Finance mininsters always keeps telling that the income tax in india is much less when compared to other countries. At the outset it seems like that, but i feel it is not so. For eg. everybody tells the income tax in germany is very high around 42%. But, it is only the highest slab for the income tax payees. There are different classes of income tax payers. Class 1, 2, 3 etc., The public is divided into different classes according to whether the person is individual, whether the spouse is employed, whether they have children, whether the child is handicapped and so on. Hence, the tax is in proportion to on the income of a family and its corresponding expenditure. But, in India it is not so. Single income family with and without children, double income family with and without chidren, everyone is treated equally. In a particular company or department because of this tax imbalance, two people starting their career with same economic background tend to diverge slowly according to their income to expenditure ratio. As such there is economic imbalance in India; people who are rich are becoming richer and richer and people who are poor are becoming poorer and poorer. Why dont income to expenditure ratio be taken into account?????????
