Following are the highlights of the recommendations made by the task force on Direct Taxes headed by Vijay Kelkar, advisor to Finance Minister Jaswant Singh:
Income tax rates proposed at 20 per cent for earnings of Rs 100,000-Rs 400,000 and 30 per cent for over Rs 400,000.
Exemption limit should be raised to Rs 1,00,000 from Rs 50,000.
Standard Deduction should be lifted.
All exemptions on savings and other income, except for the handicapped, should be lifted.
Abolition of dividend tax, long-term capital gains tax and wealth tax.
Tax should be imposed on agri income of non-agriculturists.
Tax Information Network system to process TDS, advance tax and refunds.
Corporate tax rate should be reduced to 30 per cent from 36.75 per cent.
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