The best is abolition of Income tax. Next best is abolition of income tax for individuals. Next best is having a 5% uniform tax for Rs.10 Lakhs per annum and above. The Limit of Rs.10 lakh per annum shall be subject for upward movement based on review every two years. If these IT changes are not possible, it would be good if slabs are changed to 3 to 5/ 5 to 10 / 10 to 15/ and >25 lakhs with tax liability of 2%/ 5%/8%/12% and 15%. This would result in best tax compliance and more disposable incomes both for 5/15/25 lakh earners and all business/industry and service establishments and corporate. This if not immediately, in about 3 to 5 years time will boom the welfare of the country that is very high growth of economy (9% ), great surge of consumer lead growth across all sectors, low interest rates regime, virtually increase in all kinds of indirect taxes (individual related to business transactions relate such as excise etc) and thus employment and livelihoods to all. As of today total tax payers in India are about 3.40 million approximately. A rough estimate suggests that the changes in IT slabs and rates as stated above would lead to a tax collection of about Rs.1000000 (One million crore) as against present (3 4 = Rs.8 lakhs crore = Individual Corporates etc).
Re: Income tax change:Slabs and Tax rates
by sathyam guda on Feb 10, 2010 01:08 PM Permalink
Tax payers are 31.4 million (above 3 crore. Wrongly put in my above message as 3.4 millon
