New Delhi: Coronavirus epidemic resulted in economic havoc in the country. Millions of people lost their employment, and their income was trimmed. The havoc vastly influenced the middle class. Forthwith the middle class desires to develop from the Modi government’s budget. Everyone is concerned about Finance Minister Nirmala Sitharaman’s budget notifications. There are personal taxations among several prospects varying from health care to insurance home loans that reasonably impact middle-class people’s lives.
There is an appetite that the Finance Minister should heighten the income tax slab of at least Rs 3 lakh so that the tax pressure for the people of income group of Rs 5 lakh can be curtailed a little.
As per the media reports, Finance Minister Sitharaman may give rise to some declaration on this. In the last Budget 2020, Sitharaman provided personal income taxpayers with lower rates for those earning up to Rs 15 lakh per year.
The Finance Minister had declared openly that under the new personal income tax discipline for those who do not receive any rebates and impunities.
- This rate will be 10 per cent for those earning between Rs 5 lakh-7.5 lakh per year against the current rate of 20 per cent.
- People with income between 7.5 lakh to 10 lakh per year will pay tax at the rate of 15 per cent against the present 20 per cent of the condition, who do not opt for any deduction and exemption under varied sections of the Income Tax Act.
- The current income rate between 10 to 12.5 lakh rupees will be 20 per cent as against 30 per cent currently. In contrast, people with income between 12.5 lakh to 1.5 lakh will pay 25 per cent tax as against 30 per cent.
There will be no modification for those earning more than Rs 15 lakh per year, and they will keep on paying tax at the current rate of 30 per cent. However, the new tax rates will be used only to those receiving deductions and exemptions under numerous sections of the Income Tax Act.
The budget session of Parliament will commence on 29 January with President Ram Nath Kovind’s address, which will submit the joint sitting of the two houses and the Union Budget on 1 February. The budget session of Parliament ends on 8 April. The House will adjourn on 15 February and begin again on 8 March.