Income Tax Exemption limit to be increased: In the new budget for the year 2017, the government is likely to set the exemption limit for the income tax higher than before in a bid to provide relief to the cash-starved masses of the economy.
“An increase in the personal income tax threshold by at least a few thousand rupees and further easing of compliance measures for individual taxpayers are on the cards. This will add a feel good factor to the Budget”, said an official.
Income tax exemption limit to be increased
It is being said that the threshold limit for the exemption to the income tax will be set Rs 20000 to Rs 50000 higher, however, the available financial resources will have to be reviewed by the government first. The final announcement for the same will be done in the budget announcement date.
Arun Jaitley had earlier raised the threshold limit by Rs 50000 in his first budget for 2014-15.
The government may also further make easier the process of filing for income tax return. Currently, there is a provision for paying the income tax online, however, the government strives to make it even more simple by easing out the set of norms for tax returns.
CBDT (Central Board of Direct Taxes) has recently set up a committee for the formulation of the Standard Assessment Procedure for the e-scrutiny. This is intended to provide greater transparency to the tax payers.