Considering the below poverty line is 2 dollars per day, now for a family of 6 (couples, two kids and dependant parents) that amounts to 12 dollars per day, or 4320 dollars per year, which amounts to 2 lacs per annum in todays exchange rate. Now if the family has one earning member, then upto 2 lacs should not be taxed, since then Govt is taxing someone even below poverty line which is really bad.
In another calculation the per capita income of India is roughly 40000 per annum. Again considering a family of six and one earning member, that will be 2.4 lacs. So tacing someone whose income is less than the national average, is also bad.
