Income Tax Slab For Salaried Class Remain Unchanged
Tax base does not expand but a consolation of Rs 40,000 exemption
Indian tax payers do not get much hope from this year’s Union Budget. The budget was presented on 1st February and Finance Arun Jaitley did not bring any change in the income tax slab. As per the minister over the last 3 years, there was much tax relief provided to the salaried individuals of the country and this year is going to be an exception.
However every individual will get a standard exemption of Rs 40,000 as a part of medical and transport reimbursement. DK Srivastava stated that though citizens had many expectations from the Union Budget, the government was not able to provide much relief in the tax base because of its stringent target of fiscal deficit reduction. He also feels that the rise in the price of crude oil played a pivotal role in the unaltered income tax rates.
Last year few of the expectations of the salaried class were fulfilled by Arun Jaitley by reducing the tax rate from 10% to 5% for income levels between Rs 2.5 lakh and 5 lakh per annum. As per the current norms, every tax payer needs to pay tax as per the rate if his/her salary exceeded the exemption limit. There has been a change in the capital gain tax this year.
The minister announced that tax will be levied on capital assets which have been owned for at least 10 years and has a minimum value of Rs. 10,000. Capital gains refer to the profits which a person enjoys from the sale of a capital asset. This tax is charged in the year in which the asset is sold, it there is no tax levied on the product when it is inherited. This refers to the assets which are received as gifts or from one family member to the other in form of inheritance.