The Hindu Business Line : Enhance personal income-tax threshold limit: TN Chamber

The Tamil Nadu Chamber of Commerce and Industry has urged the Union Finance Minister to enhance the threshold limit for the personal income-tax in the ensuing budget. In a pre-budget memorandum, submitted to the Union Finance Minister Mr P. Chidambaram at New Delhi recently, the Chamber has cited that the escalating price levels of essential commodities and living costs warranted a consideration for enhancing the present limit of Rs 1.1 lakh-1.5 lakh. The maximum rate should be pegged at 25 per cent for individuals, partnership firms and corporates.

With reference to direct taxes, the other demands were, allowing a standard deduction of Rs 25,000 for caring the aged parents, raising of the ceiling for applicability of Section 44AB regarding company tax audit for non-corporates, exemption from fringe benefit tax for assessees with an annual turnover below Rs 25 crore, setting up of a Bench of the Income-Tax Tribunal at Madurai etc. The demands on services tax included a reduction in the rate of service tax to eight per cent, withdrawal of the levy of service tax on traders and industrialists etc. The demands on excise duty were enhancement of the Central Excise limit to at least to Rs 2 crore, bringing down the peak rate of interest to 14 per cent, exemption from excise duty to partially mechanised safety match units or bring down the rate to four per cent and reduction of excise duty on steel from 16 per cent to eight per cent.

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