The FM should have considered the no tax limit to all to Rs.2 lakhs to all i.e., individuals, female employees and senior citizens since all are having their own problems of meeting expenses with their income and the slabs of tax might have been fixed at 10% from Rs.2 lakhs to Rs.3 lakhs, 20% from Rs.3 lakhs to Rs.5 lakhs, 30% from Rs.5 lakhs to Rs.10 lakhs, Rs.40% from Rs.10 lakhs to Rs.50 lakhs and Rs.50% over and above Rs.50,00,001. Then only the the middle class and lower middle class single employment families can easily survive and there would be eradication of poverty and minimise the number of crorepathis since the max. tax percentage of 30% is for all over and above Rs.2,50,000/-, thereby the rich are saving Rs.1,50,000 in no tax income, Rs.40,000/- after paying 10% tax, Rs.30,000/- after paying 20% tax, and 70% of their income over and above Rs.2,50,000/- income, thus accumulating Rs.3,95,000/- income after paying tax if one earns Rs.5,00,000/- income in a year. This will accumulate his wealth and year by year it grows to crores. The poor never meet their minimum requirements after paying tax due to raising prices, less savings, unexpected medical, health and other expenses due to unforeseen havoc because political instability, natural disastrous etc. Please think and take proper steps to meet the suggestion if suitable. Sankar
RE:incometax
by Chet on Apr 06, 2008 05:30 PM
Mr. Sankar, why are you recommending for increase in the tax rates? Government is flush with tax amount from all quarters.
Please suggest other options to ease people's problems instead of targetting people who earn more money. There is no easy money in this competitative world for each one of us and paying tax at more than 30% will pinch anyone who works hard to earn more money.
RE:incometax
by Chandra Mohan Singh on Apr 17, 2008 03:20 PM
Don't say - easy money in this competitative world for each one of us, in general. I am working in a college and I know the cheating done by these big earining organization. They are equivalent to many individuals and they are the real one who are not paying the tax. the statement by PRS narayanan is not for people like you. The statement by
RE:incometax
by eswara rao on Apr 17, 2008 05:29 PM
His intension is very good but the example he has given is a little bit confusing. I can suggest a little modification in this IT system to incorporate tax benefit on such expenditure like medical bills of old parents, Dependents etc...
RE:incometax
by preeti on Apr 08, 2008 09:55 AM
PRS NARAYANAN seems to have either communist agenda or bhikari mindset. poora third world mindset of cribbing against rich people.
The rotten minded babudom and politicians out of sheer old habits keep doing same foolish exercises and don't want to let go of rules and policies for their importance,creating complexities,wastage of stationery and harassing tax payers.All this nonsense now must stop.Why there should be so many rules,exemptions and calculations.Simply reduce taxes to 15% and 10% slabs and fix tax exemption limit Rs 3.o lac.Do away with all stupid rules and clauses.Even this small article can give jitters to even educated person.Who are beneficiaries?Corrupt Income tax officials,politicians who organise raids on businessmen and third rate tax conulstants.Latter in many cases are merely pimps.Same is situation of other taxes in india like service tax,excise duty and sales tax etc.India is most taxed country in the world with only Rs 0.27 real worth of goods in hands of consumer for Rs 1 spent.More taxe rules more corruption.More tax rate more evasion.The Income tax act and its rules should be in 3 page each.Period!The return form with tax challan should also be in one page in simple format.Why the hell advnace tax is to be paid?This is like treating tax payers as criminals and that is what they become finally.Why cant I choose my own tax month once a year? Only some concesions to like senior citizens,charity donations,handicapped persons,interest payment on house loans and provident fund deposit should be allowed.Scrap all other provisions and rules.Make it online system and remove staff.
RE:What is the logic of so many rules of income tax
by Kris iyer on Apr 08, 2008 08:39 AM
Countries like Newzealand have reformed their tax systems - meaning simplified tax rules. IndiaForce's suggestion of a lower but uniform rate of tax with simpler slabs have been adopted in Newzealand. It is NOT unkind to suggest that rules are maintained at a complex level in India to aid CORRUPTION. Our politicians and officials are pepetuating this complexity for a reason. They are intelligent in a crooked way. We know that too, because as citizens, we too are crooked in wanting to get the benefit through bribery and corruption. The truth is if you play by the rules, the Income Tax department will put more pressure on you NOT less. They take a perverse delight in persecuting honest citizens. They would quickly settle with you if you appear aggressive and troublesome - another perversion like "pseudo-secularism". That is why I thought the SAMADHAN scheme by the BJP-JDU government struck the right attitude in helping HONESTY.
RE:What is the logic of so many rules of income tax
by vineet sharda on Apr 06, 2008 02:55 PM
I fully agree with u. Govt. & politicians want to harass tax paying citizen. Those who are thriving on black money do not have to pay any tax. Even today; there are bank accounts which do not comply with KYC Scheme.
The Income Tax DEpt. wants to screw people only. Nothing else.
the most attractive scheme of savings was MIS.most of the retired govt servants invested their retirement benifits in it as it was earning a reguar monthly payment besides bnus on maturity. some of the state govts also made it more attractive by introducing lotteries.these facilities have now been withdrawn and it seems to me that the central govvt does not want small savings as a source of revenue.this encourages the retirees to invest in other avenues and lose peace of mind when they r cheated. the central govt must revive the benifits and make the scheme more attractive with retrospective effect. also the ceiling of Rs 15 lacs om scss must b removed.here again by imposing a ceiling the central govt does not appear to want savings. these anomalies may b set right. will this appeal reach the required quarters.
RE:income tax exemptons - MIS scheme and SCSS
by Kris iyer on Apr 08, 2008 08:50 AM
Sri Das is right. I know of pensioners aged 70 and above, who put their savings into Senior Citizen Accounts, which, according to newsreports, was going to be tax-free. But subsequently, my pensioner-relations found out that they would have to produce 15-G or 15-H forms to qualify for tax exemption. Due to old age, some did not realise the position and were pained to find 10% less money in their interest income.
RE:Income Tax Exemption on GPF
by Amitabh on Apr 06, 2008 11:45 AM
GPF not taxable at the time of receipt but if you deposit it in bank and get interest,that interest will be taxable.
