Most Indians see tax evasion as a mark of smartness. If the government allows you a tax break, you are free to take it. If there is a legal way you can save some of your hard-earned money from being taxed, you are free to save it. How is the Indian tax payers are doing their tax planning!. Can this be called as Smart Taxation or Tax Morality!!. Once Mr. Jaitley commented “Indians are generally conservative and God-fearing, but they do not see tax evasion as a moral problem”. May be this smartness is the reason the governments consider scrutiny is a better tool than moral persuasion to make the evaders pay up.
Bible reminds us about this tax-morality in Romans 13:2 and 7, “Therefore, whoever resists authority, resists what God has appointed, and those who resist will incur judgment. Pay to all what is due them- taxes to whom taxes are due, revenue to whom revenue is due, respect to whom respect is due, honour to whom honour is due”.
Let us plan our taxation in a smart and moral way! I wish you a good financial year ahead!
Finance bill 2019 has not done any changes in the income tax slabs, however there has been some changes related to salaried tax payers. Highlighting the changes and give you the new tax calculator for FY 2019-20 [AY 2020-21].
Salient features of the Tax calculator.
|Income tax Slabs & Rates FY 2019- 20, AY 2020-21|
|Income tax Slabs||General Category||Sr.Citizen||Very Sr. Citizen|
|Upto Rs. 2. 5Lakh||NIL||NIL||NIL|
|Rs.2.5 Lakh to 3.0 Lakh||5%||NIL||Nil|
|Rs.3.0 Lakh to Rs.5.0 lakh||5%||5%||NIL|
|Rs.5.0 Lakh to Rs.10.0 Lakh||20%||20%||20%|
|Above 10.0 Lakh||30%||30%||30%|