When the IT rules for exemptions were being formulated for exemptions like transport allowance and medical allowance, fuel prices were something like 25 Rs/ltr of petrol and medicines related to heart diseases were much cheaper.
But with prices increasing by 300-400% in the current scenario, I wonder what good are these exemptions. Should not the travel allowance go up from 800 to 2000 per month and medical allowance go up atleast to 30, 000.
I believe the same logic should apply to school fees as well which considers very low amount of exemption. The cost of education even in a decent school for primary school kids is no less than 25,000 per year. So I wonder how would 100-200 rs exemption of 90's hold good in 2011.
How do we as citizens push the slumber and inefficient governance of current political parties and bring about changes and reforms in the tax structure?
CAclubindia
