With rising inflation, the tax slabs should start at Rs.3 lacs and be taxed at 10% upto 5 lacs and at 20% thereafter. Let deductions under Section 88 be increased to Rs.2 lacs and interest from Bank deposits upto Rs.25000/- be made tax exempt. This would be a bold step in tax reforms set up.
Richer class enjoy not only exemptions available to middle class, but earn tax free dividend, lower capital gains tax and advantage of host of tax benefits to the companies. For corporates,reduce rate to 20% and remove all incentives. For others reduce the threshold to Rs 2.0 lacs to senior citizen, above 60 years, women 1.75 lacs and Rs 1.5 lacs to others.
RE:Bring equity in taxation
by Karthick Devarajan on Feb 19, 2007 04:47 PM Permalink
Brilliant thought! I think FM will raise the tax ceiling to 1.50 Lakhs this time.
When the average monthly expenditure moves upwards, there should be an increase inthe limit. On an average monthly expenses comes to atleast 10k to people like who live in metro areas like cochin. Life will turn to even more diffcult due to the rise of econmic growth and price hikes. The ideal way should be to categorise the tax limit between metro and non-metro and then move the limit up in metros and sub-metros.
Taxation policy in our country is totally not proper. There is no control on who is paying income tax and who is not. I know so many people who earn more than 3 - 4 lakhs per year, but they dont pay tax. Their consultants are helping them in some way or the other. Nobody checks on them. Even people who file the returns with lot of "Hera-Pheri" get the refund. Why does FM do something about it? I am sure there will be atleast 30 to 40% of wealth in India which is not accounted, and it will be only because of our politicians. So Mr. Finance Minister please do something and give a relieve to middle class.
Prices have gone up for almost everything that u can think of... As we all know that very small % of people actually pay income tax... Why does the government not target people who do not pay taxes...With rising rates the middle class has nothing to save... The past government, the present and future government to come has just one policy... Tax the loyal tax payer & tax him more & more as years go by..in forms of income tax,service tax..vat... What does the government do with all this money!! we all know what the government does with all that money!
Life is really becoming miserable..as the Govt. of India..is in the process of New Pay commission...but I dont feel with the hike of salary it will be nice for general public..Specially for the salaried one. As I feel the slab should be increased and simaltaneously tax rates also need to be reduced.
if some has family like 2 sis, old age father & mother Wife & 2 kids. Can any one guess ? how much should should earn by the ( Me )care taker / person? to look after medicals of all, daily expances , good education of two kids, emmergency expences / needs like weddings in family , visiting native , Anual fastivals etc etc.Its good i have my fathers house ( monthly rent needs to be paid )
emagine, if some one like me who earn 2laks per year & not able to save money for future upon that gets 13000 tax. how will i save this tax 13000.00 i need to invest 65000.00 to save the tax, better i prefer to deduct this amount 13000 in three instalments ( in these months i really suffer due to salary deductions ), but who will listen to this pain which i get.
If the limits can be set as high as Rs. 3 lac hope we shall have good futue of our kids atleast part of education, forget buying new home for my family.
Tax rates should be reduced and tax slabs should be cut. It is mostly the working class which pays up taxes. There should be a buget which focuses on reducing black money.
Whatever the honourable Finance Minister is thinking now, he must keep it in mind that you cannot pressurize only middle class to increase your tax collections! Its becoming like a pressure cooker like situation for them- Rising inflation, interest on home loans etc. He should protect atleast those people who have taken loans 2-5 years ago, to fulfil their dreams of owning a home thinking, that the era of low inflation and interest rates has come to stay in India.
Their dreams are shattered now and they are finding themselves at point of no return!
