Standard deduction, a mere delusion

IN the budget speech, the Finance Minister, in para 151, under the caption ‘relief to salaried taxpayers’, has accepted the contribution of such persons to the income-tax revenues of the country saying: “There is a general perception in the society that individual business persons have better income as compared to salaried class. However, income-tax data analysis suggests that major portion of personal income-tax collection comes from the salaried class. For AY 2016-17, 1.89 crore salaried individuals have filed their returns and have paid total tax of Rs. 1.44 lakh crore, which works out to average tax payment of Rs. 76,306 per individual salaried taxpayer. As against this, 1.88 crore individual business taxpayers, including professionals, who filed their returns for the same AY, paid total tax of Rs. 48,000 crore, which works out to an average tax payment of Rs. 25,753 per individual business taxpayer”.

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