Industry chambers today welcomed change in personal income tax slabs proposed in the draft Direct Taxes Code, but expressed divided opinion on reduction of corporate tax rate by 5 per cent.
"As far as individual taxation is concerned, it's welcomed in the sense that the maximum tax rate of 30 per cent would now be applicable on income of over Rs 25 lakh. As far as corporate tax is concerned the tax rate remained more or less same," Ficci said in a statement here.
Assocham President Sajjan Jindal, however, welcomed the proposal saying, "The suggestion to bring down the corporate tax to 25 per cent from the existing 30 per cent will be a substantial achievement and the industry was hopeful of it."
The draft tax code, which if approved would replace the archaic Income Tax Act, proposes to impose 30 per cent income tax on salaries above Rs 25 lakh against Rs 5 lakh at present.
Besides, it suggests imposing 20 per cent rate on income above Rs 10 lakh to Rs 20 lakh against the present slab of more than Rs 3 lakh to Rs 5 lakh.