Reforming Income Tax - Inputs on Solutions
Dear Friends,
Below find some of the Key Root Causes for Income Tax Issues as identified by you. Kindly review them and the help identify solutions by responding with your views as comments to this post.
We will then put together our collective citizen whitepaper and submit to Finance Minister and Minister of State for Finance for their actions.
I look forward to your inputs!
Rajendra Pratap Gupta
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Income Tax – Root Causes
1. Income Tax rules are outdated and confusing
2. IT officers have a lot of authority, which makes corruption rampant
3. The unusual discretionary powers and poor knowledge also adds to the problem
4. IT officers have no accountability
5. IT staff targets simple people to complete their targets, leaving big fish untouched with some understanding/collusion/corruption
6. Many large transactions still happen in cash which makes it difficult to find the actual taxable income of a person
7. Senior citizens are, in most cases, treated like any other individual when it comes to taxation
8. Grievance redressal department is completely incompetent
9. Double taxation rules are not clear
10. Consumer comfort and ease is neglected while designing the IT return process
Income Tax - Key Issues
1. Income tax rates are high
2. Investment options are limited
3. Exemption limits are low and in some cases unrealistic and don’t account for inflation
4. Present 80C limit is too low
5. The tax system is unfair to citizens who are earning through honest and credible means
6. As an employee, everything gets taxed
7. After a particular level, 30% just goes out; you don't have too many investing options
8. Working on the IT department is not transparent
9. A lot of old age people are facing problems as pension is not tax exempt
10. IT return form is long and complicated and changes every year
11. Some very important expenses are not considered for tax exemption
12. Refunds and rectification applications are not processed in a time bound manner
13. TDS gets held up for almost a year before you get the refund
14. In some cases, there are double tax policies that apply to a person
15. Big businesses find loopholes and get away without paying taxes
16. Cases pertaining to tax evasion run for years
17. There are too many IT rules which makes tax calculations beyond understanding of the common man
18. The IT rules are tough to interpret for the common man
19. Corruption in the IT department is high
20. Tax authorities are high headed and they misuse their powers
21. Agricultural income tax exemption is abused more
Below find some of the Key Root Causes for Income Tax Issues as identified by you. Kindly review them and the help identify solutions by responding with your views as comments to this post.
We will then put together our collective citizen whitepaper and submit to Finance Minister and Minister of State for Finance for their actions.
I look forward to your inputs!
Rajendra Pratap Gupta
----------------------------------------------------------------------------------------------------------------------------------------
Income Tax – Root Causes
1. Income Tax rules are outdated and confusing
2. IT officers have a lot of authority, which makes corruption rampant
3. The unusual discretionary powers and poor knowledge also adds to the problem
4. IT officers have no accountability
5. IT staff targets simple people to complete their targets, leaving big fish untouched with some understanding/collusion/corruption
6. Many large transactions still happen in cash which makes it difficult to find the actual taxable income of a person
7. Senior citizens are, in most cases, treated like any other individual when it comes to taxation
8. Grievance redressal department is completely incompetent
9. Double taxation rules are not clear
10. Consumer comfort and ease is neglected while designing the IT return process
Income Tax - Key Issues
1. Income tax rates are high
2. Investment options are limited
3. Exemption limits are low and in some cases unrealistic and don’t account for inflation
4. Present 80C limit is too low
5. The tax system is unfair to citizens who are earning through honest and credible means
6. As an employee, everything gets taxed
7. After a particular level, 30% just goes out; you don't have too many investing options
8. Working on the IT department is not transparent
9. A lot of old age people are facing problems as pension is not tax exempt
10. IT return form is long and complicated and changes every year
11. Some very important expenses are not considered for tax exemption
12. Refunds and rectification applications are not processed in a time bound manner
13. TDS gets held up for almost a year before you get the refund
14. In some cases, there are double tax policies that apply to a person
15. Big businesses find loopholes and get away without paying taxes
16. Cases pertaining to tax evasion run for years
17. There are too many IT rules which makes tax calculations beyond understanding of the common man
18. The IT rules are tough to interpret for the common man
19. Corruption in the IT department is high
20. Tax authorities are high headed and they misuse their powers
21. Agricultural income tax exemption is abused more
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View all 238 comments Below 238 comments
sir, this is for any type of taxes. avoid as much as we can for different heads like sales, service,wealth,surcharges,education, octroi,VAT etc. Make clear , simple and practical taxation. No exemption to any industry specifically agriculture and allied industries. Accountability and responsibility of each and every officer involved for making law, implementing and redressal for grievances. more
Dec 11
Sir, Please help general publics by giving tax rebate in income tax to the items they are purchasing for their needs, because they are paying tax at the time of purchase& while income tax filing they pay tax for their same income also& by this I think they are paying double tax to govt if it is state or central. The industries ,shops etc they are registered under VAT/EXCISE claim this type tax paid but general publics can not.Therfore please give them rebate at the time of income tax filing& ask them to file all bills of purchase& give them some concession. Now publics what they are doing is they are purchasing the items without bill& shop owners collect tax two times by selling these extra bills, first from general publics they are refused to take bills because shop owners misguide them that if they want bill they have to pay tax extra.Since publics do not know about these tax & they do not know the amount he collect from them is inclusive of tax & when they ask about bill shop owner demand extra tax& because of extra tax payment they refuse the bill &purchase the item without bill.By this shop owner get benefitted & he sold these extra bill & collect tax .If while filing income tax general publics get tax rebate for the tax paid while purchasing then they demand bill from the shops & stop without bill business. By this without bill business, cheating the govt /publics by collecting tax twice, creation of black money also stop more
Dec 07
there should not be zero tax rate for any type of exemption provided to business men agriculture income should be taxable of the peoples who have also running mainly busines income should be taxable of educational institutions and hospitals who are not following fees receipt norms of government and not paying salary as per govt norms, institutions providing facilities of five star boarding and lodging facilities,selling books and clothing, cash transaction in the market should be discourge, use of prepaid instruements of banks should be encourge for stopping cash transaction in business. stop securtny system and start on the spot checking of books and record by the officers by visiting at business sites ,minimum tax paid system isto be link with use of luxary items, vehicles etc balance sheet of each asseessee isto be demanded compulsary with all the assets of assessee with the help of xray machines , bank lockers should be examined. ca ashwani k sharma 94170-27919 more
Dec 06
Suggestion - 1. The loophole of Agricultural Income is being abused by the wealthiest to evade tax. While there should be some incentive for poor farmers, why should millionaire ones not be taxed? How is it that even Havildars in the uniformed forces are now paying tax while some of the richest people in this country are able to evade taxes citing agricultural income? Suggestion - 2. Similarly in NE India, wealthy tribals (including migrants from the mainland) pay no tax. There should definitely be limits on exemption! more
Dec 04
Suggestion -1 As per present procedure, the Income from Bank deposit interest has to be added in other income in the Income Tax Return Form. A system should be devised by the Govt. to link all the Bank accounts of a person through Pan Card Number or Aadhar card Number (It should also be considered that if Pan card number and Employee PF number may also be abolished and replaced by only Aadhar Card Number). The total amount of interest from all bank accounts should automatically be added and communicated to the person and his / her employer (in case of salaried persons for addition in Form 16) through SMS or E-mail. Further same amount should automatically appear in the Return Form whenever that person submits the return form. TDS may be deducted quarterly as per present procedure but instead of being deducted by different banks, it should be deducted by a centralized bank assigned for that purpose (may be RBI or SBI). Suggestion-2 A. To cub Black money, All Property records, Car ownership, Business ownership, Credit cards , Bank accounts and Shareholding must be linked to Aadhar card number. It should be possible for the Govt. to know all the valuable assets of a person though single click of Aadhar card Number. B. Top 100 million people of the country in terms of assets and income should be identified. It should be made compulsory for these people to buy all products costing more than Rs 5000 ( Five thousand) though credit card or debit card or cheque payment or Net banking only. Any thing more than particular amount if not found linked to the system should be termed Black and Govt. will be the owner of such item / property / asset. For Services, like Hotels, Travel tickets, Restaurants, education fee, car service etc.any expenditure more than a particular amount must be allowed though cards / cheques/ net banking only. In case of cash payment , Identity number of the customer should be recorded by the merchant. This process should be extended to further 100 million people and step by step cover at least all middle class and above. more
Dec 02
