• Latest
  • Most Read
Take a look at how the new Income tax slabs will look under Congress Government

Take a look at how the new Income tax slabs will look under Congress Government

4 years ago
5 Actors who ruined a Franchise as Replacement

5 Actors who ruined a Franchise as Replacement

18 hours ago
Rolls Royce Controversy

Rolls Royce Controversy: Another UPA scam on the cards

18 hours ago
Rahul Gandhi speech: BJP’s star campaigner is back in action!

Rahul Gandhi speech: BJP’s star campaigner is back in action!

18 hours ago
Sportspersons careers

5 Indian Sportspersons Who Destroyed Their Own Careers

18 hours ago
Bending rules to save the corrupt, the Congress way

Bending rules to save the corrupt, the Congress way

19 hours ago
Wrestlers Protest

Modi govt. has done what it should have done a long ago with the Toolkit Gang

19 hours ago
There’s more to Goa than just Feni and Vindaloo

There’s more to Goa than just Feni and Vindaloo

19 hours ago
Kamal Haasan and Naseeruddin Shah: The ‘Tubelights’ of Indian Cinema

Kamal Haasan and Naseeruddin Shah: The ‘Tubelights’ of Indian Cinema

20 hours ago
Annamalai Padyatra

How K Annamalai’s ‘Padyatra’ can achieve the impossible?

20 hours ago
Raghuram Rajan

What does Raghuram Rajan exactly want?

20 hours ago
5 failed Inventions

5 Inventions that failed to serve their purpose

2 days ago
Pan India films

Pan India films have been a disaster this year, and the reason is apparent

2 days ago
Report on India: Morgan Stanley gives double thumbs up to Modinomics

Report on India: Morgan Stanley gives double thumbs up to Modinomics

2 days ago
Wrestlers Protest

Wrestlers Protest: Once champions, now disgraced foot soldiers of the opposition parties

2 days ago
India's GDP

Nominal GDP Growth at 16.1%? National Statistical Office releases India’s Economic accomplishment

2 days ago
  • About us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI हिन्दी
TFI Global
Saturday, June 3, 2023
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Rolls Royce Controversy

    Rolls Royce Controversy: Another UPA scam on the cards

    Rahul Gandhi speech: BJP’s star campaigner is back in action!

    Rahul Gandhi speech: BJP’s star campaigner is back in action!

    Bending rules to save the corrupt, the Congress way

    Bending rules to save the corrupt, the Congress way

    Wrestlers Protest

    Modi govt. has done what it should have done a long ago with the Toolkit Gang

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Report on India: Morgan Stanley gives double thumbs up to Modinomics

    Report on India: Morgan Stanley gives double thumbs up to Modinomics

    India's GDP

    Nominal GDP Growth at 16.1%? National Statistical Office releases India’s Economic accomplishment

    Vada Pav is Just the Tip of the Iceberg: A look into the rich culinary delights of Maharashtra

    India’s Resilience: A Zero Percent Chance of Recession

    Indian PSUs

    Once a butt of all jokes, Indian PSUs are posting better results than Fortune 500 companies

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    new CBI director Praveen sood biography

    Who is Praveen Sood the New CBI Director: Professional Background, Achievements and Significance of the Appointment

    Paramjit Singh Panjwar shot dead

    Paramjit Singh Panjwar shot dead: Keep calm and trust the Indian Armed Forces

    Swarm satellites

    India’s Bold Step towards Satellite Swarm Intelligence: A New Era in Space Technology

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Modi is the boss

    Modi is the boss: “Vedic Mantras” and an ocean of crowd: PM Modi’s Australia tour will echo till eternity

    PM Modi Extends a Diplomatic Olive Branch: A Special Message for Zelensky

    PM Modi Extends a Diplomatic Olive Branch: A Special Message for Zelensky

    NIA High Commission in UK

    NIA will probe the attack on Indian embassy, in UK!

    UK Student Visa rule new

    UK Student Visa Rules: International Students Barred from Bringing Families

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    5 failed Inventions

    5 Inventions that failed to serve their purpose

    What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

    What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

    5 Accidental Inventions

    5 Accidental Inventions that have become essential in our lives

    Sengol Tamil Nadu real picture

    What is Sengol: Tamil Nadu Connection, History, Significance and why it is to be installed in New Parliament

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    5 Actors who ruined a Franchise as Replacement

    5 Actors who ruined a Franchise as Replacement

    Sportspersons careers

    5 Indian Sportspersons Who Destroyed Their Own Careers

    There’s more to Goa than just Feni and Vindaloo

    There’s more to Goa than just Feni and Vindaloo

    Kamal Haasan and Naseeruddin Shah: The ‘Tubelights’ of Indian Cinema

    Kamal Haasan and Naseeruddin Shah: The ‘Tubelights’ of Indian Cinema

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Rolls Royce Controversy

    Rolls Royce Controversy: Another UPA scam on the cards

    Rahul Gandhi speech: BJP’s star campaigner is back in action!

    Rahul Gandhi speech: BJP’s star campaigner is back in action!

    Bending rules to save the corrupt, the Congress way

    Bending rules to save the corrupt, the Congress way

    Wrestlers Protest

    Modi govt. has done what it should have done a long ago with the Toolkit Gang

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    Report on India: Morgan Stanley gives double thumbs up to Modinomics

    Report on India: Morgan Stanley gives double thumbs up to Modinomics

    India's GDP

    Nominal GDP Growth at 16.1%? National Statistical Office releases India’s Economic accomplishment

    Vada Pav is Just the Tip of the Iceberg: A look into the rich culinary delights of Maharashtra

    India’s Resilience: A Zero Percent Chance of Recession

    Indian PSUs

    Once a butt of all jokes, Indian PSUs are posting better results than Fortune 500 companies

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    new CBI director Praveen sood biography

    Who is Praveen Sood the New CBI Director: Professional Background, Achievements and Significance of the Appointment

    Paramjit Singh Panjwar shot dead

    Paramjit Singh Panjwar shot dead: Keep calm and trust the Indian Armed Forces

    Swarm satellites

    India’s Bold Step towards Satellite Swarm Intelligence: A New Era in Space Technology

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    INS Vikrant gets historic 1961 bell of 1st warship from ex-Navy vice chief

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Modi is the boss

    Modi is the boss: “Vedic Mantras” and an ocean of crowd: PM Modi’s Australia tour will echo till eternity

    PM Modi Extends a Diplomatic Olive Branch: A Special Message for Zelensky

    PM Modi Extends a Diplomatic Olive Branch: A Special Message for Zelensky

    NIA High Commission in UK

    NIA will probe the attack on Indian embassy, in UK!

    UK Student Visa rule new

    UK Student Visa Rules: International Students Barred from Bringing Families

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    5 failed Inventions

    5 Inventions that failed to serve their purpose

    What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

    What Do You Mean by Bhulekh Uttar Pradesh & Why Should You use It?

    5 Accidental Inventions

    5 Accidental Inventions that have become essential in our lives

    Sengol Tamil Nadu real picture

    What is Sengol: Tamil Nadu Connection, History, Significance and why it is to be installed in New Parliament

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    5 Actors who ruined a Franchise as Replacement

    5 Actors who ruined a Franchise as Replacement

    Sportspersons careers

    5 Indian Sportspersons Who Destroyed Their Own Careers

    There’s more to Goa than just Feni and Vindaloo

    There’s more to Goa than just Feni and Vindaloo

    Kamal Haasan and Naseeruddin Shah: The ‘Tubelights’ of Indian Cinema

    Kamal Haasan and Naseeruddin Shah: The ‘Tubelights’ of Indian Cinema

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
No Result
View All Result

HOME » Politics » Analysis » Take a look at how the new Income tax slabs will look under Congress Government

Take a look at how the new Income tax slabs will look under Congress Government

Sriramjee Singh
by Sriramjee Singh
31 March 2019
in Analysis
0
Take a look at how the new Income tax slabs will look under Congress Government
7.7k
VIEWS
Share on FacebookShare on Twitter

Congress Party, in its 2019 poll promise, proposed to give INR 72,000 annually to the bottom 20% of the families, which is approximately 5 crores. The total cost of the scheme would be INR 3.6 lakhs crore. This looks quite promising politically. But the larger question is, where is the money to fund this ambitious scheme? Piyush Goyal in his interim budget 2019-20 speech stated that the fiscal deficit is 3.4% for 2018-19 and was at 6% seven years before. Higher fiscal deficit is not affordable. And, if they don’t want to worsen the deficit condition further, there are two other ways to support the scheme. First, stop some of the currently ongoing schemes and subsidies. Second, increase taxes.

Abhijit Banerjee, Professor, MIT and one of the proponents of the NYAY scheme as claimed by the Congress party, spoke to Times Now channel on this issue. He categorically told Rahul Shivshankar, Editor-in-chief of Timesnow that there are no other ways than to increase taxes on the middle class. He also advocated for scrapping distortionary subsidies like fertilizer and power subsidies, given to the farmers. If these are the ways to finance the scheme. I attempt to come up with a new tax structure to sponsor the NYAY scheme.

Income tax collection for Financial Year (FY) 2016-17 (Assessment Year (AY) 2017-18) is 3.49 lakhs crore rupees. I have calculated the tax collection for the same year using income range wise, number of returns and gross total income data. And It came out to be 3.54 lakhs crore rupees. I did not consider savings under different tax deduction schemes such as section 80C. As I don’t have unit level data on these deductions. Also, I am accounting all the individuals as below 60 years of age. They constitute the major proportion of the taxpaying group. Again, I don’t have age wise unit level data on returns and income. The difference of INR 5 thousand crores arises due to these assumptions.

I have data on a number of returns and individual total gross income for the income range i.e. 0 to 2.5 lakhs rupees, 2.5 to 5 lakhs rupees and likewise for AY 2015-16, AY 2016-17 and AY 2017-18. I computed the growth rate of the number of returns and the corresponding income in every range (AY 2015-16 to 2016-17 and AY 2016-17 to 2017-18). I took the average of these two range wise growth rates to calculate corresponding income range wise, number of returns and gross income for AY 2020-21 (FY 2019-20). I assumed that these figures will grow with this average growth rate for the three next years (AY 2018-19, AY 2019-20 and AY 2020-21). The projected individual total gross income for the FY 2019-20 is INR 44.9 lakhs crore, whereas the estimated total number of returns for the period is 6 crores. With the proposed tax structure, which is undoubtedly quite high, Congress could garner additional revenue, which is INR 2.53 lakhs crore, 60% of the fund required to finance the NYAY scheme for FY 2019-20. The detailed analysis is presented in the table below. Sources are mentioned below the table.   

Sources: Income Tax Department,  GoI; NDA Tax structure; Tax Rate for AY 2017-18

    

Note: *NDA Tax Rate is proposed in the interim budget 2019-20. Surcharge is levied on the Tax amount and Cess is imposed

over (Tax amount + Surcharge).

However, in spite of taxing the income class heavily, I could suggest generating only 60% of the required resources for NYAY. The rest 40% should be created by terminating some of the agricultural subsidies, as suggested by Professor Banerjee. As per a Business Today report, INR 1 lakh crore is needed to support fertilizer subsidy program for 2018-19. I assume the same amount of subsidy for the target year 2019-20. And, If Congress could stop this subsidy, it would save a significant amount, which is 1 lakh crore rupees. The total additional money, considering these two proposed exercises is INR 3.53 lakhs crore, which is equivalent to the amount needed to finance this scheme. If the party does not want to antagonize the farmers, it could levy 75% tax rate on income above INR 1 crore, instead of 45% (as in the table). And in this way, it could generate additional INR 3.4 lakhs crore from taxes only and they don’t have to stop the fertilizer subsidy program.

Now the ultimate question arises, is this viable? Farmers are already distressed and looking for more government assistance. Stopping fertilizer subsidy does not seem to be feasible at least in the short run. Middle class is also burdened due to higher expenses, they generally don’t get any subsidies. Higher taxes on them would be highly damaging. Anyway, if they have more money into their pockets, they spend more, and the government gets indirect taxes on that, eventually. Although Congress does not seem to be proposing these drastic changes for generating money for the scheme in its manifesto, going into the general election, there is no other reasonable way forward. Rahul Gandhi’s NYAY scheme raises many questions and answers none.

Tags: income taxIndian Middle classNYAYRahul Gandhi
Share826TweetSend
Previous Post

Meet Rahul Gandhi’s new adviser, Comrade Sandeep Singh

Next Post

And like that CM Yogi delivers again, solves what everyone thought was an unsolvable problem

Sriramjee Singh

Sriramjee Singh

IIT Kharagpur. Iowa State University, USA Political Analyst, Economist, Data Scientist and a passionate Programmer

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Most Read
  • Comments
  • Latest
Xi Jinping, coronavirus, Shinzo Abe, china, Japan, coornavirus, COVID-19, Wuhan Virus

‘Pack up and get out of there,’ Japan to spend $2.2 billion to get Japanese companies to exit China

9 April 2020
ajay devgn karan johar

The man who bullied the Bully – How Ajay Devgn made Karan Johar’s monopoly a joke and forced him to apologize

22 June 2020
Huawei, China, Trump, USA, Xi Jinping

‘Our survival is at stake now,’ Chinese Telecom giant Huawei crumbles after US ban on Semiconductor exports

19 May 2020
T-Series Sonu Nigam Divya Khosla Kumar Bhushan Kumar

T-Series forced to take down Atif Aslam’s video, Divya Khosla trolled. T-Series has a bad day in office

25 June 2020
Meat Ban

A Jain responds to Meat Ban in Mumbai

Public Sector Bank, Government, Bill

Dear bank employees, continue your stride but PSBs will be privatized

anti-Hindi

Anti-Hindi Forever?- In search of a National Language!

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

Dear Liberals – your Beef Parties are not protests, they just intend to displease the Majority

5 Actors who ruined a Franchise as Replacement

5 Actors who ruined a Franchise as Replacement

2 June 2023
Rolls Royce Controversy

Rolls Royce Controversy: Another UPA scam on the cards

2 June 2023
Rahul Gandhi speech: BJP’s star campaigner is back in action!

Rahul Gandhi speech: BJP’s star campaigner is back in action!

2 June 2023
Sportspersons careers

5 Indian Sportspersons Who Destroyed Their Own Careers

2 June 2023

Popular This Week

Nawazuddin Siddiqui interview
Cinema

Dear Nawazuddin Siddiqui, you’re a one hit wonder, so just shut up

by Animesh Pandey
26 May 2023
Inspector Avinash
Cinema

“Inspector Avinash”: Randeep Hooda Shines in a Hidden Gem of a Web Series

by Animesh Pandey
31 May 2023
Indian PSUs
Economy

Once a butt of all jokes, Indian PSUs are posting better results than Fortune 500 companies

by Animesh Pandey
26 May 2023
Bollywood actors who are now thriving in other professions
Cinema

Bollywood actors who are now thriving in other professions

by TFIPOST News Desk
26 May 2023
Sanjay Khan
Cinema

Sanjay Khan – The lecherous demon behind the “handsome gentleman”

by Tejasvi Malhotra
13 November 2022

©2023 TFI Media Private Limited

  • Terms of use
  • Privacy Policy
  • Sitemap
No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFI Official Merchandise
TFI हिन्दी
TFI Global
  • About us
  • Careers
  • Brand Partnerships

©2023 TFI Media Private Limited

Follow us on Twitter

and never miss an insightful take by the TFIPOST team

Follow @tfipost