Connect with us

Hi, what are you looking for?

[t4b-ticker]
Home » India » Govt Likely To Increase Standard IT Deductions By 30-35%: Report

India

Govt Likely To Increase Standard IT Deductions By 30-35%: Report

The revision of Tax deduction is one of many suggestions made during Pre-Budget meetings.

Image used for representational purposes only. (Source: Pexels)

New Delhi: The union government may increase the standard Income Tax deduction meant for tax relief to the salaried individuals, however, it is unlikely that it will tweak the current tax slabs due to limited fiscal headroom, as per media report.

As per an Economic Times report, the government is mulling to revise and increase the standard deduction of salaried taxpayers by 30-35 percent. Currently, the standard deduction is at Rs 50,000 and industry bodies have suggested that this should be increased.

“There are many suggestions on personal taxation. This year one common demand was to enhance the limit of the standard deduction, especially considering the inflated cost of medical expenses on account of Covid-19,” a senior official from the finance ministry told ET. “The proposal is to increase it by 30-35%.”

The issue is subject to government approval which will depend on the latest tax collection.

ALSO READ: Budget Session Will Be ‘Out Of Focus’, Says TMC After EC Announces Polls Dates For 5 States

Standard deduction means the flat deduction which is made on every taxpaying individual receiving a salary or a pension. The deductions were introduced in Budget 2018 in lieu of exemption of transport allowance and reimbursement of miscellaneous medical expenses. Later for FY 2019-20 and FY 2020-21, the limit of the standard deduction was increased from Rs 40,000 to Rs 50,000.

The tax deduction helps in Income tax calculation as the salaries are computed after deducting Rs 50,000 annually, thus giving tax benefits to the taxpayer. It is only applicable for individuals who opt for the old tax regime.

Ina pre-budget meeting trade bodies like ASSOCHAM and Confederation of Indian Industries (CII) suggested the Finance Ministry to increase the deduction limit, as COVID-19 pandemic has increased the home expense of the salaried class due to increased electricity, water, Internet and other medical bills.

However, there has been no confirmation from the Finance Ministry in the matter.

ALSO READ: India’s Fiscal Deficit Touches 46.2% Of Annual Target By November End

Advertisement. Scroll to continue reading.
Read Full Article

Spotlight

Politics

The Congress in Punjab is yet to decide on who will be its face in the Assembly elections. Chief Minister Charanjit Singh Channi and...

Sports

Lakshya Sen from Almora won against Singaporean world champion Loh Kean Yew in a thrilling final 24-22, 21-17. He became the first Indian to...

India

Due to COVID-19 restrictions, the number of visitors to be substantially curtailed this year. We are looking at a range of 5000 to 8000...

World

The team led by researchers at the University of Exeter found that 13 per cent of people still exhibited clinically-relevant levels of virus after...

Videos

Dhanush in his shared statement, apart from revealing the shocking news also asked people to respect their decision and give them the needed privacy...

You May Also Like

India

According to the global Oxfam Davos report of 2022 titled 'Inequality Kills', the rich have become richer while the income of the rest of...

Politics

A Lok Sabha MP since 2014, Mann is a popular face in Punjab and is one of the indisputable comedy kings. Mann has also...

Videos

Dhanush in his shared statement, apart from revealing the shocking news also asked people to respect their decision and give them the needed privacy...

Sports

Bharath Subramaniyam from Tamil Nadu became the 73rd Chess Grandmaster of India. He achieved the third and final Grandmaster Criterion at an event in...

Advertisement