Improving the Income Tax System - Solutions
Below is a summary of key solutions as identified by many of you to improve the Income Tax System of India. Kindly review them and if you find anything missing, please add to it as a comment to the post.
We will then compile all three (Issues, Root Causes, Solutions) in a whitepaper and submit it to the Ministry of Finance for actions.
I look forward to your inputs!
Rajendra Pratap Gupta
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Income Tax – Identified Solutions
1. Income tax slabs should be revised
2. Range of investments for tax savings should be increased
3. Investment limit under 80C should be increased
4. Increase tax exemption to 2 lacs
5. All tax slabs must automatically be revised every year to keep pace with inflation
6. The working of the Income Tax department should be made transparent
7. Pension should be exempted from being taxed
8. Tax on interests from fixed deposits should be reduced
9. IT form and filing process should be simplified
10. A helpline should be started to answer any question that a person might have about filing income tax online
11. Timelines should be defined for processing the refunds
12. Timelines should be defined for processing of the TDS returns too
13. Double tax policies should be banned
14. Businesses caught trying to evade taxes should be fined heavily
15. IT rules should be simplified so that a common man can easily understand them
16. The scrutiny/in person interaction between officer and assesse should be redesigned to eliminate corruption
17. Honest officers should be celebrated
18. Department employees should be trained on customer service
19. Abuse of exemption on agricultural income should be curbed
20. The limit for medical exemption should be increased to Rs. 50,000
21. Blacklist companies, people who default on the tax payments, loan payments from getting further benefits
22. Grievance redressal should be handled by independent agency and not by seniors from the same department more