*  Separate threshold exemption limits for men and women done away with. Common threshold limit of Rs. 2,00,000. For resident senior citizens, threshold increased from Rs. 2,40,000 to Rs. 2,50,000.

*  HRA exemption restored.

*  Employer's contributions to NPS (not exceeding 10% of salary), to approved superannuation fund (no limit - limit of 1,00,000 done away with), to approved PF (not exceeding 12% of salary), interest credited to approved fund not to be included in salary.

*  Only actual rent from house property to be taxed. Present system of taxing notional value called 'annual value' proposed to be done away with.

*  Interest on loan taken to repay housing loan deductible in calculating income from house property. This is in line with judicial interpretations.

*  Rent received in arrears to be included in the year of receipt, whether person in owner of property or not, after allowing 20% deduction towards repairs & maintenance.

*  Consideration received from transfer of carbon credits to be taxed as business income.

*  Remission or cessation of any liability by way of loan/deposit/advance/credit to be taxed as business income.

*  Scientific Research and Development in house facility expenses - weighted deduction proposed to be increased from 150% to 200%.

*  Transfer of land of a sick industrial company made under a scheme sanctioned under section 18 of SICA where such company is being managed by worker's co-operative not to attract capital gains tax.

*  Reverse mortgage under notified scheme to continue to be exempt from capital gains tax.

*  Exemption for long-term capital gains from equity shares/units of equity oriented mutual funds retained. STT to be retained.

*  Short-term capital gains (where equity shares/units are held for 1 year or less) - deduction of 50% to be are allowed and balance 50% taxed. Likewise short-term capital loss to be scaled down by 50%.

*  Deduction for interest on housing loan/loan taken for repair or renovation of house property upto limit of Rs. 1,50,000 in respect of one house pro-perty not let out. No deduction for re-payment of principal under the Code.

*  Limit for tax audits for professionals increased from Rs. 15 lakhs to Rs. 25 lakhs. Limit for tax audit for business increased from Rs. 60 lakhs to Rs. 1 crore.

*  TDS of 10% on payments in respect of life policies which are not exempt from tax from code.

*  Amount received by employee from NPS trust is tax-free. Thus, NPS which is taxed on EET basis is proposed to be made EEE (Exempt-Exempt-Exempt) for employees.

*  MAT rate - Increased from 15% of book profits to 20%. MAT Credit carry forward period increased from 10 years to 15 years.

*  DDT on dividend of domestic company - 15%.

*  DDT on income distributed by mutual fund/life insurance to unitholder/policy holder - 5%

*  Wealth tax - threshold increased from Rs. 30,00,000 to Rs. 1 crore. Tax rate will be 1% of net wealth in excess of Rs. 1 crore.

Direct Taxes Code reforms alter income tax exemptions, capital gains treatment, and tax compliance thresholds for taxpayers. The Direct Taxes Code bill consolidates personal tax exemptions, restores HRA treatment, revises employer retirement contributions and NPS treatment, removes taxation of notional annual value for self occupied house property while permitting actual rent and specified interest deductions, treats remission of liabilities and carbon credit receipts as business income, increases weighted deduction for in house R&D, adjusts capital gains rules for equity holdings including short term scaling and retention of long term exemption, raises tax audit thresholds, revises MAT and DDT rates, and increases the wealth tax threshold with a set rate on excess.