Request for raising Income Tax exemption slab and Savings exemption slab of salaried employees

Ref. No.  GEF/2014/EM-60                                            Date :  18.06.2014

To

His Excellency, SHRI ARUN JAITLEY,

The Hon’ble Union Minister of Finance,

Ministry of Finance, Government of India,

North Block,  New Delhi- 110001.

Subject :-  Request for raising Income Tax exemption slab  and Savings exemption slab of salaried employees - regarding.

Respected  Sir,

              We would like to invite your kind attention towards the Income Tax exemption slab  and Savings  exemption slab of Individuals of salaried employees for the past few years, which were not  raised to the expected limit as compared to the increase of  Governments employees income raised on implementation of 6^th CPC.

The increase of income of Government servants on account of 6^th  CPC  has not stood fruitful due to rapid increase of cost of living. As a result,  the Government servants specially lower &  middle class are not able to make proper savings of Income for future  security. Under Sec 80 CCE the tax incentive for savings i.e. Life Insurance Premium,  Subscriptions to the GPF/CPF,  Contribution toward CGEGIS,  Investments in NSC etc.  – maximum limit is only Rs. 100,000/- .

The general employees are more interested to saving their income through only safer saving schemes without taking any risk.  If the saving limits of GPF/CPF and LIP enhance Rs. 1 Lakh each or enhance in total of 2 lakhs under sec 80CCE, then  the Government servants specially lower &  middle class are really benefited  to secure their future requirement.

Therefore, we request your good-self to kindly take appropriate  action to increase the Income Tax exemption slab (no-tax limit) of Individuals from Rs. 2 lakhs to at least 5 lakhs, Rs. 5.5 Lakhs for female and senior citizen upto 7 lakhs. Similarly the  Individuals Savings exemption (no-tax limit) may be increased from Rs. 1 lakh to 2 lakhs under SEC 80CCE.  Further, it is our humble suggestion that, since all the Group ‘D’ employees were converted into Group ‘C’ employee, they may be exempted from the Income Tax ceilings. So, as to give some relief to the Individuals.

       Your kind cooperation in the matter is highly solicited.

Thanking You.

                                                                                                                   Yours faithfully,

( S. K. MAJUMDAR )

GENERAL SECRETARY