10 Per Cent Income Tax Slab Should Be Extended To Rs 7 Lakh, Suggests NITI Aayog

The country’s front line policy-making institution, National Institution for Transforming Indian (NITI Aayog), is in favour of extending the 10 per cent income tax slab from Rs 5 lakh to Rs 7 lakh, the Business Standard reported on Thursday (12 January). The change could be brought in while threshold for the income tax exemption is kept intact at Rs 2.5 lakh.

India currently has a three-slab system: 10 per cent for annual income between Rs 2.5 lakh and Rs 5 lakh, 20 per cent on annual income from Rs 5 lakh to Rs 10 lakh, and 30 per cent on income above Rs 10 lakh.

The move, according to the institution, will enable more people to pay taxes. The institution has also suggested making job creation the central theme of the budget.

According to Money Control, the Aayog is also in favour of introducing a three-fold increase in social spending, reducing huge subsidies and investing more in sectors like health care and education.