The Tax Consultants' Association has demanded that the income tax exemption limit, pegged at Rs.1,80,000 in the Union budget, be raised to Rs.3 lakh.
The continuing price rise and inflation rates should be considered while fixing exemption limits, according to a statement issued after the association's State committee meeting here on Monday.
The unscientific tax structure was the reason behind large-scale foreign investments and flow of black money into the country, the association said.
While the middle class and salaried section were made to follow stringent tax laws, the high class and the rich were escaping from paying their taxes with the help of political influence. The State conference of the association, to be held in Alappuzha on July 9 and 10, would discuss the reforms required in the taxation system, the statement added.
Keywords: income tax exemption