Yes, Tax rate should be cut and brought down to a reasonable level. Income upto RS. 2.5 Lakhs should be totally exempted of Income tax. Above RS. 2.5 Lakhs tax rate may be at the rate of 10 % with no surcharge. The tax rate should be 15for income above 2.5 to 15.00 lakhs and above 20 % above 15 lakhs per annum.
It should be apprecaited that income level has increased with the increase in education level. The part of income is also being paid to Government by way of service tax. How much pocket Government wish to eat away fro poor citizens.
Citizens paying more than one Lakh Income tax should be given additional benefits like Civil recognitions and benefits like concessions in admissions in colleges and universities for their wards, concessions in travels abroad, should be isssued special identity cards etc.
The tax base must be widened as far as possible. The present system is fine, but tax rates can be lowered, and exsemptions dane away in most cases except in cases like home loans and retirement benefits. Tax should never go above 20% even at the highest, and all these surcharges and cesses is all bullshit, since the money is NEVER used for the cause for which it is levied.
tax exemption limit should be extended upto minimum 1,50,000/- and there must be sure shot plans for down trodden farmer not for upper class agriculturists. fast food must be dearer to avoid raw food use for this purpose and raw should be available at cheap rate to lower society persons. can it be done by chidambaram. thanks
Indian middleclass especially those depending on salary income have become easy target for all finance ministers who brought out budget till now. Most of these who come from rich or very rich families hardly know what are the difficulties faced my the employee class. They always think about improving share markets to make rich people more richer. The Left parties should pressurise Mr Chid to give maximum tax cuts to salaried class otherwise hence forth there would be only two classes -Upper and Lower in our Country. Middle Class will be wiped out.
It may be advisable to raise the exemptiom limit for making Tax administration better due to reduced assesses. However, this goes against the basic principle of a wide Tax payers base.
The ideal thing would be to reduce tax rates as it is a universally accepted fact that lower rates result in better compliance. This has already been proved in India also with the booming tax revenues. Alongwith lowering rates, govt should concentrate on recovery of old tax dues, make Income Tax law simpler for better compliance and concentrate on bringing in tax net the large fish which are hoodwinking the departement despite enormous incomes and spending. Another step that needs to be taken is to bring large agricultural income in tax net.
baic limit has to increase Rs 2 lac all the catagories and Tax rates should be rationlisied because low amount salaries people are struguling the paying tax and one more also for inseated of giving more exemption for more savings put one Tax rate and abolish the Edu.cess tax this is more complected sysytem now every body talking Health cess what a tax system later raod cess system again after war cess dont put more complicated Tax system
I think we have to pay taxes and there is no running away from it.
I would just recommend that when we pay taxes, then certain amount of it should be passed back to tex paying citizens in the form of pension etc. I earn a good salary today, a pay a very huge amount of tax every to the government. I have been doing so for many years now. What if I loose my job tomorrow or I am not able to earn for some reason, the government does not come to my rescue and I will have to fend for myself. This thought really troubles when I pay lakhs in taxes every year.
RE:Taxes..
by Shivaji Shelar on Feb 19, 2007 01:11 PM Permalink
Really, There should be social pension scheme for tax payers!!! This will make the process of tax paying more transperent. The basic limit should be raised to 2 lakh Rupees, and also on saving limit should be raised at least by 1.5 lakh rupees. There should be only one flat rate for individual and other for commercial tax payers.
