Snapshot of deductions under the Direct Tax Code (DTC)

Are you wondering just what are the implications the DTC for your personal taxation? Here is a quick snapshot of the status of deductions that you can take and ones that have been done away with or amended under the Bill placed in Parliament.

S. No.	Item	Status under Direct Tax Code (Parliamentary Bill)
1	Recognized Provident Fund	Eligible for deduction subject to a combine limit of Rs 1,00,000 for 1, 2, 3 & 4
2	Public Provident Fund	Eligible for deduction subject to a combine limit of Rs 1,00,000 for 1, 2, 3 & 4
3	Superannuation Fund	Eligible for deduction subject to a combine limit of Rs 1,00,000 for 1, 2, 3 & 4
4	National Pension Scheme	Eligible for deduction subject to a combine limit of Rs 1,00,000 for 1, 2, 3 & 4
5	Life Insurance Premium	Eligible for deduction subject to combine limit of Rs 50,000 for 5, 6 & 7
6	Mediclaim Insurance Premium	Eligible for deduction subject to combine limit of Rs 50,000 for 5, 6 & 7
7	Tuition Fees (for up to 2 kids)	Eligible for deduction subject to combine limit of Rs 50,000 for 5, 6 & 7
8	ELSS (equity mutual funds)	Deduction from gross total income is not available
9	ULIP (unit linked insurance)	Deduction from gross total income is not available
10	Housing Loan Repayment of Principal	Deduction from gross total income is not available.
11	Interest on Housing Loan for Self Occupied Property	Deduction of upto Rs 1,50,000
12	House Rent Allowance	Exemption is available
13	House Property Income – Deduction for Repairs	Standard deduction for repair and maintenance of rented property is reduced from 30% to 20% of Gross Rent
14	Leave Travel Allowance	Exemption removed
15	Medical Reimbursement	Benefit is increased from Rs.15,000 to Rs 50,000
16	Equity Shares/ Equity Oriented Mutual Funds	If holding period > 12 months, 100% deduction If holding period < 12 months, 50% deduction
17	Tax Audit Limit	Profession – Rs 25 Lakhs Business - Rs 1 Cr
18	Wealth Tax	Exemption limit is increased from Rs.30 Lacs to Rs.1 Crore

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Comments


Anunay said : 30/09/2010	Hi I believe exemption of ULIP's are available as a insurance product provided Annual premium is equal or more than 5%.the information given on ULIPs that it will not be exempted anymore is incorrect
raj said : 02/09/2010	its really very accurate

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Snapshot of deductions under the Direct Tax Code (DTC)

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