An online survey conducted by the Times of India reflects the following ideal changes in the new tax regime:
Increased Tax Rebate: There is a strong demand for raising the income tax rebate, especially for those in the middle-income group. Currently, the rebate is up to ₹12,500 for incomes up to ₹5 lakh. There are suggestions to increase this limit to benefit a larger section of the salaried class.
Adjusted Tax Slabs: Many are advocating for a revision of the tax slabs. The current slabs under the new regime are:
- Up to ₹3,00,000: Nil
- ₹3,00,001 - ₹6,00,000: 5%
- ₹6,00,001 - ₹9,00,000: 10%
- ₹9,00,001 - ₹12,00,000: 15%
- ₹12,00,001 - ₹15,00,000: 20%
- Above ₹15,00,000: 30%
There is a proposal to increase the basic exemption limit and reduce the rates for higher income brackets to ease the tax burden and boost disposable income.
Standard Deduction: Another key expectation is the increase in the standard deduction limit. This would provide immediate relief to the salaried class by lowering the taxable income.
Section 80C Limit: Increasing the Section 80C deduction ceiling from the current ₹1.5 lakh to ₹2 lakh or more is also a significant expectation. This would encourage savings and investments among taxpayers.
Old Pension Scheme Restoration: There are calls for the restoration of the old pension scheme (OPS) and the establishment of the 8th Pay Commission to address the concerns of government employees.
Infrastructure Development: Alongside these tax changes, there is a push for more investment in infrastructure to sustain high economic growth, which indirectly benefits the salaried class through job creation and improved services.
These proposed changes reflect the collective voice of the middle class and salaried employees who are looking for more favorable tax policies to improve their financial well-being and stimulate economic growth.
