Raise income tax ceiling to Rs 7.5 lakhs, say bank staff

The IT rate above Rs 7.5 lakh and upto Rs 12 lakh shall be 10 per cent and above Rs 12 lakh up to Rs 20 lakh 20 per cent and Rs 20 lakh and upto Rs 25 lakh it should be 25 per cent, All India Bank Employees’ Association (AIBEA) General Secretary Ch.Venkatachalam said while submitting suggestions for consideration in next budget being finalised by the Central government. 

In a letter to Finance Minister Arun Jaitley, Venkatachalam 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 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 deposits 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.