In view of fast growing service sector, it is seriously to be considered to enhance thresh-hold limit from the existing Rs.10 lakhs to minimum Rs.25 lakhs. It is because of speedy growth in inflation. Over a period of one year it is observed that prevailing market rates of all items including all types of foodgrains, various other products and services have considerably gone up. The overall rate of increase is significant. The value of rupee is decreased. On account of such natural growth in the prevailing market rates, even small service providers who were in the initial bracket of Rs.10 lakhs were forced to fall in the higher brackets, keeping the same level of net incomes or even most of the times lesser incomes due to deterioration in economy due to present severe recession. However in case of certain number of small service providers, the total collections were increased but due to stiff and cut throat competition and due to various reasons including the effect of Globalisation, the net incomes were steeply fallen and these small service providers are severely affected.
On account of the above reasons, it is seriously felt as it is very necessary to increase the basic exemption limit from Rs.10 lakhs to at least Rs.25 lakhs, which should be carefully considered for proper implementation.
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