NEW DELHI:
A parliamentary panel scrutinising the proposals of the new direct taxes code has recommended a sharp increase in the tax exemption limit on basic income to 3 lakh and on investments to 2.5 lakh.
The recommendation represents a 67% increase over the current limit on basic income tax exemption limit of 1.8 lakh and 65% over the 1.55 lakh limit for investments, including health insurance. Health insurance for senior citizen parents will be eligible for another 20,000 rebate, the same as the current limit.
"Convergence is emerging on raising basic exemption limit and investment threshold," a panel member told ET after the committee's meeting on Friday.
The new direct taxes code, or DTC, which will replace the nearly 50-year-old Income Tax Act of 1961, was referred to the panel headed by BJP leader Yashwant Sinha in August 2010.
The panel will meet on March 2 to give final touches to its report, which is expected to be tabled in Parliament in the upcoming budget session. This will pave the way for the ambitious recast of the country's direct taxes regime that was first mooted in 2009.
The recommendation represents a 67% increase over the current limit on basic income tax exemption limit of 1.8 lakh and 65% over the 1.55 lakh limit for investments, including health insurance. Health insurance for senior citizen parents will be eligible for another 20,000 rebate, the same as the current limit.
"Convergence is emerging on raising basic exemption limit and investment threshold," a panel member told ET after the committee's meeting on Friday.
The new direct taxes code, or DTC, which will replace the nearly 50-year-old Income Tax Act of 1961, was referred to the panel headed by BJP leader Yashwant Sinha in August 2010.
The panel will meet on March 2 to give final touches to its report, which is expected to be tabled in Parliament in the upcoming budget session. This will pave the way for the ambitious recast of the country's direct taxes regime that was first mooted in 2009.
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