It will be really a good news if the hint of the Finance Minister (FM) about increasing the income limit for income tax (IT) from the existing Rs. 2.5 lakh to 4 lakh becomes true. Besides this, reduction of rate of tax and enhancing the slab limits further like 10% tax from 4 to 10 lakh, 15% tax up to 15 lakh, 20% tax up to 20 lakh, 25% tax up to 25 lakhs and 30% beyond 30 lakhs, etc., may reduce the already burdened existing tax payers and it may boost several others to voluntarily declare their income and pay tax, which may result in increasing the number of people coming under IT net, which is at present only 1% of the total population in the country, as indicated by Chief Executive Officer of NITI Aayog Amitabh Kant. With the increasing inflation and introduction of several new taxes and cess on these taxes, the tax payers, especially employees, are being burdened year after year and crores of others are evading IT without thinking nation’s progress. FM should seriously think in this direction and try to bring more population into IT fold and increase the exchequer.
Dr. S V N Vijayendra, Mysuru