Which income tax system do you follow?
For a common man, the biggest announcement in the general budget of the government is the change in the income tax system. This year, when Finance Minister Nirmala Sitharaman presented the general budget, under the new tax system, income of Rs 7 lakh was made tax free. After adding the benefit of standard deduction, actually income of Rs 7.5 lakh became tax free for the people, but the big thing is that most of the people of the country did not like this tax system.
Yes, recently a survey has been conducted by Policybazaar. It has been revealed that despite the introduction of the new tax system, 63% of the taxpayers are still following the old tax system. At the same time, only 37% people have liked the new tax system. After all, what is the reason behind this?
Tax is paid after calculation
The survey revealed that 71 percent people do many types of calculations before choosing the tax regime. If we look at the taxpayers separately, about 74 percent women calculate the tax liability in both the tax systems and then make their choice. Whereas in men this trend has been seen within 71 percent.
See also: A lot of income will come from Oman, government is going to make this big deal
In this matter, BT has quoted Gokul Chaudhary, President (Tax) of Deloitte India, that India’s population is very diverse. There is a population of Genji and Millennials who do not pay much attention to savings etc. and want to move ahead after paying their taxes. Whereas there is a generation who want to take advantage of discounts on insurance premiums and other savings. Therefore he believes that both the tax systems can work together in India.
India still relies on ‘savings’
The reason most Indians trust the old tax system is to promote savings. The old tax system promotes more ‘savings’ in the economy. Encourages people to save on investments like life insurance, health insurance, home loan, retirement plan etc. On the contrary, the new tax system aims to promote ‘spending’, because there is no exemption on any kind of savings.
Source: www.tv9hindi.com
: Language Inputs