Wednesday, March 10, 2010

The Mysteries of Income Tax

There is one mystery under the Income tax that I am unable to justify. Well there are so many mysteries within the entire concept of Tax that are hard for us to understand but still there are some things that we ought to understand if we want to save tax. Almost everyone who pays tax keeps an eye on the tax brackets, the amount of tax he/she needs to pay and the different ways which could help him save tax. One thing that I cannot understand or which I cannot digest is the Tax exemption range. The current exempted amount is 1.60 Lakhs for men, 1.90 lakhs for women and 2.10 or 2.20 for senior citizens. My concern is regarding the difference in values for men and women.

I am of the opinion that in most cases where a women is employed, her salary is the second salary in the house. This case should hold true for 90-95% cases. So I cannot understand the concept behind keeping the exempted value higher than those for men. Infact if I were to have a say I would have proposed otherwise. I do not know what the tax pundits thought when they put things into shape neither I know what is the take of the people who work in the same domain but I am unable to justify this difference.

I may have crossed the line here and commented on a totally alien subject but this concept of tax has been all over my mind for sometime now and I was unable to find a solution or justification for the same. So if by any chance any one who is reading this blog has any sort of answer that could me help solve the so called mysteries that I see in tax bracket demarcations is welcome to post his answers and help me understand things. Till then I will keep searching for answers.

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