A majority of employees surveyed expect Finance Minister Pranab Mukherjee to increase the income tax exemption limit to Rs 3 lakh in the upcoming Budget, in line with rising inflation, Assocham has said.
“Over 89 per cent of respondents said the slab of tax-free income has not moved up in line with the real inflation. Therefore, there is a need to increase the basic exemption limit to Rs 3 lakh, as it will spike up the purchasing power of individuals and stimulate demand,” the survey by Assocham said.
At present, the income tax exemption limit is Rs 1.80 lakh.
Majority of central and state govt employees has started bribery as an additional income source except post offices. While all other employees can run their family on account of unaccounted money derived from corruption the only employees remaining honest and prompt are postal employees who depend only on GPF widrawals every month. Really the income tax is a blow on them. The income tax limit has to be raised to 5 lakhs for postal employees.
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