Indian Economy : News,Discussions & Updates
- Thread starter Butter Chicken
- Start date
-
- Tags
- indian defence forum
New income tax slabs: Here are 5 rates proposed to govt, says report
2 min read . Updated: 29 Aug 2019, 12:42 PM IST Staff Writer
The tax force has not suggested raising of the minimum income tax exemption limit: Report
A government-appointed task force earlier this month submitted its report to the Finance Ministry on new Direct Tax Code, which seeks to replace the existing Income Tax Act. Though its details are yet to be made public, news agency IANS, citing sources, has reported that the task force has proposed many changes to the Income Tax Act, which dates back 58 years. The task force has not recommended raising of the income tax exemption limit from the current level of ₹2.5 lakh but has suggested five tax brackets of 5%, 10%, 20%, 30% and 35%, the report said. Currently, there are three tax slabs: 5%, 20% and 30%.
The tax force on Direct Tax Code has not suggested any change in the 5% tax bracket or the current rebate of ₹12,500, says the report.
Those earning between between ₹5 lakh and ₹10 lakh per year, says the report, may have to pay lower 10% income tax, if the recommendations of this high-level tax force are accepted.
The tax force has also recommended lowering of the personal income tax for those earning between ₹10 lakh to ₹20 lakh per year to 20%.
The panel, says the report, has recommended those earning above ₹20 lakh and till ₹2 crore to remain at current level of 30%. It has also proposed introducing a new 35% tax tax bracket of 35% for those earning above ₹2 crore in a year while doing away with the surcharge.
Currently, personal income is taxed at 5% for income between ₹2.5 and ₹5 lakh, at 20% for income between ₹5 lakh and ₹10 lakh, and 30% for an income of over ₹10 lakh. But those earning up to ₹5 lakh annually get a rebate of up to ₹12,500 on the taxes paid, effectively making income of up to ₹5 lakh tax-free.
Income tax slabs as recommended by the task force, as reported by IANS :
Current Income Tax Slabs for individuals below the age of 60
(Surcharge and health and education cess as applicable. In 2019-20 Budget, the government had increased surcharge from 15% to 25% on taxable income between ₹2 crore and ₹5 crore, and from 15% to 37% for income above ₹5 crore)
New income tax slabs: Here are 5 rates proposed to govt, says report
2 min read . Updated: 29 Aug 2019, 12:42 PM IST Staff Writer
- A report on the new Direct Tax Code was submitted earlier this month
- The task force has proposed five tax income tax slabs, says a report
The tax force has not suggested raising of the minimum income tax exemption limit: Report
A government-appointed task force earlier this month submitted its report to the Finance Ministry on new Direct Tax Code, which seeks to replace the existing Income Tax Act. Though its details are yet to be made public, news agency IANS, citing sources, has reported that the task force has proposed many changes to the Income Tax Act, which dates back 58 years. The task force has not recommended raising of the income tax exemption limit from the current level of ₹2.5 lakh but has suggested five tax brackets of 5%, 10%, 20%, 30% and 35%, the report said. Currently, there are three tax slabs: 5%, 20% and 30%.
The tax force on Direct Tax Code has not suggested any change in the 5% tax bracket or the current rebate of ₹12,500, says the report.
Those earning between between ₹5 lakh and ₹10 lakh per year, says the report, may have to pay lower 10% income tax, if the recommendations of this high-level tax force are accepted.
The tax force has also recommended lowering of the personal income tax for those earning between ₹10 lakh to ₹20 lakh per year to 20%.
The panel, says the report, has recommended those earning above ₹20 lakh and till ₹2 crore to remain at current level of 30%. It has also proposed introducing a new 35% tax tax bracket of 35% for those earning above ₹2 crore in a year while doing away with the surcharge.
Currently, personal income is taxed at 5% for income between ₹2.5 and ₹5 lakh, at 20% for income between ₹5 lakh and ₹10 lakh, and 30% for an income of over ₹10 lakh. But those earning up to ₹5 lakh annually get a rebate of up to ₹12,500 on the taxes paid, effectively making income of up to ₹5 lakh tax-free.
Income tax slabs as recommended by the task force, as reported by IANS :
- Up to ₹2.5 lakh - Exempted
- Up to ₹5 lakh - 5% (rebate up to ₹12,500)
- ₹5 lakh to ₹10 lakh - 10%
- ₹10 lakh - ₹20 lakh - 20%
- ₹20 lakh to ₹2 crore - 30%
- ₹2 crore and above - 35%
Current Income Tax Slabs for individuals below the age of 60
- Up to ₹2,50,000 - Nil
- ₹2,50,000 to ₹5,00,000 - 5%
- ₹5,00,000 to Rs. 10,00,000 - 20%
- Above ₹10,00,000 - 30%
(Surcharge and health and education cess as applicable. In 2019-20 Budget, the government had increased surcharge from 15% to 25% on taxable income between ₹2 crore and ₹5 crore, and from 15% to 37% for income above ₹5 crore)
New income tax slabs: Here are 5 rates proposed to govt, says report
India draws a target list of companies in 9 sectors of manufacturing to woo them to India to take advantage of US-China trade war 
Exclusive: India to woo foreign firms like Apple to capitalize on U.S.-China trade war - Reuters
Exclusive: India to woo foreign firms like Apple to capitalize on U.S.-China trade war - Reuters
Last edited by a moderator:
Absolutely correct.
Agriculture is an economy of scale business.
We need a paradigm shift.
Current land holdings and their constant subdivision amongst brothers from each generation will only lead to more suicides over the next decade and more.
Cheers, Doc
If your father is a farmer than you must be knowing that today there are lots of farming models where farmers are earning Rs 5 to 6 lakh rupees or even 12 lakh rs per acre of land without incurring any expense. Do you know that? Do you know that many highly educated people are turning to farming sector by leaving highly paid jobs? Do you know anything about Jivamrut, bijamrut, Amrut Rasayan, permaculture? Do you know that united nations has praised these a lot? Do you know anything about a RS 20 life time fertilizer? Do you know why one farm is Lush green in even drought and adjusent farm with same crop is dry completely? Do you know anything about the sugarcane variety which you can harvest for 40 years by just sawing once in lifetime? Do you know about a farming method where you need to water your orchid for just 3 years and you will have no need to do any labor except picking up delicious fruits in abandunce ? Do you know about the bulls, whose Siemens can be sold for crores of Rupees? Do you about the cows, who gives birth to 14 calfa and still gives 20 liters of milk thereafter? If you know anything about this, you wouldn't have been opposing my posting.
This is the time we come out of bull shit trap called GDP and GDP growth rate. It is the time to focus on agriculture, health, employment generation, water conservation, expanding green cover, control population, upliftment of Poors, reviving our traditional knowledge, education of people in some basic matters etc. This is the way forward. The schools established on these principles have shown unbelievable results in overall development of human beings. These humble looking schools have surpassed costliest schools in terms of overall development of children. There are highly successful models that exist in many corners of the country. We just need to replicate them in big way. Last few years of Vajpayee ji era was golden period of Indian economy inspite of moderate economic growth because of very high employment generation rate, huge trade surplus and strengthening of INR. We need this growth and not Chidambaram's growth without employment and rupee going down against USD.
Last edited:
Bulls whose Siemens & cow birthing babies? Pls correct those typos. They lend a different Gravitas to your post.
India lost ₹15 trillion trying to make ₹14 billion from tax surcharge on investors
Whether it is while buying a car or a house, or while making choosing a stock or a mutual fund over another, or even while asking someone out for a date-- weighing the likely risks against the potential reward would seem like a matter of instinct. However, India's Finance Minister Nirmala Sitharaman, or her team, particularly any person who recommended the additional surcharge on super-rich investors, seemed to have beat his or her own instinct. The damage was borne by investors as stocks in both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)-- including the Sensex and the Nifty-- went tumbling over the next 49 days. And the rupee became the worst performing currency in Asia in August.The latest budget for the financial year ending March 2020 imposed an additional tax on the profit made from shares by the country's super rich and foreign portfolio investors (FPI) got caught in the crossfire. The subsequent anger and market sell-off has wiped off billions of rupees in share market wealth since then as foreign investors rushed for the exit.Most foreign portfolio investors in India operate as non-corporate entities such as trusts and associations, which are taxed like individuals and therefore the additional tax would fall on them. Foreign investors folded many of their investments and pulled money out in hordes-- nearly ₹22.5 billion since the budget day. The value of shares in the India fell by a whopping ₹14.7 trillion from July 5 to August 23. However, on Friday (August 23), when Sitharaman decided to rollback the levy on investors, the Revenue Secretary, Ajay Bhushan Pandey, revealed that the withdrawal will cost the government just ₹14 billion
"Tax rates for FPIs will come down by up to 7%, back to the pre-budget levels, and this removes the anomaly created by the Budget 2019,” Rajesh Gandhi, a partner at Deloitte India, told the Economic Times. But the damage had already been done.The rupee has fallen to its lowest level since December 2018 and much of it has to do with foreign investors pulling out dollars in haste. A weaker rupee would mean India will have to pay more for crude oil and that in turn will increases prices of other essential items. And India imports over 80% of all the crude oil it needs.
It may be argued that not all the loss in market value is due to the surcharge. Donald Trump's trade war with China had a role to play too. However, that has been unravelling for many months now and the risks were palpable. Pushing investors, who were already risk averse, to pay more tax was entirely avoidable.
Whether it is while buying a car or a house, or while making choosing a stock or a mutual fund over another, or even while asking someone out for a date-- weighing the likely risks against the potential reward would seem like a matter of instinct. However, India's Finance Minister Nirmala Sitharaman, or her team, particularly any person who recommended the additional surcharge on super-rich investors, seemed to have beat his or her own instinct. The damage was borne by investors as stocks in both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)-- including the Sensex and the Nifty-- went tumbling over the next 49 days. And the rupee became the worst performing currency in Asia in August.The latest budget for the financial year ending March 2020 imposed an additional tax on the profit made from shares by the country's super rich and foreign portfolio investors (FPI) got caught in the crossfire. The subsequent anger and market sell-off has wiped off billions of rupees in share market wealth since then as foreign investors rushed for the exit.Most foreign portfolio investors in India operate as non-corporate entities such as trusts and associations, which are taxed like individuals and therefore the additional tax would fall on them. Foreign investors folded many of their investments and pulled money out in hordes-- nearly ₹22.5 billion since the budget day. The value of shares in the India fell by a whopping ₹14.7 trillion from July 5 to August 23. However, on Friday (August 23), when Sitharaman decided to rollback the levy on investors, the Revenue Secretary, Ajay Bhushan Pandey, revealed that the withdrawal will cost the government just ₹14 billion
"Tax rates for FPIs will come down by up to 7%, back to the pre-budget levels, and this removes the anomaly created by the Budget 2019,” Rajesh Gandhi, a partner at Deloitte India, told the Economic Times. But the damage had already been done.The rupee has fallen to its lowest level since December 2018 and much of it has to do with foreign investors pulling out dollars in haste. A weaker rupee would mean India will have to pay more for crude oil and that in turn will increases prices of other essential items. And India imports over 80% of all the crude oil it needs.
It may be argued that not all the loss in market value is due to the surcharge. Donald Trump's trade war with China had a role to play too. However, that has been unravelling for many months now and the risks were palpable. Pushing investors, who were already risk averse, to pay more tax was entirely avoidable.
It would appear NS is a liability wherever she goes.
We need to raise income levels of the individuals. People need to have disposable incomes. GDP will sort itself out automatically after that.
I say we need to reduce the expense of people to let them have disposable surplus income. When Modi says that he intends to double farmer's income, he mean surplus i.e net of income minus expense.
That was the middle class thinking of an older India, one which is straddled by my generation as we have one foot in the new India and one foot in the old.
If you are a child of new India then what you are proposing is never going to make you rich. Nor is the idea new.
Of course your PM is firmly old India, as are most of his gang. Including his FM.
Cheers, Doc
Apple iPhone, Amazon Echo production moving from China to India - Times of IndiaIndia draws a target list of companies in 9 sectors of manufacturing to woo them to India to take advantage of US-China trade war
You are looking at the things from the middle and upper middle class perspective who have disposable income. They can either choose to tospend or not spend it to fulfill their wants. What I am talking about is concern to underprivileged and poor people whose neend are still awaiting to be fullfield . if they get money, since this class has only needs, whatever surplus are with them, they are bound to spend. if you are hungry or without cloths, you don't have the option to save . So if this class has any surplus disposable income, they are necessarily bound to spend it. if we are able to put some surplus money in their hand, it will necessarily increase the the demands in the market. If this money goes into the hands of middle or upper middle class, whose all basic needs are satisfied, they have a choice whether to spend it or save it. Therefore I will always want the money to go into the hand of most unprivileged diaaphora of the society. This will ensure that this money once again goes into economy by way of spending. This can either be done by putting some more money into the hands or by decreasing the expense. Most of the time, it is discussed that how we can increase their income but nobody focus on how to reduce their expenses. I advocate to decrease their expenses by various means. For example by adopting the organic farming or zero budget farming model expenses , the farmer's cost can be reduced to almost zero. This will save farmers from doing suicide This is exactly what I have been advocating and trying to convince people.
Last edited:
Your point is well taken.
But mine was centered around working to earn money and saving parts of that incrementally.
Versus working to create wealth. That begets more wealth. Exponentially.
If the farmer spends all his time and attention and effort in spending less, then that is time and attention and effort not available for creating exponential wealth.
What you are proposing is how we pulled a large chunk of our population out of the poverty band.
But if this middle class bulge keeps swelling without upward mobility of wealth creation and innovation, then eventually our growth will plateau to an internal consumption based economy.
Cheers, Doc
Farmers won't spend their time and attention to spend less. They will adopt new methods which shall automatically. What they need to do is to just come out of straight jacket. If somebody can show them this, they can be easily convince to do that.