Good news for Tax payers! No need to provide proof of investment?

New Delhi, Jan 31: According to some early reports pouring in and taking cognisance of the probable reason for tax evasion of the salaried class, the government may do away with the need to provide proof of investment on tax deductions in the Union Budget on Thursday.

The government is likely to tweak income tax slabs and rates in Budget 2018-19 to bring down the burden on individuals, while there is unlikely to be any change in the current taxation of dividends, according to a survey by EY.

In a pre-budget survey by tax consultant EY, a wide majority of 69 per cent of the respondents felt that the threshold limits for taxation would increase further in order to boost disposable income in the hands of the people.

Experts are of the opinion that one of the reasons why many salaried and other middle-income groups avoid paying taxes is that they have to go through a lot of paperwork.

The NDA government will be presenting its last full-fledged Budget on February 1 before the 2019 Lok Sabha elections.

"The income tax department has received a lot of requests on this and there has been quite a few rounds of discussions as to why one needs every individual to submit their details in a technologically advanced era when information about a taxpayer is available at the click of a mouse," a senior official reportedly said.

News24Bureau with Agencies