The limit has to be raisen to Rs. 2 lakh , and also the interest paid to any bank on account of purchasing of any thing including the personnel loanes shall be excemted from the Income Tax. This would make the citizen to draw tthe loans as well , the bankers would get quite good amount of revenew,
The GDP level of the country will drastically shootup .
RE:Tax excemption
by Srikanth Vadali on Feb 20, 2007 03:34 PM Permalink
i am sorry my friend as usual he is not in India so can't convey him the message. As ususal these politicians have made a habit of escaping from responsibilitites. When there is a need for him to workout, he just left the job to his colleagues. i adont appreciate this.
First things first - we need to ensure compliance through education of the citizens of India. We should give receipt for every payment we get - can we do that? Can we give 1% of each such transaction to the government honestly?
If we comply with the above - we would not need to pay any taxes! With so many transactions happening everyday - the government will have more than sufficient funds for all the development activities everyday!
I challenge all the financial experts and economists to disprove that the 1% tax on each and every financial transaction is more than sufficient for development and government taxes every year!
I am very sure everyone would be more than ready to provide 1% of the transaction value for development activities, regulatory control and better governance!
This will reduce all the black monery in the country too and make prices very affordable and reasonable!
RE:Reduce Taxes; Ensure Compliance
by kunal aggrawal on Feb 20, 2007 10:55 AM Permalink
i think the idea is good but i have my own apprehension whether such thinking will become an act in income tax.
Tax exemption should be for 2 lakhs and then increasing from 10% to 15%. Any Government comes to power by promising lot of things, does nothing except corruption. Always they aim at squeezing middle class and salaried class people where TDS goes directly. Then we have to wait by filing IT. We have to bribe to get the rebate. Even PF transfer/withdrawal government is not able to manage. Then why are we paying tax. Even passport offices are now corrupt. Is this what for we pay tax? Mr.Chidambaram should aim at politicians and upper class to pay tax and reduce the burden on Middle class. This will increase the lifestyle of people living in India. No need to go to US and UK.
RE:Tax exemption should be raised
by Rahul S on Feb 20, 2007 08:09 AM Permalink
Its never going to happen. Do you know why? Because the goverment very well knows that the middle class will never rise against the goverment. Even if it keeps on increasing taxes and make filing of tax returns even more complicated. But it very well knows that if it tries to meddle with the uppper class and industrialists they will pay a heavy price in return. Its time we middle class people showed who we really are and not be the faceless 300 million plus crowd. Just consider the scenario if we form an association and decide to refuse paying all forms of taxes. The goverment will be toppled in a matter of few days. But sadly I dont think its never going to happen.
RE:RE:Tax exemption should be raised
by pradeep aggrwal on Feb 20, 2007 09:02 AM Permalink
ahul, I agree with you....we middle class people pay maximum taxes and still we are the most suffered people in the country....businessmen have the maximum black money and they gt all the benefits from the government....we should do something for this
RE:RE:Tax exemption should be raised
by kunal aggrawal on Feb 20, 2007 11:05 AM Permalink
mr.Rahul ur idea is good but u lack confident. if this is so then it's never going to happen. i think an association of middle class people is the best idea and once formed can put pressure on govt. to go the middle class way. i definately feel tht income tax is baised with middle class people as everyone is saying the same thing. The aspiration of middle class when it comes to income tax is same the only thing is tht we need a leader to unite us together. it can happen only thing is tht someone has to take the initiation. when u have association for industrialist as "federation of india chamber of commerce" then we can have "federation of indian middle class". They hav the money power and we have the people power. And i think that people power is bigger then money power. so mr.Rahul will u become our leader for middle class people.
All the exemptions should be disallowed. Tax should be applicable from 3 lakhs to 8 lakhs at the rate of 10% and 15% above 8lakhs. The cost of education, health care etc has gone up so much that one can barely afford. Taxing people less will help the government to cover more people in the bracket.
RE:Tax for common man
by DHANA LAKSHMI on Feb 20, 2007 02:19 PM Permalink
The common man pays tax so that politicans can enhance their vote bank.There is nothing much in it.
i personally think that tax rates should be relieved to some extent rather than just increasing the tax exemption limits becausei wuld help a greater variety of people than formulating the latter part
The politicians are given surplus incentives like the phone usage, house, free trips to capital at tax payers cost. Every politician at the time of election spends crores of rupees but the government promptly ignores them. Govt always tries to squeeze the middle class and salaried employees for money. If the govt removes atleast half the subsidies for all politicians and make them accountable for their spending, atleast 20 % of the total income can be recovered.
The Taxing should be even for all the people... upto 3 laks no tax after 3 - 5 laks 10% and 5 - 10 laks 15% and above 10 laks 20% of the income should be taxed apart from home loan and insurance none of the other benefits should be available which will make sure that no one evades tax and there should be no benefits like if you are a farmer etc no tax and other things... if like US everyone is made to pay tax for whatever money he is earning in a way that the common man is benifitted both govt and the individual will be happy... instead the tax is always aimed at middle man and he is always at the receiving end... if this goes on he will never be able to save anything.. since the hike that he receives will be paid as a tax for the next year then where comes the mantra of saving... Mr. chidambaram should make sure that every man is able to save atleast 20% of his income everyyear for this life after retirement
RE:Tax Planning
by arvind d on Feb 19, 2007 08:41 PM Permalink
I think u r absolutely rite swami, good govt should think on what u have written here, otherwise all the skilled work force will leave india and settle down elsewhere
Has anybody thought of those stinking rich farmers in punjab driving Mercs and drinking heineken in their never ending farm houses exempted from all the taxes just because they are FARMERS and we salaried middle classes working our back side off to find out that 30% of my salary is going in those ministers pockets probably.
RE:Tax rates
by Mini Kumari on Feb 19, 2007 07:46 PM Permalink
Thats Right...!!!I totally agree.. If the measures are menat in every case to uplift the economically poor one then why we classify on basis of Profession, religion, region, caste etc.
Whay cant we have such a system where the benifts are received only by the people for whom they are meant for.
There should be no tax upto Rs 3.0 lakhs, from 3.0 lakhs to 5.0 lakhs 10 %, above 5.0 lakhs to 10.0 lakhs 20 % & above 10 lakhs 30 %. There should not be any surcharged/cess under any pretext. Rest all exemption can safely be done away if all above points are considered in totality. It will definitely make life easier & avoidable tax planner can be safely avoided by all & tax compliance shall be definitely better. It will also bring a definite feel good factor & may be we can look forward for better things & remove black money over say 5 year time.
