The report also includes a proposal to drop surcharges and cess levied on income tax
Currently, personal income is taxed at 5 percent for income between Rs 2.5 to Rs 5 lakh, at 20 percent for income between Rs 5 lakh and Rs 10 lakh, and 30 percent for an income of over Rs 10 lakh.
This suggestion was rejected by the government as a few panel members raised objections and Modi was replaced by Akhilesh Ranjan
Nirmala Sitharaman announced that individuals earning more than Rs 5 crore a year would pay a surcharge of 37.5 percent on their tax, over above their 30 percent marginal tax.
Whichever government comes to power must fast-track reforms to spur growth
The government was expecting that a higher-than-estimated direct tax mop up will offset the shortfall in its indirect tax collections
The government has met more than 64.7 percent of the total budget estimate of direct taxes, for which the mop-up target is Rs 11.50 lakh crore.
Till now (April-January), the government has collected Rs 9.71 lakh crore revenue from GST.
Watch the video to know where the government gets its revenue from and more.
The tax receipt figure indicates net direct tax collection, which is arrived at after adjusting refunds
The ministry said the larger purpose of demonetisation was to move India from a tax non-compliant society to a compliant society and the impact of note ban has been felt on collection of personal income tax.
The tax receipt figures indicate net direct tax collection, which is arrived after adjusting refunds. The government has met 48 percent of the total budget estimate, for which the mop-up target is Rs 11.50 lakh crore.
Arbind Modi, the convenor of the six member task force, retired on September 30; govt to appoint new convenor
A new direct tax code may involve change in rates and slabs that will require amendments in the Finance Bill, which is unlikely to happen in an election year when an outgoing government usually presents only an interim budget/vote on account
The proposed steps by the tax and company affairs departments will decrease the number of frivolous litigations that take up courts’ time thereby increasing the backlog and further delaying timely disposal of cases
The net collections represent 67 per cent of the total Budget Estimate of Rs 9.8 lakh crore for direct taxes in 2017 -18. Direct taxes comprise income tax paid by individuals, corporate tax and wealth tax.
In a statement, the ministry said provisional numbers for direct taxes collections showed an 18.2 per cent growth during April-December.
"A flat rate is not progressive in an unequal society," Ficci Secretary General Sanjaya Baru told PTI, when asked about suggestions in some quarters for a flat income tax framework as is prevalent in countries like Russia.
The prime minister was chairing his 21st meeting of Pro-Active Governance and Timely Implementation (PRAGATI), a monthly interaction with top officials of states through a vide conference.
Total direct and indirect tax collections at the end of January stood at Rs 12.85 lakh crore, 76 percent of the Rs 16.99 lakh crore target, as per revised estimate for 2016-17.
Considering the run up to Union Budget 2017, the expectations of â€˜feel-good‘ factors being featured in the budget proposals are pretty high. A few more tax and policy initiatives are required to shore up sentiments among investors, both domestic and foreign.
According to SBI's research report Ecowrap, the upcoming Budget is likely to see an increase in personal income tax exemption limit, increase in section 80C exemption limit, interest exemption on housing loan and and at least reducing (if not abolishing) the lock in period for bank fixed deposits.
S Naren likes the telecom space due to the current valuations for long-term. He also likes power industry, where he expects a 5-7 percent increase in power consumption in India every year.
Following Finance Minister Arun Jaitley's comments on direct and indirect taxes, economists have not changed their estimates for the tax collection. According to them, better performance on indirect taxes was expected due to the higher fuel excise hike.
Personal income tax collection up 24.6%; direct tax collected is 65.3 percent of the total budget estimate; refunds during April-December grew 30.5 percent