India Ratings downplays hike in income tax exemption limit
- Country:
- India
Amid the widespread excitement over the move to double the income tax exemption limit to Rs 5 lakh, experts have opined that the budget announcement must be taken with a "teaspoon of salt" as it has no benefit to those earning above that. "The announcement on hiking the exemption of individual taxpayer's annual income to Rs 5 lakh has to be taken with a teaspoon of salt," India Ratings said in a note hours after the budget presentation Friday.
It can be noted that there was jeering in the House immediately after announcing the announcement with a majority of the lawmakers chanting Prime Minister Narendra Modi's name and welcoming what was taken as a doubling of the tax exemption cap. The proposal will benefit 3 crore taxpayers and the government will have to forego revenue to the tune of over Rs 18,000 crore.
India Ratings' peer Crisil Ratings said the "tax sops by themselves are not significant" and that the "feel good factor" generated by it will increase the consumption of low-value goods and durables. Karvy Stock Broking said the move is a "rebate offered for those with a taxable income of Rs 5 lakh or below, which can reduce tax liability to zero." Meanwhile, India Ratings said the interim budget is "more than just a vote-on-account" and the sops to the middle-class are the surprise element.
(With inputs from agencies.)
- READ MORE ON:
- Sports Experts
- Ordre des Experts-Comptables
- Industry Experts
- Narendra Modi
- The Taxpayers
- Taxpayer Identification Number
- Taxpayer Assistance Center Office
- Donald Trump
- Income tax in India
- Republican Party
- Democratic Party
- U.S. state
- Longwood House
- Road House
- The White House
- teaspoon
- experts
- India
- taxpayer
- taxpayers
ALSO READ
US House to vote on TikTok crackdown; fate uncertain in Senate
Woman strangled to death in Mumbai, house-help's involvement suspected
Boeing promises changes after getting poor grades in a government audit of manufacturing quality
House poised to pass bill that could ban TikTok but it faces uncertain path in the Senate
Haryana special assembly session today; newly elected CM Saini to prove majority in house