Gov­ern­ment could raise in­come tax ex­emp­tion limit to Rs 3 lakh in Bud­get

Consumer Voice - - BFSI Guide -

The gov­ern­ment may go in for rais­ing the in­come tax ex­emp­tion limit to Rs 3 lakh from Rs 2.5 lakh in Union Bud­get 2015–16 to place more money in the hands of con­sumers so that de­mand picks up. If the pro­posal is ap­proved, it is also likely to en­tail some changes in the tax slabs bring­ing more re­lief to peo­ple in the lower-in­come brack­ets and tax­ing those in the high-in­come slabs more. The low­est slab will cover those in the Rs 3 lakh–Rs 10 lakh bracket and they will be charged 10 per cent. Ear­lier, the low­est slab ex­tended up to Rs 5 lakh. Those in Rs 5 lakh–Rs 10 lakh slab had to pay 20 per cent tax.

– Gopal Ravi Ku­mar & Subas Tiwari

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