Usurious Taxes

An officer drawing a gross salary of Rs 200,000 per annum. His tax liability works out to about Rs 53,000. The maximum that he can save under the rules is Rs 60,000, the qualifying deduction at the rate of 20 per cent of above is Rs 12,000. Net left with him after saving plus taxes would be about Rs 99,000 7. Out of this residue he has to make provision for various loans installments, interest viz. Thus out of a gross income of Rs 2 lakh, the officer is left with just Rs 79,000 only, which is less than 40 per cent of his gross earnings. Taxation is the process of pauperisation of an officer. Tax liability of Rs 53,000 on an income return of Rs 20,0000 is indeed usurious. DDA allotted flats for Rs 53,000 on hire purchase basis in the 1970's. Can some financial wizard throw light on how can an officer under such predicament live gracefully and balance the budget. The CII has rightly pointed out that the maximum marginal rate of IT should be brought down to 35 per cent over Rs 3 lakhs, as against Rs 1.20 lakh at present.