Daily Current Affairs Quiz 2019<\/a><\/strong><\/p>\n\n\n\nPeople earning between Rs 5 lakh and 10 lakh per year may\nhave to pay 10% income tax, if the recommendations of a high-level tax force\nset up by the government are accepted.<\/p>\n\n\n\n
The task force on direct taxes has proposed radical changes\nin personal income tax slabs, according to the recommendations accessed by\nCNBC-TV18. The proposals include lowering the personal income tax for those\nearning between Rs 10 lakh and Rs 20 lakh per year to 20%.<\/p>\n\n\n\n
Currently, personal income is taxed at 5% for income between\nRs 2.5 lakh and Rs 5 lakh, at 20% for income between Rs 5 lakh and Rs 10 lakh,\nand 30% for an income of over Rs 10 lakh. Sources said the panel has\nrecommended five tax brackets of 5%, 10%, 20%, 30%, and 35%, against the\nprevailing structure of 5%, 20%, and 30%.<\/p>\n\n\n\n
Those earning an annual income up to Rs 5 lakh, however,\nwill get a rebate on the taxes paid, as was announced in the interim budget of\n2019 by then interim finance minister Piyush Goyal, according to sources. This\neffectively means that those with an income of up to Rs 5 lakh will be charged\nzero tax.<\/p>\n\n\n\n
The government-constituted task force, led by Central Board\nof Direct Taxation (CBDT) member Akhilesh Ranjan, had submitted its report to\nFinance Minister Nirmala Sitharaman on August 19, but it has not been made\npublic yet. There is also no clarity on whether the government has set any\ntimeline to adopt the recommendations.<\/p>\n\n\n\n
According to sources, the panel has recommended that income\ntax for those earning above Rs 20 lakh, till Rs 2 crore, continue to remain at\nthe previous rate of 30%. It has also proposed introducing a new top tax\nbracket of 35% for the super-rich, that is those earning above Rs 2 crore in a\nyear, and doing away with the surcharge.<\/p>\n\n\n\n
“The new rate of 35% for those with Rs 2 crore \u200band\nabove income will also reduce effective rate for high net-worth\nindividuals,” sources said.<\/p>\n\n\n\n
The rationalisation in tax slabs has been proposed to boost\nconsumption and revive the economy by putting more money in the pockets of the\nmiddle income group. The task force was formed to made recommendations to\nreplace the 58-year-old Income Tax Act. It is aimed at simplifying income tax\nprovisions and improving tax certainty.<\/p>\n\n\n\n
Some of the other recommendations which the task force has\nmade include doing away with dividend distribution tax and removing minimum\nalternate tax. It has also recommended that the government discourage\nsurcharges and the task force is of a view that if levied, surcharges should be\ntemporary in nature.<\/p>\n","protected":false},"excerpt":{"rendered":"
The government panel on Direct Tax Code has proposed radical revisions to the personal income tax rates and slabs. It has suggested zero tax levy on annual income between Rs 0-2.5 lakh. Daily Current Affairs Quiz 2019 People earning between Rs 5 lakh and 10 lakh per year may have to pay 10% income tax, […]<\/p>\n","protected":false},"author":13,"featured_media":5594,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[252],"offerexpiration":[],"class_list":["post-5593","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-articles","tag-income-tax-department"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/5593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=5593"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/5593\/revisions"}],"predecessor-version":[{"id":5595,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/5593\/revisions\/5595"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/5594"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=5593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=5593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=5593"},{"taxonomy":"offerexpiration","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/offerexpiration?post=5593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}