“The tax slab is expected to be raised in favour of government employees”
According to information available, the
annual budget, to be presented by Finance Minister Arun Jaitley on
February 1, could have some sops for the middle-class families.
Post the Seventh Pay Commission, most
government servants now find themselves within the tax slab. For a
number of years now, government servants have been demanding that the
tax-exemption slab be raised to Rs. 5 lakhs. The current exemption
stands at Rs. 2.5 lakhs. There is a five percent tax on the income in
the Rs. 2.5 lakhs to 5 lakhs bracket.
There are prevalent talks that the
government could revise the slabs. This could come as a big boon for
middle income groups, especially the salaried class who are suffering
due to acute inflation. No changes were made in the tax slab last year,
but the tax of 10 percent on the Rs. 2.5 lakhs to 5 lakhs slab was
brought down to five percen
he budget, to be presented next month, is expected to reduce the tax on the Rs. 5 lakhs to Rs. 10 lakhs slab to 10 percent (it currently stands at 20 percent). This could spell huge relief to the salaried class.
he budget, to be presented next month, is expected to reduce the tax on the Rs. 5 lakhs to Rs. 10 lakhs slab to 10 percent (it currently stands at 20 percent). This could spell huge relief to the salaried class.
Similarly, the tax on the Rs. 10 lakhs
to Rs. 20 lakhs slab could be reduced to 20 percent (currently stands at
30 percent). A tax of 30 percent is collected on the amount exceeding
Rs. 20 lakhs. Tax rate on this slab is the lowest in India when compared
to most other countries.
There is currently no exclusive tax slab
for those earning between Rs. 10 lakhs and 20 lakhs, and those earning
more than Rs. 10 lakhs automatically end up paying 30 percent in taxes.
The income tax department could raise
the tax slab in order to provide relief to the salaried class that
continues to suffer from the rise in prices of essential commodities due
to inflation.
There are, however, some unconfirmed reports that claim that the tax slab is not likely to be raised to Rs. 5 lakhs.
Source: 90 paisa
