homepersonal finance NewsBudget 2022: Govt may make new simplified personal income tax regime more attractive
Budget 2022: Govt may make new simplified personal income tax regime more attractive
Government is considering tweaking new tax regime to encourage taxpayer adoption. Also, it is expected to club standard deduction and interest against home loan, sources said.
The government is aiming to make new simplified personal income tax regime more attractive for the salaried class, sources informed CNBC-TV18.
Government is considering tweaking new tax regime to encourage taxpayer adoption. Also, it is expected to club standard deduction and interest against home loan, sources said.
"House rent and medical insurance premium may also be included under new tax regime. Finance Minister Nirmala Sitharaman is also expected to encourage taxpayers to shift to new direct tax scheme and give away other exemptions. Talks are even underway on more relief for individual taxpayers," sources added.
Here are the proposals that are being considered:
1. Hike in existing standard deduction limit
2. Increase in window for medical insurance premium
3. Simplification in capital gains tax rules
However, no final decision has been taken as of now. Direct tax proposals may get finalized after January 20.
It's important to note that out of over 6 crore taxpayers, 4 crore are below income bracket of Rs 5 lakh per annum where a rebate already exists. Budget 2022 will highlight the need for stable tax regime. It may even talk about landmark decision to settle retrospective tax cases.
Additionally, the government may look at launching a mediation window before tax demands are raised. Further, ease in tax compliance for exporters and industry is likely to be announced.
(Edited by : Anshul)
First Published: Jan 18, 2022 1:28 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM