Page 20 - NIS English Jul 16-31 2024

Cover Story

Slab rates under the new tax regime
Economic growth and trust in citizens
In 2013-14, the country's total tax revenue was around Rs
11 lakh crore. Whereas in 2023-24 it was Rs 34 lakh crore. Total income Tax rate
That is, the total tax revenue has increased 3 times in a Up to Rs. 3,00,000 Nil
decade. This increase has happened when the tax rates
have come down. It is the result of trust in the common From Rs. 3,00,001 to Rs. 6,00,000 5 per cent
citizens that major boost in tax collections has taken From Rs. 6,00,001 to Rs.9,00,000 10 per cent
place as the result of tax reforms. Earlier the system was From Rs. 9,00,001 to Rs. 12,00,000 15 per cent
such that most of the people or businessmen who filed
income tax returns in the country had to face scrutiny by From Rs. 12,00,001 to Rs. 15,00,000 20 per cent
the Income Tax Department. But now it is not so. Now the Above Rs. 15,00,000 30 per cent
government's thinking is that first of all, have full faith in
the income tax return that is being filed. The result of this is Corporate tax
that today 99.75 percent of the returns filed in the country
are accepted without any objection. Scrutiny is being done
only in 0.25 percent of the cases. This is a huge change
that has come in the tax system of the country. 15%

Rapid economic growth and
middle class expansion
India is one of the fastest-growing economies in the is the new corporate tax for new domestic
world today. It is the fifth largest economy in the world manufacturing companies while corporate
with a rapidly growing middle class and unprecedented taxes for other domestic companies have
demographic dividend. India's current financial situation been reduced to 22 percent.
is a golden moment and the efforts made towards a
minimum cash economy are further propelling this n To promote growth and investment, a landmark
momentum. Over the last decade, the government reform was brought in by inserting a new provision
has been engaged in strengthening the infrastructure in the Income-tax Act, 1961 from FY 2019-20, which
to make digital payments not only possible but also allowed any domestic company an option to pay
convenient for all Indians. Before 2014, different types of income tax at the rate of 22 percent subject
indirect taxes - clothing bills, restaurant food bills, used to to the condition that they would not avail any
increase all kinds of expenses. After the implementation exemption/incentive .
of GST, these indirect taxes have also reduced.
n To attract new investment in manufacturing and
Increase in average income thus promote the Government's 'Make in India'
There has been a huge increase in the average returned initiative, another new provision was added to the
income of people in the last 10 years. According to ITR Income tax Act, 1961 from FY 2019-20. A domestic
data, the average returned income which was around company incorporated on or after October 1, 2019
Rs 4 lakh in 2014 has increased to Rs 7.3 lakh in 2023. making fresh investments in manufacturing has the
This means that millions of people in India have moved option to pay income tax at the rate of 15 percent.
from the low income group to the high income group.
These figures are encouraging as well as assure that
every sector of the country is getting stronger and many
new employment opportunities are increasing. Another
important thing in the new data of income tax returns
is that the trust of the citizens of the country on their
government is constantly increasing. Because of this,
the citizens of the country are coming forward in large
numbers to pay their taxes honestly.

18 New India Samachar July 16-31, 2024