Date:14/02/2005 URL: http://www.thehindubusinessline.com/2005/02/14/stories/2005021401831300.htm

Back TN Foodgrains merchants' plea for tax reliefs

Our Correspondent

Madurai , Feb. 13

THE Tamilnadu Foodgrains Merchants Association in a pre-budget memorandum forwarded to the Union Finance Minister, Mr P. Chidambaram, has urged for the extension of the ceiling on income tax exemption limit of Rs one lakh to all assessees including Hindu Undivided Family (HUF), Firm, Trust, Association of persons and body of individuals with a progressive reduction in the slab rate of taxes with no surcharge.

The association has demanded that the deduction from income under Section 88C be enhanced to Rs 10,000 without any gender bias and for salary exceeding Rs 5 lakh, the standard deduction should be as applied to the income of Rs 5 lakh and below, i.e. 40 per cent of salary or Rs 30,000, whichever is low. The upper age limit under section 88B, for availing this rebate be reduced from 65 to 60 years.

The wealth tax should be abolished and conditions of gift tax should be reverted to the ones that existed prior to the previous budget, it has suggested.

With reference to the value-added tax, the Association has sought the implementation of penal provisions only from the third year with relaxation in the penal provisions.

On service tax leviable on traders, it has said that it must be withdrawn as the notification has created ripples in the trading sector.

On other aspects, the Association has said that the Government should not enter into trade, make increased allocation on electricity, irrigation and road, small industries must be encouraged, linking of rivers must get priority and the Sethusamudram project be implemented with allocation of adequate funds etc.