If the ruling government follows the recommendation of the task force of director tax, your taxable income of up to 6 lakh will be exempted from levied income tax. Currently, the taxable income of INR 5 lakh is excluded from the application of Income-tax.
According to sources, the task force in its submitted report to the Finance Ministry on direct tax code supported the government step of exempting taxable income of INR 5 lakhs. Considering the current situation, it would be better to expand the taxable income range up to INR 6 Lakhs.
It means if the earning of an individual lies in between INR 8-10 Lakhs and he invests in concerns of exempting income tax. Consequently, if his earnings fall up to INR 6 lakhs, which is taxable under current income tax slabs then the taxpayer is not required to pay any taxes on INR 6 lakh amount.
Read Also: All About Proposal Made for Income Tax Slabs & Rates by Task Force
In case, if the taxable income calculates more than INR 6 lakh then as per the prevailing tax slab rates the amount will be taxable under Income tax. On the other hand, the task force believes that besides the collection of Income-tax the government needs to focus on increasing investment as well.
Also, the task force has recommended one more tax slab in our current income tax act. The committee wants to include a 35% income tax rate for income above 2 crores.
