Finance Ministry: Preparing to end the exemption tax system, Finance Ministry will review the old tax system

The Finance Ministry is planning to review the tax regime free of exemptions or concessions. It has been proposed to be reviewed to make it more attractive to individual income taxpayers. Sources said the government intends to set up a tax system that does not have any concessions.

With this, the complicated old tax system with exemptions and deductions can be done away with. In the budget for 2020-21, the government implemented a new tax system. In this, taxpayers were given the option to select between the old regime with various deductions and exemptions and the new regime with lower rates without exemptions and deductions. agency

On the experience of the new tax regime, sources said, there are clear indications that those who have repaid their debts want to opt for the new tax regime as they do not have the option to claim any exemption. . The reduction in taxes in the new tax regime will make it more attractive.

The arrangement was also brought for corporate

A similar tax regime was introduced for corporate taxpayers also in September 2019. In this, the tax rates were reduced. Also, exemptions or concessions were abolished.

In the new tax regime introduced on February 1, 2020, for individual income taxpayers, no tax is levied on an annual income of Rs 2.5 lakh. An income of 2.5 to 5 lakhs attracts a tax of five percent.

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