Some Good News - Tax Exemption limit may be increased

With the growing cost and not a matching increase in the income, the Government is mulling over increasing basic exemption threshold for Income Tax liability.

I feel that a further exemption of about Rs.20,000-Rs.30,000 would be a good gesture for those, who did not get any increment during the last few years. This will ensure few bucks in the pocket of the individual and a hole in the government kitty.

Government is not keen on reducing the tax rates for the Corporates, citing that the exemptions they have would reduce the average tax rate.

Let us hope for the best in the coming buget.

Cheers,

Gopal