Government aims to make new simplified personal income tax regime more attractive to working class, sources say CNBC-TV18.
Here are the proposed proposals:
1. Increase in the existing standard deduction limit
2. Increased medical insurance premium window
3. Simplification of capital gains tax rules
However, no final decision has been made to date. The direct tax proposals could be finalized after January 20.
It is important to note that out of over 6 crore taxpayers, 4 crore are below the Rs 5 lakh per annum income bracket where a refund already exists. Budget 2022 will underscore the need for a stable tax system. It may even speak of a landmark decision to settle retroactive tax cases.
Additionally, the government could consider launching a mediation window before the tax demands are raised. In addition, tax compliance easing for exporters and industry is expected to be announced.
(Edited by : Anshul)
First post: STI