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A tax deduction bill has been approved by the country's federal cabinet. It's set to come into effect from the next fiscal year in 2011.
The Direct Tax Code Bill includes reduced tax rates and exemptions. It's expected to revolutionize the existing taxation system in India, by ushering in changes in both personal and private tax structures.
The draft bill has been placed before the upper house of the Indian parliament. It will come into force from the next financial year, commencing on April 1st, 2011. The formal tabling of the bill will take place on August 30th.