The first draft of the direct taxes code had proposed substantial widening of the income tax slabs, but they were only illustrative. The first draft had suggested a 10% tax on income of Rs 1.6 lakh-Rs 10 lakh, 20% on income of Rs 10 lakh-25 lakh and 30% beyond Rs 25 lakh in a year. After this code comes into effect, rates in India will be almost in line with international standards.
At present, annual income of Rs 1.6 lakh- Rs 5 lakh attracts 10 % income tax, Rs 5 lakh- Rs 8 lakh attracts 20% and over Rs 8 lakh faces 30% tax.
As of now, tax payers are keeping their fingers crossed that the lower tax rates will come into effect soon.
0 comments:
Post a Comment