It looks like that the new year is going to bring new happiness to government employees. According to the sources that the Ministry of Finance has proposed that no tax will be liable up to the income worth Rs 4 lakh. Currently, no tax is charged up to income of Rs 2.5 lakh per year.
The Government gives this rebate in income tax due to the impact of demonetisation. Currently in India, nearly 4% of the total population file income tax.
As per the new proposal, for the income between Rs 10 lakh to Rs 15 lakh, the tax rate is likely to be 15%. Presently, 20% is imposed on income between Rs 5 lakh to Rs 10 lakh.
Further as per the new proposal, 20% of tax will be charged for the income between 15 lakh to Rs 20 lakh. Currently, 30% tax rate is levied on income more than Rs 10 lakh.
As per the sources that 30% tax rate will be fixed on income over Rs 20 lakh,
The Central Board of Direct Taxes(CBDT) has amended certain income tax rules in order to track the unaccounted money making its way into bank and post office accounts after the demonetisation. Under Rule 114 E of the IT Rules, 1962, specified persons under section 285 BA of the Income-tax Act, 1961, have to report high-value financial transactions. This rule has been modified by the CBDT.
The report of high value financial transactions will help the government to collect information about high-value deposits made by taxpayers. This information will be cross-checked against the income declared and tax paid by the income tax assessee in his/her previous income tax returns. The main aim of new rules is to check tax evasion and curb black money.
The Central Government has also amended rules related to mentioning the Permanent Account Number(PAN) at the time of depositing cash. As per the new rule, individuals have to furnish their PAN whenever their deposits exceed Rs 50,000 in a day or Rs 2.5 lakh in aggregate during the mentioned period.
But, one can still get away without mentioning PAN if the amount deposited is less than Rs 50,000. If PAN has been provided while depositing funds, it can be tracked by the department.
