Existing system of collection of income tax from the employees is cumbersome.As a result of which most of the employees evade tax payment on one or the other pretext. I have some suggestions to simplify the tax deduction from employees. a) Deposits as GPF/Insurance etc. upto Rs.2.00 Lakh be exempted from tax. b) After deduction of deposits from gross salary, net income of Rs.3.00 Lakh be exempted from tax. c) Income from Rs.3.0 Lakh to 10.0 Lakh be taxed @ 5%, and deducted at source. d) Income from Rs.10.0 Lakh to Rs.15.00 Lakh betaxed @ 10% , and deduction at source. e) Income from Rs.15.0 Lakh and above be taxed @20%, and deducted at source. f) Holding of PAN card should be compulsory for employees whether falling in tax zone or not.
