Do you think the tax exemption limits should be raised? Or should income tax rates be reduced?
This Income tax scenario is not at all necessary. Every individual who earns has to spend. For every spending attracts tax. So there is no necessary for separate for income tax.
Few examples how every individual is paying tax: 1. Housing: The persons having their own house, pays house tax. The persons residing in rented houses also pays indirectly house tax which is reflecting in his rent. The persons residing in hostels or hotels also pays rent with service tax etc. 2. Consumer items: All essential consumer items starting from morning tooth powder/paste, night mosquito liquid/coil/mats everybody is paying tax. 3. Dressing: All day to day dressings, chappels, soaps, spectacles, hair oils, etc. are also being given tax. 4. Electrical items: All electrical items are being taxed. 5. Transportation: Day to day transportation also being taxed. Vehicle owners gives tax for their vehicles and for fuel. The persons who uses public transport also getting taxed which is included in tickets. The persons who walks all the way also give tax by purchasing new chappels very often. 6. Maintenance: Whether it is house maintenance like borewell motors, dresses washing soaps and detergents, washing machine, fridge etc., attracts tax and also maintenance of our face (shaving etc.,) attracts tax. 7. Entertainments: All entertainments including T.V., cinema, cable, games, circus, zoos, parks etc., are being taxed. 8. Real estate: Buying and selling lands, houses also being paid but this is collected as fees. 9. Housing loan: The persons who takes housing loan are paying interest for their loans which is increased very often. The increase of just 0.5% means Rs. 1 lakh extra for the banks for minimal loan of Rs. 5 lakhs. 10. Medical: All medicines including life saving medicines also attracts taxes. 11. Apart from this wealth tax, professional tax, entertainment tax, service tax, entry tax, value added tax, octroi, central sales tax, individual state tax 12. Birth & Death: From birth to death we have to pay tax.
Apart from all these we are paying extra 2% as service tax in recent years. Overall the each and every expense made by us gives government an income. So there is no need to make a tax on income.
Only thing is that we don%u2019t know where all these amount is going? how they are utilized for public?
But who are all governing us who are once very poor or middle class & not professionally literate are the richest persons of India?
RE:Should tax rates be cut?
by ramachandra mahale on Feb 22, 2007 06:08 AM Permalink
The increase in the inflation rate and bringing so many items under the fold of service tax has costed the common man too much. The middle and lower income groups are the persons affected very much. The situation worsens in case of middle income group as they come under the fold of Income Tax.The Government which has the responsibility of providing infrastructure facilities and other amenities cannot afford to miss revenue by way of income tax. Hence, there is no justification in either of the proposals - to raise the income tax exemption of income tax limits or to reduce the income tax rate. On the other hand some corrective measures could be undertaken. 1. To abolish the educataion cess 2. To raise the limit fixed on savings/investments under Section 80C from Rs.100000/[ to Rs.150000/- 3. To discontinue the relaxation in tax exemption limit to women residents of India below the age of 65 years and they shall be brought on par with men with exemption upto Rs. 100000/-4. To increase the exemption limit on Interest from the existing Rs. 5000/- to Rs.15000/- 5. To boost the savings the limitations on certain savings like NSC and Bank Fixed Deposits the proceeds on maturity being taxed be removed. R U Mahale Mysore India
