Tax Practitioners Urge Govt to Rationalise Personal Income Tax

By: Admin July 16, 2024 Categories: Income Tax | Income Tax News | News

A direct tax practitioners’ body has urged the government to reduce the personal income tax burden on citizens in the upcoming Union budget later this month. The All India Federation of Tax Practitioners (AIFTP) president recommended increasing the exemption limit to Rs 5 lakh.

Key Highlights:

  • Exemption Limit Increase: The AIFTP president proposed raising the exemption limit to Rs 5 lakh, emphasizing the need to simplify the tax structure to ease compliance for taxpayers.
  • Tax Rate Adjustments: He suggested the following tax rates:
  • Income between Rs 5 lakh to Rs 10 lakh: 10%
  • Income between Rs 10 lakh to Rs 20 lakh: 20%
  • Income above Rs 20 lakh: 25%
  • Elimination of Surcharge and Cess: The president of Calcutta Citizens’ Initiative, Jain, argued for the removal of the surcharge and cess, stating that their continuation is unjustified. He highlighted the lack of transparency in the utilization of the education cess and stressed that providing education and medical facilities is a fundamental government duty.
  • Section 115BBE Rate Reversion: The memorandum also called for reverting the tax rate under section 115BBE on unexplained cash credits, loans, investments, and expenditures from 75% plus cess (imposed during demonetization) back to the original 30%.

IncomeTax #UnionBudget #TaxReform #TaxCompliance #AIFTP #FinanceMinister #TaxBurden #PersonalIncomeTax #Section115BBE

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