RBI governor bats for raising income tax exemption limit
Advertisement
Advertisement
In what may sound as music to your ears, the Reserve Bank of India (“Remember, the government increased the limit for tax benefit in savings by Rs 50,000 in the last Budget. The question is — is there room for more, primarily because the real tax benefit has fallen over time because the limit was at Rs 1 lakh for a long time? Maybe, what we have to do is increase that,” said Rajan.
Referring to inflation, the RBI governor said, “It is actually easier for us since we are not fighting
It is pertinent to mention here that the rate of savings in the country has declined to 30% from a high of 36.9% in FY 2007-08.
Rajan also said that the RBI would prefer fiscal consolidation and a check on mis-targeted subsidies. "A movement of spending from mis-targeted or poorly targeted subsidies towards more capital investment would be a good move," he said. However, he further clarified that the RBI does not oppose subsidies and there are certain weaker sections of the society, which deserve these subsidies.
Advertisement
Advertisement
- Stock markets stage strong rebound after 4 days of slump; Sensex rallies 599 pts
- Sustainable Transportation Alternatives
- 10 Foods you should avoid eating when in stress
- 8 Lesser-known places to visit near Nainital
- World Liver Day 2024: 10 Foods that are necessary for a healthy liver