Instead of Mr.Chidambaram thinking of raising deduction u/s 80 C to Rs.150000/- he can reduce the income tax rates to 5 % 10% and 20% maintaining the same slabs.
Investing Rs.150000/- to save tax means an outgo of Rs.12500/- p.m. which an average middle class employee cannot afford.
This proposal can be adopted for one year and can see the response from the public.Iam sure it will be a definite success.
