Good News - 7th Pay Commission: Income Tax Limit to be Raised Above Rs 3 Lakh, Says SBI Report
New Delhi, January 23: After the implementation of the 7th Pay Commission and after the increase in personal disposable income, the income tax limit needs to be increased from Rs 50,000 to Rs 3 lakh, an SBI report was given on Monday. This step will benefit about 75 lakh government employees, the report said further.
SBI's eCobrof report further states that if the relaxation of the interest payment under the housing loan has increased to existing home loan buyer upto Rs 2.5 lakh, then now, from Rs 2 lakh, this 75 lakh home loan will benefit the buyer and Government spent about Rs 7,500 crore
Finance Minister Arun Jaitley is going to present the fifth and final full budget of the present government on February 1. From time to time, the government has increased income tax slab from Rs 22,000 in 1990-92 to Rs 2.5 lakh in 2014-15.
"Due to the 7th Pay Commission, personal disposable income has been increased, so we believe there is a need to increase the exemption limit up to Rs 3 lakh. Due to such increase in the border, about 75 lakh taxpayers are exempted from income tax will be given. .
It has also been set up for savings promoted through bank deposits.
In an effort to encourage savings, it has been said that the government can relax the interest of savings bank deposits. With the banks, the interest on fixed deposits can be raised from the existing limit of TDS at Rs 10,000 per annum on TDS.
Apart from this, the lock-in period needs to be reduced to 3 years from the current 5 years and these deposits should be brought under the EEE (exemption, free, free) tax regime.
SBI's report says that SBI's expectations about the upcoming budget are based on the overall development theory and the medium and long-term objectives set by the government.
According to the reading of our things, a budget should be given priority for agriculture, MSME, infrastructure and affordable housing.
Agricultural reforms should be re-examined legally constituted structures, whose provisions are restrictive and create barriers to free trade. Together with states like Madhya Pradesh and Haryana, the value assistance schemes should be simulated. Bhavnar Agriculture Scheme for major crops (including vegetables).
This scheme will help the farmers in the circumstances (when the wholesale price of the crop is below MSP) and according to our estimates, the cost is only 10 percent of the agricultural loan waiver program. The provision of A2 milk in mid-day meals for children will generate enough additional income for 16 million farmers per annum, the report said.
Regarding the investment resurgence, the report said that capital subsidies can be provided in the case of delayed projects, which are delayed. In such cases, the government may increase the cost of concessional interest rates. Also, for a formal area, there is a great need to publish monthly payroll reports in India because job creation is extremely low.