The finance minister, Mr Pranab Mukherjee, is likely to introduce the Direct Taxes Code (DTC) Bill in Parliament on Monday.
The Bill has proposed to raise the basic exemption limit to Rs two lakh per annum from Rs 1.6 lakh per annum.
It has also proposed to fix corporate income tax rate at 30 per cent inclusive of surcharges and cesses - down from the current 33 per cent.
It has also proposed a Minimum Alternate Tax (MAT) of 20 per cent, instead of the present 18 per cent, on book profits of companies.
After its introduction in Parliament, the Bill will be examined by a Standing Committee.
The Bill is also likely to propose to continue with exempt-exempt-exempt (EEE) method of taxation on investments up to Rs three lakh.
The first draft of the Bill, unveiled in August last year, had suggested a 10 per cent tax on income between R1.6 lakh and R10 lakh, 20 per cent on income between R10 and R25 lakh and 30 per cent beyond that.