It is disappointing to read that the limit for tax exempted savings may be raised from the present Rs.1 lac to Rs.1.50 lacs. I wonder who amongs the middle class can afford to save that much in a financial year. Perhaps only those who do not want to withdraw maturity proceeds of old investments but can roll them over will be benefitted. Otherwise, such moves only help the richer people. People like me are looking for (a) simplification of tax rules by abolishing all kinds of exemptions and concessions (b) raising the floor limit of non taxable income to atleast Rs.1.50 lacs. (c) Tax rate of 10% on income in excess of Rs.1.50 lacs upto Rs.2.40 lacs and 15% on income over Rs.2.40 lacs up to Rs.3.60 lacs keeping in view current prices and needs of families and (d) abolition of all cesses and surcharges.
RE:Tax exemption for savings
by sridhar gumadavally on Feb 21, 2007 06:49 PM Permalink
I Totally agree with Ramasubramanian Venkateshan. I inflation is very high. The prices are going up. Already poor people are suffering with this rising prices. The tax exemption should be raised from 1lakh to 2 lakh.
