Federation of All Trade and Industry Associations (FATIA) in Erode district has urged the Central Government to double the ceiling on levy of income tax for individuals to Rs. 5 lakh from the existing level.
In a memorandum submitted to the Central Government, FATIA president N. Sivanesan said those who earn revenue up to Rs. 5 lakh ought to be completely exempted from paying income tax. Likewise, the rate of income tax must not exceed 10 per cent for those earning annual salary ranging from Rs. 5 lakh to Rs. 10 lakh and 15 per cent beyond the level.
To encourage savings, investments under Section 80 (C) provision must be doubled to Rs. 3 lakh from the existing level, Mr. Sivanesan said in his memorandum addressed to the Union Finance Minister Arun Jaitley. Likewise, the practice of 10 per cent tax deduction at source carried out for interest exceeding Rs. 10,000 accruing from bank investments must be dispensed with. The interest ceiling must be fixed to Rs. 25,000. Similarly, interest on gold bonds must be increased from the existing 2.75 per cent to 5 per cent, alongside exempting it from income tax.
The other demands included 50 per cent subsidy for purchase of non-conventional energy generating equipment, pension scheme for business community as in Kerala, and substantial reduction in excise and service tax levied on various products.
