New Delhi: Now that the budget is around the corner, there is some good news for all tax payees.
This budget may just bring about some changes in the existing income tax structure. CNN-IBN sources say the Finance Minister is set to juggle the Tax Slabs so that those with lower income pay less tax.
The current exemption limit of Rs 1 lakh, ten thousand for men is expected to increase up to Rs 1 lakh 25 thousand rupees.
However, it would be better to not expect any reduction in tax rates.
The lowest tax rate of 10 per cent is now likely to extend from Rs 1.25 lakhs to Rs 2 lakhs, instead of Rs 1.10 lakhs to Rs 1.50 lakhs as it is, at present.
This means that 20 per cent tax slab will now start from Rs 2 lakhs onwards from Rs 1.5 lakh at present.
As of now, there are no changes expected in the 30 per cent tax slab, even though discussions are still on, so for those who earn to the tune of Rs 5 lakhs a year, the difference could be about Rs 6500.
Some of the losses to the exchequer may be made up by the higher pay packets on offer in the private sector as well as the benefits of a pay commission for government employees.
This may be the last chance for the UPA government to cut taxes in the current term and in the lead up to a possible general election, such a move is likely to do the government a world of good.
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