If you are a taxpayer (taxpayer), then you know very well that there are two taxes of tax at the moment. One old second new. In the budget 2020, the new tax regime was started by the Modi government. In this, taxpayers were given the option to avail the tax rates under the slab by simplifying and levying without discounts. Since then the new regime has started, since then there is a continuous discussion about the old tax regime that should it be completely abolished?
Default option is a new tax system
In view of the upcoming budget, there is also speculation about the deadline to completely remove the old tax system, as the taxpayers have expressed concern about the complications arising from two parallel tax systems. According to the news of Financial Express, despite the new tax system being made a default option in Budget 2023, these concerns remain constant. Because Nirmala Sitharaman will present his second full budget under the Modi 3.0 government on 1 February, in such a situation, there is also a possibility of announcement to end the old tax system.
Demand for taxpayers
Taxpayers are once again demanding the removal of double tax system in favor of single tax system to simplify compliance and reduce complications for taxpayers. Experts are also highlighting the complications of the existing system and suggest measures to make personal taxation simple and rational. Experts say that most individual taxpayers, especially people who get salary, calculate their tax liability themselves.
May be next step
Experts also believe that the taxpayer who earn income from profession or profession, which comes out of the new tax system under Section 115BAC, can come back only once, which makes the process less flexible. He says that in the upcoming budget 2025, on the possible changes in the director taxation on personal taxation, he said that to completely eliminate the old tax system and rationalize the Income Tax Slab under the new tax system is a logical next step.
What are the possibilities
Experts say that under the new tax system, income tax has become very easy. With a discount limit of Rs 7 lakh, taxpayers pay zero tax at the same income level, on which they were earlier taxed. Reducing tax rate in the new system can help reduce it. It is expected that the original discount or exemption limit can be increased to ₹ 9 lakh, which will bring more money in the hands of the middle class. For taxpayers earning more than Rs 15 lakh, an infection in the new system can lead to a financial shock.
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