P - Budget
P - Budget
P - Budget
To,
North Block
NEW DELHI
Hon’ble Sir,
Taxable Limit
1. (i) The exemption limit provided for individuals is at present is very low
i.e. Rs.1,60,000/-, for senior citizens 2,40,000/- and for ladies
Rs.1,90,000/-. This limit is too low in such a high inflationary era of the
country. It is requested that general taxable limit should be raised to
Rs.2,50,000/- , for senior citizens Rs.3,50,000/- and for ladies taxable
limit should be raised to Rs.3,00,000/-.
(ii) Change of slab rate of tax: It is submitted that the tax
slab may also be adjusted. Taxation should be 10% upto
7,50,000/- and at 15,00,000/- 20% and thereafter it should be
30%. It is submitted these changes will cover the fact of inflation
on the low income group.
A. DIRECT TAX:
3. Increase in monetary limit: Under the Income Tax Act there are
monetary limits for heads like cash expenditure, taking or paying loan
in cash, deduction of TDS on expenditure, compulsory audit. All these
limits fixed are very old or even ten to twenty years. They now need
upward revision on account of inflation from year to year. They may
be increased as under:
i) The limit under section 40A(3 )of cash expenditure be
raised from 20,000/- to 50,000/- of even 1,00,000/-
ii) Limit of compulsory audit under section 44AB be
increased from 60 Lacs to 1 Crore or even more.
iii) Limit of cash loan under section 269SS and cash
repayment under section 269T be raised from 20,000/-
to 50,000/- or even 1 Lac.
iv) Limit of TDS u/s 193, 194A from 5,000/- to 25,000/- , u/s
194C from 20,000/- to 1 Lac, u/s 194H from 2,500/- to
25,000/-, u/s 194I from 15,000/- to 25,000/- and u/s
194J from 30,000/- to 50,000/- AND also other sections
of TDS 194.
4. Capital Gain Tax: For Capital Gain Tax, the base year
determined for calculation of case is 1981. This is very old year
as base year. This may be revised.
5. Abolition of Sec. 50C of Income Tax: Introduction of 50C has
created real problems for a tax payer without any gain to exchequer. It
has opened gate of corruption. The circle rate fixed for stamp duty by
the State for sale of property is unrealistic and based on generality of
situation without regard to actual facts and circumstances of the
matter. The value of the property depends upon various factors like
need for money, vacant or with possession, application of tenancy
laws, condition of property, dispute of titles and other various factors.
All those factors adversely affect the value of the property
substantially. Hence, a general rule laid down under the section is
unrealistic and artificial. It is suggested that in the present society
there is no need of this section. It may be deleted.
10. There is great talk in the paper that the black money is running
in parallel economy in India but no serious efforts have ever
been made to unearth the black money so that it can join the
main economy stream of India. It appears it is high time that
Government should bring a voluntarily disclosure Scheme in the
country. It will not only help to collect a great revenue for the
country but also have a check on corruption to abolish black
money which is used for the corruption. It is suggested voluntary
disclosure scheme should be brought in coming Budget.
INDIRECT TAX:
SERVICE TAX:
With regards,
Yours sincerely,