Union Budget
All speculation that the tax-free income would be raised to R5 lakh from the present R2 lakh has been set to rest with the raise in first threshold limit by a meagre R50,000. This means the tax that can be saved would be just R5,000 per annum. Because other slabs from R5 lakh toR10 lakh at the rate of 20% and above R10 lakh at 30% along with education cess and surcharge remain unchanged. There should have been corresponding increase in the first and subsequent threshold limits. This has been cleverly avoided. Another relief given is in the investment limit raised from the present R1 lakh to R1.5 lakh. If another R50,000 is invested, the individual gets the tax benefit of another R5,000. The tax relief (5,000 + 5,000) is not commensurate with the galloping inflation. The relief given is only an eye wash. One should reconcile to the saying ?something is better than nothing.?
KV Seetharamaiah
Hassan
Revamp tax system
This is in reference to the articles ?Taxman?s hostility must end? and ?Follow the TARC?s line for effective dispute-resolution? (FE, July 10). Both bring out the dire need to revamp the redressing mechanism on tax disputes and litigation. The current structure is cumbersome and time-dragging. Most litigations are long-pending, and time-bound verdicts of special tax courts that could facilitate speedy trials and prevent further appeals will be the eternal solution. Otherwise, tax evaders will get ample loopholes in the current system and tax revenue will be affected.
NR Nagarajan, Sivakasi
Budget lays the path
Budget FY15 is a big boost for the industry, opening doors to FDI and and promising disinvestment. UPA could not raise the FDI caps due to opposing coalition interests. Now, with NDA in power, tax reforms may finally be ushered in, especially GST. Though retrospective taxation has not been repealed, it is sure to get milder.
Jacob Sahayam
Thiruvananthapuram
