The Basic exemption limit of Rs. 1 lakh needs to be raised because the common man is already burdened with a lot of tax. Figure it out as below Central govt budget = Rs. 5,76,381 crore [inc fiscal deficit] for pop of 110 crore. Hence per capita central tax approx Rs. 5,000 Mah State govt budget= Rs. 59,145 crore for population of 10 crore. Approx Rs.6000 per person Mumbai Municipal Corporation Budget = Rs. 10,000 crore for population of 1.6 crore people hence per capita Rs.6000 approximately
Total tax per capita for a mumbai citizen = 5,000 [Center] 6,000 [state] 6000 [BMC] =Rs.17000 per person tax burden Hence a family of 4 pays a total tax of Rs. 68,000 per annum With most families in India having 1 earning member, an income tax limit of Rs 1 lakh is not sufficient. The basic exemption limit needs to be increased to Rs.2 lakh atleast. A thought needs to be given for the same. If our imcumbent Finance Minister Mr. P Chidambaram does some basic calculation, he will soon realize that he is into his blood - sucking ways. This is one way that can help enable people to manage the effects of inflation
