Major Changes are as follows:
■ Applicable from 1st March 2010. That means it will be applicable for Citizens filing IT returns on or after April-1st 2013.
■ 5% Dividend Income Distribution tax to be Paid by MutualFunds [AMCs] and ULIPs [Insurance companies]
■ The short-term capital gains tax, currently levied at 15%, would now be levied at 50% of the three income tax slabs of 10%, 20% and 30%, i.e. 5%, 10% and 15%. Additionally, status quo is maintained on long-term capital gains tax that would continue to attract no tax subject to the levy of Securities Transaction Tax (STT)
■ Exemption Limit goes up from Rs 100,000 + Rs 20,000 [Infra Bonds] to Rs 100,000 + Rs 50,000 [for Health and Life Insurance]
The below chart shows the comparison of existing Tax Code Vs New Direct Tax Code in India
(Click on the image for large view)