
Media-reports indicate that surcharge on Income Tax may hit investments
It refers to media-reports indicating that estimated rupees 12000 crores proposed to be earned by imposing surcharge on tax-payers in higher slabs may adversely affect investment in India. India tuned up with most other countries in the world when Raja Challiah committee report was implemented by bringing highest Income-Tax slab down to 30-percent. Tax-system should be simple-most abolishing concepts of cess, surcharge and subsidies to the extent possible.
In present system with persons having assessed income upto rupees five lakhs per annum totally exempted from Income Tax, a person having income say rupees 501000 will evidently try to evade rupees 1000 from income because otherwise he would be getting exemption only on income upto rupees 250000. Basic exemption-limit should be same fo...