Heralding towards Acche din are the new tax slabs of 2017

The current tax exemption for those with an annual income of rupees 3 lakh, might extend to those with annual income of 4 lakh, if a proposal suggested to the Ministry of Finance is implemented. There is no assurance whether any of this will be happening anytime soon or not, but if it does, it would certainly bring some good news and acche din for many.

According to sources, the proposal states, those with an income of 4 lakh or less will not have to pay any tax, whereas those with an income ranging from 4 – 10 lakhs will have to pay 10% of their annual income as tax. This proposition has been introduced, keeping in mind the recent demonetization scheme, that has hit people from all economic backgrounds. According to statistics, only 4 % of Indian population gives tax as of now.

The tax slab for those with an income of 15 – 20 lakh, is 20% of their income as tax, the new proposal proposes to reduce this percentage making it 15% of the total salary. The 30 % tax slab for those with an income greater than 30 lakhs remains to be the same.

A lot of the people mention false figures for their annual incomes, to evade taxes, this is one of the biggest reason for the accumulation of black money in the country, this move will probably encourage more people to pay taxes.