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Modi Government to bring the economy back on track by changing the income tax slab,!

Thursday - August 29, 2019 2:51 pm , Category : WTN SPECIAL
Modi Government can give relief to middle class
Modi Government can give relief to middle class

Consumption to increase due to change in tax slab; economy to gain too momentum!

AUG 29 (WTN) - In the 2019 Lok Sabha elections, Prime Minister Narendra Modi made a lot of promises to the people of the country. The voters of the country believed Prime Minister Modi's promises, and once again supported the BJP by giving an absolute majority in the Lok Sabha elections. After winning the Lok Sabha elections, now the Modi Government is giving reliefs to the people of the country. It may be in this link that in the coming days, the middle class of the country will get considerable relief from income tax. After all, what kind of relief can the Modi Government give to the middle class in income tax? Let us explain this in detail.

If everything remains as per the Modi Government's plan, then in the coming days the Modi Government can make a big change in the income tax slab. It is being claimed that if the Modi Government does this, it will provide a big relief to the middle class of the country who pays a large share of the tax.

For your information, let you know that the committee constituted by the Government under the leadership of Central Board of Direct Taxes (CBDT) member Akhilesh Rajan has recommended implementing the new tax slab, stating that a major change in the 58-year-old Income Tax Act is necessary. If this recommendation applies, then in this situation only 10 per cent tax will have to be paid to those earning Rs 5 lakh to 10 lakh annually.

For information, let you know that according to the current tax slab, the earners of Rs 5 lakh to Rs 10 lakh have to pay 20 per cent tax at this time. If the Modi Government implements this recommendation, it can provide a big relief to those earning Rs 5 to 10 lakhs annually.

At the same time, the committee recommends that tax should be levied at the rate of 20 per cent on the annual earners of Rs 10 lakh to Rs 20 lakh. Also, the committee has recommended imposing tax at the rate of 30 per cent on the annual income of Rs 20 lakh to Rs 2 crore. Not only this, there is a proposal to impose tax at the rate of 35 per cent on those earning more than two crore rupees per annum and no surcharge on them.

In the current tax slab, income tax is levied at the rate of 5 per cent on an annual income ranging from Rs 2.5 lakh to Rs 5 lakh. At the same time, 20 per cent on annual income from Rs 5 lakh to Rs 10 lakh, and 30 percent on annual income of more than Rs 10 lakh is charged as income tax. However, those earning up to Rs 5 lakh per year get tax rebate. Getting tax rebate means that income of those earning up to Rs 5 lakh per annum.

Actually, there has been a demand for a long time that the Government should make a lot of changes in public interest in income tax. People say that since GST system is implemented in the country, they are paying a lot of tax indirectly to the Government. In such a situation, the Government should provide relief to the middle class people by changing the income tax slab and reducing the tax.

But the change in income tax slab may reduce the Government's income for some time. It is certain that after implementing the proposed recommendations, the Government will suffer loss if income from income tax is reduced. According to experts, if the Government changes the income tax slab as per the proposed recommendation, it will reduce the income of the Government for two to three years, but it will make it easier to file returns.

It will be easier to file income tax return, because the introduction of new tax slabs will eliminate different types of exemptions which will make taxation easier. At the same time, setting up an arbitration panel for settlement of tax related disputes will also help in curbing tax evasion.

According to income tax experts, the proposed change in the tax slab will increase consumption. If the public consumes money, then more money will be consumed in the market from the pocket of the public which will end the cash crisis in the economy and will give a boost to the economy and this measure will be effective in dealing with the global recession. When the money comes in the market, it is natural that the sluggish economy will gradually gain momentum due to increasing sales in the market.