Tax Practitioners Advocate for Reduced Personal Income Tax in Upcoming Budget

The All India Federation of Tax Practitioners (AIFTP) has urged the government to reduce the personal income tax burden in the upcoming Union budget. AIFTP president Narayan Jain suggests increasing the exemption limit to Rs 5 lakh, simplifying the tax structure, and eliminating surcharges and cess.

The All India Federation of Tax Practitioners (AIFTP) has called on the government to alleviate the personal income tax burden in the forthcoming Union budget. The request was made public on Sunday.

Narayan Jain, the AIFTP president, emphasized that the exemption limit should be increased to Rs 5 lakh. In his memorandum to the Finance Minister, Jain proposed a simplified tax structure, with income between Rs 5 lakh and Rs 10 lakh taxed at 10%, between Rs 10 lakh and Rs 20 lakh at 20%, and above Rs 20 lakh at 25%.

Jain, also president of Calcutta Citizens' Initiative, argued for the elimination of surcharge and cess on income tax, questioning their continued justification. He highlighted the lack of transparency regarding the utilization of the education cess, urging the government to fulfill its fundamental duties of providing education and medical facilities. Additionally, the memorandum tackles the high tax rate under section 115BBE, advocating a return to the original 30% rate from the current 75% plus cess imposed during demonetization.

(With inputs from agencies.)