New Direct Tax Code: Major relief for salaried class

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%

Corporate tax has been kept at 30%.

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

The new Code comes into effect from April, 2011.

Source: http://www.ndtv.com/article/business/new-direct-tax-code-major-relief-for-salaried-class-47396

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