New Delhi
After the implementation of the new tax system, the government has given relief to taxpayers earning less than Rs 15 lakh annually by increasing the limit as per the tax slab. The purpose of this exemption has been to protect their income from reduction in times of rising inflation.
But, if we talk about the taxpayers who pay the highest tax, then they have not got any relief on the limit front for the last 5 years. According to the data, since the introduction of the new tax system in 2020, the cost inflation index i.e. CII has increased by about 21 percent.
Those with income up to Rs 15 lakh can get relief
To reduce the impact of inflation, the government has increased the limit by a minimum of 20 percent and a maximum of 40 percent for taxpayers with income less than Rs 15 lakh in five years. However, there has been no change in the limit for taxpayers earning more than Rs 15 lakh and they have to pay tax at the maximum rate of 30 percent.
Experts also believe that now in view of inflation and other expenses, there is a need for the government to consider providing relief to the people falling in the highest slab. Anyway, according to the statistics, if we look at the income slab of those filing ITR, then the taxable income of 70 percent of the taxpayers is Rs 5 lakh or less.
Know who pays the highest tax
In such a situation, only 30 percent people collect direct tax. For this, the government is the biggest support. That is why it is being demanded that these people should also get some relief from the tax burden, which will provide a lot of relief to the urban employees, because these people are paying home loan EMIs at high interest rates. They are forced to pay expensive school fees for their children and are spending more money in their pockets for a better lifestyle.
In the recent survey of Grant Thornton India, people have also demanded tax exemption. According to the survey, 57 percent of the personal taxpayers of the country want the government to provide relief to them by reducing taxes in the next budget. 25 percent have demanded relaxation in the maximum tax slab. Despite 72 percent of personal taxpayers choosing the new income tax system, 63 percent are in favor of increasing the incentives under the old system.
To increase attraction towards the new tax system, about 46 percent have suggested reducing the tax rate. 47 percent want that the ‘set-off’ limit under the old tax system should be increased or the limit of Rs 2 lakh should be removed completely. According to Grant Thornton India, the increase in tax deduction limit of NPS and more flexible withdrawal rules will boost retirement savings.
