Our taxation system is conducive to capitalism. A salary earner with over Rs 1.5L per year has to pay taxes, whereas an industrialist with a few crores as dividend income and another few crores from long term capital gains from exchange traded shares does not have to pay any income tax! A common man with a few thousand rupess per year from dividends gets heavenly feeling when FM makes these tax free! A poor man does not have money to invest in shares and middle class which is the vote bank gets happy with this not realising that it is aimed at the super rich to get richer. Salary of even Ambani gets taxed but not the income froom dividends. No wonder India is progressing with higher and higher number of billionaires!
