Tax Slab for F.y 2014-15 Suggested by ICAI

In line with the recommendations of the Standing Committee on Finance on DTC and for the reasons mentioned therein, the following tax slabs are suggested:

Slab (lakhs) Tax rate
0-3 Nil
3-10 10%
10-20 20%
beyond 20 30%

Issue/Justification:

With regard to rates of taxation for individual and HUFs, the Parliamentary Standing Committee on Direct Taxes Code had observed the following:
“When the present Income Tax Act was enacted way back in 1961, the
per capita income of this country was extremely low. During the course of
five decades of the working of the Income Tax Act, the national per
capita income has increased multifold, widening the scope for taxing various
incomes. At the same time, the absolute number of poor has also
increased manifold, warranting much larger government outlays. The
aspirations of the people for better living standards and their expectation
from government to deliver the same has also simultaneously increased. It
is therefore, necessary that these challenges in a growing economy and
a developing society are kept in mind, while formulating a new Direct Tax
Law.