CGCC for higher IT exemption

VADODARA, Dec 1: President of the Central Gujarat Chamber of Commerce Bhupendra Patel in his pre-budget memorandum to Union Finance Minister Yeshwant Sinha has put forth the proposals to increase income tax exemption limit to Rs 60,000 and link it to the cost of living index, to tax agricultural income and to increase exemption limit of saving and tax deducted at source from interest.

Patel suggested that the exemption limit for income tax be raised to Rs 60,000 from Rs 50,000 with exemption linked to cost of living index. 8220;This will put a stop on the demand for increasing exemption limit,8221; he said. He suggested taxing agricultural income, if need be by amending the Constitution, to weed out corruption and for the development of the economy.

Savings are absolutely necessary for capital formation and to increase present limit of savings of Rs 15,000 to Rs 25,000 without having limit within limit, he said. For this, he also suggested increasing tax rebate limit under Section 88 from Rs 60,000 to Rs one lakh.

Among the other proposals put forth by Patel are increase in turnover limit for compulsory audit, increase in limit of giving or paying loan or deposit in cash and abolition of minimum alternative tax MAT, wealth tax and tax on dividend on companies as well as tax deducted at source on interest of Bank deposits.