Q: Is it true that a salaried person would not have to file tax returns any longer?
There is a proposal to exempt certain class or classes of persons from furnishing the return of Income. Salaried employees with only income from salary could fall under this category. The relevant notification in this regard will be issued soon. This is a good development if institutions such as housing finance companies, banks etc. treat the Form 16 as a good proxy for the ITR. Otherwise I suggest you file the ITR even if you fall under the exempt category.
Q: The tax exemptions for an individual has increased from Rs 1,60,000 to Rs 1,80,000 does that mean woman’s exemption limit has been hiked to 2,10,000 from its earlier 1,90,000.
Unfortunately, there is no change in the basic exemption limit for women below the age of 60. It remains at Rs. 1,90,000. Women above the age of 60 can avail a basic exemption limit of Rs. 2,50,000.
Q: The FM announced that the Direct Tax Code would be effective from April 2012. How would this be different from the Income Tax Act?
For individuals there is a change in the computation of short term capital gains on equity shares, taxation of debt mutual funds, list of eligible instruments available for tax benefit under section 66 (currently Section 80C)etc. Also, the eligible amounts for basic exemption and tax related investments may undergo a change.
Q: What has been the change in the 80CCF tax benefits.
The tax benefit of Rs 20,000 under section 80CCF has been extended for one more year.