Financial Daily from THE HINDU group of publications
Wednesday, Feb 02, 2005
Financial Daily from THE HINDU group of publications Wednesday, Feb 02, 2005 |
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Opinion
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Letters Tax concessions
With reference to the article "Should all deductions and exemptions go", the author's fear of a decline in savings if tax concessions are withdrawn, is not supported by empirical evidence (Business Line, January 22). The analysis shows that yields determine only avenues of savings. The amounts are decided by income levels. The rebate under Section 88 for saving in infrastructure bonds is not such a good option. A person making the investment during three consecutive years can recycle it forever without additional savings. Now the tax-free annual income is between Rs 1 and Rs 1.8 lakh, depending on age, etc. A flat tax at a revenue-neutral rate with an exemption limit around Rs 1.5 lakh and removal of all concessions should simplify the tax structure. A. Seshan Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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