People with more than Rs 10 lakh annual income may not get the tax relief originally proposed in the Direct Taxes Code, as the Finance Ministry is for tweaking slabs across the board to offset concessions elsewhere
Under the first draft of DTC — which when implemented will replace the archaic Income Tax Act, 1961 — income of Rs 10 lakh to Rs 25 lakh was to attract tax at the rate of 20 per cent, but the final draft expected by June 15 may propose slapping 30 per cent tax on any income above Rs 10 lakh per annum, according to sources.
This is to make up for the possible concessions the ministry may extend in other areas like exempting long term savings from tax at the time of withdrawal and the way Minimum Alternate Tax is calculated, sources said.
