Dear Mr. Finance Minister, The Salaried class as everyone acknowledges is always thw worst hit.Massive relief is needed to uplift this class and encourage them to save and also spend.Afterall this class is the most loyal due to the very natureof TDS.Some suggestions please.
1. The basic exemption is to be kept in tune with realities and toencourage thrift and consumption at the same time in view of the proposed DTC. Therefore the basic exemption should be at a minimum of Rs.5 lakhs. 2.The hard earned savings through EPF,FPF need to be protected and should be out of EET net.
3.Insurance is an important aspect and withdrawals on maturity should be out of EET net. 4. Medical Insurance benefits should be improved to a great extent and all pre-existing issues covered. At the same time there should also be increased exemption up to Rs.25000.p.a and increased slab for other categories. 5.Gratuity limit should be enhanced to at least Rs. 10 lakhs.And CBDT should notify the same immediately. However it would be a boon to all salaried class if entire gratuity is exempt if received on superannuation. 6.80 Ec should be removed except for EPF,PPF,LIC, Housing Loan. 7. Housing loan limit should be at least 1 lakh.
8. Exemption under EPF,PPF,LIC, Housing Loan shoud be at least 2 lakhs.This will make the basic taxable limitation more and the salaried class will be happy. ..Contd....
Re: Income TAX
by driamforindiaalways on Feb 02, 2010 04:05 PM Permalink
9. Capital Gains should be at flat 5% on sale and all indexation and so on removed. This could mop up more revenues.
10.An MAT of 2% on all business incomes ( Profits after Depreciation and interest) removing all other business tax exemptions and business tax will increase the tax base.
11. Central Excise, Customs, CED,VAT,CST,etc should be given as credit to all industries, products for renewable energy, solar energy, drip irrigation and the benefits should be passed on to consumers in the invoice.
12.All autos, buses, trucks, rickshaws, plying in all cities and towns should compulsorily run on natural gas.
