Between 2 tax regimes, nobody will be worse: secretary of income
NEW DELHI: Explaining the justification for offering a choice between a flat rate and a detailed system, the government On Sunday he said that the new income tax rates would not make anyone worse and the measure allowed taxpayers to decide which regime would suit them depending on their interests.
In an interview with TOI, revenue secretary said the government ’s move would benefit a large section of population, such as seniors who did not want to park money in tax-saving instruments and had paid down housing loans or youngsters just joining the workforce. Such people do not have substantial amounts to purchase life covers or deposit money in public provident fund (PPF).
The data available with the tax department showed that of the approximately 5.8 million crore that filed returns for fiscal year 2018-19, 5.3 crore claimed income tax deductions of less than Rs 2 lakh, including the deduction under the section 80C of the Income Tax Law (for fund provision, PPF, life insurance premium), section 80D (medical insurance), section 80CCD (1B) (additional deduction for), interest deduction for home loans and.