Personal income tax slabs could be revised

Days after finance minister Nirmala Sitharaman slashed corporate tax rates to boost a slowing economy, the government is now planning to rationalise personal income tax rates too, according to a report. "...the idea is to give at least a 5 percentage point benefit to every taxpayer," Hindustan Times reported, citing unnamed government officials.

One of the options before the government, said the report, is to reduce the 20% income tax slab for those having taxable income between ₹5 lakh and 10 lakh to 10%. Another possibility is to reduce the tax rate of the highest slab (above ₹10 lakh) from 30% to 25%. Other options include removal of cess, surcharge and several other tax exemptions, according to the report.

Minister of State for Finance Anurag Singh Thakur had recently said the government will take a decision on providing income tax relief at an appropriate time.

"When the time arises to take a call on it (income tax relief), the government will do so. The government in the past has also increased (the limit) from ₹2.5 lakh to ₹5 lakh. In future, whenever the time arises, we will look into the matter," Thakur had said.

In August, a government-appointed task force had submitted its report to the Finance Ministry on the new Direct Tax Code, which seeks to replace the existing Income Tax Act. Mint had earlier reported that the government is unlikely yo replace the Income Tax Act with direct tax code but will incorporate select suggestions from the draft law. #casansaar (Source - LiveMint, Hindustan Times)