The present policy of Income tax in India is to charge a higher income tax as one earns hghre, there is even a surcharge for income of Rs. 10 lakh or more. This gives rise to corruption, as every one tries to reduce his declared income, by hooke or crook. If the tax can beas follows :- For an income of Rs 1.5 lakh : 10%, From 1.5-2.5 lakh : Rs 15,000 Rs. 5,000 (5% of the income in excess of Rs. 1.5 Lakh), From 2.5 - 5 Lakhs :Rs. 20,000 7,500 (3% of the income in excess of Rs. 2.5 Lakh), From 5 -10 Lakhs Rs. 27,000 10,000 (2% of the income in excess of Rs. 5 Lakh). Every body earning more will be temted to be honest tax payer. yes many persons will stil conceal their actual income. Govt may take strict and exemplary punishment. It may be tried for one financial year, if it fail it may be revoked. The problem is that the govt thinks majority of the people are dishonest, and will conceal their actual income. But the fact is majority of the citizens in India are law abiding. Only when they see some influential perosn flaunting any rule and getting away with it, the public resorts to corruption. If corruption is dealt with a firm hand, I think India will grow to be a world Leader. Only our leaders9Political masters) should have long term vision.
