Direct tax code bill which proposes to keep exemption limit at Rs 2 lakh for individual tax unchanged and introduce a fourth slab of 35 per cent tax rate for those with an annual income of over Rs 10 crore, was not taken up by the Cabinet yesterday.
Information and Broadcasting Minister Manish Tewari didn't give any reasons for the Cabinet not taking up the bill, reports suggested that it was possibly due to paucity of time and would be taken up at the next meeting.
Among other things, the Bill 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, as against the recommendation of the Standing Committee on Finance that the levy be abolished.
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