The UPA Govt has finally approved the draft for the so called Direct Tax Code(DTC) Bill. The Direct Tax Code(DTC) Bill will be tabled in the Parliament in the ongoing Monsoon session. So let us decode the Direct Tax Code Bill and understand its implications on the general tax payers and the corporate as well. No doubt, all of us will save some more money from the tax which we used to pay till now.
The proposed New Direct Tax Code is all set to replace the Income Tax Act which is in existence since 1961. If the Direct Tax Code bill gets passed in this session of parliament, it will be implemented in the next Fiscal year starting April 2011.
Highlights & Features of Direct Tax Code(DTC) Bill :-
Income tax slabs under the New Direct Tax Code(DTC) Bill :-
Honestly speaking the New Direct Tax Code (DTC) Bill did not stand upto the expectations made in the first draft of the Direct Tax Code Bill proposed earlier. Although common man will save money in form of Tax under the new Direct Tax Code, but its not going to be much.
Here are the proposed Income Tax Slabs under the Direct Tax Code (DTC) Bill:-
* Income in the range of Rs 2 Lakhs – Rs 5 Lakhs : 10%.
* Income in the range of Rs 5 Lakhs – Rs 10 Lakhs : 20%.
* Income greater than Rs 10 Lakhs : 30%.
So the limit of tax exemption for regular salaried people is just Rs 2 Lakhs up from Rs 1.6 Lakhs currently. The same for senior citizens and women’s is at Rs 2.5 Lakhs. The housing loan exemption of 1.5 lakhs will also be there for individual tax payers.
The proposed corporate tax for domestic and foreign companies will be 30%. There will no more be any surcharge or cess on the companies which will bring down the corporate taxes to 30% from 34% previously. The earlier draft proposed to bring the corporate taxes down to 25%.
The other goodies being proposed in the new Direct Tax Code Bill is the investments made in PF, PPF, GPF, RPF would be treated as EEE (Exempt-Exempt- Exempt) which means the investor will not have to pay any taxes at the time of maturity. The initial draft which was proposed earlier treated these investments as EET which means that the income at maturity would have been taxed. The new Direct Tax Code Bill also proposes to keep PFRDA scheme under EEE facility where the gains will no more be taxed.
People investing in ULIPs and ELSS should be cautious as the proposed New Direct Tax Code Bill will not consider these investments for tax exemptions.
Some of the major concerns apart from the corporate taxes is the Minimum Alternate Tax which has been proposed at 20% of the book profits against 18% currently being charged from corporates. The other shock under the Direct Tax Code Bill is for the IT companies. The new Bill plans to end the Tax holidays being enjoyed by the IT companies in India. Reacting to this news the IT stocks made a free fall in the stock markets. So lets wait watch for the final version of the New Direct Tax Code.
15 Jul
Posted by Shyam as Results
India’s largest Software exporting company has announced its Q1 2010-11 results today. The revenues of TCS stands at Rs 8,217 crores which is up by 6.2% Q-o-Q and 14% Y-o-Y. The results were better than what markets had expected.
Highlights of the TCS Q1 2010-11 Results :-
* The operating profits of the company stands at Rs 2,245 crores and net profit after tax stands at Rs 1,906 crores which is up by 24.3% Y-o-Y and 4.7% Q-o-Q.
* Dividend per share of TCS is Rs and EPS is Rs 9.71.
* TCS added 10,849 employees (net addition of 3,271 employees). The company now has 163,700 in its payroll. The company plans to hire 40,000 people this year instead of 30,000 earlier planned.
* Company has announced 100% variable pay payments for the last quarter to all its employees.
* TCS managed to add 36 new clients in the last quarter.
Given the good numbers the stock is likely to move up in the coming days.
13 Jul
Posted by Shyam as Results
India’s second largest IT company announced it’s first quarter results which were lesser than what was expected. Infosys profit stood at Rs 1488 crores against Rs 1617 crores, Sales stood at Rs 6213 crores which was marginally up by 4.53%.
Highlights Of Infosys Q1,2011 for the Quarter ending June 30, 2010.
The net income of the company stood ar Ts 6,198 crores for quarter ending June 30,2010. It was 4.3% growth Q-o-Q and 13.3% growth Y-o-Y.
The net profit of the company stands at Rs 1,488 crores which was down by 7% Q-o-Q and down by 2.4% Y-o-Y.
The company added a gross of 8,859 employees(net 1,026) to its payroll.
The company now has 1,14,822 employees.
Infosys managed to add 38 new clients in the last quarter.
Compare the Infosys Q1 2010 Results and Infosys Q4 2010 Results here.
The stock which touched all time high of Rs 2911 yesterday was hammered in the dalal street today and it closed down by 3.44% at Rs 2795 levels due to less than expected results. All the IT stocks performed badly on the back of Infosys Q1 2011 results today.
Infosys Technologies India’s second largest software exporting company will be announcing its Q1 2011 results on July 13th 2010. In Q4 2010, Infy announced profits of Rs 1,600 crores.
Analyze Infosys quarterly results in 2010 from here :-
Infosys Q4 2010 results.
Infosys Q3 2010 results.
Infosys Q2 2010 results.
Infosys Q1 2010 results.
Recently the company has completed its 30 years of existence and gifted all its employees with 5 shares of the company. In a tough environment, Infy is expected to announce better than expected results this time.
Tata Consultancy Services(TCS) India’s largest software exporting company will announce its Q1 2011 results on July 15th 2010. In the last quarter TCS has announced a profit of Rs 2001 crores from all its operations and it also announced salary hike to most of its employees after a period of 2 years.
Check out how TCS fared in the previous quarters :-
TCS Q4 2010 results.
TCS Q3 2010 results.
TCS Q2 2010 results.
TCS Q1 2010 results.
The stock has been under performing since last one quarter and it needs to be seen if the results announcement can give some boosts to the stock price. Meanwhile in its last AGM, TCS announced to hire another 30,000 employees to its payroll this year.