The new provisions under the Direct Tax Code are as follows:
- Tax for income between Rs. 2 lakh – Rs. 5 lakh: 10%
- Tax for income between Rs. 5 lakh – Rs. 10 lakh: 20%
- Tax for income over Rs. 10 lakh: 30%
Corporate tax has been kept at 30%.
The limit for exemptions for salaried people is Rs. 2 lakh, while that for senior citizens is Rs. 2.5 lakh.
The new Code comes into effect from April, 2011.