Noida: With the ongoing slowdown, the Confederation of NCR Residents Welfare Association (CONRWA), on Thursday wrote to Finance Minister Nirmala Sitharaman suggesting reductions in income tax rates and increase of tax slabs for individuals.
It argued that with slowdown in the economy, the purchasing power of commoners have gone down. They should be given relief by reducing individual taxes to allow them to balance the purchasing power.
It further said that it was witnessed that domestic production has increased after the center had announced corporate tax cut. On the same line, tax rate in individual income segment should be cut. It should also consider to increase the tax slabs as it would boost the purchasing power of each individual in the country.
PS Jain, President of the confederation said that exemption should be given in long term capital gains segment. “Currently, it is not,” he added.
He said that there should be uniformity in the time limit for an investment to be considered as long term capital gains as they are not. He said that an investment would currently only be considered a long term investment if the amount of money has been kept for an specified period or for longer duration.
He further stated that it not clear to many individuals which investment would fall under long term capital gains. Due to this, they miss the tax exemption benefit. Considering this, this should be rationalised so that each individual tax payers understand it well.
Copy of the letter was also attached to the office of Prime Minister Narendra Modi.