The Union Cabinet has cleared the Direct Tax Code giving a major relief for the salaried class. It has been referred to the slect committee, and will be introduced in Rajya Sabha on Monday. The limit for exemptions for salaried people is Rs. 2 lakh, while that for senior citizens is Rs. 2.5 lakh.
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%