Premnath Hegde & Co.,

What is DTC or Direct Taxes Code? The D irect Tax Code  (DTC) was first introduced by our current President of India, Shri  Pranab Mukerjee in 2010. He was then the Finance Minister of India. The DTC is meant to be transparent, efficient and extremely simple, which would replace the Income Tax Act 1961. Among other things, the DTC Bill proposes a higher income tax rate of 35 per cent.While the Bill proposes to keep exemption limit at Rs. 2 lakh for individual tax unchanged, it proposes to introduce a fourth slab of 35 per cent tax rate for those with an annual income of over Rs. 10 crore. It also proposes to levy a 10 per cent tax on dividend income of more than Rs. 1 crore.Besides, Minimum Alternate Tax (MAT) may be levied on book profit and not on gross assets, sources said. Further, the Securities Transaction Tax (STT) is likely to be retained, though the Standing Committee on Finance, which had scrutinised the bill, had suggested aboliti...

What is GST? G oods and S ervices T ax   -- GST -- is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level. It is a single uniform tax levied across India on all goods and services. Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain. The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in the supply chain. It is believed   that GST is likely to improve tax collections and boost India's economic development by breaking tax barriers between States and integrating India through a uniform tax. Why is it required? The indirect tax system is currently mired in multi-layered taxes levied by the Center and state governments at different stages of the supply chai...