INSUBCONTINENT EXCLUSIVE:
At moment, income up to Rs 2.5 lakh is exempt from personal income tax.Finance Minister Arun Jaitley may double income tax exemption
threshold for salaried from present Rs 2.5 lakh to Rs 5 lakh while also reinstating tax-free status for medical expenses and transport
allowance, providing some relief to section already under strain since demonetisation.Though propriety demands that not too many policy
changes should be made in an interim Budget, BJP government is apprehensive of possibility of a middle-class backlash in impending general
elections.Hence plan to streamline tax slabs, which in any case are in consonance with coming Direct Tax Code, government sources told news
agency IANS.The problem that may manifest itself is that Union Budget will precede unveiling of Direct Tax Code Report on February 28
tax net, make system more equitable for different classes of taxpayers, make businesses more competitive by lowering corporate tax rate, and
phase out remaining tax exemptions that lead to litigation
It will also redefine key concepts such as income and scope of taxation.At moment, income up to Rs 2.5 lakh is exempt from personal income
Income between Rs 2.5 lakh and 5 lakh attracts a 5 per cent tax (see table), while that between Rs 5 lakh and Rs 10 lakh is levied with a 20
Income above Rs 10 lakh is taxed at 30 per cent
Exemption on income up to Rs 5 lakh is only applicable to individuals of over 80 years.Income Tax slabs for individual tax payers HUF (less
Rs 5,00,000 - 10,00,00020%Income more than Rs 10,00,00030%
