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As reported by some of the newspapers and PTI GOvernment may provide a  major relief to the tax-payers, by increasing the Income Tax slab limit for exemption from Rs.2 lakh to Rs.5 lakh.

According to sources, the Finance Ministry has also sought a report on the same from the I-T department. The CBTD is likely to submit a proposal by June 20.

Sources further added that the government is also considering raising the tax exemption limit on home loans and health insurance premium.

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0 Comments

  1. Sunil says:

    Hi all,

    We should have only one category of TAX for individuals i.e. Indirect TAX, which needs to be collected at the origin itself whether it is service / sales. Individuals should be allowed to play with their income as they wish ( Invest for future OR spend for present )

    For Companies / corporates / other categories other than Individuals, only Direct TAX should exist. Indirect TAX should not be collected from these.

  2. s sudarshana says:

    K.Udayanandan:Your problem is understandable! Actually, you should give PAN and aloow the banks to deduct 10% as advance tax and adjust the actual deduction with Tax due and get the refund from the IT department. Giving declaration in 15-H is incorrect as you have taxable income.
    However theres is a way out for this. Open the FDs in different banks in such a way the interest will be less than 10k in each bank per year which will not attract TDS, even without Form 15H.

  3. D.R. Soni says:

    Welcome to the increase in the limits. It should be as under:-
    1) IT Exemption limit : 5 lacs
    2) 80C limit : 5 lacs:Will make available funds for development
    3) HBL Interest : 5 lacs
    4) Service tax limit :25 lacs

  4. Subramanian V says:

    It is really a good news to so many middle class families. I am also one among them. Advance thanks if the same is get implemented.

  5. s sudarshana says:

    Mr Sachin Singh: It is shocking you are pleading the tax exemption should not be raised to 5.00 lakhs, when Mr.Arun Jaitley himself wished it should be raised to 5.00 lakhs. Your suggestion that service tax and indirect taxes are to be reduced is very good, but why not increase the exemption?

  6. mukesh says:

    Dear Sir ~ Good cheering news. Simplicity is the best way of living. Remove all complexity from the law and make it citizen friendly. In phased manner abolish all taxes and come out with single tax. This has already been highlighted by pune based consultancy firm to Mr. Narendra Modi, Prime Minister.

    Secondly involve all in the citizen in development work at micro level to reap benefits at macro level.

    This can be possible if we allow enough time to New Government and support them to last for full term. For Brighter Days to Shine have some patience and help others to have patience.

    All the Best to All Citizens and Thums Up for New Government.

  7. K.UDAYANANDAN says:

    I am a retired from CIL and have deposits in two Banks. TDS collected by one Bank is enough to cover my annual tax liability. Hence, I should be allowed to give Form 15H to one of the two Banks, so that the TDS collected by one Bank is enough to cover the tax liability and no more TDS

  8. A, ABUBAKER says:

    Sir,
    In view of high cost of living, a single earning person earning Rs.50,000/- can not meet the ends. Such as paying the house rent, school fees, provisions, medical expenses, conveyance and if any dependent there maintenance etc. The non-taxable limit can be increased to Rs.5,00,000/-

  9. Sachin Singh says:

    Raising the tax limit upto 5 lac is not possible, we shud not expect more than 2.5 lac exemption limit from our past experience. Raising the exemption limit is not the solution. Salaried employees are the best tax payer. So they shud also get the adequate benefits, in terms of education benefits, social security etc. I think our govt shud minimise the service tax rate and other indirect taxes rate.

  10. DVS says:

    Agriculture Income Should also be taxed as now the scenario has been changed. Also Individuals are hiding their income in support of agriculture sector. Otherwise agriculture sector relief income portion should be explained corely up to irrigation sector. all other related agriculture sector like farming, etc should be taxed properly.

  11. amar says:

    I received 53 lakhs as medical expenses (for open heart surgery of son)reimbursement from employer. I have paid tax on this (53-15=38 lakhs) amount. May i get refund on this amount under section 3A (or any other section). What exactly this section is? Is this amount taxable? or refund possible?

  12. Renganathan says:

    This is with reference to the Govt proposal to increase the IT slab from 2L to 5 laks . I personally feel that this encouragable idea. Also It should be made mandate that all assessee whose GTI exceeds 200000 so that the govt may monitor the income group which will give a room for the govt to decide on amending the tax slabs for future. Moreover the tax% should be raised from 10%, 20% and 30% by a margin of atleast 5% sothat higher income group will pay the tax and goverment would be benifitted by the increased revenue

  13. s sudarshana says:

    As finance minister has himself said (before becoming FM) the limit should be rised to 5.00 lakhs, he should do so without much discussion on the topic. People have voted them hoping they will follow what they preach. Else it is called double standards.
    Raising the 80-C limit is good but most of those who invested in ELSS schemes to save tax have incurred lot of losses as the funds were not utilised properly. Fund managers managing the funds under tax saving scheme should be men of integrity.

  14. tej says:

    it is good step by gov. if done provision of act . it will helpful to middle class for spare some funds to serve day today requirement . i am respect to new gov. if they take in positive sign.

  15. advocate jasbir singh says:

    SIR with increase in income tax limit more white income will come in market and purchase power will increase, due to this industry will grow and indian economy will also grow

    so the basic limit must increased of income tax, housing loan interest limit, service tax limit

  16. P ROY says:

    India has about 1,600 government servants (including state governments) per every 100,000 people i. e. about 1.5 %.
    If about 50% of income tax collected every year is spent for paying salary to those 1.5% voters only and rest 50% of income tax collected every year is spent for paying pension to retired government servants.
    Then do Government need income tax if government departments are made profit/service centers to be runned by service tax earned only.

  17. V K Vijayaraghavan says:

    HRA upto 15000 to be totally exempt .80
    C to go up to 3,lacs . Conveyance upto 3000to be exempt . M
    Marriage expenses
    Of daughter upto 100000 to be exempt

  18. Madan Mantri says:

    Further tax information net work should be strengthened so that all high value transactions should be caught and tds should be introduced every where like purchase of cars, air travel, restaurants, purchase of immovable property above 10 lakhs, payment of rents etc

  19. Madan Mantri says:

    Every govt for the past 15 years are slowly reducing the importance of income tax due to disrepute of income tax dept.thus slowly increase the importance of indirect taxes like excise,service tax.Govt.should spell its stand honestly, whether it really want to colect the taxes or not? If it really want to tax then better to tax income tax only insted of indirect taxes.For ex.every perso whose is paying telephone bills,bank charges will have to pay service tax.Afterall income tax will be paid only when you really earns or made profits.it is nothing wrong if you really shell down some tax if you are really making some profit,whereas indirect taxes will have to be paid even if you are making losses.first exisiting income dept.should be entirely revamped then bring every eligible person into tax net then tax them honestly and slowly reduce indirect tax rates.then will reduce prices and black money.Reducing the importance of income dept.will be suicidal in the long term as there is established system available and it takes years to establish similar system for service tax.

  20. r k agarwal says:

    I suggest that Income Tax Payers number needs to be increased. This can be done by making them Proud to be Tax Payers rather than a Harassed Tax Payer at Present. This can be done with simple solutions.
    Introduce Tax on Agriculture Income with Double the Exemption Limit as compared to others. This will prevent Persons hiding Corruption Income through Agriculture Income.
    Make Passbook for every Tax Payer. Keep record of Tax Paid. If in Later life person is not able to support himself due to certain reasons, ( Very Unlikely) he can withdraw the money from the Income Tax deposited. This will also increase Tax Payers.

  21. Rajan K says:

    Yes, it will be a nice step to provide more spending power in peoples hands..

    also in this age of very high property transactions, the ceiling of 50 lacs per year in longterm capital gains saving bonds (like rec, nhai, etc) should be removed .. i am sure if such limits are not there, people will be encouraged to invest more in such bonds to save tax .. and these companies will have lots of funds for infra develpt projects in the country..

  22. R.Subramanian says:

    As per Section 288(2) of Income-Tax Act, 1961 eight class of persons are authorized to represent the assesses. Among them only following five class of persons are authorized to prepare return on behalf of assesses under Rule 12A of Income-Tax Rules, 1962

    (1) Legal Practitioners
    (2) Chartered Accountants
    (3) Cost & Management Accountants
    (4) Company Secretaries
    (5) Income-Tax Practitioners

    2. Original Income-Tax Act, 1961 was fantastically drafted by learned officials in Finance Ministry & it was capable of meeting the expectation of the Govt. in all future events, except requiring amendments for events/changes taking place in this 21st Century. Disturbance to the original intention of legislature in Income-Tax Act, 1961 started in 1984 by the intervention of Institute of Chartered Accountants of India by way of inserting mandatory Tax Audit Certificate U/s 44AB by only Chartered Accountants. This was also cautioned by Sri.P.C.Padhi, former Chairman, Central Board of Revenue and Deputy Controller & Auditor General of India, Sri.D.K.Rangnekar former Editor, Economic Times, who were the members of Direct Taxes Committee, popularly known as Wanchoo Committee & gave dissenting note on the issue.

    In developed countries like Australia 70% to 80% of population are under tax net, whereas in India only 2% of populations are under tax net. This is because of confining certification powers only to Chartered Accountants in Income-Tax Act, 1961 as discussed above. On date ample tax compliance work is there, but there is no required Tax Professionals to support voluntary compliance. I hope that Ministry of Finance will consider my above submissions & make necessary amendments to Income-Tax Act/Direct Taxes Code, keeping in mind that “more persons in the line of tax practice more revenue”.

  23. CA. Subhash Chandra Podder says:

    I do not think that the Finance Ministry will raise the Income tax basic exemption limit from Rs 2.50 K to Rs 5.00K . maximum we may expect basic exemption Rs 300,000/ and Senior Citizen and Working Woman Rs 325,000/
    CA, Subhash Chandra Podder , FCA
    Kolkata
    15/06/2014

  24. Dinesh chandra says:

    To provide overall relief to the taxpayers the multiple taxation system needs to be addressed in such way where tax payers do no not feel taxed and govt. also gets its share keeping happy to the tax payers. This will encourage those non tax payers to pay the tax happily and this way the govt. will gets ccompensated . So wish you all happy taxing. We all are hoping for “AACHHE DIN” .Our new government is certainly going to provide us the much needed “AACHHE DIN” under the great leadership of shri Modi ji. Thanking all.

  25. om prakash khemka says:

    i want simplest income tax act where there is full clarity and no cause of discretionary powers with the assessing officer and they should be accountable for giving mental agony to the tax payers as the present cpc center of bangaluru is giving by wrongful adjustment of refunds and making baseless demands putting the onus on the tax payers to prove and thus he be required to do so by wasting his time ,money and energy to be right.actually there should be no distinctive incomes.all incomes be treated same and only exception could be speculative income be adjusted against speculative and only exemption should be with pf/ppf/epf and medical expenses.all saving schemes be abolished except pf/ppf/epf and all exemptions to ngo ,trusts etc be done away with except of special from the govt.then you can increase the exemption limit to justifiable limit.all perks be abolished for exemption purpose and only fixed consolidated salary be given to avoid disputes . let all the expenses be accounted in the business. remove then all irritants like,mat,stt,etc. then you will see the tax system so simple and later on other ways be made to make it more transparent and income generating for the govt.actually web has been created to agonised the individuals by the past leaders,babus,experts to further their interests and controls.

  26. nagesh kini says:

    Let this be the beginning of the rationalization and simplification process of all tax laws both direct and indirect.
    1. Hiking the threshold limits for keeping in tune with the inflation should go in line with doing away in income tax, wealth tax and gift tax all the deductions, allowances and exemptions which are more often than not bones of contention. This makes the entire exercise tax neutral and lesser numbers of files.
    2. Similarly the TDS on bank interest for senior citizens, pensioners, widows and disabled should be done away with as is done for dividends, capital gains and NRE interest.
    3. Estate Duty with higher threshold should be brought back.

  27. R.G SHARM says:

    SIR

    SERVICE TAX LIMIT FOR S.S.I IS RS 10 LAC SINCE LAST 10 YEARS DUE TO that small business man have lot of problems , either they manage his business or manage paper formalities .
    during last 10 year cost increased 150% but service tax limit still same . it should be 50 lac for s.s.i so small business can focus more for business development rather to return compliance , many times in a year , now businessman more worry for paper formalities rather then business development due to afraid & threats by government advertisements& agencies as small person don,t know have to fulfill all these formalities .
    make it smooth and easy so tax payers should feel happy

  28. R.G SHARM says:

    According to me
    A: income tax limit should increase yearly basis let us say 50000.00 per year with proper planned instead of at once a s our country may not have much other source for development so India first
    B: 80c investment should increase Rs 3 lac so our country should have plenty of amt for projects , policy development
    C : N.A.R.E.G.A should abolish immediately so young person CAN earn for batter man of country and should not spoil his/her life for rs 150.00 per day as this much amt can sufficient for food but not for batter life of his/her family, pl give development path , working environment& job so they also think for his/her children for good future & good education . Do not give them free food give them job to earn for good life
    D: every person wants to pay tax honestly but do not hares them
    give proper guide and make tax system easy .

    regards
    r g. sharma

  29. Deepak says:

    Very well said Mr.R.L.Garg.
    It will be really a very good inneciative if serior most citizens are given this benefit. As there child will vest the tax portion in their caring and if the same is approved then other country will be proud for India.

  30. ISHWER NAIK says:

    It can be improved this way tax payable

    ‘Nil” if Taxable Income does not exceed Rs 10 Lacs.
    10% on Taxale Income excedding Rs 5 Lacs up to 15 Lacs + 25% on next 10 lacs 35% on balance

    Exempt investment 10% of Gross Income, with ceiling of 5 lacs.

  31. rupak says:

    There must be a change in taxable earnings basic exemption limit hoping that the new government would reduce the pressure on people whos taxable earning is less than 500000

  32. sudesh vij says:

    This is good news ,i also hope that govt will also increase saving limit under 80c from 1 lac upto some extend ,this will also increase the deposit with govt pl.

  33. R.L.Garg says:

    In view of todays reported news for bitter medicines, I do not think the sais limit of Rs 5 lacs is possible. We Should feel happy if the limit is raised to Rs 3 Lacs and limit of 80C to Rs. 2 lacs . Accordingly limit of PPFund has to be raised to Rs. 2 Lacs which will be more beneficial to Sr Citizens. I propose that there should not be any Income tax after the age of 90 years. On all india basis there will be hardly 100 persons who will be benefitted with it but a great moral booster of all who are in the age group of above 85 years and their children will automatically start caring for them to derive the benefit. It is like killing two with one stone.

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