Union Cabinet approves Direct Taxes Code Bill

The Direct Tax Code bill was tabled on Monday by Finance minister Pranab Mukherjee in the Parliament dated August 30, 2010 in the monsoon session. This will further be passed in Parliamentary Standing Committee on finance during winter session to make it effective from April 1, 2011.

This new and simplified Direct tax Code will replace the 50 year old Income tax Act and wealth tax Act. The Direct Code Tax bill will provide tax exemption upto Rs 2 lakh and charge income tax for Rs.2- Rs.5 lakh slab to be 10 per cent, and 20 per cent on income from Rs.5-Rs.10 lakh, and 30 per cent income tax on beyond Rs.10 lakh.

It has also three different slabs for Short term capital gains. And also provide certain assistance to corporate houses in form of surcharge and concession on corporate tax