New Delhi : In a move that could leave more money in the hands of people, the Government on Aug 26 proposed to raise exemption limit on income tax from the present Rs 1.6 lakh to Rs 2 lakh.

The Cabinet approved the much-awaited Direct Taxes Code (DTC) Bill, which is likely to be tabled in Parliament during the ongoing Monsoon session and thereafter it may be referred to a select committee of members of both houses of Parliament. The bill also seeks to remove surcharge and cesses on corporate tax, which could provide relief to business houses.