- Agriculture income is not taxed.
Farmer earning 10 lakh rupees / year does not pay any tax but similar hard working Salaried middle class professional pays tax of more than 1 lakh rupees on this.
- Tax base in the country
Only 3-4 crore people in the country file returns and hardly 1.5 crore pay considerable taxes. This amounts to tax base of just 1.5% in the country.
- Inflation indexation
80C limit of 1.5 lakh does not mean much with current inflation and the huge number of items eligible for deduction in this section.
Tax slabs have not changed much in the last 10 years but inflation , property prices has risen by more than 10 times.
Farmer earning 10 lakh rupees / year does not pay any tax but similar hard working Salaried middle class professional pays tax of more than 1 lakh rupees on this.
- Tax base in the country
Only 3-4 crore people in the country file returns and hardly 1.5 crore pay considerable taxes. This amounts to tax base of just 1.5% in the country.
- Inflation indexation
80C limit of 1.5 lakh does not mean much with current inflation and the huge number of items eligible for deduction in this section.
Tax slabs have not changed much in the last 10 years but inflation , property prices has risen by more than 10 times.
