Multiple choice

Which of the following is/are correct regarding the proposed Direct Tax Code?

  1. Corporate Tax will remain at 30 percent, but without surcharge and cess.
  2. MAT will be 20 percent of book profit.
  3. Once enacted, the DTC will completely replace the archaic Income Tax Act, 1961.

  1. Only 2

  2. Only 1 and 2

  3. Only 2 and 3

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Some highlights of the Direct Taxes Code Bill are as follows:  Corporate Tax will remain at 30 percent, but without surcharge and cess. MAT will be 20 percent of book profit, up from 18.5 percent. Once enacted, the DTC will replace the archaic Income Tax Act, 1961. However, many provisions of the Income Tax Act will be a part of DTC as well. Hence, statement 3 is wrong. 

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