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New Delhi, IANS. The government is considering several measures to ensure adequate availability of money to the people to promote consumption in the country. The Narendra Modi government is considering various options to cut the Individual Income Tax in Budget 2020. Prime Minister Narendra Modi may take a decision in this regard in the next few days. The Finance Ministry is considering these options. It is also working on suggestions to simplify the direct tax system. Finance Minister Nirmala Sitharaman will present the budget for the financial year 2020-21 on February 1.
The committee attached to the Direct Tax Code (DTC) suggested tax at the rate of 10 percent on annual income up to Rs 10 lakh. This would benefit a large section of taxpayers. Apart from this, at the rate of 20 percent on income up to Rs. 10-20 lakhs, tax of Rs. 2 crores on income ranging from Rs. 20 lakhs.
If these recommendations are accepted, then about 1.47 crore taxpayers will fall from 20% slab to 10% slab. The task force recommended keeping the exemption limit for income taxpayers at Rs 2.5 lakh only.
Finance Minister Nirmala Sitharaman had not made any changes in the rate of Income Tax Slab and Income Tax while presenting the budget for the current financial year. All taxpayers were given a tax rebate of Rs 12,500 on income up to Rs 5 lakh. Apart from this, the standard deduction was kept at 50 thousand rupees.
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