The Hindu : Tamil Nadu News : Chamber urges Finance Ministry to enhance IT slabs

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Wednesday, Jan 23, 2008
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Tamil Nadu

Tamil Nadu

Chamber urges Finance Ministry to enhance IT slabs

“Set up a bench of Income tax Tribunal in Madurai for the benefit of assesses in southern districts”

MADURAI: The Tamil Nadu Chamber of Commerce and Industry has urged the Union Finance Ministry to consider enhancing the personal income tax threshold limit to Rs. 1.50 lakh from the present Rs. 1.10 lakh.

Chamber president, S. Rethinavelu, presented a pre-Budget memorandum to this effect to Finance Minister, P. Chidambaram and Minister of State for Finance, S.S. Palanimanickam besides the Chairman of Central Board of Direct Taxes, S. Prasad, and Chairman of Central Board of Excise and Customs S.K. Shingal in New Delhi recently. .

With the price of essential commodities and cost of living escalating, the Centre should revise the income tax slabs to 10 per cent for those in the Rs. 1.50 lakh to Rs. 2.50 lakh bracket, the chamber said.

For the Rs. 2.5 lakh to Rs. 5 lakh, tax rate should be refixed at 20 per cent and for those above Rs. 5 lakh, 25 per cent, which should be the upper ceiling for individuals, partnership firms and corporates, Mr. Rethinavelu said in a statement here. The Chamber also asked for exemption from fringe benefit taxes for assesses with an annual turnover below Rs. 25 crore. A bench of the Income tax Tribunal should be established at Madurai for the benefit of assesses in southern districts of the State.

Requesting the Government to reduce the sales tax to 8 per cent, he said that the steep revision of the tax from 5 per cent to 12 per cent was a major reason for tax evasion. Mr. Rethinavelu said that small scale industries have central excise exemption for a clearance up to Rs. 1.5 crore.

In the present highly competitive environment, the limit should be increased to Rs. 2 crore. In the past year, the price of steel rod had shot up by over 20 per cent. To bring down its cost, the excise duty should be halved to 8 per cent from 16 per cent.

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