DIRECT TAX CODE & GOODS & SERVICES TAX

GROUP MEMBERS
NEHA KHAN FARIYA KORLEKAR DIVESH SHETTY DEVEN SHARMA (25) (27) (44) (52)

TAX
Tax is a financial charge or other levy upon a taxpayer by a state such that failure to pay is punishable by law Taxes consist of direct tax or indirect tax

TAX SYSTEM IN INDIA

TAX
DIRECT TAX
INCOME TAX WEALTH TAX

INDIRECT TAX
VAT SERVICE TAX EXCISE DUTY ENTERTAINMENT TAX ETC.

COMPUTATION OF TOTAL INCOME

Total Income from ordinary source

Total Income from special source Total Income

COMPUTATION OF INCOME TAX

INCOME FROM SALARIES INCOME FROM HOUSE PROPERTY INCOME FROM BUSINESS/PROFESSION INCOME FROM CAPITAL GAINS INCOME FROM OTHER SOURCES XX XX XX XX XX
XXX XX XX

GROSS TOTAL INCOME

LESS: DEDUCTIONS U/S 80C TO 80U

NET TAXABLE INCOME

INCOME FROM SPECIAL SOURCE

Under Section 194 BB: Causal Receipts It includes:
Lottery Crossword puzzle T.V. game show Horse racing Betting Gambling

EXISTING TAX SLAB

INCOME TAX SLAB (in Rs) 0 to 1.80 lakhs 1.80 lakhs to 5 lakhs 5 lakhs to 8 lakhs Above 8 lakhs TAX RATE 0% 10% 20% 30%

For female exemption limit:- Rs. 1.90 lakhs For senior citizens exemption limit:- Rs. 2.40 lakhs

DIRECT TAX CODE

Direct Tax code can reduce the tax burden The main objective of the Direct Tax code is the removal of the incentives and exemptions Direct Tax code can make even the loss making companies to pay the Minimum Alternate Tax (MAT) Direct tax code can generate more tax revenue as well as the whole process is made much simpler

HIGHLIGTS OF DIRECT TAX CODE

Proposed bill has 319 sections & 22 schedules against 298 sections & 14 schedules in existing IT Act Removal of most of the tax saving schemes New tax saving schemes Tax slabs Home loan interest Short and long term gains

 News for NRIs

Exempted - Exempted - Tax

Education Cess & Education loan

Income arising from House Property:- 30% to 20% LTA (Leave travel allowance) Taxation of Capital gains from property sale

 Medical reimbursement:- Rs. 50000 from Rs. 15000 Tax on dividends:- 5% tax Corporate tax to remain at 30% MAT to be 20 %, up from 18.5 per cent Proposal to levy dividend distribution tax at 15 per cent

income tax exemption limit for men & women proposed at Rs. 2 lakh p.a., up from Rs. 1.8 lakh

PROPOSED TAX SLAB

SLAB 1 2 INCOME BETWEEN 0 2 LAKHS 2 LAKHS TO 5 LAKHS TAX RATE 0% 10%

3
4

5 LAKHS TO 10 LAKHS
ABOVE 10 LAKHS

20%
30%

For Senior citizen exemption limit:- Rs. 2.50 lakhs

GOODS & SERVICES TAX

Goods and Services Tax(GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level Under GST, the taxation burden will be divided equitably between manufacturing and services It is expected to help build a transparent and corruption-free tax administration

HIGHLIGHTS OF PROPOSED GST

The basic principle for subsuming of taxes in GST is provided as follows: a. Those taxes of goods or provision of services at one end and the consumption of goods and services to other end b. The taxes, levies and fees which are not related to supply of goods & services should not be subsumed under GST.

 Alcohol and petroleum product are kept out of GST Tax on Tobacco products will be subject to GST

The small taxpayers whose gross annual turnover is less than 1.5 Crore are exempted from CGST and SGST.
GST administration to be separate for State & Central
No decision on excluding natural gas from GST Services to be taxed at a single rate Business with annual turnover below Rs. 10 lakhs to be exempted from State GST

 Business with annual turnover below Rs. 1.5 crore to be exemted from Cental GST GST to have composition/ compounding scheme to avoid instances of double taxation PAN based identification number

Imported goods and services

 Cross utilization of ITC would not be allowed

GST Rate Structure: a. Two Rate Structure b. A lower rate for necessary items and goods of basic importance c. Standard rate for goods in General d. Special Rate Exports are fully exempted with Zero rate

 The basic principle is to have single Taxation System for Goods and Services In the new Proposal of GST; we will be having only two taxes on all goods and Services as follows:

CENTRAL LEVEL GST Central Excise duty Additional Excise Duty Surcharge Educational Cess Service Tax Additional Custom Duty Special Additional Duty

STATE LEVEL GST VAT Entertainment Luxury Tax Lottery Tax State cess & Surcharge

THANKYOU