- Mahindra & Mahindra stock hits 52-week high as brokerages bullish on counter post Scorpio-N launch; check target prices
- GST Council meet begins today: Know agendas of Finance Minister Nirmala Sitharaman's led two-day meeting
- Security deposit on commercial LPG connection goes up by Rs 1050 for 19-kg cylinder; check new rates
- Cash-starved Sri Lanka to end fuel duopoly to ease fuel shortages
- Xiaomi 12S series set to launch with Leica cameras on July 4: Check key details here
Budget 2019: Increase income limit for peak tax rate of 30%, demands FICCI
Union Budget 2019: Finance Minister Nirmala Sitharaman is set to present her maiden Union Budget on July 5.
Union Budget 2019: Finance Minister Nirmala Sitharaman is set to present her maiden Union Budget on July 5. Salaried taxpayers are hoping that the FM may announce a change in tax slab rates, keeping annual taxable income up to Rs 5 lakh per annum out of the tax net. In the interim budget presented in February this year, the government had made income up to Rs 5 lakh tax-free. However, there was no change in the tax slabs announced. Commerce and industry body FICCI wants the government to raise the income limit for the peak tax rate of 30%. In its Pre-Budget Memorandum, the Federation of Indian Chambers of Commerce and Industry (FICCI) said, "Currently, the peak tax rate of 30% is made applicable over an income of Rs. 10 lakhs for individual taxpayers. However, the income level on which peak rate is applied in other countries is significantly higher. Hence, there is a need for further raising the income level on which the peak tax rate would trigger, to make the same compatible with the international standards."
The industry body has recommended the following tax slabs for individual taxpayers:
FICCI has further urged the government to abolish the levy of surcharge on individuals @ 10% and 15% having total income above Rs. 50 lakhs and Rs. 1 crore respectively. " It is believed that the increased surcharge on a certain category of individuals distorts equity and tends to
discourage entrepreneurship and incentivizes people to relocate to other locations," it said.
On tax rate for transactions done through a mode other than cash, FICCI said, "In all the sections introduced to promote digital economy, the mode of payment should be defined in such a manner that all non-cash transactions done through traceable mode should be covered within the ambit."
FICCI added, "It is further suggested that benefit of a lower rate of tax @ 6%, should also be extended for presumptive tax under section 44ADA (presumptive tax for professionals) and 44AE (presumptive tax for truck owners)."
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.