Improving the Income Tax System - Solutions
Dear Friends,
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
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
-----------------------------------------------------------------------------------------------------------------------------
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
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Rot is prevailing right under the nose of the Senior officials. Can a signborad be displayed, as said earlier, mentioning : This office is "CORRUPTION-FREE" . All Income Tax offices and all the government offices from top to bottom should have this sign board for the people to become aware. This will make the corrupt to think twice before practicing this 'trade' named 'corruption'. more
Jan 12
I would like to focus on the issues like i) handling of Grievance redressal (ii)The working of the Income Tax department should be made transparent and more user friendly(iii) IT rules should be simplified so that a common man can easily understand them Filing of return,TDC filing,refund etc has been made computerized due to which some transparency has come but still there is issue of mismatching of TDS return filed by deductor and actual deducted . This is resulting that assesee get notices from CPC Bangalore. On contacting concern Income Tax officer he directs tghe assesse to TDS officer for submitting complaint regarding deductor employer for missing credit. Tax has already deducted from the salary for which he has Form-16 even though he has to run from pillar to post to get missing credit in Form 26AS. why? From Traces when CPC verifies & confirms the missing tax credit ,at the same time CPC may contact to deducting employer as they have deductors TAN number and may ask clarification of missing tax credit . Why assesse has to run behind the employer ? Department has to solve this issue as at present it is major. more
Jan 06
Reforms and improved efficiency for Indian Judicial system Our judicial system is lagging behind very badly due to many reasons like lack of quality human resources, very low working hours, poor information technology and connectivity etc. When are we going to get a juducial system which works 24X7X365 ? If hospitals, police stations,airports, railways, mines, communication etc can work 24X7, why is the courts of law in India, commencing their work at 10:30 AM in the morning, having a lunch break at 1:00 PM and then wind up the day by 5:00 PM ? Why is a three shift system, NOT possible in judiciary ? Why is it necessary to have summer and winter vacation for judicial system ? Why are we following the old and lazy British Raj judicial system ??? more
Dec 23
Removal of exemption of agricultural income is not enough..... ALL agricultural income must be treated as ANY OTHER INCOME...... the "poor farmers" will not pay any taxes as their personal exemptions would eliminate any tax liabilities..... only the rich, phony, absentee "farmers" would now have a tax liability..... like any other income...... Keep it simple.... more
Dec 22
