The government can present the New Income Tax Bill in the upcoming budget session. Along with this, relief can be given to those who pay income tax in the budget. The government can increase tax free income. The slab of those who pay 20 percent can also be increased.
The central government will present the budget for the country on February 1, in which there are a lot of expectations from the income tax payers to the common man. It is believed that in the budget session starting from January 31, the government can change the old income tax rules. The government can present a new income tax bill.
In the upcoming budget session, the central government can present a new income tax bill to make the Income Tax Act 1961 easier and make some changes in it. Because during the last budget, Finance Minister Nirmala Sitharaman had talked about reviewing the Income Tax Act, for which CBDT has also formed a committee.
According to the report, the draft of the new law is being reviewed by the Law Ministry. It can be presented in the second part of the budget session. Keeping this in mind, decisions can also be taken in the budget to give relief to taxpayers. There may be exemption in the new tax regime.
Decision on New Tax Regime
The government can give relief to taxpayers in the upcoming budget to improve the pace of GDP. In the new tax regime, the government can change the tax slabs. The aim of the government is to encourage people’s spending. Because, unless people spend money, it will be difficult to improve the economy.
Increase in standard deduction
At present, people earning up to Rs 7 lakh annually do not have to pay tax to the government. The government can increase this limit further. Apart from this, the limit of standard deduction can be increased from Rs 75,000 to Rs 1 lakh. Because earlier also this limit was increased from Rs 50 thousand to Rs 75 thousand.
20 percent tax scope will increase
In the budget, the government can give exemption to tax payers with higher income. Till now, people with income of Rs 12 to 15 lakh have to pay interest up to 20 percent. The government can increase the limit of this slab from Rs 15 lakh to Rs 20 lakh. The entire focus of the government is to increase the country’s GDP and reduce the fiscal deficit.