NITI Aayog wants 10% I-T slab tweaked, favours tax slab expansion in Budget

National Institution for Transforming Indian (NITI) Aayog is in favour of keeping the threshold for the income tax (I-T) exemption intact at Rs 2.5 lakh. Instead, they want to extend the tax (10%) on the Rs 5 lakh slab to Rs 7 lakh.

Officials said that the Aayog favours expansion of the tax base to enable more people to pay taxes, rather than expanding the exemption limits.

Finance Minister Arun Jaitley had raised the threshold for income tax exemption to Rs 2.5 lakh from Rs 2 lakh in his very first Budget for 2014-15. At present, there are three slabs