new Delhi. Only some time is left for the presentation of the country’s general budget. The budget session will begin in Parliament from January 31 and Finance Minister Nirmala Sitharaman will present the budget before the House on February 1. This time it is expected that the government will increase the income tax exemption limit in the upcoming budget. If the government does this, it will be a great relief for the middle class. The tradition of fixing income tax slabs is going on since the first budget of independent India. You will be surprised to know that in India’s first general budget only income up to Rs 1,500 was tax free.
Let us tell you that at present income up to Rs 2.50 lakh is tax free in India. Income tax has to be paid on annual income above this. The income tax limit was last changed in 2014. Then the limit of 2 lakhs was increased to 2.50 lakhs. Income tax exemption has not been increased in the last 9 years.
This much tax had to be paid at the time of independence
Perhaps you have heard about the income tax imposed in the country at the time of independence, if you do not know, then we will tell you. The first budget of independent India was presented by RK Shanmukham Chetty, the first Finance Minister of India, on 26 November 1947. The rates of income tax were fixed for the first time in the budget of India in 1949-50. Then annual income up to Rs 1,500 was kept out of the income tax net. The budget imposed an income tax of 4.69 per cent on annual income between Rs 1,501 and Rs 5,000. At the same time, 10.94 per cent tax was imposed on income from Rs 5,001 to Rs 10,000. If then a person’s income is between Rs 10,001 to Rs 15,000, then he had to pay income tax at the rate of 21.88 per cent. And for those earning more than Rs 15,001, the income tax slab used to be 31.25 per cent.