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Saturday, Dec 19, 2009
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MADURAI: The proposed New Direct Taxes Code, which will replace the Income Tax Act, 1961, was against the interest of working classes and Southern Railway Mazdoor Union (SRMU) would intensify its struggle, if certain clauses were not withdrawn, its president C.A. Raja Sridhar said.
Talking to reporters here on Friday, he said the code, scheduled to be implemented from April 2011, would hit the salaried classes in the lower rung of the income ladder even while benefitting those in the upper rung.
“The employees at the bottom level will be paying at least Rs. 12,000 as additional annual income tax (from what is paid under the Income Tax Act, 1961). But those drawing an annual income of Rs. 25 lakh and above will be paying Rs. 8,000 lesser than that what they pay now,” he said.
The new code proposed taxes on travel allowance, medical allowance, on dwelling in official quarters and withdrawals from provident fund accounts, he said.
“The Centre should only encourage the salaried classes to make savings (by giving tax exemptions),” Mr. Sridhar said.
The salaried classes, especially the working classes in the railways, would be greatly affected by the new code. “Whatever increase we have got through the 6th Central Pay Commission after a prolonged struggle will drain off through the new tax code,” Mr. Sridhar said.Demonstration
Its Madurai divisional secretary J.M. Rafi participated in a demonstration staged by the union in front of the Divisional Railway Manager’s office here.
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