Petition filed in The Supreme Court to increase the basic exemption limit


Petition Document link:

https://drive.google.com/file/d/1RNnKQMONun5bJ39LKMetZ-vgF_SSZAhR/view?usp=drivesdk


summary:

 Petition filed in The Supreme Court to increase the basic exemption limit under The Income Tax to Rs. 8 Lakhs.

Why Rs. 8 Lakhs come into picture? So let's understand the Background of this case.

Economically weaker section (EWS): As per the 103rd amendment of the constitution of India, a person shall be classified under Economically weaker section (EWS), if all the following conditions are satisfied: a) Candidate's annual family income must be less than Rs. 8 lakhs per annum. b) Their family must not own more than 5 acres of agriculture land. c) The residential flat area should be below 1000 sq ft. or residential plot less than 100 sq. yards in the notified Municipalities, or residential plot less than 200 sq. yards in the areas other than the notified Municipalities.
Now let's us understand what was the purpose of categorising some people as EWS. The Government in 2019 introduced 10% reservations in government jobs and educational institutions for some people under the general category. This particular category was named as EWS (As defined above).
According to the petition filed, when Government fixed income criteria that a family whose having income upto the limit of Rs.7,99,999/- as EWS family, the government should not be permitted to collect Income tax from individual having income upto limit of Rs.7,99,999/-. Note - The basic exemption limit of Rs. 2.5 Lakhs was introduced in 2017-18 and has since then remained unchanged with a few additional concessions provided like rebate, alternate tax scheme etc. The petition is pending in the court for hearing.

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