A direct tax practitioners’ body has called on the government to reduce the personal income tax burden on citizens in the upcoming Union budget later this month. Narayan Jain, President of the All India Federation of Tax Practitioners (AIFTP), has advocated for increasing the exemption limit to Rs 5 lakh. He stressed the importance of simplifying the tax structure to facilitate compliance.
“Incomes between Rs 5 lakh and Rs 10 lakh should be taxed at 10 percent, those between Rs 10 lakh and Rs 20 lakh at 20 percent, and incomes above Rs 20 lakh at 25 percent,” Jain proposed in his memorandum to the Finance Minister.
Jain, who also serves as President of the Calcutta Citizens’ Initiative, recommended eliminating the surcharge and cess, arguing that their continuation is unjustified. He criticized the government for not adequately explaining the utilization of the education cess, highlighting that providing education and medical facilities is a fundamental governmental duty.
The memorandum also addressed the tax rate under section 115BBE on unexplained cash credits, loans, investments, and expenditures, which was increased to 75 percent plus cess during the demonetization period. Jain urged a reversion of this rate to the original 30 per cent.
(With PTI inputs)
