‘Increase income tax exemption limit’

Budget 2016 was a disappointment for the common man as the tax slabs were untouched. But this year, especially after the cash crunch following the demonetisation move, it is widely expected that the income tax slabs could be revised. Siraj, a Supply Chain Consultant from Pune, says, “increase the income tax exemption limit from the current ₹2.5 lakh to at least ₹4 lakh and even more for women.” He also suggests widening the upper ₹10-lakh slab limit to ₹13-15 lakh and bringing down the slab rate for this category to 25 per cent from the current 30 per cent. According to him, such a move would aid in boosting the consumption in the economy.

Siraj feels that the money outgo in the form of indirect tax like service tax is also one major burden for the common man. “The salaried class is burdened by both direct and indirect tax. The service tax at 15 per cent is very high with all the cess included and any increase in the indirect tax is always passed on to the consumer,” says Siraj. He points out that many start-ups have shut shop over the last one year and feels that the Startup India initiative has not delivered the required benefits though it was launched with much fanfare. “Increasing the income tax rebate for start-ups to much beyond ₹2 crore revenue limit may help,” adds Siraj

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