http://business.rediff.com/slide-show/2010/jan/27/slide-show-1-new-tax-code-will-kill-most-tax-benefits.htm *Next* *Sunil Dhawan, Outlook Money*
The Direct Taxes Code Bill, 2009, could soon set the tone for all our future wealth-creation decisions. If enacted, the bill will not only change the amount of tax you pay, but also transform how you invest, borrow and spend your money. While most tax breaks may be taken away, the process of filing taxes will be simpler. *The new tax slabs* One of the hallmarks of the new tax system is the substantial expansion of income slabs. For example, for an individual, annual income up to Rs 1.6 lakh (Rs 160,000) would be tax exempt, a 10 per cent tax rate would be applicable for income between Rs 1.6 lakh and Rs 10 lakh (Rs 1 million), 20 per cent for income between Rs 10 lakh and Rs 25 lakh (Rs 2.5 million), and 30 per cent for income above Rs 25 lakh. The tax rates under the Direct Taxes Code Bill, 2009 -- if cleared -- would be applicable from the financial year 2011-12. While the income slabs have been stretched, bringing down the tax liability, the exempted allowances and benefits such as Leave Travel Allowance (LTA) and medical reimbursements become fully taxable under the code. The deduction for House Rent Allowance (HRA) may also go under the new regime. *Click NEXT to check out more. . .* -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
