"The government may retain the personal income tax at the existing level, but it should at least raise the slabs as the lowest tax bracket kicks in too early," Ernst and Young partner Satya Poddar said.
Currently, the general threshold limit for income tax starts at Rs 1.5 lakh per annum, though for women and senior citizens the limits are Rs 1.8 lakh and Rs 2.25 lakh respectively.
These slabs were also raised in the last Budget (2008-09) by the then Finance Minister P Chidambaram from Rs 1.1 lakh for general assessees, Rs 1.45 lakh for women and Rs 1.85 for senior citizens.
While persons with an income between Rs 1.5 lakh and Rs 3 lakh, have to pay tax at a rate of 10 per cent, income between Rs 3 lakh and Rs 5 lakh at a rate of 20 per cent. People in higher income bracket pay 30 per cent tax.
The government, according to Poddar, need not change the tax rates in view of revenue consideration but resetting of tax slabs was warranted to provide relief to the people at lower spectrum.
