Exemptions, clauses for new income tax slabs irk citizens

Some say move will streamline paperwork, filing process

The new income tax slabs announced in the Budget on Saturday evoked mixed reactions from the public.

While some hailed the move, others stated that there will not be “much gain” as taxpayers will have to forego a host of exemptions.

Sayan Kundu, a 30-year-old development researcher, said: “A person who claims exemption automatically reduces his taxable income. Here, the taxable income remains higher but the rate is lower. It does not look like this reduction [lower rate but higher taxable income] is sufficient. For someone who is not using the full extent of the 80C deductions, their losses will no doubt be less, but the gains are marginal. This is surely not the reform needed for faltering demand in a stagflation economy.”

Stating that the “supposed tax cuts make for good optics”, Gurugram-based software engineer Siddhartha Tiwari said: “I am waiting for the deduction list. If deductions like HRA, 24B and 80C have been removed, then I have been short-changed.”

Pranoy Maxwell, a civil service aspirant, said: “It seems that the central government has done this in desperation to get out of the economic slowdown. The Modi government wants to put more money in the hands of the people to spend.”

Delhi-based chartered accountant Arijit Basu said, “This Budget first raises hope of the salaried middle class people and then shatters it by applying clauses. It is an anti-investment budget. If one decides to go for the new tax regime, one will not get any deduction in life insurance, housing loan interest and so on.”

However, 28-year-old Zaki Zamrood, who works at a private firm in Noida, said: “It is a good move since it is optional. I do not have any investments, and submission of proof for these is a tedious process. This makes the process easier for people who do not wish to get into all this.”

Divya Sharma, an HR professional, said: “I think it will be useful for me because presently I lose about ₹25,000 in taxes, if that money is saved, it really will make a big impact on my life. However, the government will also be losing money, but I am sure they have thought of some way of making up for it.”

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Printable version | Feb 18, 2020 12:28:50 PM |

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