The Parliamentary standing committee on finance has recommended an increase in basic tax exemption limit to Rs. 3 lakh and another Rs. 3.20 lakh rebate for eligible investments and spending in its report on the direct taxes code (DTC).
If the government accepts these recommendations income tax exemption enjoyed by taxpayers would go upto Rs. 6.20 lakh as against a maximum of Rs. 4.85 lakh including the rebate for housing loans.
If the recommendations are accepted by the government, the higher rebate will yield a saving of nearly Rs. 42,000 a year for those in the highest tax bracket. Though, some members had favoured an increase in basic exemption to upto Rs. 5 lakh during discussions they converged on keeping it at Rs. 3 lakh in the final report.
The Direct Taxes Code Bill had proposed the basic exemption limit of Rs. 2 lakh. The report would be submitted to Parliament within a week, the MP, who did not wish to be named, said.
Panel has also asked the government to continue with higher exemption limit for women. The panel has suggested retaining the three-slab structure of 10%, 20% and 30% for personal income tax.
Source: ET.
If the government accepts these recommendations income tax exemption enjoyed by taxpayers would go upto Rs. 6.20 lakh as against a maximum of Rs. 4.85 lakh including the rebate for housing loans.
If the recommendations are accepted by the government, the higher rebate will yield a saving of nearly Rs. 42,000 a year for those in the highest tax bracket. Though, some members had favoured an increase in basic exemption to upto Rs. 5 lakh during discussions they converged on keeping it at Rs. 3 lakh in the final report.
The Direct Taxes Code Bill had proposed the basic exemption limit of Rs. 2 lakh. The report would be submitted to Parliament within a week, the MP, who did not wish to be named, said.
Panel has also asked the government to continue with higher exemption limit for women. The panel has suggested retaining the three-slab structure of 10%, 20% and 30% for personal income tax.
Source: ET.
COMMENTS