Good news for salaried women!
Narendra Modi Government is considering higher income tax exemption limit
for women in the budget for 2014-15.
Finance minister Arun
Jaitley is restructuring tax slabs and is thus set to approve a proposal
to raise the tax exemption limit to Rs 3 lakh from existing Rs 2 lakh.
The Modi government will ease the
tax burden on the middle class and impose a higher tax on the super rich in its
first Budget to be presented by Union finance minister Arun
Jaitley next month.
According to the proposal, under
consideration of the new government, there would also be a tax on the super-
rich bracket, comprising those earning Rs 10 crore or more of 35 per cent. This
category would be above the Rs 1 crore, class which currently pays an
effective tax of 33 per cent inclusive of a surcharge that the earlier
government had introduced.
India’s tax regime is being
overhauled by Finance minster
·
Women will be offered a higher
tax relief —the threshold income below which individuals are not liable to pay
taxes—for women could be fixed at between Rs. 3,25,000 to Rs. 3,50,000.
·
Rs. 1 lakh annual tax
deduction allowed under Section 80C of the Income-tax Act has not kept pace
with the rising inflation and needs revision.
·
a separate deduction of at least Rs
1 lakh per year specifically for education is being considered
·
Exemption on home loans: To
reduce the burden on households for the interest paid on housing loan for a
self-occupied house property a deduction of up to Rs 1.5 lakh is allowed. It
can be increased to Rs 5 lakh per year.
Moreover, a proposal to reduce the
age for tax exemption for senior citizens to 60 years from 65 years is also
under consideration.
EXISTING TAX STRUCTURE
Income of less than Rs. 2 lakh a
year are exempt from paying taxes.
Earning between Rs. 2 lakh and Rs. 5
lakh annually are taxed at 10%,
Between Rs. 5 lakh and Rs. 10 lakh
at 20%
Earning more than Rs. 10 lakh pays a
tax of 30%.
First, if this government does not raise income tax exemption limit to Rs. 5 lakhs per annum, it will be a breach of trust, as they promised over and over again during the campaign period.
ReplyDeleteSecond - it is just common sense with the inflation value of people's earnings have have come down drastically. So Rs. 5 lakhs is Rs. 50,000 ten years ago.
Third - it will save government servants lots of time processing those returns. Let them spend that time for better purposes like going after black money.
Fourth - Middle Income-Trap is a curse that any country should be worried about. The bigger the middle-income-trappe folks, worse it is for the economy. How can economy grow unless maximum number of people have money to spend and consume goods and services