After a slew of measures announced in the last few months to reinvigorate the ailing Indian economy and push investment culture including the recent cut back on corporate tax rate for corporate and new manufacturing enterprises, waiving off of increased surcharge levied in Budget 2019 on FIIs and linking floating loans to external benchmark, now it seems to be the turn of salaried class who look upon for rebate in income tax slab rates.
As per a leading business news channel report the wish lists of employed Indians will seriously be considered by the centre and if the proposals made under the Direct Tax Code pass through, the salaried class will have good enough reasons to cheer.
New income tax slab proposed
The Committee on Direct Tax Code has put forth a proposal with the finance minister and recommended changes in the tax slab. The newly proposed income tax slabs are as though:
|Income slab (per annum)||Tax rate|
|Upto Rs. 5 lakh||No income tax|
|Rs. 5 lakh- Rs. 10 lakh||10%|
|Rs. 10 lakh- Rs. 20 lakh||20%|
|Rs. 20 lakh to Rs. 2 crore||30%|
|Over Rs. 2 crore||35%|
For the earnings of between Rs. 5 lakh to Rs. 10 lakh, currently the income tax charged is at the rate of 20%. For income in the range of Rs. 10 lakh to Rs. 20 lakh, presently the tax slab rate is 30%.
At the same time, the committee also proposed to do away with levy of all kind of cess and surcharge on taxes.