Next Tax experts are hopeful Finance Minister Pranab Mukherjee will increase the income tax exemption limit to Rs 2 lakh (Rs 200,000) per annum from Rs 1.6 lakh (Rs 160,000) to bring the rates in line with the Direct Taxes Code. “To align the exemption limits under personal income tax with DTC, the Centre is likely to raise the IT exemption limit to 2 lakh (Rs 200,000),” Balbir Singh Mastan, Partner, DSK Legal said. High inflation, particularly in the food items, also makes a strong case for raising the tax exemption limit, experts argue. “Taking into account rising inflation, the government could raise personal I-T exemption limit,” tax consultant Subhash Lakhotia said. He further said that in the wake of the issues related to increasing black money, the government should limit tax rates to up to 20 per cent for individuals and 25 per cent for corporates. Tax gurus also said the limit for exemption through saving schemes like investments in provident fund and infrastructure bonds, may also be raised from the current Rs 1.2 lakh (Rs 120,000). Click NEXT to read on . . . Next Prev Next “The finance minister is expected to… Read full this story
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