New Delhi: Just a few days to go for the Union Budget and the tax exemption limit for personal income tax payers may rise above the present Rs 2.5 lakh. Also, the income tax on those earning above Rs 10 crore annually could rise by 40%, said a survey. Also Read - Will You Send Your Kids to School If They Reopen in October? 71% Parents Say No; Reveals Survey
In a survey by KPMG (India), 226 people from different industries were considered. As many as 74% of the people surveyed expressed the opinion that the personal income tax exemption limit will be increased beyond Rs 2.5 lakh. Also Read - AR Rahman Gets Legal Notice From Madras Court in Income Tax Case
At the same time, 58% said that the Government could consider taxing at a high rate of 40% for the people who earn more than Rs 10 crore per annum. In the survey, 13% were of the opinion that legacy tax can be withdrawn, while 10% respondents said that property tax-estate fees should be reintroduced. Also Read - Ready to Send Children Back to School? 78% Parents Say No, Willing to Let Kids Repeat An Academic Year
In order to increase the demand for homes, 65% of the people believed that the tax deduction limit can be extended beyond Rs 2 lakh on the interest paid on home loans on housing itself.
At the same time, 51% said that the Government can fix a separate amount from the existing tax rebate limit of Rs 1.5 lakh under Section 80C on repayment of principal amount of home loan.
Meanwhile, 53% of the people had the opinion that Finance Minister Nirmala Sitharaman would not make major changes in direct taxes in the budget to be presented on July 5. As many as 46% said that the rate of corporate tax should not be reduced to 25% for all companies. Industry Board companies are demanding to reduce tax rates.