Kindly Make things simple. There are too many factors to calculate tax. Makes things confusing.
1. Increase the limit to 10 lakhs. 2. Filing should not be compulsary for those who earn less than 10 lakhs per year. 3. There should not be any benefit on the basis of savings. (Those who could not save anything should not be treated as traitors).
Have only one tax system. Remove all taxes on commodities.
Flat Income Tax rate of 10%: I think you are trying to implement it this time. This is a step in right direction. This will free govt machinery who do all the calculations and monitoring so that everyone pay taxes in time. Calculation of 10% is simple- everyone can file it easily, even villagers. Also more and more people will try to get as much benefit as possible of declaring white money as it will not also pinch them. Black money economy will reverse in India and in the next 5 years much of white money will come and compensate any revenues losses.
Dear Mr Pranab Now that the Perquisites have become taxable in the hands of the Employee, the Limit of ZSection 80C should be increased( so also the deposits in PPF) total to be Rs 3,00,000/- so that people can save more.
