The Modi government is also preparing to give relief to the taxpayer country. On February 1, the Modi government will present its last budget in the Parliament. Due to the election year, the government will present an interim budget, but it is likely to provide relief to middle-class taxpayers. It seems to be speculative that Finance Minister Arun Jaitley can announce the relief on income tax up to 4 lakhs. At present, People whose income is up to two lakh rupees don’t pay Income Tax. The limit of this tax exemption can be increased to Rs 4 lakhs. After a Long time, the demand for a change in the tax slab is being sought.
No tax is being given up to two lakh rupees income
- Those whose income lies between Rs 2.5 lakh and Rs 5 lakh have to pay taxes at the rate of 5 percent.
- Income from Rs 5 lakh to Rs 10 lakh is taxed at a rate of 20
- Income tax of more than Rs. 10
lakhsis taxed at 30percent rate.
- Apart from this, health and education cess
seemsto be 4% of the income tax.
- The total income of those who are between Rs 50 lakh and Rs 1 crore. There seems to be 10 percent surcharge.
- Those who have a total income above Rs 1 crore. There is a surcharge of 15 percent.
Income tax slab for
tax payers of 60 to 80 years of age
There is no tax to the extent of Rs 3 lakh for income taxpayers aged 60 years and above 80 years. There is no tax on income of up to Rs 5 lakh for a taxpayer who has income above 80 years of age.
Income taxpayer who has more than 80 years of age has to pay 20 per cent tax on income of 5-10 lakh rupees and 30 per cent tax on income of more than Rs 10 lakh annually.