The govt has set Rs 1,00,000 as a limit above which 5% will be charged as tax i.e Rs.5000/-.The savings Rs 95,000. Monthly Expenses: House rent: Rs 5000/- which becomes Rs.60000 at the end of the year
Savings: Rs 35000. Electricity Bills and phone:4500/- per month which is Rs 54000/- per year, Savings:-19000.
Thus u see Rs.100000 is no enough for meeting even daily expenses. The govt of India has to serious think about reconsidering the tax situaton.
Income tax must be levied only on those people who have an income of Rs 500000 or above.
