Points to be considered by the respective Finance Minister before introducing Tax Reforms in 2011. 1) I am completely against EET on PPF and EPF i.e. payment of tax at the time of receipt of PPF/EPF money at the end of 15 years / on retirement. It is counter productive to save and then be taxed on a higher amount in the year of receipt of the payment. Also it is unfair to tax the capital on which a retired person is going to survive on. 2) Long term capital gains should also not be taxed like before since there has to be some encouragement for long-term investors who add stability to the stock market. Also it hits the retired person the most when he liquidates his shares to take care of his day-to-day needs. 3) Special care should be taken for the retired and salaried middle class person while approving the Tax reforms and they should be given the maximum thought in these times of supper inflation and hardships. 4) TDS on income earned from investments like RBI bonds and other such investments should be removed since it is very tedious and time consuming for a retired person or even a younger person to get refund from the IT dept.
I really hope that the finance minister finds time to read this and finds a way to make life a little more bearable for the retired and salaried middle class who forms the real backbone of our economy.
