For the millions of working people stung by the rising cost of living and salary freezes or cuts, the Budget comes as a palliative, but not the Budget How aam admi tracked Budget New I-T slabs cure that they hoped for.
individuals in the low-to-middle-income groups will save at least Rs 1,030 in tax, benefiting from the Rs 10,000 increase in the income tax
exemption limit. Senior citizens will pay at least Rs 1,545 less. The filing of tax returns is also set to become simpler, particularly for the salaried, as the government plans to re-introduce ‘Saral’ forms.
But it is those with taxable income of over Rs 10 lakh that have gained more from the Budget. They benefit from the removal of the 10% income tax surcharge as well as the higher exemption level. As a result, their tax incidence at the highest slab has declined to 30.09%, from 33.99%. This is the first time in many years that the high-income group, the group that drives consumption of the mid-market to premium consumer goods and services, has got any concession from the government. It is meant to be a small step in the direction of reforming the tax structure to make it simpler.
However, a part of what this group has gained can be taken away by the government’s proposal to scrap fringe benefit tax (FBT) on employee perks and shift the burden to employees. As a result, employees would be taxed for contributions made to the superannuation fund.
Likewise, stock options would become taxable on the date of vesting. In both, individuals would pay taxes on benefits they have not received: the superannuation fund is received by an individual only on retirement while the benefits of a stock option can be enjoyed only when the stocks are sold.
Source and read more
No comments:
Post a Comment