Authored by: Ajit Panicker
The budget is round the corner and lot of speculation as well as proposals are being made , so that the tax slabs become a win win sitauation for all the stakeholders, including the individual income tax payee, the government , and others.
What was being initially proposed to give rebate for tax free income upto 5 lacs have been now proposed by the panels to allow no tax upto 3 lacs, 10% for 3-10 lacs slab, 20% for 10-20 lacs and 30% for 20+ lacs slab. This tax structure kind of appeals to provide benefits to all the sections of the society, on a good equitable distribution with lower income group also benefitting substantially, which was lacking in the tax structure presently being used.
the comparison with the last years slab would provide say for an income tax payee(male) with 7 lacs p.a following benefits- if the investment limit which provide tax rebate is increased from 1 lacs to 1.5 lacs, so there would be no tax for 4.5 lacs if a person has made investment and claimed rebate for 1.5 lacs, and only 10% on rest 2.5 lacs which would be just 25000 rs.
If done last year, the same condition would provide- 1 lacs of investment rebate + 1.6 lacs no tax, would ask for 10% on 5.0- 2.6 lacs(2.4lacs), 24000 as tax + 20% on 7.0- 5.0 lacs =40000, in total 64000, which calls for a huge tax to be paid by the individual.
Lets see , after the political upheavals which has happened in the recent polls, what would the central government be placing the budget and the DTC - as.
The budget is round the corner and lot of speculation as well as proposals are being made , so that the tax slabs become a win win sitauation for all the stakeholders, including the individual income tax payee, the government , and others.
What was being initially proposed to give rebate for tax free income upto 5 lacs have been now proposed by the panels to allow no tax upto 3 lacs, 10% for 3-10 lacs slab, 20% for 10-20 lacs and 30% for 20+ lacs slab. This tax structure kind of appeals to provide benefits to all the sections of the society, on a good equitable distribution with lower income group also benefitting substantially, which was lacking in the tax structure presently being used.
the comparison with the last years slab would provide say for an income tax payee(male) with 7 lacs p.a following benefits- if the investment limit which provide tax rebate is increased from 1 lacs to 1.5 lacs, so there would be no tax for 4.5 lacs if a person has made investment and claimed rebate for 1.5 lacs, and only 10% on rest 2.5 lacs which would be just 25000 rs.
If done last year, the same condition would provide- 1 lacs of investment rebate + 1.6 lacs no tax, would ask for 10% on 5.0- 2.6 lacs(2.4lacs), 24000 as tax + 20% on 7.0- 5.0 lacs =40000, in total 64000, which calls for a huge tax to be paid by the individual.
Lets see , after the political upheavals which has happened in the recent polls, what would the central government be placing the budget and the DTC - as.
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