New Direct Tax Code: Major relief for salaried class

August 26, 2010

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.

Source: http://www.ndtv.com/article/business/new-direct-tax-code-major-relief-for-salaried-class-47396