Friday, March 16, 2012

Budget 20012-13 Sr.Citizens stand cheated?

For & up to F.Y.2004-2005 Sr. Citizens were getting, concession in income tax payable (under section 80CC) to the tune of Rs 20000/-as compared to other citizens with similar taxable income. In 2005-2006 this was changed, basic exception for other citizens was raised to Rs 100000/- & that for Sr Citizens it was made 185000/- This resulted in actual Tax relief of Rs12000/- instead of Rs 20000/-.Thereafter it has been progressively reduced & today it stands at just Rs5000/-

Right from its inception,the basic I. tax exemption is related to cost of living.Where as in comparison to the year 2004-05 cost of food items have gone up by more than 5 times & that of health care has gone up more than 7 times. I.Tax exemption in terms of Tax payable for Sr. Citizens have gone down from 20000/- to Rs 5000/-

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