The Hindu : Opinion / Letters to the Editor : Finance Bill 2005

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Friday, May 06, 2005

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Opinion - Letters to the Editor

Finance Bill 2005

While presenting the Union budget on February 28, Finance Minister P. Chidambaram said that "tax payers in every bracket will gain from my proposals." But by fixing the IT exemption level at Rs.1.50 lakhs for senior citizens, he evidently ignored the concession available in the matter of standard deduction (Rs.30,000) and 80 L deduction of Rs.12,000. When this was pointed out, Mr. Chidambaram said: "We [the UPA] are here to remove the wrinkles in the face of senior citizens." Now, the Finance Bill has been passed with a few amendments but the wrinkles remain.

K. Seshamani,
Chennai

The Finance Bill has been passed but the basic objection to the new taxes — Fringe Benefits Tax and the tax on "large" withdrawals from banks — remains. Tax laws, instead of getting simpler, have become a bit complicated.

T.V. Hariharan,
Chennai

Mr. Chidambaram should either fix the age of senior citizens at 60 or allow the standard deductions and benefits under Section 80L of the Income Tax Act to continue.

A. Eswara,
Chennai

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