Budget 2019: At resent, persons aged less than 60 years and earning between Rs. 5,00,000 and Rs 10,00, 000 per annum need to pay 20 per cent Income Tax.
Budget 2019 Expectations: Income Tax is going to be one of the most talked-about topics of the Narendra Modi government’s Union Budget 2019. The crucial interim budget will be tabled by Finance Minister Arun Jaitley on February 1. The Confederation of Indian Industry (CII) has come up with a few suggestions on the Income Tax front in its pre-budget memorandum. Apparently, the proposals aim at bringing more tax relief to people falling in the income bracket up to Rs 20 lakh per annum, according to reports.
The CII has proposed that the central government should grant exemption to people earning up to Rs 5 lakh per annum from paying income tax. Under the present income tax slab in India, the income tax exemption is given to people earning up to Rs 2.5 lakh per annum. For those, who have an annual income of Rs 5 lakh, must pay 5 per cent of Income Tax.
As per the proposals, the CII has recommended the central government to lower the income tax rate for individuals earning Rs 10 lakh per annum to 10 per cent. At resent, persons aged less than 60 years and earning between Rs. 5,00,000 and Rs 10,00, 000 per annum need to pay 20 per cent Income Tax.
The CII has also sent a proposal to the central government suggesting 20 per cent income tax cap for persons earning up to Rs 20 lakh per annum and keeping 25 per cent income tax for earnings beyond Rs 20 lakh per annum. Currently, Individuals earning over Rs 10,00,00 per annum need to pay 30 per cent of income tax. Another major proposal sent by CII is increasing the Section 80C deduction limit from Rs 1.5 lakh to Rs 2.5 lakh.