Finance minister Arun Jaitley may
announce during the Budget
The Modi government may declare a raise in the Income
Tax Exemption limit from the current 2.5 lacs to 3 lacs.
Finance Minister Arun Jaitley may announce an
increase in the Income Tax Exemption limit to 3 lacs in the 2015-16 budget
meeting, which will be a great relief to the taxpayers, particularly for
Central Government Employees.
If this proposal is accepted, then there are
chances that changes are made in the Income
Tax Rate slab, which may also provide relief to the people of the High
Income group.
It is being understood that the government can
give a tax exemption up to an annual income of Rs 3 lacs; where a 10% tax was paid
for an income between 2.5 to 5 lacs, there it is expected that people with an
annual income of Rs 3 lacs to 10 lacs will have to pay a tax of 10%. Similarly,
where people with an annual income of Rs 5-10 lacs had to pay a tax of 20%, it
is expected that this tax rate would be extended for the income group of 10-20
lacs.
Similarly, the 30% tax rate for the income
above 10 lacs is expected to be increased to a limit between 20 lacs and 1
crore for implementation. It has been told that the government is making easy
the path of the High Income group and for above 1 crore, and is in the process
of collecting a lump sum of 33% instead of the interest over 30% and surcharge
of 10%.
According to sources, the special
Investigation team formed in relation to black money has recommended a maximum
cash possession limit of approximately 15 lacs which may also be
declared.
Expected Potential Relief in Income Tax
Present Income Tax Slab
|
Total amount of Income
|
Rate (Percentage)
|
|
Up to Rs 2.5 Lacs
|
Nil
|
|
2.5 lacs to 5 lacs
|
10
|
|
Rs 5 Lacs to 10 Lacs
|
20
|
|
Above 10 Lacs
|
30
|
|
Above 1 Crore
|
30 plus 10 percent surcharge
|
Proposed Income Tax Slab
|
Total amount of Income
|
Rate (Percentage)
|
|
Up to Rs 3 Lacs
|
Nil
|
|
3 lacs to 10 lacs
|
10
|
|
Rs 10 Lacs to 20 Lacs
|
20
|
|
Rs 20 Lacs to 1 Crore
|
30
|
|
Above 1 Crore
|
33
|
