AIRLINK 172.70 Decreased By ▼ -3.03 (-1.72%)
BOP 13.18 Increased By ▲ 0.06 (0.46%)
CNERGY 7.40 Decreased By ▼ -0.14 (-1.86%)
FCCL 43.40 Decreased By ▼ -0.51 (-1.16%)
FFL 14.90 Decreased By ▼ -0.11 (-0.73%)
FLYNG 26.45 Decreased By ▼ -0.45 (-1.67%)
HUBC 129.60 Decreased By ▼ -0.63 (-0.48%)
HUMNL 13.35 Increased By ▲ 0.01 (0.07%)
KEL 4.43 Decreased By ▼ -0.07 (-1.56%)
KOSM 6.01 Decreased By ▼ -0.05 (-0.83%)
MLCF 55.00 Decreased By ▼ -1.03 (-1.84%)
OGDC 215.00 Increased By ▲ 0.23 (0.11%)
PACE 5.95 Decreased By ▼ -0.03 (-0.5%)
PAEL 41.44 Increased By ▲ 0.54 (1.32%)
PIAHCLA 16.65 Increased By ▲ 0.33 (2.02%)
PIBTL 9.60 Decreased By ▼ -0.15 (-1.54%)
POWER 11.62 Decreased By ▼ -0.14 (-1.19%)
PPL 182.44 Increased By ▲ 0.96 (0.53%)
PRL 34.10 Decreased By ▼ -0.12 (-0.35%)
PTC 22.88 Decreased By ▼ -0.18 (-0.78%)
SEARL 94.00 Decreased By ▼ -1.72 (-1.8%)
SILK 1.17 Increased By ▲ 0.03 (2.63%)
SSGC 35.53 Increased By ▲ 0.08 (0.23%)
SYM 15.75 No Change ▼ 0.00 (0%)
TELE 7.76 Decreased By ▼ -0.11 (-1.4%)
TPLP 10.85 Decreased By ▼ -0.13 (-1.18%)
TRG 60.55 Increased By ▲ 0.05 (0.08%)
WAVESAPP 10.74 Decreased By ▼ -0.07 (-0.65%)
WTL 1.33 Decreased By ▼ -0.02 (-1.48%)
YOUW 3.79 Increased By ▲ 0.02 (0.53%)
BR100 12,084 Increased By 30.8 (0.26%)
BR30 36,591 Increased By 123.8 (0.34%)
KSE100 114,088 Decreased By -268.3 (-0.23%)
KSE30 35,206 Decreased By -141 (-0.4%)

India is considering lowering rates under its voluntary income tax framework and could introduce revised slabs in the upcoming federal budget due on February 1, two government sources told Reuters on Tuesday.

A final decision would be taken by the Prime Minister’s Office, both the sources, who did not want to be named because the talks are private, said.

The finance ministry did not respond to a Reuters email seeking comment.

While the new optional income tax scheme - announced in 2020 to make tax compliance simpler - offers lower headline taxation rates on annual income, experts say it is unattractive to many as it does not allow exemptions on housing rentals and insurance among other things.

“Allowing exemptions and tax deductions in the new income tax regime would make it complex and this wasn’t the intention while introducing the scheme,” said one of the government sources.

Individuals can currently decide which set of rates they want to be taxed under. The government has not made data on the number of individuals availing the new tax system public.

Indian rupee edges lower towards 82/USD as Asian currencies drop

Income tax in the country is levied from a minimum individual earning of 500,000 rupees per year.

Those making between 500,000 rupees-750,000 rupees per year($6,135.72-$9,203.58) pay 10% tax under the new scheme against a 20% rate applicable under the old set of rules, while annual income above 1.5 million rupees is taxed at 30%.

Comments

Comments are closed.