Direct Tax Code

Direct Tax Code has been introduced in the Parliamant.
Some of the Highlights are as follows:

1.Common threshold limit of Rs. 2,00,000. For resident senior citizens,
threshold increased from Rs. 2,40,000 to Rs. 2,50,000.

2.Deduction for interest on housing loan/loan taken for repair or renovation of house property upto limit of Rs. 1,50,000 in respect of one house pro-perty not let out. No deduction for re-payment of principal under the Code.

3.Limit for tax audits for professionals increased from Rs. 15 lakhs to Rs. 25 lakhs. Limit for tax audit for business increased from Rs. 60 lakhs to Rs. 1 crore.

4.MAT rate - Increased from 15% of book profits to 20%. MAT Credit carry forward period increased from 10 years to 15 years.

5.Wealth tax - threshold increased from Rs. 30,00,000 to Rs. 1 crore. Tax rate will be 1% of net wealth in excess of Rs. 1 crore.

6.DDT on dividend of domestic company - 15%.

7.DDT on income distributed by mutual fund/life insurance to unitholder/policy holder - 5%

8.TDS of 10% on payments in respect of life policies which are not exempt from tax from code.