HC Deb 02 July 1923 vol 166 c4
3. Lieut. - Colonel HOWARD - BURY

asked the Under-Secretary of State for India whether he is aware that Income Tax is charged on British soldiers serving in India at the rate of 5 pies on every rupee they earn, including marriage allowance, and that the more children he has the more Income Tax he has to pay; and will he make representations to the Government of India to fix the Income Tax payable by the British soldier in India on the same basis as is charged in this country and remove what is looked upon as a real grievance by the British soldiers there?

Earl WINTERTON

When the total income is below Rs. 2,000 per annum (say £133) no Income Tax is payable. From Rs. 2,000 to Rs. 5,000 the rate is 5 pies in the rupee. Marriage allowances in India are included in income for the purpose of assessment of tax. This is also the case at home; but the Indian Income Tax system differs fundamentally from that of the United Kingdom and contains no provision for personal or family reliefs. The introduction of the system now in force in this country would involve a revision of the principles on which Indian Income Tax is levied. My Noble Friend will, however, be glad to send a copy of this question and answer to the Government of India for their consideration.