Glimpse on DTC bill 2010 and Common man

1. DIRECT TAX CODE Its time to pay back…

3. 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…….

4. 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%

7. An Example – DTC & Common Man Name : Ajay PatelSalary : 8 lacs per yearInvestments : 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 .

8. 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)

9. 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

10. Learn a Lot….Earn a Lot…. Thank you

11. All the Information are Shared from the Gained Knowledge through Internet Suggestion are Invited to tally the Errors with Correction Thanks For Valuable Information offered by http://www.jagoinvestor.com