Income tax rates should be reduced & the slab should be increased. the salaried calss end up paying all there saving in taxes. there seems to be no end to it as there are no value for Public views. all most all the persons who have send there comments have mentioned that the income tax slab should be increased to 2.5 lac but I am sure Mr. Chidambaram will do what ever he feel right.
Its always been the salaried that have been affected by any tax rules. Recovering taxes from salaried is also simple - TDS. But i have not seen any major step towards recovering income taxes from the business earners. I think the new budget should spare the salaried if not benefit in the new budget. I also second one the opinions that the tax exemption limit for the salaried should be atleast rised to 2 lacs. The costs of living is increasing by the day and its becoming that much tougher by the day to save and invest for the salaried class.
As the inflation rate is becoming higher and prices of day-2-day commodities are increasing, it is becoming difficult for ordinary people to buy ordinary stuff.So, Tax slab shd be tilted in a way that tax burden shd be higher on higher income groups and low on lower income group.
The tax exemption limit should decresed, but we should increase The present tax limit structure. That will encourage people to invest more in the investment.
One more thing we should do this we have to restructre the investment pattend of PPF-%,Bonds and Others Investment and should increased the % in PPF it will automatic Govt.Block amount will increse. and Increse the Year of Withdrawal in PPF
Apart from IT there are many other avenues through which Government is collecting taxes. VAT, ST, Tax on loan EMI, Services. So, reducing incometax burden will help lot of individuals to cope with inflation.
India should introduce expenditure tax in the place of income tax as many businessmen and politicians spend lavishly in crores but show Rs.10,000-Rs.15,000 as annual income!
Mr Chidambaram should spare taxing the salaried middle class this budget. The middle class should also get an opputunity to lead a decent life and also be able to save something for rough times. By reducing the prices of fuel the FM has favoured the upper class. People who can afford a car can also afford the rising fuel prices. But what about those who use the public transport daily. Will there be any reduction in fares? Instead of taxing the already burdened class, the FM should focus on the unaccounted wealth of policitians, businessmen, celebrities, and the last but not the least his own. Will the FM dare to disclose his wealth (both accounted & unaccounted)
RE:Spare the Salaried Middle-class
by Ramdas Nayak on Feb 19, 2007 02:00 PM Permalink
FM has reduced diesel price also hence public transports are also benefitted. FM can not reduce fares. the bus owners and railway board should show the way by reducing fares
RE:RE:Spare the Salaried Middle-class
by MP Raju on Feb 19, 2007 04:40 PM Permalink
That's great!!! How can FM reduce diesel price??? Then, what is Petroleum Minister doing there?? Hieght of ignorance !!!
Remember, it was Finance Ministery which was against waiving (not reducing) off the EXTRA revenue they got by the petrol/diesel price hike. Forget about FM reducing except exemptions :)
Concessions allowed to salaried class should be recovered from business class as these people by transferring whatever tax burden on them to their customers and make money for themselves.
The govt has set Rs 1,00,000 as a limit above which 5% will be charged as tax i.e Rs.5000/-.The savings Rs 95,000. Monthly Expenses: House rent: Rs 5000/- which becomes Rs.60000 at the end of the year
Savings: Rs 35000. Electricity Bills and phone:4500/- per month which is Rs 54000/- per year, Savings:-19000.
Thus u see Rs.100000 is no enough for meeting even daily expenses. The govt of India has to serious think about reconsidering the tax situaton.
Income tax must be levied only on those people who have an income of Rs 500000 or above.
We are already paying lot of money towards TAX every day, e.g. Indirect Taxes we pay for our Electricity , Telephone Bills, etc. over and above this we are also paying increased Cost of Living due to raise in petrol / diesel prices due to Indirect Taxes changed on these.
Don't you all think that there should be such a system which treats all Individuals in same manner irrespective of whether he is business man or salaried one ?
RE:calculations
by Niranjana Koodavalli on Feb 19, 2007 02:03 PM Permalink
I don't agree with sonal that IT should be levied on those people who have an income of Rs 5 lakh or above. Even people who have moved to 5 lakh bracket and above deserve a decent living. Looking at the rate at which inflation is raising, Rs 5 lakh is = 50000 Rs. or so.
There should be more rationale in fixing taxation. Business class always gets away from taxes. Most of the business owners are supposed to pay Service taxes and they collect from individuals hence increasing our burden.
And what is VAT doing? Businesses are brazenly cheating us by charging VAT on the final price, thus earning black money. Besides, when we are paying about a third of our income towards TAX, why do we need to pay tax again when we buy something (including petrol) or use a service? SALES TAX / VAT SHOULD BE ABOLISHED.
