How Income Tax Structure Has Evolved In India In the 2010s – NDTV News

The income tax structure in India has undergone a series of changes in the years gone by. And it has been a work-in-progress. The last 10 years stand out in evolution of the tax system as authorities have striven to strike the right balance between tax incentives and revenue generation, in order to stay on the path of fiscal prudence. Here's a summary of the key changes in the income tax structure in 2010s.

Broadening of tax slabs

Additional deduction of Rs 20,000 for investment in long-term infra bonds (over and above existing limit of Rs 1 lakh on tax savings)

Enhancement of exemption limit for individual taxpayers from Rs 1,60,000 to Rs 1,80,000

Reduction of qualifying age for senior citizens from 65 years to 60 years

Enhancement of exemption limit for senior citizens from Rs 2,40,000 to Rs 2,50,000

Higher exemption limit of Rs 5,00,000 for very senior citizens aged eighty and above

Enhancement of exemption limit for individual taxpayers from Rs 1,80,000 to Rs 2,00,000

Deduction of up to Rs 10,000 for interest from savings bank accounts

Deduction of up to Rs 5,000 for preventive health check-up (within the existing limit for deduction allowed for health insurance)

Exemption from advance tax payment for senior citizens that do not have any income

Tax credit of Rs 2,000 to individuals having a total income up to Rs 5 lakh

Changes in taxation system introduced by Arun Jaitley, finance minister of NDA regime

Increase in personal income tax exemption limit by Rs 50,000 from Rs 2 lakh to Rs 2.5 lakh for taxpayers aged below 60

Raise in exemption limit from Rs 2.5 lakh to Rs 3 lakh for senior citizens

Abolishment of Wealth tax

Increase in surcharge on income above Rs 1 crore, from 10 per cent to to 12 per cent

Increase in surcharge on total income over Rs 1 crore, from 12 per cent to 15 per cent

Tax rebate for individuals with income up to Rs 5 lakh raised to Rs 5,000 from Rs 2,000

Additional deduction up to Rs 50,000 on interest payment for first-time home loan borrowers (over and above Rs 2 lakh for home loan borrower)

Reduction in income tax rate on income of Rs 2.5 lakh-5 lakh to 5 per cent from 10 per cent

Rebate under Section 87A lowered to Rs 2,500 from Rs 5,000; no rebate on income above Rs 3.5 lakh

Surcharge of 10 per cent on income of Rs 50 lakh-Rs 1 crore

Penalty up to Rs 10,000 on failing to file returns on time (not more than Rs 1,000 on income up to Rs 5 lakh)

Abolition of deduction on investment in Rajiv Gandhi Equity Saving Scheme

Hike in cess to 4 per cent from 3 per cent

Introduction of standard deduction of Rs 40,000 for salaried individuals

For senior citizens:

Exemption of interest income on bank/post office deposits increased to Rs 50,000 from Rs 10,000

Hike in deduction limit for health insurance premium/medical expenditure to Rs 50,000 from Rs 30,000 under section 80D of Income Tax Act