Chennai: The ceiling on Income Tax for salaried persons should be riased upwards to Rs 7.5 lakh with exclusion of fringe benefits like housing, medical and educational facilities, All India Bank Employees'Association ( AIBEA) General Secretary Ch. Venkatachalam said in a letter to Union Finance Minister Arun Jaitley.
The IT rate above Rs 7.5 lakh and upto Rs 12 lakhshall be 10 per cent and above Rs 12 lakh upto Rs 20lakh 20 per cent and Rs 20 lakh and upto Rs 25 lakh it should be 25 per cent, he added.
Venkatachalam said this while submitting suggestions for consideration in next budget being finalized by the Central government.
In the letter to Jaitley, Venkatachalam also said the Income Tax slab for rich individuals should be raised significantly.
"For annual incomes between Rs 25 lakh and Rs 1 crore, tax rate should be 35 per cent and for annual Income above Rs 1 crore, it should be 40 per cent", he said in his letter.
He said Uniform tax rates for goods should be introduced throughout the country and adequate compensation should be paid to the state governments by the Centre for such introduction, for the revenues that would be affected by such move.
On the banking Sector, the AIBEA leader suggested to the minister that the rate of interest on Savings Bank deposits shall have to be revised upwardly by at least 2 basis points and the interest on fixed depoists shall be exempted from the purview of IT.
"The banks should extend agriculture loan at the rate of 2 per cent per annum ( simple) and the banks should extend education loan at concessional rate of interest to the poorer sections of the people, at the rate of 5 per cent per annum (simple) with interest subvention", he said.