<p>Finance Minister Arun Jaitley may exempt personal income up to Rs 4 lakh from being taxed when he presents the Union Budget on February 1. <br /><br /></p>.<p>In a marked deviation from the past, he may also revise the existing slabs upward and make them four this time. A new slab of incomes between Rs 4 to Rs 10 lakh is likely to be introduced and this may be taxed at 10%.<br /><br />A source told DH the government wants to widen the tax base and increase compliance through an overhaul of tax rates. <br /><br />Those who fall in the bracket of Rs 10 and Rs 15 lakh may be taxed at 15%. In the third slab of individual incomes between Rs 15 to Rs 20 lakh the tax rate is expected to be 20%. A flat rate of 30% is expected to be announced for incomes above Rs 20 lakh.<br /><br />“There is a need to widen the tax base and improve compliance. The rate overhaul is required to curb black money as well,” said a senior official.<br /><br />The Budget is also expected to spell good times for the poor, small and marginal farmers.<br /><br />The Budget is also likely to focus on employment generation. According to official figures, employment generation during the July-September period was at its lowest since 2009.<br /><br />Prime Minister Narendra Modi has already given a glimpse of this year’s Budget in his year-end address to the nation. Modi had announced waiving off interest of over Rs 660 crore on short-term crop loans. He had also announced measures for small and medium businesses and traders.<br /><br />Another source said the Budget could pronounce more measures for agriculture and the rural sector to boost consumption demand. There has been a sharp decline in consumer demand due to cash crunch post demonetisation.<br /><br />Economists, including India’s first chief statistician Pronab Sen, are of the view that the Budget will announce measures to push consumption along with the usual steps to accelerate investment cycle.</p>
<p>Finance Minister Arun Jaitley may exempt personal income up to Rs 4 lakh from being taxed when he presents the Union Budget on February 1. <br /><br /></p>.<p>In a marked deviation from the past, he may also revise the existing slabs upward and make them four this time. A new slab of incomes between Rs 4 to Rs 10 lakh is likely to be introduced and this may be taxed at 10%.<br /><br />A source told DH the government wants to widen the tax base and increase compliance through an overhaul of tax rates. <br /><br />Those who fall in the bracket of Rs 10 and Rs 15 lakh may be taxed at 15%. In the third slab of individual incomes between Rs 15 to Rs 20 lakh the tax rate is expected to be 20%. A flat rate of 30% is expected to be announced for incomes above Rs 20 lakh.<br /><br />“There is a need to widen the tax base and improve compliance. The rate overhaul is required to curb black money as well,” said a senior official.<br /><br />The Budget is also expected to spell good times for the poor, small and marginal farmers.<br /><br />The Budget is also likely to focus on employment generation. According to official figures, employment generation during the July-September period was at its lowest since 2009.<br /><br />Prime Minister Narendra Modi has already given a glimpse of this year’s Budget in his year-end address to the nation. Modi had announced waiving off interest of over Rs 660 crore on short-term crop loans. He had also announced measures for small and medium businesses and traders.<br /><br />Another source said the Budget could pronounce more measures for agriculture and the rural sector to boost consumption demand. There has been a sharp decline in consumer demand due to cash crunch post demonetisation.<br /><br />Economists, including India’s first chief statistician Pronab Sen, are of the view that the Budget will announce measures to push consumption along with the usual steps to accelerate investment cycle.</p>
