Asia Bizz: DTC- Direct Tax Code – Taxpayers Will Pay Less In India From Next Financial Year
Direct Tax Code – Great news for all taxpayers in India. Taxpayers will have to pay less from the next financial year from April 2011 onwards.
This great news comes when the Cabinet cleared the Direct tax code which is set to be introduced in the Rajya Sabha. The Tax slabs have been reduced in every slab of income generated by an Indian citizen.
The Tax slabs from April 2011 onward will be as follows.
Income tax payers tax slabs according to salary per annum.
Income tax for income between Rs. 2 lakh – Rs. 5 lakh: 10%
Income tax for income between Rs. 5 lakh – Rs. 10 lakh: 20%
Income tax for income between Rs. 10 lakh: 30%
Rs 2 lakh is the income which will be exempted from paying tax and senior citizens will be exempted upto Rs 2.5 lakh.
The new DTC – Direct Tax Code will be effective from the year 2011 in April when the new financial year begins.