Inputs Sought - Leakages in Tax Collections
As part of General Budget 2016 discussions, we would like to seek your inputs on what are the various leakages that happen in tax collection i.e. income tax, services tax, excise, customs duty, cess, etc.
If these leakages can be effective identified and implemented by the Govt, they can lead to reduction in the direct and indirect tax rates to common citizen and businesses.
We look forward to your inputs! more
Respected Sir, One of the great vision taken for clean India program. Sorry to say that , this is some what happened ,or elsewhere. Still This program not yet reached to Metropolitan city, we can not expect the same to our tiny village near Kanyakumari. ( Vallioor). I am an ex defense person , having 33 years of planning and Administration experience. My suggestion is ,If you want to implement the Clean India Program or else other, You can very well use the Ex Defence persons . You need not to give any separate training for them, Yes they have already experienced with good discipline manner.You need to area wise selection, those who are young, energetic persons and also have the faith in God. Thanks and regards, SS Kumar Kums1963@gmail.com 9442770021. more
Government of India is a big consumer of services rendered by Private sector. As consumer of Service, Service Tax is paid and money goes out of the consolidated fund of India. There is no system with Service Tax Department to ensure that money paid by Government comes back to the Government. I feel instead of paying to the private service provider Tax should be calculated and paid back to the Service Tax Department like TDS of Income Tax. It will serve double purpose. one the amount will not actually go out of the pocket of GOI. secondly, there will be no chance of tax evasion at least for this part of Tax. more
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Inputs Sought - Leakages in Tax Collections - In Income Tax Law following are some of the leakages: A. (1) If a Home Loan is taken in joint name of more than one person - all the joint holders take benefit of interest as well as of principal payment for full extend - say if interest Rs. 1,00,000/- and principal Rs. 10,000/- paid & loan is in the name of self, wife & son all person will claim deductions totaling to Rs. 3,00,000/- + Rs. 30,000/- of home interest & principal payment. A. (2) Even the property is under construction they are claiming deduction. A. (3) Even the loan has been taken for repair or maintenance they are claiming deduction(s) much more than permissible. A. (4) Top up loan which is not deductible under law is being claimed as deduction. B. Same is the position of premium paid for Life Insurance policies - B.(1) There is provision that premium should not be more than 10% of the sum insured (exception is there) but all are claiming full amount. B. (2) Insurance policy of some private Insurance Companies are not deductible because they are like investment (they are being sold by misleading), but are claimed as deduction. There is no clarity about Service Tax levied on insurance premium where it is to be taken into account or not. But all are claiming deduction. B. (3) Father is paying insurance premium of major son writing that F has insured S - both are claiming deduction. C - Same is the position in Mutual Funds - Major funds are not eligible under section 80C of IT Act but full deductions are being claimed as they are / have been sold by agents through misinterpretations. D - Same is the position under House Rent deductions. more
We are not yet ready for a comprehensive tax laws and structures .... 90% people and companies are non tax compliant ... the reason being the complicated tax law that is not understood by a common man or is not even aware of its existence ... another is even if they are aware, the draconian tax slabs on par with the developed countries is too much for Indians who are at the nascent stage of development, who are looking to securing their lives ... unless the personal development of Indians are on par with the developed country ... there will be no tax compliance ... the only solution is to reduce the tax remarkably ... you can see a multi fold increase in tax collection ... I bet ... that is the Indian mindset ... more