LETTERS TO THE EDITOR
There is no doubt that the major innovative feature of the budget was the slashing of income tax rates. But much still needs to be done. The first NIL slab needs broadening. At present, the second slab from Rs 60,001 to Rs 1,50,000 is charged at the rate of 20 per cent. Likewise, under the new dispensation, it is suggested that the NIL slab should be raised from the existing Rs 40,000 to Rs 60,000 and the rate structure should be as follows: (income slab and tax rate, respectively) upto Rs 60,000 - Nil; Rs 60,001 to Rs 1,00,000 - 10 per cent; Rs 1,00,001 to Rs 2,00,000 - 20 per cent and above Rs 2,00,000 - 30 per cent.
If the tax structure is changed as suggested, then and only then, can it mitigate the hardship faced by taxpayers and give them real 100% peace of mind.