Thursday, 6 December 2007

Income tax may come down in India

Riding on a buoyant economy and making the most out of it with respect to direct taxes, the revenue department may consider reviewing direct tax rates and structures (income tax slabs) in the coming annual budget. This move comes as an aftermath of a 45% growth rate in direct tax revenues due to tax administration improvements, increase in voluntary compliance etc.

A week back the Finance Minister was seen saying that the Rs. 10,000 increase in tax slabs last year didn’t give much of a relaxation to the tax payers of the country. The ministry will also seek inputs from public, tax experts and industry associations on this. Let’s hope that this welcome move shall come into effect and lower the burden of taxation on the working class.

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