Date:25/02/2007 URL: http://www.thehindubusinessline.com/2007/02/25/stories/2007022502601800.htm

Back Differential tax slabs for corporates

It is time now to bring in differential tax slabs for corporates as is done for individuals. It may not be appropriate to have uniform tax slabs for corporates and the Government should encourage small and medium scale industries to expand by appropriate tax structure. Similarly, large corporates should be encouraged with tax sops for their new units set up in Tier II cities and smaller towns. Government should exempt IT/ITES companies from corporate tax for those who spend substantial amount in developing their own residential township for their employees. This would also avoid unrealistic real estate prices in cities that results in inflation rise. The Government should reward people from salaried class who sincerely pay taxes and encourage them by increasing the savings limit. Government should exempt money spent on medical treatment for the family as health spend is on the rise. We should offer parents exemption on their spend on education. The government should not tax senior citizens who earn less than Rs 3 lakh per annum. TDS limit needs to be different for senior citizens.

Suresh R, Bangalore