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Central government plans to increase the limit Income Tax
Posted on: 25/Oct/2019 6:15:18 PM
The central government is planning to increase the upper limit of the Income Tax exemption in order to increase the money in circulation.
When the annual income exceeds Rs. 2 Lakhs, 5% Income Tax is levied. With the GST already in function for most items, because of the Income Tax to be paid, the money in circulation has come down and this has developed into an acute problem. Thus, in various industrial sectors including real estate, motor vehicle manufacture, etc, there has been a stagnation in sales.
The central government has been reviewing this aspect severely and plans to increase the upper limit for the Income Tax exemption.
The central government has been reviewing and consulting whether this upper limit for the Income Tax exemption should be raised to Rs. 10 lakhs for the taxpayers.
If the annual income exceeds Rs. 5 Crores, 42.74% Income Tax is levied. However, in other Asian countries, this remains only at Rs. 29.99%. Due to the various issues explained thus, the tax rates from corporate concerns were reduced recently!
