Income tax should be lowered to 20% of the total income and should be exempted till Rs 3,00,000 atleast as this is the lowest amount for sustaining the needs of a family in metros.
RE:INCOME TAX SHOULD BE LOWERED
by venkata reddy on Feb 19, 2007 05:39 PM Permalink
it is better for the middle class people ,tax exemption upto Rs 300000 below 20%.
1. Middle class people like us are facing tough times with increasing prices and fixed income. I work in a private company which does not give fancy salary or increments. I appeal to the FM to make the IT slabs like this: (a) Non taxable minimum: Rs.1.80 lacs p.a. (b) First slab - Tax on income over Rs.1.80 lacs upto Rs.2.40 lacs: 10% (c) Tax on income over Rs.2.40 lacs upto Rs.3.60 lacs - 15%. Please scrap all incentives and exemptions, remove education cess. I am not bothered about tax rate on income over Rs.3.60 lacs p.a. because I do not know if I will ever reach that level before retiring.
2. I am working for a HR placement consultancy. Some of my firm's clients do not pay service tax on our fees and the same is absorbed by us. If the service tax rate is increased from 12% to 14%, it will mean less profits for our firm and hence my salary also will stagnate. Please do not increase service tax rates. Please abolish education cess. If possible please reduce service tax rate to 4% like the first slab of VAT to increase volumes of business and higher revenue to Govt based on such healthy increase in business volumes.
It's highly frustrating thet we the salarised people are taxed heavily and Govt. is unable to catchhold of the people having black money. We do not have any option to hide our income as it is always deducted from source.
With so much of rising cost of living, inflation, cost of education, we can not afford to put our kids in very good school. In my opinion which all of you people will agree that this slab need to be increased to atleast 5 Lakhs and upto 10 lakhs income should be taxed upto 10%, Upto 25 lakhs to be taxed upto 15% and beyond should be taxed at 25%
I think the burden of tax is more on the common middle class man and the really wealthy people are escaping scott free.Does the government want the salaried person to live under the burden of loans and be a middle class guy whole life.
How about abolishing the income tax for citizen altogetherHow about abolishing direct income tax for citizen altogether. It seems quite radical though I am sure :-)
But if we consider that money has no value if we are not spending it to buy goods or services with it, than abolishing personal tax can make sense. So impose decent service tax , excise duty, custom duty on every possibly services and goods money can buy. including tax on inheritance (investments/cash/property/goods) which can be considered as a service provided possibly by our dead parents.
This way, whether you are a poor or rich farmer, salaried or business man, it doesn't matter I guess. So if you are buying nothing, "Miser the great" your money is wasted, and some 30% tax can be imposed once you pass it on to your children as inheritance.
Another radical view is to get rid of paper money altogether... introduce electronic money and tax on each transaction whether to buy goods or service. So a giant computer can tax you money automatically without govt wasting them on our friendly neighborhood tax-man.
Other option (instead of electronic money) is to make paper money with an expiry date on it :-), so you do transaction and pay tax on the spot, or lose it altogether
The maximum contribution of the taxes are from salaried people of India. The only reason behind it is a situation from which they can't escape like other big shots in society. But even after having a maximum contribution to the economy of india (from people), this class of people is least bothered. The government never asks a common man for his consent before a rule is made. Do the politician, industrialists and influencial people are the only one to decide on this issue? Can't we people raise our voice?
In today's condition, an average income level of about Rs.3,00,000 per year is required for a family to sustain itself comfortably. I feel that the min. levels should be upgraded to this number. Further, if a radically new system has to be introduced, please remove the requirement of Income tax for individuals. Instead, TDS can be deducted by companies employing them / using their services, at the same rate for jobworkers. Even though it looks like the rate has come down, the net volume will increase and the onus of paying tax will come under the organised sector.
The Petrol Rate is around 45Rs. Per litre in Delhi and it is around 50Rs. Per Litre in Gujarat. So the Tax Exempt Limit also should be the different base on the rate of basic necessity for the ordinary people. When we are talking about the VAT, prices supposed to be same in all the cities. I think Mr. FM has to think on this.... And TAX Exemption limit also should be the raise...
Married women's income should be assessed along with their spouse and taxed considering it as one family income. When the Govt. cannot provide job to all its citizens, the men who opted to marry a non-working women must get some sort of i.t. concessions as he has to meet the family expenses from one source of income. It seems that no politicians or intellectuals have so far given their thought on this aspect. This will encourage men not to seek employed girls as their spouse and would help poor parents who are struggling hard to get married of their daughters.
RE:Disparity in taxation
by on Feb 20, 2007 10:37 AM Permalink
Pal, tell ur wife to work instead of sitting around the house and watching saas bahu soap operas.
Since the object should be to enlarge the tax base, there should not be any decrease in the lower sealing. However, tax band should be enlarged. For example, 10% slab should extend upto Rs.2.5 lakhs. The 20% slab should be in Rs. 2.5 to 5 lakh range.30% rate should be applicable beyond Rs. 5lakhs. This should take care of inflation.
