The income tax structure in India has undergone a series of changes in the years gone by. And it has been a work-in-progress. The last 10 years stand out in evolution of the tax system as authorities have striven to strike the right balance between tax incentives and revenue generation, in order to stay on the path of fiscal prudence. Here's a summary of the key changes in the income tax structure in 2010s.<\/p>\n
Broadening of tax slabs<\/p>\n
Additional deduction of Rs 20,000 for investment in long-term infra bonds (over and above existing limit of Rs 1 lakh on tax savings)<\/p>\n
Enhancement of exemption limit for individual taxpayers from Rs 1,60,000 to Rs 1,80,000<\/p>\n
Reduction of qualifying age for senior citizens from 65 years to 60 years<\/p>\n
Enhancement of exemption limit for senior citizens from Rs 2,40,000 to Rs 2,50,000<\/p>\n
Higher exemption limit of Rs 5,00,000 for very senior citizens aged eighty and above<\/p>\n
Enhancement of exemption limit for individual taxpayers from Rs 1,80,000 to Rs 2,00,000<\/p>\n
Deduction of up to Rs 10,000 for interest from savings bank accounts<\/p>\n
Deduction of up to Rs 5,000 for preventive health check-up (within the existing limit for deduction allowed for health insurance)<\/p>\n
Exemption from advance tax payment for senior citizens that do not have any income<\/p>\n
Tax credit of Rs 2,000 to individuals having a total income up to Rs 5 lakh<\/p>\n
Changes in taxation system introduced by Arun Jaitley, finance minister of NDA regime<\/p>\n
Increase in personal income tax exemption limit by Rs 50,000 from Rs 2 lakh to Rs 2.5 lakh for taxpayers aged below 60<\/p>\n
Raise in exemption limit from Rs 2.5 lakh to Rs 3 lakh for senior citizens<\/p>\n
Abolishment of Wealth tax<\/p>\n
Increase in surcharge on income above Rs 1 crore, from 10 per cent to to 12 per cent<\/p>\n
Increase in surcharge on total income over Rs 1 crore, from 12 per cent to 15 per cent<\/p>\n
Tax rebate for individuals with income up to Rs 5 lakh raised to Rs 5,000 from Rs 2,000<\/p>\n
Additional deduction up to Rs 50,000 on interest payment for first-time home loan borrowers (over and above Rs 2 lakh for home loan borrower)<\/p>\n
Reduction in income tax rate on income of Rs 2.5 lakh-5 lakh to 5 per cent from 10 per cent<\/p>\n
Rebate under Section 87A lowered to Rs 2,500 from Rs 5,000; no rebate on income above Rs 3.5 lakh<\/p>\n
Surcharge of 10 per cent on income of Rs 50 lakh-Rs 1 crore<\/p>\n
Penalty up to Rs 10,000 on failing to file returns on time (not more than Rs 1,000 on income up to Rs 5 lakh)<\/p>\n
Abolition of deduction on investment in Rajiv Gandhi Equity Saving Scheme<\/p>\n
Hike in cess to 4 per cent from 3 per cent<\/p>\n
Introduction of standard deduction of Rs 40,000 for salaried individuals<\/p>\n
For senior citizens:<\/p>\n
Exemption of interest income on bank\/post office deposits increased to Rs 50,000 from Rs 10,000<\/p>\n
Hike in deduction limit for health insurance premium\/medical expenditure to Rs 50,000 from Rs 30,000 under section 80D of Income Tax Act<\/p>\n
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How Income Tax Structure Has Evolved In India In the 2010s - NDTV News<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The income tax structure in India has undergone a series of changes in the years gone by. And it has been a work-in-progress. The last 10 years stand out in evolution of the tax system as authorities have striven to strike the right balance between tax incentives and revenue generation, in order to stay on the path of fiscal prudence. Continue reading