Taxation of Income-Some Suggestions for Reform

Some Suggestions for Reform M P Chitale Enhancement of the limit of tax-free income from safe and non-risk bearing investments does not result in accretion to savings hut only in diversion of existing investment in industry and business. Income-tax payers who, since they enjoy relatively large incomes, are capable of taking some risk are offered rwards for taking no risk and keeping away from any venturesome activities. Thus this type of tax relief is actually prejudicial to economic growth and social justice.