"Soared prices,rocket like unwanted spendings and state of always having a penny less to buy something"-this is a brief description of situation in India in today's time where almost everyone in India wishes for a miracle to happen at least in economic terms.
Giving full consideration to this wish of indian citizens,a proposal of raising the tax exemption limit has been presented to the Indian Government by Industry body Assocham from Rs 1.6 lakh per annum to Rs 4 lakh per annum and to Rs 5 lakh per annum for senior citizens under Direct Taxes Code.Although,Assocham has suggested this way of removing the various deductions and exemptions but meanwhile,it has also urged the government to deduct 50% of the salary or Rs 2,40,000 whichever is less to compensate and lessen the additional tax burden.Now the question which may pop up in the minds of Indian citizens would be...Is this raised exemption limit really gonna help? or is it a just another mirage to fool the public?
Would like to know from you people too.If you have an answer or comment,we are here to listen and share it up.
Now a days government is trying to increase the tax base (means bringing more people under the tax ambit).Under such scenario the proposal may take a hit as it will reduce tax ambit and also amny people start saving more tax and the problem of more tax evasion will become severe.
ReplyDeleteHey....I think the deductions in the form of saving which was earlier upto Rs 100000 is planned to go upto Rs 300000 is really worth doing as it will someway or the other will increase the saving as well as the investment of general public in the insurance sector or other ....so is beneficial for the economy.
ReplyDeleteAlso I request you people to please explain the 50% deduction in salary part of your post as it was not clear
Hey...Good to see your view.We would definitely like to answer the doubt you have raised.
ReplyDeleteStandard Deduction of 50% of salary or Rs. 2,40,000, whichever is less, would be provided to balance out additional tax burden and it would be faced by the employees due to removal of various exemptions,though the deduction would be limited to annual taxable income of Rs. 10 lakhs and below.
Hope to have more views or comments from your side in future also.