Govt rejects claims about new income tax slabs; terms report 'baseless and unfounded'

Government of India's principal spokesperson and Press Information Bureau chief Frank Noronha on Monday rejected the media report about new income tax slabs.

According to news agency ANI, Noronha has termed the report ‘baseless and unfounded’.

Earlier the media reports had suggested that the Government of India is likely to give relief to millions of middle class people by revising the Income tax slabs in the next Union Budget.

The new slabs, as suggested by reports, granted 100% tax relief to people with annual income up to Rs 4 lakh. Currently, no tax is applicable on income up to Rs 2.5 lakh.

Attributing the likely revision to demonetization pressure of the government, the media reports said also said that the tax slabs for other categories may also be revised siginificantly.

Income tax slab (general category) speculated by media reports:

(Income in Rs)

0 to 4,00,000 – No tax

4,00,000 to 10,00,000 – 10 per cent tax

10,00,000 to 15,00,000 – 15 per cent tax

15,00,000 to 20,00,000 – 20 per cent tax

Income above 20,00,000 – 30 per cent tax

Currently, nearly 4% of the total population of India files income tax.

Current income tax slab

Income tax slab (in Rs.)

0 to 2,50,000 - No tax

2,50,001 to 5,00,000 – 10 per cent tax

5,00,001 to 10,00,000 - 20 per cent tax

Above 10,00,000 - 30 per cent tax