ITS TIM E TO PAY BA C K …

DIRECT TAX CODE

WHAT IS IT????

Taxes Classified broadly as

- Direct Tax Taxes Directly paid by a Person or Corporate directly to

the Government Like Income Tax ,Wealth Taxes, Corporate Tax, Capital Gain Tax, Petroleum Profit Tax.

- Indirect Tax Undoubtedly its all about tax paid indirectly like Taxes

on goods and Services, Excise Duties, Export & Import Duties, VAT etc

India And Tax Regime

India an Middle income Country have an oriental Tax Regime Since Before DTC bill 2010.

Being an 3rd Largest Economy in Asia and Emergent Global Economy .

Tax GDP ratio increased from 2.97 at the beginning of this decade to 6.45 percent in 2009-2010.(Kudos to IT revolution)

Current Position & What we Expect

Income tax Payers Slab

95.75 % of Tax Payers are in 1- 5 Lacs income group

2% -Tax payers are in 5-8lacs income group

2.2% - Tax Payers are in >8 lacs Income

New Tax Code aimed at benefiting 1-5 Lacs Slab Significantly

Let us c How…….

Proposed Tax Regime- As Per DTC

•    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%

The limit for exemptions for salaried people is Rs. 2 lakh, while that for senior citizens is Rs. 2.5 lakh.

Corporate Tax -30%

Minimum Alternate Tax on book Profits -20%

Reforms Under DTC bill(For Common Person)

Positive Effects:

• New Tax Regime ,Attractive Income TAX Slab

for Middle Income Group

Tax Exemption May Increased From 1lacs to

3Lacs

(Plan more to Get Exemption Effectively)

• Securities Transaction Tax may be Abolished.

……..R u an Share Market Savvy you may

Benefited with a small Pie

Minor Adverse Effect to Common Man

Maturity Amount Received by - Provident Funds, Mutual Tax are Taxable. Currently no taxes are Levied

(A better future planner will increase his investment to avoid cut on returns)

• Interest Paid on Home Loans are Not Exempted

Perks from Employer is taxable. Perks in Form of Interest

free Loans, Free Lunch etc…

Nobody can gain without a loss

An Example – DTC & Common Man

Name : Ajay Patel

Salary : 8 lacs per year

Investments : Investment of 30k in Mutual funds, 30k in

EPF , 20k in PPF and 20k in Insurance Policy .

Home Loan : Taken a Home loan and pays 80k as Principle

and 1.4 lacs as Interest .

How it works

Tax as per Current System

Amount Exempted = 1.4 lacs as home loan interest + 1 lac in 80C

= 2.4 Lacs Taxable Income = 5.6 lacs Tax = 14k (10% from 1.6 to 3 lacs) + 40k (20% from 3 – 5 lacs) + 18k (30% on 5 – 5.6 lacs) = Rs 72,000

Tax as per New Tax Code  Amount Exempted = 1 lac from (mutual funds , PPF , EPF , Insurance) + 80k as Home loan principle = 1.8 lacsTaxable Income = 6.2 lacsTax = Rs 44,000 (10% on 1.6 lacs – 6.2 lacs)

It’s a time to think

Are you Coming under Middle Income Group

Plan Efficiently on Basic Investment Plan

Increase your Efficiency on Personal Finance

Prepare yourself to utilize Government Reforms

THANK YOU

Learn a Lot….Earn a Lot….

All the Information are Shared from the Gained Knowledge through Internet

Suggestion are Invited to tally the Errors with Correction

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