A Parliamentary panel scrutinising the Direct Taxes Code – DTC Bill has suggested raising the income tax exemption limit to 3 lakh rupees from the present 1.8 lakhs. It has also suggested hiking of deduction on savings to 2.5 lakh rupees.

According to PTI, the Parliamentary Standing Committee on Finance has also suggested three tax slabs at 10 per cent, 20 per cent and 30 per cent for personal income tax. It has advocated to keep the Corporate Tax at the present rate of 30 percent. The committee adopted its report at its meeting today. The report will be submitted within a week before the Budget presentation.

The DTC seeks to replace the Income Tax Act, 1961 and modernise the direct tax structure in the country. It was referred to the Committee headed by senior BJP leader and former Finance Minister Yashwant Sinha for scrutiny in August 2010.

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