Ficci welcomes Draft Tax proposal

Industry chambers have hailed the proposed change in personal income tax slabs in the draft Direct Taxes Code, but are divided on reduction of corporate tax rate by 5%.

For an individual tax payer, the proposed changes have been welcomed in the sense that the maximum tax rate of 30% would now be applicable on income of over Rs 25 lakh and corporate tax is likely to remain more or less same, according to Ficci.

The draft tax code is expected to replace the Income Tax Act once approved.The draft proposes to slap 30% income tax on salaries above Rs 25 lakh against Rs 5 lakh at present.

It has also suggested imposing 20% rate on income above Rs 10 lakh to Rs 20 lakh against the present slab of more than Rs 3 lakh to Rs 5 lakh.