Remove personal income tax
Why not abolish personal income tax.
Introduce expenditure tax instead. Those who spend more will pay more taxes.
90% of IT staff can retire. Remaining staff will handle corporate income tax.
Collection of expenditure tax can be implanted in several ways. Best would be thru bank withdrawal tax. Say when ever you withdraw more than 1000 a tax of 1% will also be made to your account . This will ensure all taxes are collected at sources. People with low income who withdraws less than 1000 need not pay any tax. Those make multiple withdrawals totalling 1000 per day should also be taxed for the excess amount.
Abolish all currency notes above 50.
Black money will be history... more
Introduce expenditure tax instead. Those who spend more will pay more taxes.
90% of IT staff can retire. Remaining staff will handle corporate income tax.
Collection of expenditure tax can be implanted in several ways. Best would be thru bank withdrawal tax. Say when ever you withdraw more than 1000 a tax of 1% will also be made to your account . This will ensure all taxes are collected at sources. People with low income who withdraws less than 1000 need not pay any tax. Those make multiple withdrawals totalling 1000 per day should also be taxed for the excess amount.
Abolish all currency notes above 50.
Black money will be history... more
Viewed by 46
View all 7 comments Below 7 comments
Abolishing Personal Income Tax cannot be done across the board. People who earn less than 10 lakhs pa and Retired Senior Citizens who are not on the board of any company can be exempted. The rest must pay the Personal Taxes. The expenditure tax is also a good idea. A fixed amount of 15% to 20% expenditure tax must replace Service Tax, Octroi, VAT, Sales Tax and any other incidental tax. This will greatly simplify the tax collection systems. However, one problem we have in india is that almost all merchants sell goods "without bill". A system of checks and balances is needed to ensure that "vouchers and bills" are required to be given by merchants and the people need to submit these in order to justify their tax exmeption. more
Jun 17
for moving cash from one bank to another, why withdraw? bank to bank transfer can be done. the lesser cash handled in economy, easier is the control on it... more
Jun 17
The taxation system that we have today is a development of few centuries now, got fine tuned more in last century. The idea is to tax people who have more income on an equitable basis. I am not in favour of abolition of personal income tax, following are my suggestions on cleaning the income tax - 1. Collection of tax should be more effective (incomes don't escape from taxation. Collection of tax is effective in the source of income) 2. Collection of tax should be simple (Cost of collection/ surveillance should be minimal. Complex rules to be avoided. Ex. Why give LTC tax exemption and give room for a scam. Impose minimal income tax. Let the citizen travel or save as per his convenience. Giving tax concessions do not improve tourism, but another scam) 3. Reduce the income tax rates. Discourage passive investment like gold and land, encourage active investments like bank deposits, paper investments. 4. Stop litigating in the courts on finer provisions even it may bring hundreds of crores. Control from imposing retrospective taxes, as it defeats the institution of courts 5. The tax rates need to be adjusted for inflation. Already when people are suffering with high prices it is sin to tax more. 6. Senior citizen should be given more concessions based on their income level. The current rule of age based concession makes our smart people invest in the name of their parents, grand parents and evade tax more
Jun 17
The expediture tax need to be given a consideration very seriously keeping in view that only 1 crore people out of 120 crore population ( not even 1 %) pay income tax. BJP communication cell may please take it up with PMO for consideration. more
Jun 17
