Suggestions on Income tax
1) Rebate on home loans should be available only to those who do not own any house anywhere in their name or name of the spouse. Rebate should be available only on interest paid and house valued upto some limit say 50 lakh in metros and 25 lakh in small cities and villages. This will avoid investment on house by rich people for tax benefit and make more houses and loans available for deserving people.
2) Increase tax for super rich. income above 1 cr should be taxed 40%
3) Remove all surcharges and cess. Include them in the basic rate. Why govt can not apportion the amount received into proper accounts instead of asking every tax payer to apportion into basic tax,surcharge,cess etc? This will simplify.
4) Remove all sections sub-sections for claiming rebate. Retain only 2 sections, one for direct deduction of income and another for rebate on tax. Include all items under these 2 sections. Limit on individual items (if required) should be a percentage of basic salary only. Rebate on HRA(rent) should not be available if you claim rebate under housing loan.
5) Rebate based on allowances like HRA, medical etc. should be available to all irrespective of whether you get those allowances or not. It is unfair to deny rebate on rent and medical expenses to those who do not get HRA and medical allowance.
6) Rebate on LTA which is mostly mis-used, should be dropped. more
2) Increase tax for super rich. income above 1 cr should be taxed 40%
3) Remove all surcharges and cess. Include them in the basic rate. Why govt can not apportion the amount received into proper accounts instead of asking every tax payer to apportion into basic tax,surcharge,cess etc? This will simplify.
4) Remove all sections sub-sections for claiming rebate. Retain only 2 sections, one for direct deduction of income and another for rebate on tax. Include all items under these 2 sections. Limit on individual items (if required) should be a percentage of basic salary only. Rebate on HRA(rent) should not be available if you claim rebate under housing loan.
5) Rebate based on allowances like HRA, medical etc. should be available to all irrespective of whether you get those allowances or not. It is unfair to deny rebate on rent and medical expenses to those who do not get HRA and medical allowance.
6) Rebate on LTA which is mostly mis-used, should be dropped. more
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One more suggestion, agriculture income should be taxable. Poor farmers are anyway not affected due to minimum taxable limit. This is mis used by landlords who claim to be farmers. more
Nov 29
ONE SUGGESTION :- THE RETIRED PEOPLE FROM GOVT/PUBLIC SERVICES GET SOME AMOUNT AS TERMINAL BENEFITS AT THE TIME OF RETIREMENT.THEY HAVE TWO OPTIONS AT THIS AGE (1) FULLFIL THE LIABILITIES OF THE FAMILY LEFT AT THAT MOMENT (2)PUT THE FUNDS IN TERMDEPOSITES/FD AND THE INTEREST THEY GET IS JUST A COMPENSATION FOR SUSTAINANCE w.r.t. MAINTENANCE OF HEALTH, MARKET INFLATION AND SOME SOCIAL OBLIGATIONS,RENT IF ANY. SO, IN MY OPINION SUCH RETIRED PEOPLE SHOULD GET TAX EXEMPTION ON THE INTEREST EARNED ON THE TERMINAL BENEFITS. ALL SHOPKEEPERS SHOULD PAY MINIMUM INCOMETAX OF Rs.2000/= EVERY YEAR,FAILING WHICH THEY SHOULD FILE THEIR INCOMETAX RETURN, AND COME OUT CLEAR WITH THEIR SOURCES/QUANTUM OF INCOME. more
Nov 26
I agree with Sanjeevji, Multiple Taxation should be done away with and a single point taxation introduced. The ideal one being Bank Transaction Tax. A tax of say as low as 2% on all bank credits. more
Nov 25
Last week i went to one mall in Bangalore. There i bought one sweet corn for that i paid service tax, Education cess, Higher education cess and VAT. While i am paying income tax also i am paying this all. Then why should i have to pay these TAX in that place. more
Nov 24
