It is clear that since demonetization came into action Indian economy is facing lots of ups and downs. The whole country is facing problem yet a lot of them supported this decision. Even Winter Session of Parliament faced great uproar in the meetings. As soon as government enforced this decision, recovery of huge amount of black money through raids became top news headlines.
After this great shock, Ministry of Finance is working on the proposal of reducing personal income taxes. As per the reports, finance Ministry Proposed that there would be no tax liable up to the income of Rs 4 lakh. Right Now, No tax is charged up to income of Rs 2.5 lakh per year.
Demonetization’s real intention was to take out Black money from Black Money Holders but seems like it has because a major cause for government to provide rebate in income tax.
Also, as per the proposal the government may impose 10% tax on income between 4 lakh to 10 lakh. Currently, 10% tax is applicable for income exceeding Rs 2.5 lakh to Rs 5 lakh.
Further, 20% tax will be charged possibly for incomes between Rs 15 lakh to Rs 20 lakh. Currently, 30% tax is liable for income more than Rs 10 lakh.
Sources said that income tax may be fixed at 30% for income worth Rs 20 lakh.