People deserve this govt for they have voted it back to power. Ever since UPA-Vq took over, they have been very much against the Middle Class and the Salaried Classes. The section that is most vulberable.
This article seems to be a favourite with rediff as it makes an appearance every few days. This view has time and again been proved wrong and nonsensical, yet rediff loves bringing it up. The Govt has categorically (as of now) abolished FBT. PERIOD. These so called learned tax practioners are out to scare the common people to makea fast buck....Rediff stop uploading this nonsense article every few days to retain your credibility.
finally govt give some relief to coporate sector during this crsis time . some extent it will save company tax burden.but at the same the time Govt has not given any relief to employee specially in case of perqusite part.
In my view the author hasnt understood the crux of FBT abolishment. Earlier the employer had to pay roughly 6% (20% of 30%) of the perquisites given to the employee as Fringe Benefit Tax. Now they need not. This is a small loss to the exchequer. The employees will continue to get the Perks but nobody will be taxed for those perquisites now. The FinMin will come out with what are perquisites and what are not shortly. Mostly subsidised loans, car lease etc will not be categorized as perks now. So they will be taxed at the hands of the employee. Others like food vouchers, medical reimbursement, telephone etc will remain as perks and wont be taxed at all.
Agreed that the individual needs to pay tax on the difference amount between the cost at whihc the stock option is excercised and the market value..what happens if the price of the share goes below the allotment price in the same finnacial year??? will the govt. return the tax amount??? An indidvidual earning a higher salry needs to pay tax and maybe in the proportionately ,as suggested by one of the bloggers , but what happens if the person loses his job ?? most of the high earners slog it out in"private orgainstions" w/o any job security , will the governement take care of the individual , if he has no incoome , if the individual has paid taxes for the past 10 years or more?? Case in point - SATYAM - what hapened to the employees who had been paying taxes at the highest tax bracket for all these years??? some of them mus tbe in a pathetic state today?? soes he receive any support for having paid his taxes for all these years??? and the govenement spends 20000 crores to bail out AIR INDIA!!!! What is the benefits that is acruing to a tax payer today?? No guarantee in his "bad days" , he still has to pay toll to use the bridges and the roads , has to wait in queue and let a politician pass by in heavy traffic!!! Is sworn at by the police and is treated as a criminal during routine security checks , your PAN card amounts to nothing and the fact that you are a tax payer cuts no ice with governement authorities who demand bribe eveytime you go to them for any requirement!!!
Re: What if????
by Sabki Lenewala on Aug 11, 2009 02:00 PM
Govt. should hand out "HVTP" cards, HVTP is High Value Tax Payer. Anyone falling in that category should get priority in all Govt related issues like (Queuing for passports, getting passports, reduced tolls, etc. etc.)
HVTPs should get similar privileges as some of the VIPs. this will encourage people to pay more tax.
Re: Re: What if????
by augustine fernandez on Aug 11, 2009 11:08 AM
Short Cut me bole toh " apne yahaan tax denewala bewakoof hai" tax denewalon ki khilli udayee jaathi hai!!
The government needed to taek FBT and not throw away a basically good initiative. What was needed was to differentiate between different fringe benefits based upon their impact on environmental benefits. E.g. Money paid for motor cars,or trvelling should be taxed.But a benefit like a broadband connection at home should be tax free. Travel for business,incl air travel ,hotels should be taxed,whreas telephone bills,internet usage,videoconferencing should be tax free.
