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Should the FM have given more tax relief to the lower income groups by offering lesser relief to higher income ones?

Created by : Leena Khade, Banc Assurance, Deutsche Bank  | 02 27 2010 08:57:25 +0000
Industry : Asset ManagementFunctional Area : Personal Finance(Personal Interests)
Keywords : tax income income tax return groups individuals higher relief fm lower taxpayers slabs aam admi lesser
Activity:  199 views;  last activity : 07 06 2010 20:18:09 +0000

When finance minister Pranab Mukherjee presented the interim budget last year on the eve of elections, the phrase 'aam admi' figured five times in his speech starting with the opening paragraph. In his latest Budget speech on Friday, the aam admi figured only twice and had to wait till well into the speech to be invoked. The finance minister proposed the slabs for individual tax payers, which was much expected in the budget.

What do you think, Should the FM have given more tax relief to the lower income groups by offering lesser relief to higher income ones?

  
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The FM should have increased Savings(Section 80) up-to 2 Lakhs and Home Loan to at least 3 Lakhs. Most of the Business people, politicians and celebrities do not pay full tax as they have too many options to escape. The only benefit for salaried increase Tax Limit, however this is only for this fiscal year, next year they are coming up with direct taxes.
By Brahma Addepalli, Principal Support Engineer  03 01 2010 11:22:55 +0000
 
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higher income group above Rs.800000/- is taxed @ 30%. how much more do u want the fm to tax them??

For lower income group the tax rate is already relaxed...and also deduction u/s 80c is increased to 200000.....

I think fm has done the right thing
By Ankit Chaudhary, CA student, Institute of chartered accountants of india  02 28 2010 12:44:35 +0000
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I agree with what Brahma said, they should have done some changes in the loans. But as he said we will wait till the next year to see more changes. 

:)

 
By Esha Johar, Risk Analyst, Irevna  | 03 02 2010 11:06:52 +0000
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I agree to all of you, looking at the levels of inflation the limit would had been increased upto 2.5lacks...
By Japan Shah, Assistant Professor, Oxford School of Management  | 03 02 2010 06:19:21 +0000
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With increasing food inflation, the savings of common man is depleting rapidly. I would have preferred not to tax people with income upto Rs 2,50,000 per anum.
By Murali K Balla, Technical Support Manager Atkins  | 03 01 2010 13:43:08 +0000
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No benifits were provided to the income group up to Rs.3,50,000/, but then they will be effcetd by the inflation effect of hike in tax obligations as a result of this proposed budjet.


By RAMANATHA PRABHU N, Chartered Accountant  | 03 01 2010 09:59:47 +0000
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FM should take a crash course in frequecy modulation and then preapare BUDHHA GET
By Ajay Ziz, Dy. Registrar,, University of Jammu  | 03 01 2010 09:55:42 +0000
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the prices should be more stabilised and PDS should have been made more stronger for needy people
By ABHIJIT KULKARNI, Project Manager, BNP Paribas  | 03 01 2010 09:49:50 +0000
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The individual income rate is acceptable in all class of salaried persons. But deduction amount against deposit to Insurance and other in Section.80 is no increased, this will affect the deposit in Insurance sector & Bank. The low income rate limits to 1.60 lakhs is not increased to cover all groups of salaried as well as income generated group in income tax department. 
By RAJAGOPAL MS, Corporate Lawyer & Industrial Consultant  | 02 27 2010 10:11:13 +0000
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yes Ankit, i also have the same question. And we hope that next year Guv will introduce the new direct tax code for greater relief.
By Manoj Kumar, Sr: Manager - QA, ARCHETYPE GROUP, INDIA  | 03 04 2010 09:49:18 +0000
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In my view, the proposal to reduce the tax slab will benefit 60 per cent of all tax payers. The salaried middle class can celebrate an entirely unexpected windfall of up to Rs 56,000 per annum from the reworked personal income tax slabs and a new tax exemption option. The direct tax changes for individuals and when corporatesare added would cost Rs 26,000 crore over the year for the government, while the excise, customs and service tax changes would an additional Rs 46,500 crore, thus yielding a net Rs 20,500 crore. On the corporate tax front, a higher MAT will fetch Rs 6,000 crore, while lower surcharge will lose Rs 5,000 crore — a modest additional burden of Rs 1,000 crore on India Inc.
By Leena Khade, Banc Assurance, Deutsche Bank  | 02 27 2010 08:57:25 +0000
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