Every week we get the latest inflation figures. Todays was 12.1%. this means that the real value of our earnings diminish by 12% every year. But suprisingly, the income tax slabs are touched once every 3 or 4 years & that too it is shown that the government is doing a huge favour on us by increasing the slab of minimum taxation. If the real value of the money in my hand is diminishing then the income tax slabs also should be increased by the % of inflation of that year.
RE:Why is inflation not applicable to tax slabs
by JAGDISH on Aug 08, 2008 07:54 AM Permalink
ECONOMIC LAWS,RULESAND REGULATIONS REQUIRE ONGOING REVIEW LIKE MONETARY POLICY.9%SENIOR CITIZEN SCHEME INTRODUED BY GOVT OF INDIA IN 2004 CARRYS 9% INTEREST WHERE BKS ARE OFFERING TO NON-SENIOR CITIZEN FOR 1 YEAR 10.50% WHERE INFLATION RATE HAS COME TO 12.1%. NO ONE LOOKS INTO ORIENATIONS OF ECONOMIC POLICIES.THEY ONLY DEAL IN POLITIC AND VOTES JCK
