If the government takes a taskforce report on direct taxes into account, the personal taxes payers could see some big changes. The committee headed by Akhilesh Ranjan, a member of the Central Board of Direct Taxes, submitted a report to the Finance Minister Nirmala Sitharaman late last year, which sought to increase the tax on the highest income slab to 35%.
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$4 citing sources said that the government has given no indication on whether they have taken these recommendations into consideration ahead of the Union Budget 2020.
These are the tax rates proposed for different income levels by the panel on
Direct Tax Code:
Income
| Existing Tax Rates
| Taskforce Recommended Tax Rates
|
Upto ₹2.5 lakh
| Nil
| Nil
|
₹2.5 - ₹5 lakhs
| 5%
| 10%
|
₹5-10 lakhs
| 20%
| 10%
|
₹10 – ₹20 lakhs
| 30%
| 20%
|
₹20 lakhs to ₹2 crore
| 30%
| 30%
|
₹2 crore and above
| 30%
| 35%
|
It also recommended that surcharges should be done away with altogether. An additional surcharge was levied in the last Budget on those who make over ₹2 crore and ₹5 crore. But they were later rolled partially back on capital gains, to boost investments.
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