New Delhi: The central government is preparing to abolish the tax exemption concessions available in income tax by abolishing the old income tax system. Sources said the finance ministry is planning to review the tax regime free of tax concessions. There is also a proposal to review the new tax system.
Under this, the complicated old tax regime can be abolished. In the general budget for the year 2021-22, the government implemented a new tax system and people were given the option to choose between the old system with a tax exemption or the new tax system with no exemption and a lower tax slab.
The government intends to establish such a tax system, in which there are no concessions. Meanwhile, in the April-June quarter of 2022, the direct tax (direct tax) received by the central government increased by 40%.
The direct tax collection of the Center between April-June, 2022 has been more than the corporate tax collection this time. The personal tax collection during this period stood at Rs 2.67 lakh crore, which is 52% higher than the same period last year.
The corporate tax collection figure stood at Rs 2.22 lakh crore, a 34% increase over the previous year. Tax collection has increased due to the strictness of the government and measures related to compliance.
52%- Personal income tax collection increased in the June quarter
34%- Corporate tax collection increased during April-June
275%- Increased income tax self-assessment this financial year
Due to lower corporate tax collection than personal income tax collection in the June quarter, base corporate tax has to be reduced from 30% to 22%. Along with this, the Center also reduced the tax rate from 25% to 15% for companies starting between October 2019 and March 2024. This has resulted in a reduction in tax collection.
The central government's direct tax collection in the June quarter grew by 40% to Rs 5 lakh crore, which is about 35% of the target for the full fiscal year 2022-23. Direct tax refund also increased by 38% to Rs 67,000 crore.