My suggestions for the budget
I suggest the following points for consideration while framing the budget.
1. Income tax limits should be based on a reference year and must be updated automatically every year based on the cost of living index (or the consumer price index). After all public servants get remuneration adjusted for inflation. So why not fix tax limits on that basis too instead of arguing every year about it?
2. Interest on bank/corporate/government deposits should be tax exempted based on the mean inflation of the previous year. If the interest rate is 6% and the inflation is 5.5%, only the excess of 0.5% should be added to the income and taxed applying the normal limits of income tax.
3. Investments are taxed for capital gains at a very steep rate. Except speculators others who make investments see their capital being constantly eroded. I suggest that interest income of up to 15% of the capital deployed should be exempt from long term capital gains tax in a year. Remember those who invest are taking risks and therefore deserve a reward too.
4. Since these days in most families both partners work to make ends meet, there should be a provision to file tax returns jointly as done in many other countries and the limits fixed accordingly. This will only apply for one husband-one wife situations. Those who want to have multiple wives cannot claim this facility.
5. Pensioners receive the benefit of standard deduction. The same should be applicable to every senior citizen including those who live on interest earnings alone.
6. Rather than increasing the tax rates, government must consider bringing more people into the tax base. Except for salaried people/people retired from service, others who earn comfortable income are never taxed. This applies to many small business owners, artisans and others. Many people like doctors demand cash fees which are outside taxation.
6. In my opinion the current government has no concern for senior citizens except those who are pensioners of government and the public sector (notably banks) who are well-organised and always keep agitating to increase their pension incomes. EPF (commuted) pensions are pathetic in comparison and nobody can survive on that.
7. In addition to increasing taxes, the government should reduce revenue expenditure. (I mean salaries, expenses on elected officials, Z category security for people who neither need or deserve it and so on). Otherwise it will be a case of killing the goose that lays golden eggs (by excessive taxation). The government can even consider gradually tapering off personal income tax and increase GST rates which at least applies uniformly to every citizen. more
1. Income tax limits should be based on a reference year and must be updated automatically every year based on the cost of living index (or the consumer price index). After all public servants get remuneration adjusted for inflation. So why not fix tax limits on that basis too instead of arguing every year about it?
2. Interest on bank/corporate/government deposits should be tax exempted based on the mean inflation of the previous year. If the interest rate is 6% and the inflation is 5.5%, only the excess of 0.5% should be added to the income and taxed applying the normal limits of income tax.
3. Investments are taxed for capital gains at a very steep rate. Except speculators others who make investments see their capital being constantly eroded. I suggest that interest income of up to 15% of the capital deployed should be exempt from long term capital gains tax in a year. Remember those who invest are taking risks and therefore deserve a reward too.
4. Since these days in most families both partners work to make ends meet, there should be a provision to file tax returns jointly as done in many other countries and the limits fixed accordingly. This will only apply for one husband-one wife situations. Those who want to have multiple wives cannot claim this facility.
5. Pensioners receive the benefit of standard deduction. The same should be applicable to every senior citizen including those who live on interest earnings alone.
6. Rather than increasing the tax rates, government must consider bringing more people into the tax base. Except for salaried people/people retired from service, others who earn comfortable income are never taxed. This applies to many small business owners, artisans and others. Many people like doctors demand cash fees which are outside taxation.
6. In my opinion the current government has no concern for senior citizens except those who are pensioners of government and the public sector (notably banks) who are well-organised and always keep agitating to increase their pension incomes. EPF (commuted) pensions are pathetic in comparison and nobody can survive on that.
7. In addition to increasing taxes, the government should reduce revenue expenditure. (I mean salaries, expenses on elected officials, Z category security for people who neither need or deserve it and so on). Otherwise it will be a case of killing the goose that lays golden eggs (by excessive taxation). The government can even consider gradually tapering off personal income tax and increase GST rates which at least applies uniformly to every citizen. more
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What about those who are NOT PUBLIC SERVANTS? There are majority of people like me who have retired and do not get any PESION. Is the country run only by Public Servants? I agree that SCSS and PMVVY interest rates must be increased regularly and should not be taxed. more
Dec 25
Govt has become very cruel with Non Pensioner Senior Citizens. They must look in to it. Increase the Interest Rate on SCSS and PMVVY. Increase the amount on both from 15 L to 25 L each. Give Rebate to SS during Hospitalization. Give IT rebate up to 10 L each. Let them live a DIGNIFIED LIFE at the Fag END. more
Dec 24
In the budget special incentives could be given to indian kids income to encourage business in our country 1) children live abroad can gift their parents a car or home ( automobile boom and infrastructure sector boom) with the taxable income tax exemption 2) if they sponsor their community ( cast) poor family relatives kids education fees. 3) parents live alone care Home taker salary could be considers for tax more
Dec 14
May I request the Circle Manager to conduct polls on the points mentioned in the post? 1. IT minimum limit indexed to inflation 2. Deposit earnings to be included for taxation after the erosion of capital due to inflation is offset (especially for seniors) 3. Review of Capital gains on MF and long-term equity holdings 4. Allowing joint returns by spouses 5. Allowing standard deduction for all seniors or abolish it for all senior citizens uniformly. 6. Government provided security to be withdrawn to all except Central and state ministers, President and Governors to reduce expenditure Just so that I make it clear: Senior citizens want to live their lives with honour and not by begging the government for handouts. Government should treat them with courtesy instead of giving freebies to those who do not deserve them. more
Dec 14
It's really a hard time to have a good living. A person is double taxed. One has to pay income tax and again expenditure tax in terms of GST. How a person can save a small amount for future? Govt. should device a taxing plan so that everyone get sufficient amount to spend that will propel the economy to grow well. That may benefit Govt. more instead of present mode of taxing both the ways. more
Dec 13
