amended Bill will be introduced in the ongoing Budget session.
The Parliamentary Standing Committee on Finance had submitted report on ‘The Direct Taxes Code Bill, 2010’ on March 9, 2012. The committee was headed by the senior BJP leader Yashwant Sinha and in its report had given a number of recommendations favorable to the salaried class. The then Finance Minister Pranab Mukherjee had said that many recommendations of the committee would be accepted and it was expected to come into effect from 2013-14.
The following are some of the other highlights of the recommendations:
The exemption limit for savings be enhanced from Rs 1 lakh to Rs 1.5 lakh.
The exemption limit for life and health insurance, and education, be doubled to Rs 1 lakh.
A separate deduction of Rs 50,000 be permitted for higher education.
For purchasing medical insurance for elderly parents and grandparents, an additional exemption of Rs 20,000 should be given.
Further concessions for women and senior citizens in the tax slabs have also been recommended in the report.
The panel has suggested that the senior citizen cut-off age be lowered to 60 years, instead of 65.
Read The Parliamentary Standing Committee on Finance report on ‘The Direct Taxes Code Bill, 2010’ http://www.staffcorner.com/view.html?id=455001
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