News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« Indirect Tax »
 Govt gives businesses four months to settle indirect tax disputes
 ITR filing becomes easy via new 'e-Filing Lite' portal - 5 things to know Income Tax Return
 No income tax on interest from accident compensation: High Court
 How much tax do you need to pay for your equity investments?
 Income Tax Department proposes new norms for taxing MNCs in India
 Can you claim tax benefit for tax paid on insurance premium? a
 Top 30 Income Tax Judgments in 2018
 Urban Development and Housing Department, Chakradharpur, Jharkhand
 National Rural Health Mission, Faridabad - Haryana
  Govt fails to release exporters’ pending sales tax refund claims
 Govt fails to release exporters’ pending sales tax refund claims

Income tax rates, tax-free limit to stay unchanged
June, 02nd 2017

The government's move to keep tax-free income threshold and the tax rates on individuals and firms unchanged in the next fiscal year is likely to affect many low and middle income people who would be new to income taxes.

For example, if income tax-exempt earning limit remains at Tk 2.50 lakh a year for individuals, it may reduce many people's disposable income.

“Many low income people will come into the tax net just because of spike in their annual income. This will reduce their disposable income,” said Masud Hasan, who works at the finance and control department of a private company.

Tax burden on many individuals will rise just because of increment in their salaries, he added.

The government should have increased tax free income threshold considering inflation, he stressed.

Various quarters, including businesses, have been demanding a rise of the tax-free threshold since the cost of living is rising with inflation.

Finance Minister AMA Muhith, on several occasions, said he favoured maintaining a fixed tax-free income threshold for several years instead of raising the tax-free income limit every year.

“What should be the ideal tax exemption threshold is a subject of interesting and enlightening intellectual debate in our country. There should be a philosophy for determining the tax exemption threshold,” he said in yesterday's speech.

He added that per capita income and the rate of inflation might be important determiners in this case.

He also said inflation rate was low at the moment, with point-to-point inflation measuring at around 5 percent only.

The minister's view comes at a time when inflation is on the rise mainly due to the increasing prices of rice. In addition, application of a single and uniform VAT rate is also feared to raise the cost of many goods and services in the coming days.

Also, continuation of 10 percent tax on the income of up to Tk 6.50 lakh a year also eats into the disposable income of people at the bottom of the income tax slab.

The Centre for Policy Dialogue (CPD) earlier urged the government to slash the personal income tax rate for the lowest threshold to 7.5 percent from 10 percent.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions