Income Tax Laws And Simplifications In India

And To the Republic, For Which it Stands
Image by Thomas Hawk via Flickr

I do not know the complicated jargon of finance and budget .In very simple terms I can only say earning and expenditure.Govt.earns from various sources.One of them is direct tax in form of income tax.The salaried people contribute in this category .They have pay slips and account bills with their employer  and are bound it file the return  and can not hide income, of course from white source.By this I do not say that all the  employees have an access to black money rather many do not have it or do not wish.Whatever it may be they have to file a return at the end of the financial year.

Everybody know that there is a large chunk of earners who escape the net.They can be easily brought to the tax net by a willing Govt.So it happens  that the salaried person falls prey to the tax laws in a sense that many in his vicinity comfortably escape.Again when a single employee couple faces the present retail price to meet his daily requirements he finds himself nowhere near  others.If both the couple earn in spite the difficulties they face in their family life manages to some extent.The standard deduction limit for lady employee is high apparently to give an uplift is perhaps somewhat misread by me.It is a fact that a working lady mostly has a working husband.And their compensation add together.On the other hand when only the husband earns and is a single earner for his family  has to meet all the need from a single pocket.But his standard reduction limit is far below that of a female employee.And a honest employee being a single earner only understands the sorrow of same category and nobody else.

So I think there should be a provision for single male earner in a family where the the ceiling of standard deduction should at least same as women employee.

At present there are a number of provisions to save tax  and very comfortably can be manipulated to to pay less income tax. Everybody in this world face financial problem and require money to fulfill different demands but only a handful could manipulate to save tax taking advantage of a provision   stipulated in the law.

So I propose there can be a very simple mechanism or formula to calculate tax.For example earnng to certain extent say 3.5 lakhs a year will not attract any tax. And above that say up to 6 Lkhs it is say 2% of total income without taking consideration of any exemptions.And there after the tak be  another percentage of total income.

Of course is has to worked out to plug loopholes.But can it be at least discussed ? How it sounds you have income of a particular amount and the tax is 3% and you should pay that through internet.A damn simple way ,Is not it ?

Enhanced by Zemanta
Advertisements

, , , , ,

  1. #1 by financemaser on July 15, 2009 - 9:39 am

    very good…keep it up

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: