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All About Proposal Made for Income Tax Slabs & Rates by Task Force

income tax slabs & rates by task force

The current three tax rate slabs of 0%, 5%, 20% and 30% are anticipated to be extended to five of  0%, 10%, 20%, 30% and 35%, on the recommendations of the exclusive task force which was appointed by the Government of India (GOI).

This special task force submitted its report on the new Direct Tax Code to the Finance Ministry on new Direct Tax Code, looking forward towards the replacement of the current Income Tax Act.

The government-appointed force wants some changes in the Income Tax Act which has its roots back in 1961. Although the demand has not been made for increasing the exemption limit beyond ₹2.5 lakh of the current but demands for the addition of tax brackets has been made by them.

Read Also: Revisit History of Income Tax Slabs (1944-45 to 2018-19) in India

The recommendations made by the task force include lesser income tax liability at 10% and 20% on annual income between ₹5 lakh to ₹10 lakh and ₹10 lakh to ₹20 lakh, respectively. Besides, the proposal for introducing a new 35% tax bracket for annual income more than ₹2 crore along with the surcharge has also been made.

According to the reports, no changes have been suggested for the 5% tax bracket or the current rebate of ₹12,500 and 30% Income tax slab rate will remain the same for annual income between ₹20 lakh to ₹2 crore.

Current Tax Slabs with Rate vs Recommended by the Task Force

Current IT SlabsCurrent Applicable RateTask Force IT SlabsTask Force IT Rates
Income up to INR 2.5 lakh0%Income up to INR 2.5 lakh 0%
Income from INR 2.5 lakh to INR 5 Lakh5% (Rebate – INR 12,500)Income from INR 2.5 lakh to INR 10 Lakh 10% (Rebate – INR 12,500 up to INR 5 Lakh)
Income from INR 5 lakh to INR 10 lakh20% Income from INR 10 lakh to INR 20 lakh20%
Income more than INR 10 lakh30%Income from INR 20 lakh to INR 2 crore30%
Income Above INR 2 Crore35%

Disclaimer:- "All the information given is from credible and authentic resources and has been published after moderation. Any change in detail or information other than fact must be considered a human error. The blog we write is to provide updated information. You can raise any query on matters related to blog content. Also, note that we don’t provide any type of consultancy so we are sorry for being unable to reply to consultancy queries. Also, we do mention that our replies are solely on a practical basis and we advise you to cross verify with professional authorities for a fact check."

Published by Resham Aswani (Ex-Employee)
A B.com graduate, a certified pranic healer, and tax & accounting geek is currently pursuing correspondence M.B.A, always keen to learn new things and grow professionally. Resham Aswani has joined SAG Infotech as a content writer as she has a keen interest in research, writing and staying updated about the latest affairs in taxation and accounting sector. Resham likes to shed light on the current happenings in the taxation field by writing crisp, bold articles to keep her audience updated. View more posts
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