Budget 1955-56: The budget that introduced different tax slabs for married and unmarried Indians

Union Budget 2021 is just around the corner and Finance Minister Nirmala Sitharaman recently stated that this year’s Union Budget will be one the likes of which Indians haven’t been seen in over 100 years.

Notably, for the first time since independence, the budget papers will not be printed in the wake of the ongoing coronavirus pandemic. The Union Budget 2021 is going to be completely paperless.

Over the years there have been several changes brought in by the finance ministers. But did you know that the 1955-56 Union Budget presented by the then Finance Minister had proposed a highly significant income tax change depending on the marital status of individuals?

In this budget, the government proposed the idea of having different tax-exemption limits for married and unmarried individuals. The move was part of the initiative to create a suitable scheme of family allowances.

Finance Minister C D Deshmukh in his speech said, “In accordance with the recommendations of the Commission, the present tax-exempt slab of Rs 1,500 is being raised to Rs 2,000 for married persons and reduced to Rs 1,000 for unmarried persons. This is the first move in the direction of evolving a suitable scheme of family allowances, which the Commission have suggested for implementation. The net loss of revenue is estimated at Rs 90 lakhs.”