According to reports, the government is considering the recommendations of the DTC taskforce.
Government may change income tax slabs in Budget 2020. Photo: iStock
In a relief to personal income taxpayers, the government may announce major tax relief by changing the income tax slab structure in the upcoming General Budget 2020-2021.
The tax relief is likely to be provided by implementing the recommendations of the Direct Tax Code (DTC) Taskforce on the matters of personal income tax in the next budget.
As per the information, government is considering the recommendations of the DTC taskforce. The report was submitted by in August 2019.
Relief in personal income tax?
The government is considering the recommendations of the Direct Tax Code committee
The DTC committee submitted a report to the government in August 2019
The government is considering to provide more money in hand to increase consumption
Some other taxes may be exempted or eliminated with a reduction in personal income tax
Tax exemption with discounts will enhance the government income
The DTC task has recommended the government to continue with rebates
According to the existing income-tax laws, there are three tax slabs. An annual income between Rs 2.5 lakh and Rs 5 lakh is taxed at 5%, between Rs 5 lakh and Rs 10 lakh at 20% and above Rs 10 lakh at 30%. In the General Budget 2019-2020, the government enhanced the rebate available under Section 87A from Rs 3500 to Rs 12,500 in the Interim Budget, making taxable income up to Rs 5 lakh tax-free in the hands of small taxpayers without raising the exemption limit.