No great change is suggested in Direct Tax Code 2010 as far as tax rate for Individual and Senior Citizen is concerned. One apparent change , however , is that the distinction between man and woman has been abolished. Here is the tax rates suggeste
How to save tax on sale of agriculture land sale?
September 4, 2010 by Leave a Comment
It is already posted that Direct Tax Code 2010 has made even agriculture land sale as taxable . However, saving grace is that section 55 of the DTC 2010 provides that in following conditions, gains on agriculture land is tax free by claim of deduction provided u/s . The conditions are The agriculture land which [...]
Is agriculture income tax free under DTC 2010?
September 4, 2010 by 1 Comment
Yes, the agriculture income is tax free under Direct Tax Code 2010 , however , one has to understand what is agricultural income under DTC 2010. clause 314 (11) defines “Agriculture Income ” to mean as under: “agricultural income” means the following income, namely:— (a) any profits and gains derived from cultivation of agricultural land; [...]
Is exemption like 54 or 54F available in Direct Tax Code 2010 ?
September 3, 2010 by 1 Comment
Under the Income Tax Act , 1961 , if the residential house or any other long term investments were sold and residential house is purchased , in that case exemption from captal gains u/s 54 or 54F is allowable. The Direct Tax Code 2010 has also similar provision u/s 55 which has provison for exemption [...]
Is there any special tax rate for capital gains under Direct tax Code?
September 1, 2010 by 1 Comment
No, unlike Income Tax Act 1961, the new Direct Tax Code 2010 , likely to be effective from 01/04/2012 , does not prescribe any special tax rate. Now the long term or short term are part of total income and is taxed at the normal tax rate applicable to you. Note following points regarding taxation of capital gains.
Only 50 % of short term capital gains on shares or units taxed .
September 1, 2010 by 1 Comment
As on now tax rate on short term capital gains on shares or units which is subject to STT are taxed @ 15 % . However under Direct Tax Code 2010 ,not only there is no specific tax rate for STCG , it is proposed that the STCG on listed shares or units shall be taxed only to the extent of 50 % of gains computed. For example , let us say you bought a share of X ltd for Rs 100 and sold for 150 after six months.
Is long term gain on shares or units tax free under Direct Tax Code?
August 31, 2010 by 1 Comment
The good news is : Yes, the long term capital gains on sale of shares of companies or mutual funds on which securities transaction tax has been deducted is made tax free. But , just note that instead of exemption being given like section 10(38) , now everyone who wants that tax not be paid on shares [...]
SEZ losses steam !No profit linked deduction allowed under revised DTC
June 17, 2010 by Leave a Comment
Exemption under Income Tax Act to entities doing businesses under Special Economic Zones were given 100% of tax break. These SEZ were based on location with the hope that setting up such SEZs will increase the local economy and balances the economic growth with respect to other economically developed area.
Revised DTC- Wealth Tax to be paid by all except non-profit organisation !
June 16, 2010 by 2 Comments
The proposal of first draft DTC that wealth tax limit was set at 50 Crore has been selved in revised draft Direct Tax Code.It is proposed that Wealth Tax will be levied broadly on the same lines as provided in the Wealth Tax Act, 1957.
Six changes in capital gains proposed under Revised DTC
June 16, 2010 by Leave a Comment
The revised direct tax code has proposed six major amendments and changes in computation of capital gains. These are Normal tax rate for all kinds of short term capital gains The capital gain arising from transfer of any investment asset held for less than one year from the end of the financial year in which [...]
Revised DTC deletes tax on notional rent , allows interest deduction.
June 16, 2010 by Leave a Comment
Two of the most controversial change in taxation of rental income from house property by earlier Direct Tax Code were -proposal of tax @ 6 % of presumptive rent calculated at 6% per annum of the ratable value fixed by the local authority and abolition of any interest deduction even from one house which is self occupied by a taxpayer.
Revised DTC- Not to tax retirement benefits and perquiste as perposed earlier !
June 16, 2010 by Leave a Comment
Revised direct tax code has certainly good news for the employees and specially higher officials of central and state government . In earlier DTC , there was proposal to tax the retirement benefits at the time of withdrawl as the Govt had indicated to set up a Retirement Benefits Account scheme.Further , it was proposed [...]
Monthly Subscription
Annual
Semi Annual Subscription
Quiz for CA/ICMA/CS Students
