YES..... The reason being Mr. Chidambar has adopted such a taxation policy in 2006-07 budget that he has given by one hand and taken more by other hand from the income tax assessees. He should re-think these taxation policies so that the individuals and other persons can have some money in their hand to raise their standard of living.
He should think of charging more to upper category of income earners. I think the present income tax policy is such like rich are becoming more rich and others are getting charged for income tax more what they were previously being charged.
RE:Should the Income Tax rates be cut for 2007-08 budget?
by prasad nishu on Feb 22, 2007 09:48 AM Permalink
Dear Sir, Middle /upper niddle class are going through very tough times. 1) We thought that "a roof over every indian's head was the top most priority,however what with the banks raising interest rates every now & then which is dissuading a common man to go for even a one bed room hall kitchen which is not a luxury but good enough to style a cramped living.
2) In this regards,if the govt thinks of giving tax benefits to house owners who are willing to rent out their flats which are placed as investments-then housing problem will be eased to great extent.It shall be ebneficial to both owner & tenant.
3) The price of commodities are rising day by day.Upward prices of diesel/poetrol has a direct impact on transportation of essential commodities thereby directly affecting their prices.
4) The taxable limit of income should be raised by atleast 50,000=00 to Rs 150,000=00 to bring relief to working class to whatever extent it may solve.
5)Transportation sector should be given priority for day to day home-office-home travel & should be classified under high priority cases alongwith plenty of flyovers at crucial traffic jam sectors.
6) Medical expenses reimbursement limit should be enhanced to Rs 50,000/- as this sector has become very costly - with some hospitals charging 10% of bill as service charges only?????
I do not know how much is the inflow into treasury through direct taxes from employees -think that high income brackets should be looked into more than small fries. While saying this -i'm not saying that they should be squeezed-but a small proportion of burden can be distributed where income levels are Rs one million per year.
Hope FM does something for middle/upper middle class & save them from financial gallows which in turn will improove their quality of home life eventually.
RE:RE:Should the Income Tax rates be cut for 2007-08 budget?
by naushad shaikh on Feb 22, 2007 02:30 PM Permalink
The govt should provide a tax exemption upto 150000 mark (previosly at 100000) to raise long term funds for infrastructure development and also for the development of indian lower middle class.
The present policy of Income tax in India is to charge a higher income tax as one earns higher, there is even a surcharge for income of Rs. 10 lakh or more. This gives rise to corruption, as every one tries to reduce his declared income, by hooke or crook. If the tax can beas follows :- For an income of Rs 1.5 lakh : 10%, From 1.5-2.5 lakh : Rs 15,000 plus Rs. 5,000 (5% of the income in excess of Rs. 1.5 Lakh)i.e a total tax of Rs. 20,000, From 2.5 - 5 Lakhs :Rs. 20,000 plus Rs. 7,500 (3% of the income in excess of Rs. 2.5 Lakh)i.e a total tax of Rs. 27,500, From 5 -10 Lakhs Rs. 27,000 plus 10,000 (2% of the income in excess of Rs. 5 Lakh)i.e a total tax of Rs. 37,000. Every body earning more will be tempted to be honest tax payer. Yes many persons will stil conceal their actual income. In those particular cases Govt may take strict and exemplary punishment. ItThis tax structure may be tried for one financial year, if it fails it may be revoked. The problem is that the govt thinks majority of the people are dishonest, and will conceal their actual income. But the fact is majority of the citizens in India are law abiding. Only when they see some influential perosn flaunting any rule and getting away with it, the public resorts to corruption. If corruption is dealt with a firm hand, I think India will grow to be a world Leader. Only our leaders (Political masters) should have long term vision
RE:Tax rates need be reduced as we earn more
by Chetan Darji on Feb 22, 2007 09:34 AM Permalink
i thiks tax rates should not cuts it should be as it is but the surcharge & education cess should be removed and make its easy zero tax limit also increased from 1 lacs to 1.5 lacs.
The present policy of Income tax in India is to charge a higher income tax as one earns hghre, there is even a surcharge for income of Rs. 10 lakh or more. This gives rise to corruption, as every one tries to reduce his declared income, by hooke or crook. If the tax can beas follows :- For an income of Rs 1.5 lakh : 10%, From 1.5-2.5 lakh : Rs 15,000 Rs. 5,000 (5% of the income in excess of Rs. 1.5 Lakh), From 2.5 - 5 Lakhs :Rs. 20,000 7,500 (3% of the income in excess of Rs. 2.5 Lakh), From 5 -10 Lakhs Rs. 27,000 10,000 (2% of the income in excess of Rs. 5 Lakh). Every body earning more will be temted to be honest tax payer. yes many persons will stil conceal their actual income. Govt may take strict and exemplary punishment. It may be tried for one financial year, if it fail it may be revoked. The problem is that the govt thinks majority of the people are dishonest, and will conceal their actual income. But the fact is majority of the citizens in India are law abiding. Only when they see some influential perosn flaunting any rule and getting away with it, the public resorts to corruption. If corruption is dealt with a firm hand, I think India will grow to be a world Leader. Only our leaders9Political masters) should have long term vision.
Do you think the tax exemption limits should be raised? Or should income tax rates be reduced?
This Income tax scenario is not at all necessary. Every individual who earns has to spend. For every spending attracts tax. So there is no necessary for separate for income tax.
Few examples how every individual is paying tax: 1. Housing: The persons having their own house, pays house tax. The persons residing in rented houses also pays indirectly house tax which is reflecting in his rent. The persons residing in hostels or hotels also pays rent with service tax etc. 2. Consumer items: All essential consumer items starting from morning tooth powder/paste, night mosquito liquid/coil/mats everybody is paying tax. 3. Dressing: All day to day dressings, chappels, soaps, spectacles, hair oils, etc. are also being given tax. 4. Electrical items: All electrical items are being taxed. 5. Transportation: Day to day transportation also being taxed. Vehicle owners gives tax for their vehicles and for fuel. The persons who uses public transport also getting taxed which is included in tickets. The persons who walks all the way also give tax by purchasing new chappels very often. 6. Maintenance: Whether it is house maintenance like borewell motors, dresses washing soaps and detergents, washing machine, fridge etc., attracts tax and also maintenance of our face (shaving etc.,) attracts tax. 7. Entertainments: All entertainments including T.V., cinema, cable, games, circus, zoos, parks etc., are being taxed. 8. Real estate: Buying and selling lands, houses also being paid but this is collected as fees. 9. Housing loan: The persons who takes housing loan are paying interest for their loans which is increased very often. The increase of just 0.5% means Rs. 1 lakh extra for the banks for minimal loan of Rs. 5 lakhs. 10. Medical: All medicines including life saving medicines also attracts taxes. 11. Apart from this wealth tax, professional tax, entertainment tax, service tax, entry tax, value added tax, octroi, central sales tax, individual state tax 12. Birth & Death: From birth to death we have to pay tax.
Apart from all these we are paying extra 2% as service tax in recent years. Overall the each and every expense made by us gives government an income. So there is no need to make a tax on income.
Only thing is that we don%u2019t know where all these amount is going? how they are utilized for public?
But who are all governing us who are once very poor or middle class & not professionally literate are the richest persons of India?
RE:Should tax rates be cut?
by ramachandra mahale on Feb 22, 2007 06:08 AM Permalink
The increase in the inflation rate and bringing so many items under the fold of service tax has costed the common man too much. The middle and lower income groups are the persons affected very much. The situation worsens in case of middle income group as they come under the fold of Income Tax.The Government which has the responsibility of providing infrastructure facilities and other amenities cannot afford to miss revenue by way of income tax. Hence, there is no justification in either of the proposals - to raise the income tax exemption of income tax limits or to reduce the income tax rate. On the other hand some corrective measures could be undertaken. 1. To abolish the educataion cess 2. To raise the limit fixed on savings/investments under Section 80C from Rs.100000/[ to Rs.150000/- 3. To discontinue the relaxation in tax exemption limit to women residents of India below the age of 65 years and they shall be brought on par with men with exemption upto Rs. 100000/-4. To increase the exemption limit on Interest from the existing Rs. 5000/- to Rs.15000/- 5. To boost the savings the limitations on certain savings like NSC and Bank Fixed Deposits the proceeds on maturity being taxed be removed. R U Mahale Mysore India
Everybody knows there are areas where people earn lakhs and lakhs of rupees ,but pay a little or very often nil taxes to the government,making use of the loopholes in our existing law or its applications.The salaried are the only main catagory paying taxes properly.Much portion of the requirement of money for the govt.are borne by the salaried. While paying huge amount of their salary as tax very often their carry home pay suffer to make their both ends meet.It is necessary to incorporate this high earning groups (other than the salaried) also to pay genuine taxes thereby the bourden over the salaried may be reduced.
The proposal to move from EEE to EET is yet another stupid idea being framed by our central planners who look only into data and statistics and fail to look at the people behind the tax statistics. With infrastructure development needing $320 billion, any move towards EET would only mean people would be unwilling to invest for the long term something which is needed for infra development. With savings rate in India amongst the highest in the world, any move to tax long term savings could mean jeopardizing the infrastructure story of India. Otherwise where else is the government going to get the money for Infra development? Because if long term savings are taxed why should one invest for the long term? TO PAY TAXES! Instead of following the "best global tax practices" it is time incumbents like the Trimurti [Manmohan Singh,Chidambaram, Montek Singh Ahluwalia] fly down to India and do some cost cutting in government expenditure, which is also responsible for the high inflation in the economy.
The Basic exemption limit of Rs. 1 lakh needs to be raised because the common man is already burdened with a lot of tax. Figure it out as below Central govt budget = Rs. 5,76,381 crore [inc fiscal deficit] for pop of 110 crore. Hence per capita central tax approx Rs. 5,000 Mah State govt budget= Rs. 59,145 crore for population of 10 crore. Approx Rs.6000 per person Mumbai Municipal Corporation Budget = Rs. 10,000 crore for population of 1.6 crore people hence per capita Rs.6000 approximately
Total tax per capita for a mumbai citizen = 5,000 [Center] 6,000 [state] 6000 [BMC] =Rs.17000 per person tax burden Hence a family of 4 pays a total tax of Rs. 68,000 per annum With most families in India having 1 earning member, an income tax limit of Rs 1 lakh is not sufficient. The basic exemption limit needs to be increased to Rs.2 lakh atleast. A thought needs to be given for the same. If our imcumbent Finance Minister Mr. P Chidambaram does some basic calculation, he will soon realize that he is into his blood - sucking ways. This is one way that can help enable people to manage the effects of inflation
RE:Basic exemption limit should be raised
by Manoj M. Panchal on Feb 22, 2007 12:15 AM Permalink
Very good calculation, will our FM hear u ? Hoping 4 the best.
According to me the Finance Minister is taxing too much almost all items are under the Service Tax Net therefore that tax rate shopuld come down to the earlier 8% & income tax rates should be 7% 14% & 21% With no levy on on that amount where in he can remove the word of tax exemtion/rebate Thank You Raghavendra
Government should try to make business transactions electronic. There are so many people who get away with VAT. Playing around with Income tax slabs will not help the country much.
In the developed economies, the economy does well and the population is in control as expenses are higher and whatever you spend is accountable.
Fines should be higher on violators. Salaries are going up, taxes collected is also going up, spending is also going up but the infrastructure and the quality of life is still deteriorating.
RE:Income Tax
by Manoj M. Panchal on Feb 22, 2007 12:17 AM Permalink
I should say that there should be no IT below 5 lakhs, and let it nest fiscal only. U'll c India will cheer up.
