The tax on income for indivisuals needs to be drastically reduced. For next year it is suggested that FM should implement the model tax code recommendations i.e. the 10 per cent tax rate should apply to an annual income of Rs 1.6-10 lakh per annum and the 20 per cent rate to Rs 10-25 lakh. The maximum rate of 30 per cent should apply to income above Rs 25 lakh per annum. This will give big relief to tax payers, Govt's collection will increase and percentage cost of tax collection will reduce drastically.
