Income tax: Petition for no income tax for income below Rs.8 lakh… Court notices to Central Govt.

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Income tax: Petition for no income tax for income below Rs.8 lakh… Court notices to Central Govt.

 

 

Income tax – A DMK party member has filed a petition to remove income tax on income below Rs.8 lakh.  The court received this petition and issued a notice to the central government.

 According to the Income Tax Act, those whose annual income exceeds Rs.2,50,000 have to pay income tax.  The Supreme Court has recently upheld the EWS reservation given by the central government by identifying those with an annual income of less than Rs.8,00,000 as economically backward groups.  There have been arguments for a long time that on the one hand the central government is identifying those with an annual income of less than Rs.8,00,000 as economically backward and on the other hand collecting taxes from those with an annual income of more than Rs.2,50,000.  That is why there are always demands to increase the income tax limit.

 Dravida Munnetra Kazhagam’s Kunnoor Shinivasan has filed a petition in the Madurai Bench of the Madras High Court mentioning exactly this issue.  The petition referred to the recent judgment of the Supreme Court regarding the reservation of economically backward classes.  In light of the Supreme Court ruling that families with an annual income of less than Rs 8 lakh are eligible for EWS reservation, Shinivasan argued that there is no rationale behind the government collecting income tax from people earning more than Rs 2.5 lakh per annum.

He referred to the recent ruling of the Supreme Court upholding the validity of the 103rd Amendment in the case of the Janhit Abhiyan vs. Union of India. The ruling allowed the government to provide a 10 per cent reservation quota to the EWS. Those with gross income up to the limit of Rs 7,99,999 per family are eligible under this WS category. Srinivasan argues that the government should not allow the government to collect income tax from those with income up to Rs 8 lakh and they may be financially weak. He said in his petition that the government had determined the tax slab by paragraph A in Part 1 of the First Schedule of Economic Act, 2022, which violates Article 14, 15, 16, 21 and 265 of the Constitution of India. Four of these five articles are related to the fundamental rights of Indian citizens. This means that the central government is collecting taxes from persons with annual income of over Rs 2.50 lakh in violation of the basic rights of the Supreme Court. The Madurai Bench, which received the Srinivasan petition, issued notices to the central government on the same issue. The bench, headed by judges R Mahadevan and J. Satyanarayana Prasad, issued notices to the Union Ministry of Justice, the Ministry of Justice and the Finance Department and adjourned the hearing for two weeks.

1 Comment

  1. November 30, 2022
    ARVIND KUMAR SAXENA

    Income for income tax purposes Rs.250000 on individual basis whereas Rs.800000 family income for the purpose of economically backward

    Reply

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