Taking into consideration the current inflation rate and also the fact that people should have some surplus to spend in the market, FM would do good if he adopts the below mention slabs for income tax: 1. Upto Rs. 200,000 - Nil 2. Rs. 200,001 - 300,000 - 10% 3. Rs. 300,001 - 500,000 - 15% 4. Rs. 500,001 and above - 25% 6. A 10% surchage on net tax should be imposed on those drawing Rs. 1,000,000/- or more. 7. Women should also be taxed at the same rate considering the equality phenomenon. In any case working women add to the family income and hence no special consideration need be given to them (it is assumed that in most cases husbands are also working and drawing handsome salaries). 8. Those senior citizen who are dependent on pension and interests or dividents only should be exempted from income tax regardless their income which is in any case is not very subtantial. This should also need be considered from the point of view that they have already paid enough tax and that they should not be burdened with income tax in the last phase of their lives. 9. Senior Citizens who are still working or those have superannuated from govt/PSU jobs and are working in private sector drawing handsome salaries, need to be taxed at 50% of IT rates as mostly they are without any responsibility and have excess money than their requirement. Further more they continue to block the jobs for others till they die. No consideration need to be given to such junks.
