Sena seeks increase in I-T tax exemption limit

Mumbai: Shiv Sena has demanded that the income tax exemption limit be raised to Rs 8 lakh from the current limit of Rs 2.5 lakh. The demand is in line with the Centre’s decision to provide 10 per cent reservation to economically weaker sections that have an annual income of less than Rs 8 lakh.

The delegation of Shiv Sena MPs met Piyush Goyal, who is handling an additional charge of the finance department and demanded that the Centre should raise the income tax limit.

The issue was discussed in the recently held Sena chief Uddhav Thackeray’s meeting with his party MPs and he had asked the MPs to pursue the issue with the Centre.

Accordingly, Sena demanded that the government should raise the income tax exemption limit in the forthcoming financial budget of 2019-20. It will definitely give some relief to middle-class people of the country, it stated.

In the memorandum submitted to Mr Goyal, the party has pointed out the contradiction in taxable income and the eligibility of availing the benefit of the 10 per cent reservation as an economically weak person. “According to the provision, Rs 8 lakh annual income is the criterion for taking advantage of reservation. It means it has become a benchmark to declare a person as economically weaker. But, the government charges income tax to people who earn over Rs 2.5 lakh. By raising the income tax limit to '8 lakh, this contradiction will be dispelled,” stated the MPs.