The process of collection/deduction of tax from the salary of employees is quite cumbersome.As a result of which most of the employees evade tax payment. I have suggestions: Instead of existing system of computing income tax on salary, let there be a simple method. a) Net Income upto 3.00 Lakh exempted from tax. b) GPF/Insurance etc. deductions upto Rs.1.50 Lakh exempted from tax. b) Income from 3 Lakh to 10 Lakh to be taxed @ 5% of salary and deduction at source. c) Income above Rs.7 Lakh to be taxed @ 10% and deduction at source. d) All the employees whether falling in tax zone or not, should have PAN card compulsorily.
