Money on the markets
A maturing market amid the mayhem
Though these slabs will put some extra money in taxpayers’ pockets as compared to existing slabs, the original slabs proposed in the first draft of the direct tax code have been diluted.
The original code proposed that income up to 10,00,000 rupees would be taxed at the rate of 10 percent, but the tax slabs announced on Thursday propose a tax of 20 percent for income between 500,000 – 10,00,000 rupees and a tax of 10 percent on income between 200,000 – 500,000 rupees.
The new proposal exempts income up to 200,000 rupees from taxes. For senior citizens, the basic exemption would be hiked to 250,000 rupees.
The finance ministry on Saturday said life insurers could sell unit-linked insurance plans without seeking a nod from the Securities and Exchange Board of India (SEBI).
This ends a spat between regulators over the much sought after product. Under the law, such orders issued when parliament is not in session must be confirmed by lawmakers in their next sitting.