DTC draft retains exemption limit; proposes 35% super-rich tax

NEW DELHI: The revised draft of the Direct Taxes Code Bill has retained the income tax exemption limit at Rs 2 lakh and introduced a fourth slab of 35 per cent on super-rich with income exceeding Rs 10 crore. The fresh draft of the DTC Bill, posted on the website of the Finance Ministry today, has lowered the age for tax exemption for senior citizens to 60 years from 65 years.
The final view on the draft, which has been prepared by Finance Minister P Chidambaram, will be taken by the new government to be formed after the general elections are over in mid-May. In another significant step, the draft has suggested that foreign companies with more than 20 per cent assets in India will be subjected to domestic tax laws. The ministry has rejected the recommendations of the Standing Committee on Finance, headed by senior BJP leader Yashwant Sinha, to raise the income tax exemption limit to Rs 3 lakh.