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Industry chamber Budget wishlist:Up Income Tax exemption limit
May, 19th 2009

Industry chamber CII on Monday asked for raising income tax exemption limit by Rs 50,000, but did not call for another stimulus package in the full Budget for 2009-10 expected in July by the new UPA Government.

A chamber delegation, led by CII Vice President Hari Bhartia, has had pre-Budget interactions with Revenue Secretary P V Bhide today. The delegation demanded that the Budget should have measures to promote investment, remove Fringe Benefit Tax and surcharge on corporate income tax, required to upturn the slackening economy.

FICCI and Assocham delegations had already met Bhide earlier this month in this regard. "On direct tax, we have asked for further increasing the limit of the income tax," Bhartia told reporters, adding that they suggested raising the limit by Rs 50,000 to Rs 2 lakh.

At present, individual male tax assesses up to Rs 1.5 lakh a year, females up to Rs 1.80 lakh and senior citizens up to Rs 2.25 lakh are exempted from paying income tax. Bhartia also said corporate tax rates are too high in India compared to the rest of the world. "So, we have to look into that perspective ... no specific figure (was suggested)," he said.

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