Don’t raise tax exemption level: NITI Aayog to govt
NITI Aayog has proposed a series of measures to fuel economic growth to 8% and to make sure the growth is inclusive, in a three-year action plan circulated among chief ministers.
To widen the personal income tax base, NITI Aayog said the nominal exemption threshold of Rs. 2.5 lakhs for individuals should remain unchanged such that the real value of the threshold is reduced, leading to the inclusion of a greater proportion of individuals in the tax net over time. “However, tax slabs corresponding to the lowest tax rate should be expanded to ensure that the tax liability of lower income individuals does not increase suddenly with the growth in their nominal incomes”, said the think tank.