1 min read.Updated: 31 Jan 2022, 08:18 PM ISTLivemint
The Union Budget 2020 had proposed a new tax regime with lower tax slabs but without any exemptions
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Budget 2022: 40% taxpayers are likely to switch to new income tax structure if the government reduces tax rate by an additional 2-5%, a survey by LocalCircles has found.
The Union Budget 2020 had proposed a new tax regime with lower tax slabs but without any exemptions. The budget also gave the option to continue with existing structute with same tax rates.
The government has not given any tax relief to the middle class for the last three years, and the demand of lowering of taxes has once again picked up.
In its survey ahead of Budget 2021, the community social media platform asked over 9,000 respondents to whether they will migrate to new tax struture intriduced in 2020.
To this, 37% said they would migrate if tax rate is reduced further by 2-5%, and 3% said if it is reduced further by 0-2%. There were 28% of citizens surveyed said they will not migrate to new struture. Thirteen per cent said they were already on the new tax rate structure and welcomed reduction in tax rate.
"On an aggregate basis, 40% of taxpayers surveyed say they are likely to switch to new income tax structure if Government reduces tax rate by an additional 2-5%. This question received 9,342 responses," the survey said.
Union Budget 2020 proposed to remove 70 tax exemptions in the new tax structure but the tax rate was lowered from 20% to 10% for income between ₹5 lakh and ₹7.5 lakh; from 20% to 15% for income between ₹7.5 lakh and ₹10 lakh; from 30% to 20% for income between ₹10 lakh and ₹12.5 lakh.