As per the current taxation slab, there are less number of tax-payers, and from them, govt is taking heavy tax. Compared to this, the tax percentage should be decreased, and the slab also should be decreased. i.e. people between 70,000 to 1 Lac should pay a flat tax of Rs 1000/-. This will get in hefty amount to govt and will also help the salary class to reduce the current tax burden. Alternatively, govt. should restrict the voting rights to only those who pay tax. this will ensure that the politicians act properly and the tax-payers general public of this country will get a good life.
It is disappointing to read that the limit for tax exempted savings may be raised from the present Rs.1 lac to Rs.1.50 lacs. I wonder who amongs the middle class can afford to save that much in a financial year. Perhaps only those who do not want to withdraw maturity proceeds of old investments but can roll them over will be benefitted. Otherwise, such moves only help the richer people. People like me are looking for (a) simplification of tax rules by abolishing all kinds of exemptions and concessions (b) raising the floor limit of non taxable income to atleast Rs.1.50 lacs. (c) Tax rate of 10% on income in excess of Rs.1.50 lacs upto Rs.2.40 lacs and 15% on income over Rs.2.40 lacs up to Rs.3.60 lacs keeping in view current prices and needs of families and (d) abolition of all cesses and surcharges.
RE:Tax exemption for savings
by sridhar gumadavally on Feb 21, 2007 06:49 PM Permalink
I Totally agree with Ramasubramanian Venkateshan. I inflation is very high. The prices are going up. Already poor people are suffering with this rising prices. The tax exemption should be raised from 1lakh to 2 lakh.
Irrespective of limit on savings by an individual salaried person, the tax slabs should be nil tax for income upto 2 Lakh and 10% over & above of 2 Lakhs upto 4 lakhs and 20% from 4 Lakhs to 5 lakhs and 30% over and above 5 lakhs onwards.
I meant to say, in my understanding less than 10% of Indian population are salaried employees & they are making up at least 90% of income tax revenue for the country. Isn't anybody else feeling this as unfair?
If our respected FM P.Chidamabaram has any good intentions about India, he should find ways to collect it from other 90% (I mean, businesses especially), not squeezing the helpless salaried employees.
I'm sure he'll continue squeezing out of salaried employees' pockets, as he knows that there won't be any employee ready to take leave & participate in any big rally or for that matter, nobody will have spare time to complain it to the government.
This cannot be corrected by readjusting the slabs.
The proposal to move from EEE to EET is not a great idea at this time where the economy is growing at 8% levels. Tax collections this year are soaring high and there is no need to tax salaried individuals more, rather look for a way to bring in the money to govt kitty from SME entrepreneurs who pay much much lesser or no tax at all. The reasons for not having to move to EEE are: 1. Extra taxing as EEE will finally collect the tax at the later stages. 2. Now-a-days, jobs are also becoming more and more insecure in high growth areas like IT and ITES and other related industries(Real Estate, for example is in the verge of a burst). Hence a hedge is required and the money saved will help in distress period, if taxed at withdrawal, it will be a sure shot burden. 3. People can move to stocks and Diversified Equity MFs, which in long run gives much better returns.( 1 lac exempt now saves, say 30000 in taxes, and at 10% in ELSS, say, in 20 years, and 70000 at 15-20% in Stocks or other MFs, in the same 20 years will deliver much higher returns and long terms cap gains are not taxable) This will reduce the intent to do tax planning savings. 4. Last, let the person live in the present, saving for a looooong term, what if the person die, let him enjoy life as it comes, having shorter lock-ins help him to spend in the medium run, where he will be paying indirect taxes to the govt.
RE:Don't remove EET
by sajida gulam husain kondkari on Feb 21, 2007 11:29 PM Permalink
Income Taxes should be made more realistic like in the US,Europe etc. It shoud depend whether you are the sole bread winner in family, how many dependents you have, take into consideration inflation etc. The investment limit should be enhanced. If the govt. expects us to pay taxes then they should provide free education, free medical facilities , good infra, comfortable life-good standard of living etc. like in developed countries.
Generally Women are the second earning member in a family and hence income tax rate can not be understood why it should be reduced for Women. Family with one earning member should have lower tax lability than multi earning members. In fact like British system, Bachelor pays highest tax rate, then married and then lower tax rate for single and double child and may be higher tax rate for triple child family but income for husband and wife must be combined for calculating the tax rate. This give higher tax collection and more tax rebate for single member earning family.
All the latest tax plans which are implemented by Chidamaram, would affect only salary emplaoyees.
he is considering US and UK and so on, all developed contries, but he forgot that we are in India,and he is also an Indian. his tax plans are very good for developed countries but not for like our country.
tax slabs should be(for salared people) up to Rs 2 lac nil 2 lac to 3 lac 15% 3 lac and above 30% no surcharge. rebates under 80 c; to be raised from Rs 1 lac to Rs 1.50 lac all inclusive for any saving of 3 years or more i.e. including bank and post office deposits. existing EEE should not be disturbed as it would betrya the very basis of saving in PPF Life insurance and so on. FBT is totaly counter productive-- must be scrapped. the number of exemtions available today in various other forms be scrapped. for self emploed people and also the corporates the tax should be related to turnover also so as to plug evasion by under reportng of profits. co
The Tax Rates should not only be cut...but the Government should make a uniform Tax Rate for all categories. By doing so not only maximum people will be covered and would be happily paying taxes and thus Govt. would get a better opportunity of increasing revenue by getting more people to pay taxes honestly. This way would decline the number of Tax evaders. Every year the Taxes/Service Tax slabs are putting enormous burden on the common man which should also be reviewed by the Government since inspite of paying taxes we are not being given the quality of infrastructure/facilities one should get from the Government.
