That less than 2% of all taxes earned by Govt is from individual tax payers (like salaried employees).
Rest all comes from Corporates etc.
This being the case its astounding the amount of time people like us (salaried, professionals etc.) waste in compiling tax returns, investing in tax saving measures AND an army of govt employees who process these returns.
COMMON SENSE TELLS ME that either individual tax itself should be ABOLISHED or they should pay a flat tax of 20% or at least NO NEED TO FILE RETURNS unless there is a refund case.
But such common sense is RARE among govt bureaucrats and finance ministers.
For salaried persons filling IT return are useless and Cumbersome, their IT is deducted at sources. Suppose, despite of IT deduction at source, you don't get Form-16 from employer, how do you file return in time?
Fundamentals- Business in India 1. Selling Aloo Paratha- Rs.4/- per piece(Profit 100% i.e. Rs.2/-per piece as cost is Rs.2/-) Seller's number in India- In millions- Cooked food business 2.Selling Grocery items(toothpaste etc)- Profit 20%( Rs4/- on MRP. of Rs20/-). Seller's number in India- In thousands 3.Selling 1000 sq feet flat by builder- sale price Rs. 25 lakh(@2500/-per sft), Construction cost(Rs. 10 lakh@ Rs. 1000/-per sft) - Profit 150% i.e Rs. 15 lakhs on sale of every flat in 20 months period-Fastest growing business. Fresh MBAs kindly think for this business. seller's number in India - Few Hundreds 4. Selling Medicines- Retail profit 30% to 50%, Drug manufacturer- Sale Profit 100% to 200% - Seller's number in India- In Millions(retailer) & Few thousands(Manufacturer) 5. Selling ornaments - Hallmark gold 20%, Diamonds- Cannot be said as another seller do not buy it and its purity is not standardized 6. Selling software business- 200% to 500%(Investment- salary of employee,rent of office and electricity, internet bill
