In this era, where competitions are getting tough, only earning is not sufficient. People need to earn more to live a better life, fulfilling all their needs and requirements. But the burden of tax, on income keeps people deprived of several things such as enrolling their children to the best school in the city, getting them good food and clothing, making investments in getting a good shelter or buying jewelry for loved ones. As the cost of living is high but the income is low, which has already made the middle class people worried about their future. The level of stress has increased with the imposition of tax on income.
Federation of Indian Chambers of Commerce and Industry (FICCI) that arranges foreign business tour that could earn foreign money to the country. It decides the percentage of tax that one has to pay. The heavy burden of tax has already led to a major problem in consumption. 30 per cent tax was levied on income of Rs 10 Lakh which has been revised by FICCI. It has been declared that 30% of tax on income above Rs 20 Lakh would be imposed from the next fiscal circle that is from the financial year 2013-14, which would encourage consumption, to some extent. Though it is said that the taxation on personal income has been restructured, as a consequence of which tax liability at all levels, has been reduced.
To reduce the stress of tax, Naina Lal Kidwai, the new President of the chamber has suggested reinstating a standard deduction in the salary of those earning upto Rs 50,000. These steps are taken to increase investment and tax savings for the individual that would ultimately help in the personal development of an individual. The Chamber has recommended deducting educational expenses of children from the section 80C. It is also meant for raising the limit of tax exemption on medical expenditure. Moreover, to harmonize the interest rates, the Chamber is now planning to revise the deduction limit up to 2.5 lakh per annum, as the property prices and interest rates are rapidly increasing.
This is what FICCI has planned for the betterment of common people, whose salary revises after every 6 months or after a year but the inflation rate of the country raises at the speed of bullet train, every month. This increasing rate of inflation is hampering the plans and lifestyle of common people. Let’s see what benefits it would bring to the “Aam Janta”.