Income Tax Exemptions
In the coming days, the government can eliminate all the exemptions and concessions received under Income Tax . In the budget presented on February 1, the government announced the second alternative system under the new tax system, and abolished the exemption from income tax in it. At the same time, now Finance Minister Nirmala Sitharaman said that the purpose of introducing the second alternative income tax system is to move the country towards a ‘simple, exempt and low tax rates’ system. However, no deadline has been set for the elimination of income tax exemptions and concessions. This means that in the coming days, the exemptions under the income tax will be eliminated.
Tax system will be easy
After meeting with the business representatives on the general budget, Sitharaman said that the government has not fixed any deadline to end all kinds of exemptions and concessions. Now we have started another alternative tax system by incorporating some of these or removing some. However, there is a feeling of removing all the discounts behind it. Its purpose is to give people a simple income tax system with low rates.
Concessions will end in a phased manner
An alternative income tax system has been introduced in the general budget for the financial year 2020-21. If taxpayers choose the new system, they will have to pay tax at a lower rate. However, they will not get the benefit of some discounts and concessions under the old system. He said that income tax rebates and concessions are trying to move towards phasing out in a phased manner, though no timeframe has been fixed for this.
Hints were given in the budget
Sitharaman, while presenting the budget, while addressing the reporters on February 1, said that all the exemptions and concessions related to income tax will be abolished in the coming time. On a question related to the Supreme Court order on the statutory arrears of adjusted gross income (AGR) of telecom companies and concerns of some banks, the Finance Minister said that it would not be right for them to comment on this, as it is different to look into the matter.