Never before had I known such great ways of tax evasion..Tax eating govts dont work...Profit motivated corporates do..Thanks for the article.. Welcome to the real world !!!
Every week we get the latest inflation figures. Todays was 12.1%. this means that the real value of our earnings diminish by 12% every year. But suprisingly, the income tax slabs are touched once every 3 or 4 years & that too it is shown that the government is doing a huge favour on us by increasing the slab of minimum taxation. If the real value of the money in my hand is diminishing then the income tax slabs also should be increased by the % of inflation of that year.
RE:Why is inflation not applicable to tax slabs
by JAGDISH on Aug 08, 2008 07:54 AM Permalink
ECONOMIC LAWS,RULESAND REGULATIONS REQUIRE ONGOING REVIEW LIKE MONETARY POLICY.9%SENIOR CITIZEN SCHEME INTRODUED BY GOVT OF INDIA IN 2004 CARRYS 9% INTEREST WHERE BKS ARE OFFERING TO NON-SENIOR CITIZEN FOR 1 YEAR 10.50% WHERE INFLATION RATE HAS COME TO 12.1%. NO ONE LOOKS INTO ORIENATIONS OF ECONOMIC POLICIES.THEY ONLY DEAL IN POLITIC AND VOTES JCK
Only 3-4% of India pays taxes. IT Department should go and catch the Non tax payers and stop harrasing the tax paying people. This will minimise the tax rate. Govt should think abt giving old age benefits to tax payes. People will be happy to pay tax if Govt is providing old age benfits.
RE:Catch the income of non tax payers
by Maneesh Agarwal on Aug 07, 2008 07:07 PM Permalink
If they do so, IT/Govt officials and Netas will loose their source of income.
The main problem of our country is the corruption which feeds these politicians & bureaucrats. And main reason for this corruption is high taxes everywhere which ordinary people can’t bear and greedy businesspeople won’t pay . This leads to a system where people prefer to pay bribes to avoid paying the full tax amount. So a generous pool of bribes start collecting in the system which are collected by low level officials and reach upto commissioner level then to state ministers , CMs and then to union ministries. These people inorder to maintain these cash flows continuously ensure that our tax rates remain high and ensure cascading tax system so that more and more tax collecting departments can extort these bribes. You can very well understand that if a working class population of 100 million pays a bribe of even a measly 1000 rs in a year it adds upto Rs.10000 crores per year for these politicians / bureaucrats to share. This is a very very conservative estimate . Actuals amounts are hundred times more.So to really purify the system with honest politicians / bureaucrats we need to be honest first and pay our tax in full which we can only do if taxes are rational and low . ( suggested income tax rates are 10 % above rs.4 lacs and sales tax rates 2 % , excise duty NIL , customs duty 5 % ). Once tax rates are down and we pay no bribes to these tax collectors this pool which eventually dry and only well meaning and honest people will want to come to power to work
The Jerry who is a rich businessman or is politcally connected can outwit Tom (the Tax Man) ..... and Tom knows better than to mess with this kind of Jerry ..... But the Jerry who is the aam aadmi & is a middle class SALARIED type Jerry ... this type of Jerry will get screwed with great joy by Tom (FM supported by Tax Man)
