New Delhi, Dec 29: Dispelling misconceptions that middle class would be hit by the Task Force recommendations on taxes, Vijay Kelkar, advisor to the Finance Minister, said Saturday the tax incidence on various income groups would be "much less and not more" as claimed in certain quarters. Quoting official estimates, Kelkar said that a salaried person earning Rs 80,000 to Rs one lakh would pay Rs 1,224 less as Income Tax while a person earning above Rs one million would pay Rs 69,597 less. The relief to non-salaried tax payers ranges from Rs 382 for an income of Rs 50,000-60,000 to Rs 82,946 for persons earning above Rs one million, he said.

For senior citizens, Kelkar said the benefit ranges from Rs 3,402 for income bracket of Rs 1,50,000-2,00,000 to Rs 77,196 for income above Rs one million.

The Panel has suggested doubling of the Income Tax exemption limit to Rs One million and a two slab Personal Income Tax structure of 20 per cent for income of Rs 1,00,000-4,00,000 and 30 per cent for income beyond Rs 4,00,000. It has also raised the income tax exemption limit to Rs 1,50,000 for senior citizens and widows.
Justifying the rationale behind the abolition of standard deduction for salaried class, Kelkar said a large number of perks are available to salaried employees which are either concessionally treated or fully exempt therby reducing the effective tax burden.

The perks included conveyance allowance, housing, motor car, medical, telephone and leave travel allowance. Bureau Report