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  • Category: Miscellaneous

    Can a taxpayer be economically weak? Can an economically weak pay income tax?

    I really wonder how the eligibility criteria were decided by the government while deciding 10 percent reservation for the upper-class society.

    Can a taxpayer be economically weak, and can an economically weak person pay income tax?

    It was said that an annual income of Rs. 8 Lac and below is entitled to avail reservation. If the annual income is Rs.8 Lac, a sum of Rs. 72000/- will be levied as income tax. Is it an economically weak amount? Is it not a sound economy?

    What are your views and comments?
  • #658000
    Though the data of income of the people in our country is not exactly known but after the digital governance setting in some rough estimates are available through surveys, census and other research sources. Based on that there are some approximations regarding the income of various categories of people from poor to rich.

    A family ( not individual ) having annual income less than Rs 1 lakh is considered poor while the family having annual income of Rs 1 - 2 lakh is lower income group. The next band is Rs 2 - 5 lakhs per annum corresponding to middle class. After Rs 5 lakhs per annum it is upper income group and there after from a boundary which is not clearly defined even after so many surveys, the rich income starts followed by super rich category.

    With more data coming in these limits will be refined in future by the survey agencies and concerned Govt departments.

    Govt authorities must have done a lot of data assimilation before announcing the limit of Rs 8 lakhs and there might be some political considerations also behind that.

    Knowledge is power.

  • #658057
    There is no rule that the eligibility income limit must be less than the minimum mentioned in the income tax. They are not considering all the people who are getting less than 2.5 lakhs per annum and giving them all the benefits. For example, a person getting less than one lakh only is allowed for white card and rice at subsidy price. Why I mentioned this is the income limits for each programme is different. So, in this case, they have decided this as Rs. 8 Lakhs for this scheme. It is required also. So I think linking income tax limit and the financial limit for the eligibility to get the reservation is not correct.
    always confident

  • #658067
    Dr. Rao,
    You have not understood my thread. Economical weakness and taxpaying has the direct bearing. How can a guy who cannot feed himself pay tax? Will a taxpaying individual remain hungry without food?

    No life without Sun

  • #658086
    The person who has the average salary of greater than 8 lacs cannot be economically weak, he should pay tax as per the norms. The taxpayer can be economically weak buy is above the average poverty line decided by the government. There are many assumptions on the basis of data but we have to follow the government rules in any case.

    " It is better to be hated for what you are than to be loved for what you are not" ... Andre Gide

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