Which of the following is not a recommendation of the task force on direct taxes under the chairm-anship of Dr. Vijay L. Kelkar in the year 2002?
✓ Correct answer: b) Increase in the exemption limit of personal income to Rs. 1.20 lakh for widows
ExplanationThe Kelkar Committee Report (2002) did not recommend raising the personal income tax exemption limit specifically for widows to Rs. 1.20 lakh.Instead, the report focused on simplifying the tax system and broadening the tax base.Key recommendations included:Abolition of Wealth Tax to streamline the tax structure.Elimination of standard deduction for salaried employees to simplify personal income tax calculations.Exemption from tax on dividends and capital gains from listed equities to encourage market participation.The report emphasized promoting economic grow-th by re- ducing distortions in the tax system and encouraging compliance.221
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