Tax Practitioners Urge Income Tax Rationalisation
Jul 14, 2024 11:26
Tax practitioners advocate for reducing personal income tax burden, raising exemption limit, simplifying tax structure, and revising section 115BBE tax rate.
Kolkata, Jul 14 (PTI) A direct tax practitioners' body on Sunday urged the government to reduce personal income tax burden on citizens in the upcoming Union budget later this month.
All India Federation of Tax Practitioners (AIFTP) president Narayan Jain stated that the exemption limit should be increased to Rs 5 lakh.
He emphasized the need for simplifying the tax structure to ease compliance.
"Income between Rs 5 lakh to Rs 10 lakh be taxed at 10 per cent, between Rs 10 lakh to Rs 20 lakh at 20 per cent, and income above Rs 20 lakh at 25 per cent," Jain said in his memorandum to the Finance Minister.
Also president of Calcutta Citizens' Initiative, Jain suggested eliminating the surcharge and cess, arguing that their continuation is no longer justified.
He said that the government does not adequately explain how the education cess is utilised, emphasizing that providing education and medical facilities is a fundamental duty of the government.
The memorandum also addresses the tax rate under section 115BBE on unexplained cash credits, loans, investments, and expenditures, which was increased to 75 per cent plus cess during the demonetization period. Jain advocates for reverting this rate to the original 30 per cent.
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