After the economic disruption caused by demonetisation, the government may be looking at raising the threshold for paying income tax so that people have more disposable money in their hands. In this coming budget may raise the lowest income tax slab to Rs 4 lakh from the current Rs. 2.5 lakh. The proposed tax slabs in wholly owned subsidiary in India. Income of Rs 4 lakh to 10 lakh may be taxed at 10% (the current slab is Rs. 2.5 lakh taxed at 10%) Rs 10-15 lakh at 15% (currently Rs 5-10 lakh is taxed at 20%); Rs 15-20 lakh to be taxed at 20% (currently Rs 10 lakh and above is taxed at 30%) and a slab where income above Rs 20 lakh will attract a tax of 30%.
If the proposals are indeed implemented in the budget then it will result in greater disposable income with people across all slabs, which in theory, should boost consumption and the economy in setting up subsidiary in india.
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