As an IT Employee I am paying a tax of around 15000 Per Month which is more than my housing loan repayment EMI and morethan my monthy household expenditure. I know business people who are earning much more paying hardly 10000/- per annum. this is just because as salaried employee there is proof of income and tax is deducted at source itself but for a business people they don't have any income source proof.In addition to this on every daily purchase why I should pay tax again when there is already tax paid at source itself. in that way every salaried person is feeling that he getting squeezed. why don't govt. have a look into this. - Sudhakar
FM should try to give benefits to existing tax payers. For example, those who show their IT returns shoudl get cheaper flight tickets/household items electronics stuff etc. That way those people who dont file incomr tax will be left out. Something liek show your PAN card and get additional 10% off on flight tickets :-)
RE:Give benefits to taxpayers
by prash soni on Feb 19, 2007 03:24 PM Permalink
I agree with virendra's suggestion. also govt. have to increase tax exemption upto 2 lacs, also have to increase rebat limit from 1 lac to 1.75 lacs.. so ppl will do more saving it increase fund. and after tht 20% fix tax should be applied to all. right now no tax on agriculture income. govt. hv to put tax on it if income more then 5 lacs per year.. and it can be used to improve life of poor farmers.. by tht way ppl(specially farmars in vidarbha) can stop suicide
Yes, for the salaried class, the taxable limit should be raised to Rs 3 Lakhs and then 25% uniform.Retired govt employees should be tax exempt upto 5 lakhs.
Actual tax collections have improved but still a lot of people 'get away'
The exemption limit should be increased to 1.50 lacs considering the cost of living and other necessities in the society. Also, the gender discrimination must be stopped.
RE:Increase the Limit of exemption
by Rothin Bose on Feb 19, 2007 02:47 PM Permalink
I agree with Mr. Ramchandran and would like to add that the exemption limit should be in fact incrased to Rs.2 lakh taking into account inflation as well. Exemption limit for married women be reduced to Rs.1 lakh to compensate. This would help single income group families in a big way.
I feel that exemption limit should be Rs.2 lacs and all exemption scheme should be withdrawn & Govt. should charges income tax flat @ 10% on income excesding Rs.2 lacs PA.
RE:Reduction in tax rate slab
by Divakar Hombalgatti on Feb 19, 2007 02:54 PM Permalink
I agree with this suggestion. If the exemption is increased to 2 lacs and 10% flat income tax is collected judiciously without any reservations, we will definitely have a better situation. Key is - tax for everyone, farmer, minister, employee, businessman, doctor, lawyer, hindu, muslim, scheduled caste, upper caste.... anybody who earns more than 2 lacs should be made to pay 10% tax.
Income Tax exemption limit should be increased to Rs. 4,00,000. A flat rate of 30% tax should be calculated on the taxable income which exceeds Rs.4,00,000. Exemption under chapter VIA -u/s 80C should be scrapped. Exemption for conveyance/transportation allowance Rs. 800 PM and HRA Exemption should be scrapped.
RE:Increasing the Exemption Limit & Reducing the Tax Rate,
by vitthal dehadray on Feb 19, 2007 02:41 PM Permalink
There is no point in scrapping HRA exmption,as this is a exemeption allowed to homeless who can not , in thier present conditions, afford house. When there are special concessions available to house-owners in the form of deduction of interest, etc. there is absolutly no retionale for screpping HRA exmeption.
33% tax is just too much. It should be reduced to 25%. Also the gender discrimination must stop - both men and women should get equal treatment from the Government. Does the Government want to say that I have committed a mistake by having born as a boy? The tax exemption should be Rs. 1.35 lakh for both men and women. The bias against men must be gone.
RE:RE:Reduce tax rate
by sachin aggarwal on Feb 19, 2007 03:23 PM Permalink
Genter descrimination looks like politics. Why should we pay different taxes depending on gender, religion, caste and all that
The tax collection is for theinterest of the nation and for the bright future and infrastructure - agreed and I support the same. But, there are lot of items to look into: 1) Is the salaried class the only target and the actual IT payee? I could see the tax man not at all bothered about real estate, contractors, other business class people who are only evading the tax (sorry, not all in this group). 2) In a city like Bangalore, 75 to 80% of the earnings go as expenses and the living cost is so high that what ever you earn as salaries is not helping you in saving! The people here also pay the same tax as the person earning the same salary in a small town where his/her expenses are minimal! Is this justified? 3) Sec 80C is not enough to save the tax. There are more than 10 options under this! Even the home loan principal amount falls under this !!!
Either the tax rates should be reduced or the slabs should be high enough so that the common man will not suffer from tax - Let him/her not feel for NOT Paying the tax
RE:Should tax slabs and rates be cut - Dont deny the common Man!!!
by sudhir jagannath on Feb 19, 2007 02:35 PM Permalink
This is a good reasoning. Bangalore is really expensive and difficult to save when the spending itself is more.
RE:RE:Should tax slabs and rates be cut - Dont deny the common Man!!!
by veneet kumar jain on Feb 19, 2007 02:40 PM Permalink
veneet jain:- as per my suggestion credit of service tax must be given to individual while computing income tax and also either tax rate to be reduce or deduction u/s 80c must be increase
RE:RE:Should tax slabs and rates be cut - Dont deny the common Man!!!
by nagesh nagaraju on Feb 19, 2007 02:48 PM Permalink
Not only banglore, cities like delhi, madras, hyderbad, noida etc., to be included,
As suggested, FM should think that the tax slabs are made when the earnings and cost of living was very less in comparison to today's life.
If see the inflation rate reached at 6.73, if you see the Tax slab it as old, of inflation rate 2.0-3.0. Therefore I request honorable FM to look on this issue and help salaried people at least live normal life by changing the slabs and reducing the rate
Tax should be calculated based on Salary, Age, Number of Dependents, number of earning members etc. It is not logical to charge same tax where there re 3 earning menmbers in a family of 5 and 1 earning member in a family of 5.
Government should definately ease tax norms and if they want to continue the same tax slabs then Education and Health facility shoul be made free.
