Advertisement

HindustanTimes Fri,18 Apr 2014
How can a small tax break be a substantial relief, MR FM?
HT Correspondent, Hindustan Times
New Delhi, March 17, 2012
First Published: 01:27 IST(17/3/2012)
Last Updated: 01:29 IST(17/3/2012)

The main objective of any tax system is to raise revenues to fund government expenditure. The amount of revenue raised is determined to a large extent by tax bases and tax rates. It is also a function of a range of measures — special tax rates, exemptions, deductions, rebates, deferrals and credits  — that affect the level and distribution of tax.

On Friday, finance minister Pranab Mukherjee offered a small concession to individual tax payers. He raised the annual income tax exemption limit by Rs. 20,000 to Rs. 2 lakh and also changed the tax slabs. The guiding principle of increasing the exemption limit is give more money in hands of people.

Mukherjee believes the tax breaks will provide “substantial” relief to taxpayers. But with prices rising, is it enough?

http://www.hindustantimes.com/Images/Popup/2012/3/17_03_12-metro4.jpg


comment Note: By posting your comments here you agree to the terms and conditions of www.hindustantimes.com
blog comments powered by Disqus

Advertisement
Advertisement
hys

What do you expect from Budget 2012?

The Budget 2012-13 will be presented on March 16 by the Union finance minister Pranab Mukherjee. Share with us your views and expectations from the finance minister on this year's budget.
Advertisement
Copyright © 2014 HT Media Limited. All Rights Reserved