Budget 2017: NITI Aayog moots extension of 10% income tax slab to Rs 7 lakh
The think-tank wants to enable more people to pay taxes instead of expanding the exemption limits
The country’s premier policy think-thank is keen on extending the 10 percent income tax slab from Rs 5 lakh to Rs 7 lakh while keeping the threshold for exemption at Rs 2.5 lakh, according to a report in Business Standard.
The report quoted a National Institution for Transforming Indian (NITI) Aayog official as saying that instead of expanding the exemption limits, the body wants to enable more people to pay taxes. The report added that the think-thank has also recommended that job creation be the central theme of the Budget.
The three existing tax slabs include 10 percent for annual income between Rs 2.5 lakh and Rs 5 lakh, 20 percent on annual income from Rs 5 lakh to Rs 10 lakh, and 30 percent on income above Rs 10 lakh.
Niti Aayog has also batted for social sector spending to be increased three-fold, according to a report in the Economic Times. The roadmap involves partially cutting down on mega subsidies as well as diverting extra revenues to sectors such as health and education.
The report added that the NITI Aayog will unveil a three-year action plan after the Union Budget for 2017-18 is presented.