Straight from the Specialists
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The weeks before the Union budget are days of wishful thinking for the common man. It is always the expectation that the threshold and tax exemption limits will be increased. This year is no exception, and the common man would definitely be happy if his wishes are met.
Realistically speaking, as we move closer to implementing the Direct Taxes Code (DTC), the personal tax slabs in this budget could be aligned to the proposed DTC thresholds. So we can expect the minimum income limit not subject to tax being raised to 2 lakh rupees from 1.9 lakh rupees.
Also, the threshold limit of applying 30 pct tax rate may be raised to 10 lakh rupees from 8 lakh rupees. This together would account for reduction of taxes by 21,000 rupees (plus the reduction in effective surcharge).