Solely 2% of crorepatis outlined as ‘professionals’ declared an annual earnings of Rs 1 crore in income-tax returns for the evaluation 12 months AY 2019-20, the federal government stated on Tuesday.
The class of execs comprise docs, legal professionals, tax consultants, and so on who don’t get wage on which tax could be deducted at supply.
Minister of State for Finance Anurag Singh Thakur stated in Rajya Sabha that the variety of professionals who earn above Rs 1 crore has remained sluggish at simply round 2,000 between AY 2015-16 and AY 2019-20.
Additionally Learn:Variety of taxpayers jumps 14% to eight.45 crore in FY19
He additional added that in the identical interval, the variety of all teams of people who declared earnings above Rs 1 crore leapt by 78% to 1.05 lakh.
The income-tax legislation additionally facilitates presumptive taxation for professionals who earn as much as Rs 50 lakh each year whereby they’ll pay tax on solely half of their annual gross earnings.
Throughout her Finances 2020 speech, Finance Minister Nirmala Sitharaman had introduced “a brand new and simplified private tax regime” with revised earnings tax slabs and tax charges. She stated these incomes Rs 5-7.5 lakh would now pay simply 10 per cent earnings tax, whereas these incomes as much as Rs 5 lakh in a 12 months can pay no tax. Revenue tax charges can be considerably lowered for many who forego deductions and exemptions, Sitharaman stated.
Additionally Learn: India’s crorepati depend up at 81,000; expands 68% in three years, says CBDT
For earnings between Rs 7.5 lakh and Rs 10 lakh each year, the earnings tax price has been lowered to 15 per cent from the present 20 per cent.
For earnings between Rs 10 lakh to Rs 12.5 lakh each year, earnings tax has been lowered to 20 per cent from the present 30 per cent.
For these incomes between Rs 12.5 lakh to Rs 15 lakh, earnings tax of 25 per cent can be imposed. An individual incomes Rs 15 lakh per anum and never availing any deductions can pay Rs 1.95 lakh tax rather than Rs 2.73 lakh, the FM stated. The tax cuts will value the federal government Rs 40,000 crore each year.
Additionally Learn: 81% employers really feel new earnings tax regime to not profit workers, says Mercer survey