Changes which new Government should make to improve various asset classes
With Narendra Modi-led new Government set to take charge at the Centre, economy experts are of the opinion that the new Government needs to make some significant changes to help improve the prospects of different aspect classes.
The changes which experts believe the new Government should make include a revision in tax slab rates. According to experts, basic income threshold for tax liability should be increased from Rs 2 lakh to Rs 3 lakh. In addition, the Government should also revise other tax slabs to ensure that the households are left with more money.
Experts also opine that the annual tax deduction of Rs 1 lakh – on different investments and expenses, including PF, PPF, and insurance premium – should be increased to Rs 3 lakh, so as to keep pace with inflation.
With regard to deduction for interest on housing loan for a self-occupied house property, experts feel that the existing cap at Rs 1.5 lakh should be revised by the new government, so as to bring it in line with escalating housing costs and interest rates.
Lastly, experts also opine that the tax base should be widened by the new Government. Against the backdrop of the fact that, at present, only a very small percentage of India’s population pays income tax and files tax returns, it is expected of the new Government that effective steps are taken to broaden the tax net; thereby bringing about a reduction in the effective tax rate for all the individuals.
Source: Business Standard
annual tax deduction of Rs 1 lakh, deduction for interest on housing loan, improve various asset classes, New government, prospects of different aspect, revision in tax slab rates
