Email ID
sonuray6666@gmail.com
Suggestions/Opinions
To
The Hon'ble Finance Minister of India
Ministry of Finance
Government of India
Subject: Request for Tax Relief on Performance-Based Incentive Income for Salaried Employees
Respected Madam/Sir,
I am a salaried employee and wish to bring to your kind attention an issue faced by millions of performance-driven employees across India.
Many organizations provide employees with a fixed annual salary along with performance-linked incentives based on business targets. Employees work diligently to exceed these targets, contributing to higher productivity, increased sales, and economic growth. However, when these incentives increase an employee's annual income, the additional income becomes taxable under the applicable income tax slabs.
This creates a practical dilemma. Employees are encouraged by their organizations to maximize performance, but higher earnings also increase their tax liability. Choosing not to perform is not an option, as it can result in poor performance ratings, loss of incentives, or even termination of employment.
I respectfully request the Government to consider introducing a special tax benefit for genuine performance-linked incentive income. Some possible measures include:
A separate tax deduction for performance incentives.
A concessional tax rate on certified performance-based incentive income.
An annual tax exemption up to a specified limit for such incentives.
A separate tax treatment for incentive income under the Income-tax Act.
Such a reform would encourage productivity, reward merit, improve employee motivation, and ultimately contribute to India's economic growth and higher tax compliance.
I sincerely request the Government to consider this proposal during future Union Budget deliberations.
Thank you for your time and consideration.
Yours faithfully,
Sonu Rai
Gujarat
9911414250
Sonuray6666@gmail.com
The Hon'ble Finance Minister of India
Ministry of Finance
Government of India
Subject: Request for Tax Relief on Performance-Based Incentive Income for Salaried Employees
Respected Madam/Sir,
I am a salaried employee and wish to bring to your kind attention an issue faced by millions of performance-driven employees across India.
Many organizations provide employees with a fixed annual salary along with performance-linked incentives based on business targets. Employees work diligently to exceed these targets, contributing to higher productivity, increased sales, and economic growth. However, when these incentives increase an employee's annual income, the additional income becomes taxable under the applicable income tax slabs.
This creates a practical dilemma. Employees are encouraged by their organizations to maximize performance, but higher earnings also increase their tax liability. Choosing not to perform is not an option, as it can result in poor performance ratings, loss of incentives, or even termination of employment.
I respectfully request the Government to consider introducing a special tax benefit for genuine performance-linked incentive income. Some possible measures include:
A separate tax deduction for performance incentives.
A concessional tax rate on certified performance-based incentive income.
An annual tax exemption up to a specified limit for such incentives.
A separate tax treatment for incentive income under the Income-tax Act.
Such a reform would encourage productivity, reward merit, improve employee motivation, and ultimately contribute to India's economic growth and higher tax compliance.
I sincerely request the Government to consider this proposal during future Union Budget deliberations.
Thank you for your time and consideration.
Yours faithfully,
Sonu Rai
Gujarat
9911414250
Sonuray6666@gmail.com
Mobile No.
9911414250
