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Budget 2018: Centre could decrease rates, increase tax slabs, says EY survey

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Budget 2018: Centre could decrease rates, increase tax slabs, says EY survey

With just 10 days left for the Union Budget 2018, the printing of the Budget has started. In the meantime, a survey claims the government could give relief to the common man by increasing the tax slabs.

With just 10 days left for the Union Budget 2018, the printing of the Budget has started. In the meantime, a survey claims the government could give relief to the common man by increasing the tax slabs. It also says the government could even reduce the tax interest rates under these slabs.

Financial counselling Service Company EY conducted a survey this month, and more than 150 financial officers, tax chiefs and chief financial professionals took part in it. From all those surveyed, as many as 69 per cent said the government should increase the tax exemption limit. The respondents said if the limit is increased, people will have more money to spend.

At the same time, 59 per cent believed that with different types of now 'irrelevant' rate cuts, there should be a standard reduction so that there's less burden on employees. Nearly 46 per cent of people hoped that Finance Minister Arun Jaitley could reduce the Corporate Tax, though they said the FM could keep cess. Also, 65 per cent of the people said the government could change the tax system on dividend. EY has concluded from the survey that there would be an improvement in the over tax structure. The company said the tax schemes would be more stable and continuous in this Budget.

As per the current scheme, one has to pay income tax between 5 per cent and 30 per cent as per their income. In the FY 2017-18, you don't need to pay any tax if your income is Rs 2.5 lakh. One has to pay 5 per cent tax on income between Rs 2.5 lakh and Rs 5 lakh, while 20 cent on income between Rs 5 lakh to Rs 10 lakh. If your income is Rs 10 lakh or more, you need to pay 30 per cent of the income tax.

There are different tax slabs for those aged between 60 years and 80 years. For those falling in this category, there is no tax on income up to Rs 3 lakh, while it's 5 per cent for those having the income between Rs 3 to 5 lakh. For those having Rs 5 to 10 lakh income, the tax rate is 20 per cent and 30 per cent for those having income more than Rs 10 lakh.