1. Budget 2017 should revise tax slabs; 30% tax rate should be applicable for income above Rs 20 lakh: FICCI

Budget 2017 should revise tax slabs; 30% tax rate should be applicable for income above Rs 20 lakh: FICCI

FICCI has urged Finance Minister Arun Jaitley to revise the current income tax slabs and bring them at par with international standards.

By: | Updated: January 19, 2017 11:24 AM
Budget 2017, Budget 2017 tax slabs, Budget 2017 income tax, Budget 2017 latest news Budget 2017 is widely expected to bring in cheer for taxpayers, especially in the backdrop of demonetisation of old Rs 500 and Rs 1000 notes.

Budget 2017 is widely expected to bring in cheer for taxpayers, especially in the backdrop of demonetisation of old Rs 500 and Rs 1000 notes. FICCI (Federation of Indian Chambers of Commerce and Industry) has urged Finance Minister Arun Jaitley to revise the current income tax slabs and bring them at par with international standards. “Currently, the peak tax rate of 30% is made applicable over an income of Rs 10 lakhs for individual taxpayers. However, the income level on which peak rate is applied in other countries is significantly higher,” says FICCI. “Hence, there is a need for further raising the income level on which the peak tax rate would trigger, to make the same compatible with the international standards,” it recommends in its pre-Budget 2017 memorandum.

FICCI has recommended revised tax slabs for individual taxpayers, where a 30% tax rate should be applicable only if the income is above Rs 20 lakh. For taxpayers in the bracket of Rs 10 lakh to Rs 20 lakh income, FICCI recommends that the tax slab should be 20%. FICCI has urged the Narendra Modi government to implement the following tax slabs for FY 2017-2018.

Budget 2017, Budget 2017 tax slabs, Budget 2017 income tax, Budget 2017 latest news Budget 2017: FICCI recommends tax slabs for FY18

Additionally, it wants that the Union Budget 2017-2018 should withdraw the levy of surcharge on individuals having income above Rs 1 crore. “The Finance Act, 2016 has levied surcharge @ 15% on individuals having total income exceeding Rs 1 crore. The surcharge @ 10% on individuals having taxable income above Rs 1 crore was introduced in the Budget 2013-2014 though only for a year. The surcharge on individuals has been increased over the years from 10% to 15%. It is observed that the increased surcharge on certain category of individuals distorts equity and tends to discourage entrepreneurship and incentivizes people to relocate to other locations,” FICCI points out.

Meanwhile, FICCI has also asked FM Jaitley to raise the deduction for interest paid under Section 24 to Rs 3 lakh. “The deduction available under section 24 of the Act is to a maximum limit of Rs 2,00,000/- for interest on loan taken for acquisition/construction of self-occupied house property. Given the rising interest rates and the increase in property prices and also to spur the demand for housing, it is recommended the exemption should be increased to at least Rs 3,00,000/- per annum,” FICCI says.

FM Jaitley is likely to present the Budget 2017 on February 1.

  1. B
    Bhaskar
    Jan 4, 2017 at 8:25 pm
    Nothing will happen... He will come up with a lollipop of 20000 slab increase. Poor can't pay snd will get all subsidies, Rich won't pay and banks can't do a thing... We are stuck in between, if we fail to pay an emi, banks hounds us.. that's what!! All politically motivated, all parties worthless..
    Reply
    1. G
      Girish C
      Jan 31, 2017 at 6:07 am
      Aim should be to widen the network of tax payers and give some relief to regular tax payers. Rs 2,50000/- exemption limit should be raised to 3,50,000 and the tax slab should be 5% for income from 3,50,000 to 5,00,000 and 10% for the income from 500000 to 10 lakhs. 15% for the slab 1000001 to 15 lakhs and 20% for 1500001 to 20 lakhs, 25% for the range 20 lakhs to 25 lkahs annd above 25 lakhs 30%. I hope it would be reasonable and will provide great relief to all tax payers
      Reply
      1. T
        tax payer
        Jan 2, 2017 at 11:25 am
        income tax which is being paid by the ried cl is like a hen giving golden egg. Nobody will tinker with the income tax. Always only the 2.5% people who pay the income tax will be milked. this government or any other government will not give any relief for the ried cl. We have to carry the burden of the remaining 97.5% of the potion.
        Reply
        1. K
          krishnendu das
          Jan 1, 2017 at 7:20 pm
          Post your opinion...it is a nice proposal from ficci
          Reply
          1. D
            d p
            Jan 24, 2017 at 5:00 am
            EVEN AFTER TAXING AT 30% THE HIGHLY PAID ENJOY THEIR LIFE. THE GOVERNMENT CANNOT FAVOUR THEM ANYMORE
            Reply
            1. D
              d p
              Jan 24, 2017 at 5:03 am
              FAVOUR THE MES AND EARN GOODWILL FROM BASE
              Reply
              1. D
                d p
                Jan 24, 2017 at 5:02 am
                LET US SEE THE LOWER LEVEL INCOME GROUP WITH EMPATHY AND NOT ALLOW THE RICH CL TO PER WEALTH IN OUR COUNTRY OF POVERTY
                Reply
                1. D
                  d p
                  Jan 24, 2017 at 4:56 am
                  THE GOVERNMENT SHOULD GIVE CONCESSIONS FOR LOWER LEVEL INCOME GROUP. THE HIGHLY PAID WHITE COLLAR PERSONS THE RATE SHOULD REMAIN THE SAME.
                  Reply
                  1. D
                    d p
                    Jan 24, 2017 at 4:52 am
                    THE BASE LIMIT SHOULD BE INCREASED. IT IS QUITE ACCEPTABLE. OTHER SLABS SHOULD REMAIN THE SAME. TO SAY THAT ONLY ABOVE RS 20 LACS THE RATE SHOULD BE 30% IS NOTHING BUT FAVOURING THE RICH. THE GOVERNMENT SHOULD NOT SUCB TP PRESSURES AD FAVOUR THE CREAMY OASIS IN A LAND OF DESERT ( POVERTY)
                    Reply
                    1. D
                      d p
                      Jan 24, 2017 at 4:58 am
                      THE CREAMY OASIS GROUP PERSONS CANNOT BE GIVEN ANY MORE BENEFITS IN COME TAX AS WE SHOULD SEE THE ALARMING POVERTY IN INDIA
                      Reply
                      1. D
                        d p
                        Jan 24, 2017 at 4:59 am
                        THE FAVOURED HIGH INCOME SHOULD BE TAXED ADEQUATELY. SMALL OASIS IN A LAND OF DESERT CANNOT ENJOY ALL THE BENEFITS
                        Reply
                        1. R
                          rajiv
                          Jan 27, 2017 at 7:33 am
                          So, DP do you think highly paid should not enjoy their life? In fact all people should strive to be highly paid and thus enjoy great life. For that to happen you need to be capable and also work hard. Better approach is to focus to do better and earn more and live better than take away from someone who deserves it. Surcharge on income above 1 cr was meant to make rich people contribute more and I think that serves the purpose.IMO, individual IT limits shouldn't be increased beyond 3 Lakh for now so that people won't escape the tax net. We want more people to pay tax than just 4% of potion currently does. What can be done is to reduce tax rate from 10% to say 8%. From 20% to say 16%. Lower the rates better would be the chance of compliance. Stable the slabs better is the chance to bring more people in tax net. People with income below 3 Lakh won't be taxed and nobody should complain.Agriculture income anyway is tax free.Another suggestion is to make mandatory for all people having agriculture income above 3 Lakh to file an IT return. Even if tax is zero return has to be filed and income declared so from 5 years from now we shall have credible data on what any individual agriculturist has earned. Tax being zero there would be no merit if someone resists to this provision.What say?
                          Reply
                          1. K
                            Kk
                            Jan 23, 2017 at 5:27 pm
                            Dear FM and respected PM please release burden on people who are paying tax like me since last 17 years and we are few people 2% percent of Indian potion are taking burden of Indian government bring such act where rest of the 98%poulation of India shall come under the tax roof partucluary empolyes are most affected and they are the most sincere tax payers get them a standard tax plan of @10% up 40 lacs
                            Reply
                            1. Vito
                              Feb 1, 2017 at 7:44 am
                              The finance minister just took a big on FICCI... No tax slab changes. Just a token change for the lowest tax slab. This was a hogwash on what is needed.
                              Reply
                              1. D
                                David
                                Dec 30, 2016 at 6:41 am
                                Both the FICCI recommendations mentioned here (tax slabs and 3,00,000 u/s 24) are very very reasonable. They are so reasonable that they still leave some space for the Govt. to consider even higher concessions. Hope they are accepted.
                                Reply
                                1. S
                                  sankalp
                                  Dec 30, 2016 at 6:32 am
                                  if govt does reduce taxes it may earn some goodwill from common people else bjp is headed for a ruin
                                  Reply
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