Aug. 27 – India’s Cabinet approved the Direct Taxes Code Bill yesterday, part of the government’s efforts to simplify procedures and cut taxes.
The DTC bill proposes decreasing tax rates while also cutting down on tax exemptions. Personal income tax exemption limits will be raised for employees earning up to Rs. 200,000 from the previous Rs. 160,000.
The bill recommends that a 10 percent income tax rate be charged for those earning between Rs. 200,000 to Rs. 500,000 and 20 percent income tax rate for those earning income ranging from Rs. 500,000 to Rs. 1 million. Those earning more than Rs. 1 million will be charged a 30 percent income tax rate.
The bill also exempt taxes for senior citizens earning up to Rs. 250,000. Corporate income tax rates will also be revised from 25 percent to 30 percent.
For more advice on Indian taxes, e-mail Dezan Shira & Associates at india@dezshira.com.
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