Exemption Limit and Personal Income Tax

Exemption Limit and Personal Income Tax Pulin B Nayak Pawan K Aggarwal R H DHOLAKIA (EPW, November 25, 1989) has sharply criticised our paper published in the EPW of July 8, 1989. He raises questions that have to do with (i) the methodology of our study, (ii) choice of the sample, (iii) composition of the sample, (iv) low R2 of the regression equations, and (v) the exclusion in the analysis of other indicators such as the extent of inequality of personal income in the economy.