HC Deb 31 July 1907 vol 179 cc944-5
SIR SEYMOUR KING (Hull, Central)

To ask the Secretary of State for India whether, in view of the improved condition of the finances in India since the income-tax was introduced, he will consider the advisability of raising the minimum of taxable income from the present low level of 500 rupees, or £33 per annum, to a figure more closely approximating to that fixed in the much richer community of the United Kingdom, viz., £160, or Rs. 2,400; and whether, in any case, the principle of relief to earned small incomes will be introduced and applied in India as in this country.

(Answered by Mr. Secretary Morley.) The minimum of taxable income was raised in March, 1903, from Rs.500 (£33) to Rs.1,000 (£66) a year. The maximum rate of tax is much lower than in the United Kingdom, viz., 6d. in the pound, incomes between Rs.1,000 and Rs.2,000 (£66 and £133) are taxed at 5d. in the pound, and incomes derived from agriculture are exempt. There is no intention of introducing further differentiation.