In the absence of any social security in India the system of paying Income tax should be abolished. Citizens in Europe and USA pay high income tax but they get social security and better infrastructre and governance in return. But in India both is absent so where do all these money go.
Tis are exactly the kind of statements that appeared before the last Budget and look what people got. A measly exemption of Rs 10000.00 meaning a tax saving of Rs 10000.00 a year. That was nowhere near to the additional taxes that people had to pay on a host of services.
It would be futile to expect the Govt to be concerned about the plight of Middle Class and salaried class citizens. They are the milking cows for the Govt.
If the Govt is serious, they should make Income Tax dependent on Inflation. That will not be simple, but a mechanism could be worked out.
Also, if the Govt is concerned, it should reduce deficit by stopping corruption. If that is done, there will be sufficient funds available for all the social commitments of the Govt.
Re: Budget: Govt may hike tax exemption limit
by vinod issar on Feb 02, 2011 05:11 PM
Track record of this UPA govt.reflects total insensitivity and indifference towards Sr. Citizen/pensioners,when deducting Income Tax. IT Act recognizes/defines a Sr. Citizen as a person of 65 yrs. and above. My query,to this govt.,is that a govt.employee superannuates at the age of 60yrs. and starts getting his pension,then why is he not treated as sr.citizen for the purpose of IT.If FM is not agreeable to this then Govt.should consider increasing superannuation age to 65yrs.wef the date of implementation of 6th pay commission.I think it is logical,Sir.
Mr CHidambaram's statement that inflation is another kind of tax is real.Retired senior citizens are worst affected by inflation. Even a Govt employee who retried on a pension of Rs 1000pm today gets a pension of Rs 40000pm.Apart from raising tax exemption limit which gives a very small gain, there must be other instruments to put their hard earned money to get tax free income. With current regulations on dividends from MFs, senior citizens are really hard pressed.
Mr CHidambaram's statement that inflation is another kind of tax is real.Retired senior citizens are worst affected by inflation. Even a Govt employee who retried on a pension of Rs 1000pm today gets a pension of Rs 40000pm.Apart from raising tax exemption limit which gives a very small gain, there must be other instruments to put their hard earned money to get tax free income. With current regulations on dividends from MFs, senior citizens are really hard pressed.
Re: S.N.Iyer
by Hebbar R on Feb 02, 2011 12:28 PM
What PC says should not be taken too seriously. He seems to be missing the Finance Ministry asoften he talks about these issues. What did he do as Finance Minister? He bought in a whole lot of new Taxes such as Fringe Benefit Tax, Banking Transaction Tax, Service Tax of a whole lot of new Services (wonder if you can call them Service though) etc. How could one be made to pay a tax on cash withdrawals? May be inflation was lower those days, but he took away people's money by way of taxes.
As Commerce Minister in the past also, he did his bit to create problems for Indian enterprises.
SAME ROUTINE BUDGETS, ANNUAL PARADES, CEREMONIAL ADDRESSES, PARLIAMENT SESSIONS, NATIONAL AWARDS, PARTIES, ETC. BUT NO VISION AND CONCERN FOR THE NATION, SOCIETY AND THE HUMAN SAFETY, SECURITY AND DIGNITY. DESPITE ALL THE HOO-HALLA ABOUT G.D.P AND ECONOMIC PROGRESS ETC. OUR OFFICIAL PER CAPITA INCOME STILL REMAINS AT, ABYSMAL, RS. 42,000/- PER ANNUM ONLY. SIMILARLY, DESPITE ALL TALL CLAIMS ABOUT DEMOCRACY AND FUNDAMENTAL RIGHTS ETC., HARDLY ANYONE IS CAPABLE OF FREELY FILING A SIMPLE F.I.R., LEAVE ALONE JUSTICE WHICH TAKES DECADES TO COME ABOUT.
Keep it up UPA govt. You deserve next term as you have only this option left tolure Indian Voters...I see India a Super Power in next 100000000000000000 Years...Good Luck!!!
Re: Good!!! This is what is only left for Govt. to lure Voters...
by Hari Iyer on Feb 02, 2011 12:56 PM
well said. I liked the 100000000000000000 Years figure.
Considering the pace with which inflation is growing this 10% marginal exemption is like doing charity on Aam Aadmi or common man. Now the tax exemption limit across all strata and gender and age should be made 3.60 lac per-annum.
Re: 10% hike in exemption limit is of no consequence.
by An Indian on Feb 02, 2011 12:08 PM
It actually is 25%. 1.6 lacs per annum to 2.0 lacs per annum
