Even Aam Aadmi Has To Pay Tax, As The Super Rich

BANGALORE: The Budget 2015-16 has got a mixture of response from all over the corporate. Some of them say it is good in long run while some are little skeptical about it.

The ultra-rich personalities might not be affected by the extra 2 percent surcharge but a study conducted by the Economic Times reveals that even the mid high income tax payers have to worry when it will come to taxpaying.

According to the new budget proposals, tax for the people who are earning Rs.1.2 crore a year has raised from 29 percent in 2010-11 to 33 percent in 2015-16. Similarly those who earn Rs.12 lakh annualy have witnessed a steep rise of 4 percent in the same time period. On the other hand, low income taxpayers who earn Rs.25000 retreat from 1.8 percent to 1 percent from 2010 to 2015.

The estimations are made considering the inflation too. According to ET study, the person who earns Rs.1 lakh annualy will be supposed to earn Rs.92, 500 for the current fiscal.

Meanwhile, when the effective tax rate has risen up, the deductions available for the taxpayers have increased too. The investment limit under the Section 80C has further increased by Rs.50000 in 2014. The Tax payers, who lived in the rented houses, have the facility of HRA exemption. Even the deduction limit for home loan interest has been increased to Rs.2 lakh.  

Read More: The Richest Techies On Earth and India in 2015: Top 10 Economic Trends