1. Narendra Modi govt may hike base Income Tax slab from Rs 2.5 lakh to Rs 4 lakh, says report; spokesperson terms it ‘baseless’

Narendra Modi govt may hike base Income Tax slab from Rs 2.5 lakh to Rs 4 lakh, says report; spokesperson terms it ‘baseless’

Modi government is reportedly considering a proposal to revise the base Income Tax tax slab and increase it up to Rs 4 lakh per annum

By: | New Delhi | Updated: December 19, 2016 8:24 PM
tax slab, tax slab revision, tax slab hike, base tax slab, income tax, demonetisation The Narendra Modi government may increase base Income Tax slab up to Rs 4 lakh per annum.

Facing criticism from the opposition over demonetisation, the Narendra Modi government is considering a proposal to revise the base Income Tax slab and increase it up to Rs 4 lakh per annum from the current Rs 2.5 lakh per year, according to a report by India Today news channel.

The channel reported that the government may announce revised tax slabs before the announcement of Uttar Pradesh assembly election dates.

Quoting sources, India Today also said while people in the Rs 4-10 lakh income group may be taxed at 10%, 15% tax is likely for the 10-15 lakh income group. Similarly, while people in the Rs 15-20 lakh income group may have to pay 20% tax, 30% tax may be imposed on those having income above Rs 20 lakh.

 

If implemented, the new tax proposals will give a huge relief to taxpayers reeling under the impact of high inflation and high tax rates.

Currently, income up to Rs 2.5 lakh is exempt from tax, income from Rs 250,001 to Rs 5,00,000 is taxed at 10%, from Rs 5,00,001 to Rs 10,00,000 at 20% and above Rs 10 lakh at 30%.

However, government spokesperson Frank Noronha rejected the report about new income tax slabs. ANI reported him calling it “‘baseless and unfounded”.

Earlier on December 14, Union Finance minister Arun Jaitley had indicated that the government may reward the common man by lowering both direct and indirect tax rates in Budget FY18 as demonetisation is set to expand the tax net.

While the central bank is remonetising by constantly releasing new banknotes, which would be “significant” in the next three weeks, Jaitley said the strategy is to make future transactions substantially digital to reduce dependence on cash. “Once they (black money hoarders) are substantially digital, they will get caught in the tax net,” he said.

“Therefore, the future taxation level would be much higher than what is currently being collected. This would also enable the government at some stage to make taxes more reasonable which will apply to both direct and indirect taxes,” the minister said.

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  1. D
    D P
    Jan 26, 2017 at 7:46 am
    NO NEED TO REVISE THE SLABS RATES BUT ONLY BASIC LIMIT NEEDS TO BE REVISED. FURTHER THEY CAN GIVE BENEFIT TO THOSE WITH GIRL CHILDREN, DISABLES ETC KEEPING IN MIND THE SOCIAL OBJECTIVES
    Reply
    1. D
      D P
      Jan 26, 2017 at 7:41 am
      THE REPORT IS RIDICULOUS. MONEY THIRSTY SELFISH IT GUYS ARE HOPING THEY CAN SAVE RS 1 LAC BY WAY OF INCOME TAX BENEFIT. THE COMMON MAN LESS THAN RS 10 INCOME GETS ONLY RS 15000 AS BENEFIT. IT IS UTTER NONSENSE ON THE PART OF MEDIA
      Reply
      1. D
        D P
        Jan 26, 2017 at 7:43 am
        THIS IS CALLED SELF AGGIT. MAXIMUM WE CAN EXPEXT MARGINAL INCREASE IN BASIC LIMIT AND 80 CC INCENTIVES TO BOOST SAVINGS.
        Reply
        1. D
          D P
          Jan 26, 2017 at 7:42 am
          let not the creamy layer of our economy continue to be avaricious. let them empathise with the needy
          Reply
          1. A
            ananda
            Dec 19, 2016 at 3:08 pm
            Senior citizens above 60years should not be taxed up to Rs.5.00 lakhs due to costly health care system in the country.
            Reply
            1. C
              Chandu
              Dec 20, 2016 at 7:41 am
              Jaitley will never do such good acts
              Reply
              1. S
                Sekhar
                Dec 19, 2016 at 6:00 pm
                This is a good news for honest tax payer
                Reply
                1. p
                  p .
                  Dec 20, 2016 at 4:07 pm
                  super modiji
                  Reply
                  1. R
                    R Annadurai
                    Dec 19, 2016 at 1:30 pm
                    It is not sufficient and it should be the idle tax slabs if it is as under.Up to Rs 5 Lacs - Nil TaxAbove Rs 5 Lacs to Rs 10 Lacs - 10%Above Rs 10 Lacs to Rs 20 Lacs - 20%Above Rs 20 Lacs - 30%With surcharge for more than Rs 1 Crore
                    Reply
                    1. V
                      victim
                      Dec 19, 2016 at 6:16 pm
                      Please bring Uniform Tax Code before Uniform Civil Code. Every person must pay tax as per the tax slab he or she falls in irrespective of cast, profession, religion, region or any other thing.You can not make scapegoat of ried people only.
                      Reply
                      1. Murthy Suppusamy
                        Dec 19, 2016 at 5:11 pm
                        Income Tax should only be increased by INFLATION of last year!
                        Reply
                        1. Murthy Suppusamy
                          Dec 19, 2016 at 5:08 pm
                          Income Tax slabs should ONLY BE Increased by 6%, which was the Inflation last year. Each yeat the IT slab should Only be increased by the Inflation of Previous Year!. That's how all Developed Nations do!. India, have Courage to do this! Only then your Inflation will come down and one India can become a Developed state!
                          Reply
                          1. H
                            Hony.Sub Lt
                            Dec 20, 2016 at 3:35 am
                            Very Good news for Taxpayers.
                            Reply
                            1. M
                              Mitu
                              Dec 19, 2016 at 1:24 pm
                              Good Job Modi ji and BJP.
                              Reply
                              1. S
                                satendrasaxena
                                Dec 20, 2016 at 3:25 pm
                                Govt. Should have brains for it.
                                Reply
                                1. S
                                  Sourabh
                                  Dec 20, 2016 at 6:31 am
                                  Please implement this quickly. Government will earn respect of ried cl.RIght now taxes are bleeding us.
                                  Reply
                                  1. T
                                    t p
                                    Dec 19, 2016 at 1:32 pm
                                    Slabs should be like this:up to 1 lacs nilup to 5 lacs 5%up to 10 lacs 10%up to 15 lacs 15 %up to 20 lacs 20%beyond 20 Lacs 30%No surcharge . no cess
                                    Reply
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