Tax reform on the cards as FM looks to push growth

The upcoming budget may bring a ray of hope for individual and corporate taxpayers, as the government is looking to to lift sentiment in the wake of demonetisation. 

There is a possibility of widening the tax slab. Currently, the lowest tax slab of 10 per cent is on annual income of Rs 2.5 to Rs 5 lakh and 20 per cent on Rs 5 lakh to Rs 10 lakh and above Rs 10 lakh, the tax is at 30 per cent. 

The government has laid out the road map to bring down the corporate tax to 25 per cent over the period of four years, starting this year. 

A cleanup of the corporate tax structure by removing dividend in the hands of individuals to boost equities and lower the overall tax burden of companies is also being discussed, reported Economic Times.