The Parliamentary Consultative Committee on Direct Taxes Code (DTC) Bill has unanimously agreed today to raise the IT exemption limit to Rs.3 lakh from the present limit of Rs.1.8 lakh from the next financial year.

Reports said that the committee has agreed to raise the limit keeping in view the near double-digit inflation that drastically eroded the purchasing power of rupee.

The Government will take time to introduce the Direct Taxes Code (DTC) Bill in Parliament to replace the Income Tax Act, 1961.

However, the government is likely to incorporate some of the provisions of the DTC Bill in the new annual budget to be presented to the Parliament on March 16 by the Finance Minister Pranab Mukherjee. (JUBS)