Friends,
The work on preparation of Budget 2011-12 is going on and we all know that budget 2011-12 is round the corner and there is a belief that there can be a relief to the individual people from the inflation as the government can hike the exemption limit that is present at this point of time. In respect of the hike in the exemption limit the finance minister very well said that, he is very well aware of the fact of the rising prices of the normal items that are being consumed by the people and in respect of the situation the government has decided to hike the exemption limit.
It is to be believed that the hike in the exemption limit is in respect of the Direct Tax Code and the limit is bound to increase to two lakhs that is presently stationed at one lakhs sixty thousand only. The major reason behind the hike in the exemption limit is that there are many people of the society who are not getting the dearness allowances. Currently the limit prescribed is that of one lakhs sixty thousand, one lakh ninety thousand and two lakh forty thousand only. With the incorporation of the direct tax code the income tax act will be totally replaced by the said act and the limits and the slab is also going to change for the person to het taxed.
There is an indication that the person within the range of two to five lakhs are to be taxed at ten percent and people within the range of five to ten lakhs are to be charged at the rate of twenty percent and at the end a person whose income is beyond the range of ten lakhs are to be taxed at the rate of thirty percent, which is supposed to be the highest rate at which a person can be charges no matter what so ever his income may be at any point of time.
Inflation is being rising at very high rate and the food inflation is of a major concern to the government and most of the income is being spend on the food and daily items of the consumers, but there has been points that the amendment in the process or the whole of the act with the direct tax code is going to give a major relief to the individual in case of the tax exemption limit that is being sanctioned to be the prescribed limit for the person to get taxed
There have been ministers saying that there is no tax worse than inflation. This is just an assumption that these are what going to be implemented in the inclusion of the direct tax code but the actual thing that is going to come to the notice of the people is after the bill is being passed by the authorities. As far as the exemption limit goes for the individual is going to be increased as it has been pointed out by many officials that it is to be taken care of.
Inflation is being rising at very high rate and the food inflation is of a major concern to the government and most of the income is being spend on the food and daily items of the consumers, but there has been points that the amendment in the process or the whole of the act with the direct tax code is going to give a major relief to the individual in case of the tax exemption limit that is being sanctioned to be the prescribed limit for the person to get taxed
There have been ministers saying that there is no tax worse than inflation. This is just an assumption that these are what going to be implemented in the inclusion of the direct tax code but the actual thing that is going to come to the notice of the people is after the bill is being passed by the authorities. As far as the exemption limit goes for the individual is going to be increased as it has been pointed out by many officials that it is to be taken care of.
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