Arun Jaitley, one of BJP’s prominent leaders says that raising income
tax slab to Rs 5 lakh will benefit more than thirty million people in
the country. He also added that direct tax should be reduced, If the
Income Tax limit is raised from Rs. 2 lakh to Rs. 5 lakh, 3 crore people
will save Rs. 24 crore which will lead to a small impact of 1 to 1.5
per cent of the National Tax Fund.
All 100% of the Government employees pay taxes without fail, all the time. There is no doubt about it.
Each year, with Government employees losing about a month’s pay as
taxes, the suggestion to raise tax slab to Rs. 5 lakh is a welcome move.
But, since such ideas are being aired only around election time, they
lose credibility.
It has almost become a routine for the Government employees to eagerly
hope for a tax slab raise during each annual budget presentation, and be
disappointed. There haven’t been any alternative savings options to
avoid income tax this time also.
Those who had got employed after 2004 have no options to save and are paying income tax even for comparatively lower incomes.
Will this situation continue?
Only the new Government at the Centre will have the answer to this question.
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