New Tax code: What is in it for you?
New Delhi, Aug 13: The new tax code draft submitted by the Finance Minister, Pranab Mukherjee on Tuesday, Aug 12 does not only be a simpler process of taxation, it also means that a commoner will retain more money on his/her hands.
The sweeping reforms not only promise better changes in terms of increase in tax slabs and wealth tax and fewer exemptions, it gets tough with evaders. Finance Minister who claims to have based this draft on the best global practices, but what does it do for individual?
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For one the tax savings has been raised to Rs 300, 000 from Rs 100,000 and the wealth tax limits are raised to Rs 50 crore and a tax of 0.25 per cent is applied above this limit.
However, on a flip side home loans could become fully taxable. Perks and bonuses will be construed as salary and can be taxed.
One area that saw a lot of focus is the change in proposed slabs. Following are the details:
For Males
| Income | Existing Tax | Proposed Tax |
| Up to 1,60,000 | Nil | Nil |
| 1,60,001 - 300, 000 | 10pc | 10pc of amount by which total income exceeds lower limit |
| 3,00,001 - 5,00,000 | 20pc | 10pc of amount by which total income exceeds lower limit |
| 5,00,001 - 10,00,000 | 30pc | 10pc of the amount by which total income exceeds Rs 1,60,000 |
| 10,00,001 - 2500000 | 30pc | Rs 84,000 plus 20pc of the amount by which total income exceeds Rs 10,00k |
| Above 25,00,000 | 30pc | Rs 3,84,000 plus 30pc of the amount by which the total income exceeds Rs 25,00,000 |
For Females
| Income | Existing Tax | Proposed Tax |
| Up to 1,90,000 | Nil | Nil |
| 1,90,001 - 3,00,000 | 10pc | 10pc of the amount by which the total income exceeds Rs 1,90,000 |
| 3,00,001 - 5,00,000 | 20pc | 10pc of the amount by which the total income exceeds Rs 1,90,000 |
| 5,00,001-10,00,000 | 30pc | 10pc of the amount by which the total income exceeds Rs 1,90,000 |
| 10,00,001 - 2500000 | 30pc | Rs 81,000 plus 20% of the amount by which the total income exceeds Rs 10,00,000 |
| Above 25,00,000 | 30pc | Rs 381,000 plus 30% of the amount by which the total income exceeds Rs 25,00,000 |
For Senior Citizens
| Income | Existing Tax | Proposed Tax |
| Up to 2,40,000 | Nil | Nil |
| 2,40,001 - 3,00,000 | 10pc | 10pc of amount by which total income exceeds Rs 2,40,000 |
| 3,00,001 - 5,00,000 | 20pc | 10pc of amount by which total income exceeds Rs 2,40,000 |
| 5,00,001 - 10,00,000 | 30pc | 10pc of amount by which total income exceeds Rs 2,40,000 |
| 10,00,001 - 2500000 | 30pc | Rs 76,000 plus 20pc of the amount by which the total income exceeds Rs 10,00,000 |
| Above 25,00,000 | 30pc | Rs 3,76,000 plus 30pc of the amount by which the total income exceeds Rs 25,00,000 |
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