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There is a very strong feeling among all the Pensioners throughout the country that pension is to be exempted from income tax for the following reasons
Supremecourt time and again declared in various judgements that pension is akin to property rights
NDA government led by Shri Modiji abolished wealth tax in 2015-16 budget foregoing more than 1,000 crore rupees to the exchequer. Earlier it was only 1% above Rs.30 lakhs.
In 2017-18 budget income tax to corporates was reduced from 30% - 25% whose turnover was less than Rs. 50 crore. By this way Government lost a revenue of Rs.7000 crores. It is proposed to increase it to Rs.250 crores. It was told that it was done with a view to increase the employment generation.
Total pension expenditure for the Central government in 2017-18 was Rs.1,31,201 crores which include other retirement benefits also. Actual pension expenditure might be Rs.80,000 crores. On an average if 10 percent is taken if the government abolishes tax on pension the government may forego only Rs.8000 crores.
Pension amount is spent on consumer goods which generates demand and inturn helps for more production and generate more employment.
Savings of pensioners in banks and post offices helps investment for the industries which inturn helps employment generation.
If NDA government abolish income tax on pension it shall earn the goodwill of nearly 15 crore people consisting pensioners and their family members.
We request serious consideration of the above proposal.
P Gangadhara Rao,
GS, AIBSNLPWA Bangalore.
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There is a very strong feeling among all the Pensioners throughout the country that pension is to be exempted from income tax for the following reasons
Supremecourt time and again declared in various judgements that pension is akin to property rights
NDA government led by Shri Modiji abolished wealth tax in 2015-16 budget foregoing more than 1,000 crore rupees to the exchequer. Earlier it was only 1% above Rs.30 lakhs.
In 2017-18 budget income tax to corporates was reduced from 30% - 25% whose turnover was less than Rs. 50 crore. By this way Government lost a revenue of Rs.7000 crores. It is proposed to increase it to Rs.250 crores. It was told that it was done with a view to increase the employment generation.
Total pension expenditure for the Central government in 2017-18 was Rs.1,31,201 crores which include other retirement benefits also. Actual pension expenditure might be Rs.80,000 crores. On an average if 10 percent is taken if the government abolishes tax on pension the government may forego only Rs.8000 crores.
Pension amount is spent on consumer goods which generates demand and inturn helps for more production and generate more employment.
Savings of pensioners in banks and post offices helps investment for the industries which inturn helps employment generation.
If NDA government abolish income tax on pension it shall earn the goodwill of nearly 15 crore people consisting pensioners and their family members.
We request serious consideration of the above proposal.
P Gangadhara Rao,
GS, AIBSNLPWA Bangalore.