...So both taxpayers and corporate the sector to be happy with this ‘Modi plan’!
Tuesday - October 22, 2019 11:37 am ,
Category : WTN SPECIAL
Modi Government can give a 'big relief' to the taxpayers
Modi Government's ‘master plan’ to deal with an economic downturn
OCT 22 (WTN) - According to the International Monetary Fund, 90 per cent of the world's economies, including India, are currently experiencing economic recession. As far as the economy of India is concerned that is growing continuously, the global economic slowdown has had a major impact on the Indian economy. The economic slowdown has had an impact on the corporate sector as well as the country's growth rate. But the Modi Government, facing the recession, is trying its best to ensure that the people of the country do not face more problems due to the economic recession.
Amid measures to deal with the economic slowdown, the Modi Government had cut corporate tax a few days ago and brought it to the level of 25 per cent. The Modi Government did this so that the corporate sector could cope with the recession. For your information, let us know that there is a principle of economics that when people have money, they spend it or invest it.
That is when people spend money, then the money will be used in the market and this gives a boost to the economy. Now that the economic downturn is going on, people are saving in such a way that the extra money is not being used in the market. Demand in the market has reduced due to less spending by people, due to which the corporate sector is facing a recession.
Modi Government is now going to give relief in income tax to common citizens so that people can get extra money and spend it. For your information, let us know that former chairman of NITI Aayog, Arvind Panagariya, said a few days ago that there is a strong possibility that there are chances of improvement in personal income tax, and the taxpayers can get the full benefit of it.
In fact, the Akhilesh Ranjan-led taskforce has also recommended changes in the Income Tax Act. This committee has submitted its report on direct tax code in the month of August itself. However, this report has not yet been made public.
After all, Modi Government can give some benefit to a common taxpayer; let us tell you about it in detail. According to the information received from the sources, the proposed change in the income tax slab can increase the scope of the slab. It is being said that the 10 per cent tax slab can be increased to Rs 10 lakh. If the Modi Government does this, it will benefit those about 27 per cent of the people who pay income tax and consist of the slab.
According to data from the Central Board of Direct Taxes, during the financial year 2017-18, about 27 per cent of the total taxpayer's income of 5,52 crore was between Rs 5 and 10 lakh. If the Modi Government changes the income tax slab based on the task force report, it will consist of 1.47 crore taxpayers from the tax slab of 20 per cent to the tax slab of 10 per cent.
According to financial affairs experts, if the government does this, then it will not have much effect on the small taxpayers. It is being said that due to the change in the potential income tax slab, there will be no significant difference in the tax liability of people with an income of 5 to 6 lakh. It is likely that with such changes, they may come out of the tax net through certain deductions.
It is estimated that if there is a change in the income tax slab, then those earning Rs 7 lakh and above can save more than 9.5 per cent in tax. It is expected that if someone earns 10 lakh rupees annually, then they can get the benefit of about 34 per cent in tax after the change. This means that it is clear that those earning more than Rs 5 lakh per annum will benefit from the possible change in the tax slab and they will be able to save.
According to data from the Central Board of Direct Taxes, if there are further changes in the tax slab, it will bring 40 lakh people from 30 per cent tax slab to 20 per cent tax slab. That is those whose annual income is more than Rs 20 lakh, they will save up to 35 per cent in tax, that is there will be an annual savings of up to Rs 1 lakh.
At the same time, the task-force has also recommended a new tax slab of 35 per cent. People earning more than Rs 2 crore annual can be placed in this slab. In this case, after 24 per cent surcharge and 3 per cent cess, the total tax of the people who are earning an annual income of 2 crores to 5 crores will be 39 per cent. In such a situation, taxpayers earning more than 2 crore rupees annually will not have any special effect.
It is clear that after the change in the income tax slab, people will have more money left and they will spend this money and invest. If taxpayers spend money, this will increase demand in the market and money will be used in the market. Increased demand in the market will increase production, which will help companies facing the recession.
On the other hand, if taxpayers invest money, then money will be available to the companies through the stock market, which companies can put into production. That is by changing the tax slab, the Modi Government is going to do two tasks simultaneously. One, it will save the public money and they will be able to spend or invest it. On the other hand, this will bring money to the market, which will give the corporate sector a chance to recover from the economic downturn.
OCT 22 (WTN) - According to the International Monetary Fund, 90 per cent of the world's economies, including India, are currently experiencing economic recession. As far as the economy of India is concerned that is growing continuously, the global economic slowdown has had a major impact on the Indian economy. The economic slowdown has had an impact on the corporate sector as well as the country's growth rate. But the Modi Government, facing the recession, is trying its best to ensure that the people of the country do not face more problems due to the economic recession.
Amid measures to deal with the economic slowdown, the Modi Government had cut corporate tax a few days ago and brought it to the level of 25 per cent. The Modi Government did this so that the corporate sector could cope with the recession. For your information, let us know that there is a principle of economics that when people have money, they spend it or invest it.
That is when people spend money, then the money will be used in the market and this gives a boost to the economy. Now that the economic downturn is going on, people are saving in such a way that the extra money is not being used in the market. Demand in the market has reduced due to less spending by people, due to which the corporate sector is facing a recession.
Modi Government is now going to give relief in income tax to common citizens so that people can get extra money and spend it. For your information, let us know that former chairman of NITI Aayog, Arvind Panagariya, said a few days ago that there is a strong possibility that there are chances of improvement in personal income tax, and the taxpayers can get the full benefit of it.
In fact, the Akhilesh Ranjan-led taskforce has also recommended changes in the Income Tax Act. This committee has submitted its report on direct tax code in the month of August itself. However, this report has not yet been made public.
After all, Modi Government can give some benefit to a common taxpayer; let us tell you about it in detail. According to the information received from the sources, the proposed change in the income tax slab can increase the scope of the slab. It is being said that the 10 per cent tax slab can be increased to Rs 10 lakh. If the Modi Government does this, it will benefit those about 27 per cent of the people who pay income tax and consist of the slab.
According to data from the Central Board of Direct Taxes, during the financial year 2017-18, about 27 per cent of the total taxpayer's income of 5,52 crore was between Rs 5 and 10 lakh. If the Modi Government changes the income tax slab based on the task force report, it will consist of 1.47 crore taxpayers from the tax slab of 20 per cent to the tax slab of 10 per cent.
According to financial affairs experts, if the government does this, then it will not have much effect on the small taxpayers. It is being said that due to the change in the potential income tax slab, there will be no significant difference in the tax liability of people with an income of 5 to 6 lakh. It is likely that with such changes, they may come out of the tax net through certain deductions.
It is estimated that if there is a change in the income tax slab, then those earning Rs 7 lakh and above can save more than 9.5 per cent in tax. It is expected that if someone earns 10 lakh rupees annually, then they can get the benefit of about 34 per cent in tax after the change. This means that it is clear that those earning more than Rs 5 lakh per annum will benefit from the possible change in the tax slab and they will be able to save.
According to data from the Central Board of Direct Taxes, if there are further changes in the tax slab, it will bring 40 lakh people from 30 per cent tax slab to 20 per cent tax slab. That is those whose annual income is more than Rs 20 lakh, they will save up to 35 per cent in tax, that is there will be an annual savings of up to Rs 1 lakh.
At the same time, the task-force has also recommended a new tax slab of 35 per cent. People earning more than Rs 2 crore annual can be placed in this slab. In this case, after 24 per cent surcharge and 3 per cent cess, the total tax of the people who are earning an annual income of 2 crores to 5 crores will be 39 per cent. In such a situation, taxpayers earning more than 2 crore rupees annually will not have any special effect.
It is clear that after the change in the income tax slab, people will have more money left and they will spend this money and invest. If taxpayers spend money, this will increase demand in the market and money will be used in the market. Increased demand in the market will increase production, which will help companies facing the recession.
On the other hand, if taxpayers invest money, then money will be available to the companies through the stock market, which companies can put into production. That is by changing the tax slab, the Modi Government is going to do two tasks simultaneously. One, it will save the public money and they will be able to spend or invest it. On the other hand, this will bring money to the market, which will give the corporate sector a chance to recover from the economic downturn.
