Experts believe that the government should now consider giving relief to the people coming to the highest slab in view of inflation and other expenses. In a survey, about 46 percent of the people suggested to reduce the tax rate to increase the attraction of the new tax system.
Relief for taxpayers with less than 1.5 million income
After the new tax system has been implemented, the government has increased the tax slab limit to 20 thousand rupees. Relief has been given to taxpayers with less than 1.5 million income. The purpose of this exemption is to save their income from decreasing in the growing inflation. But, if we talk about the most tax payers, then they have not got any relief on the limit for the last 5 years. According to the data, since the implementation of the new tax system in 2020, the cost inflation index i.e. CII has increased by about 21 percent.
People with income up to 1.5 million can get relief
The government will spend 200 crores to reduce the impact of inflation. The limit was increased by minimum 20 percent and maximum 40 percent for taxpayers with income less than 1.5 million. However, there has been no change in the limit for taxpayers with more than 1.5 million income and they will have to pay tax at a maximum rate of 30 percent. Experts also believe that the government should now consider giving relief to those coming to the highest slabs in view of inflation and other expenses. However, according to the data, if we look at the income slabs of those who file ITR, then the taxable income of 70 percent taxpayers is Rs 5 lakh or less.
Find out who pays the most tax
In such a situation, only 30 percent of the people are the biggest basis of the government’s direct tax collection. Therefore, it is being demanded that these people should also get some relief from the tax burden, which will give a lot of relief to the urban employees. Because these people are paying home loan EMI at high interest rates. They are forced to pay expensive school fees of their children and spend more than their pockets for better lifestyle.
People also demanded tax exemption in the survey
A recent survey of Grant Thornton India also found people demanding tax exemption. According to the survey, 57 percent of the country’s individual taxpayers want… According to the survey, 57 percent of the individual taxpayers of the country want the government to reduce them by reducing tax in the next budget. 25 percent has demanded exemption in maximum tax slab. While 72 percent of individual taxpayers gave priority to the new income tax system, 63 percent were in favor of increasing incentives under the old system. About 46 percent suggested to reduce tax rates to increase the attraction of the new tax system. 47 percent want the ‘set-off’ limit to be increased or a limit of Rs 2 lakh should be completely removed under the old tax system. According to Grant Thornton India, increase in tax deduction range of NPS and more flexible withdrawal rules will promote retirement savings.
