India’s New Tax Code

India government announced a new tax policy which was entirely different from earlier tax polices. The new tax policy will give a change to our present tax policies. New tax policy completely avoided the present income tax scheme. Decrease the income tax rate and completely avoid the securities transaction tax are the object of new tax policy. The main object of this new tax policy is to decrease the tax burden of the government and stabilize the income of government as per the past condition. As a part of encouraging the financial stability, the government will publish this new tax policy. Those who have income between 1.6 lakh to 10 lakh need only pay the 10% of the actual income. As per the old policy those who have income between 1.6 lakh to 3 lakh should pay 10% of their income. As per new tax policy those who have get income between 10 lakh to 25 lakh should pay the 20% of the income. Peoples who will get more than 25 lakh as income they should pay the 30% of their income. Company tax rate will also change. According to new tax policy the government will charge the same amount of tax from National and Non-national companies. As per new tax policy the foreign companies should pay the 15% of their profit. Temporary carry fording the business losses, avoid the variations in the fixed and current tax policies, coordinate the taxes of institutions which are working with the object non profit earnings, government can join with foreign policies for avoiding the double tax policy etc are included in this new tax policy. From 2011, the new tax policy will came in to activate.