Recently, few days back, I read in news papers, that our PM wants to widen the tax net and he wants 10 crores households , to be brought under the tax net, is understandable..Every person and legal entity whose taxable earnings are above the threshold ought to pay tax without exception.As I know ours might be the only nation where affluent are non- tax payers while those who lead a hand- to - mouth existence are under the scanner for tax compliance .
I feel , the tax payer while funding Govts , gets nothing in return. The revenue generated perhaps goes first to the coffers of the corrupt.Unless the tax payer is able to see the good roads , live in a clean and safe environment, , is able to lead a decent life at affordable price levels etc there will always be a reluctance to pay tax.Infact this is all for a separate discussion, whereas Iam encountering a different problem as such.
At present one is required to file compulsorily,IncomeTax Return, even when there is no tax due on total income.Why is such an absurd provision is there in Income Tax Act? Rightly filing Form15G/ 15H( for non- deduction of tax at source is allowed in such cases ) Herein the most senior citizens are badly affected. Infact , I would say, that this is an avoidable tax measure.
I feel, the Income Tax department is not going to loose if Income Tax Return is not filed when there is no tax due on total income by tax planning of investments in permissible deductions. The Department should have trust in tax payers and reduce their burden and concentrate on those tax payers who have taxable income even after permissible deductions.
Infact , some time back, I read in a news paper report, that in Sweden, when taxes were phenomenally raised overnight the Tax payers rang up the Taxmen to visit them and collect the enhanced taxes as citizens had absolute faith in the end use of taxes collected,Can we imagine that situation in India in near future,even if is NDA or UPA?
I feel , the tax payer while funding Govts , gets nothing in return. The revenue generated perhaps goes first to the coffers of the corrupt.Unless the tax payer is able to see the good roads , live in a clean and safe environment, , is able to lead a decent life at affordable price levels etc there will always be a reluctance to pay tax.Infact this is all for a separate discussion, whereas Iam encountering a different problem as such.
At present one is required to file compulsorily,IncomeTax Return, even when there is no tax due on total income.Why is such an absurd provision is there in Income Tax Act? Rightly filing Form15G/ 15H( for non- deduction of tax at source is allowed in such cases ) Herein the most senior citizens are badly affected. Infact , I would say, that this is an avoidable tax measure.
I feel, the Income Tax department is not going to loose if Income Tax Return is not filed when there is no tax due on total income by tax planning of investments in permissible deductions. The Department should have trust in tax payers and reduce their burden and concentrate on those tax payers who have taxable income even after permissible deductions.
Infact , some time back, I read in a news paper report, that in Sweden, when taxes were phenomenally raised overnight the Tax payers rang up the Taxmen to visit them and collect the enhanced taxes as citizens had absolute faith in the end use of taxes collected,Can we imagine that situation in India in near future,even if is NDA or UPA?
