9 Ideas To Reform Income Tax Act ( Or It May Be Incorporated In DTC )

1. Solution To Give Relief To Middle Class & Lower Class From Income Tax Without Decreasing Revenue

This Should Be Income Tax Slabs. Remove 87a Rebate. Its High Time That Government Should Rethink Income Tax Basic Exemption Limit

1. FROM 0 TO 5 LAC INCOME – 0%
2. FROM 5 LAC TO 10 LAC – 10%
3. FROM 10 LAC TO 20 LAC – 20%
4. FROM 20 LAC AND ABOVE – 30%

2. Solution To Increase Tax Payer Trust & Trust In Our Taxation System

It’s high time that Government should think for giving some benefits to those tax payers (only individuals) who have contributed to the Economy by paying high taxes in last 70 years. They are the true nation building partner. They are the true contributors to growth of our country. Its high time Government should think of giving them back & salute their contribution to economy, honesty & loyalty towards country. We have to see other countries how they respect their High taxpayers like USA giving more retirement benefits based on Tax paid in past. A proper scheme should be think upon.

Key and a note on a wooden table with text - Tax Reforms

SO WHAT CAN BE DONE?

Give Priority In Passport Line, Airport Ticket Counters 2. Give Priority In Railway Reservation, 3. Giving Priority In Getting Any Government Department Work Done 4. Giving Them Some Retirement Benefit as Pension 5. Healthcare Benefits Like Free Health Insurance Etc

3. Solution To Bring Black Money / Undisclosed Assets Into System

Disclose Of Undisclosed Money / Property / Financial Assets. By One Time Amnesty Scheme.

Money / Assets Disclosed In This Scheme. 50% Payment Now As Tax. 50% Of Amount To Be Deposited In Bank As Fixed Deposits With Lock In Of 5 Years. So That 100% Black-Money Will Come Into System.

4. Solution To Tap On Most Ignored Area Where Income Tax Is Not Being Paid Commonly I.E At The Time Of Shares & Securities Sold

There Should Be TDS On Sale Of Equity Shares / MF-

Calculation Of STCG / LTCG For Shares/ MF Sold By Person Who Is Required To Deduct TDS At The End Of Fin. Year…

TDS Will Be Deducted By Stock Brokers & Reporting In Form 26AS To Be Done As Usual. This Will Ensure That All Such Transactions Will Be Reported Under ITR

So That People Will Show In His Income Tax Return In Capital Gain Head

5. Solution To Tap On Another Most Ignored Area Where Income Tax Is Not Being Paid Commonly I.E At The Time Of Gold / Gold Ornaments Sale

TDS On Sale Of Gold / Gold Ornaments / Diamond Etc If More Than Rs. 50000 Under A B2c Transaction.

TDSWill Be Deducted By Jweller & Reporting In Form 26AS To Be Done As Usual.

Again , This Will Ensure That All Such Transactions Will Be Reported Under ITR

So That People Will Show In His Income Tax Return In Capital Gain Head

6. Solution To Widened Area Of Taxation By Providing More Information In Form 26AS

All AIR Reporting To Show In 26AS, So That People Will Know & Disclose In ITR.

7. Solution To Tap On Tax Evasion In Capital Gain In Case Of Sale Of Property

Payment Of Income Tax For Long Term Capital Gain On Sale Of Property Should Be Within 60 Days Of Sale.

This is to Be Done With Uploding Valuer Certificate & Ca Certificate So As To ensure that Valuation & Payment Of Tax Done Properly If Property Sold is For More Than 50 Lacs.

8. Solution To Get More Information & More Disclosures From Super Rich- ( After 2024 Or Some Years)

High Networth Holding Tax – A Minimal Tax To Dislcose All Assets If More Than 10 Crore. 0.01%.

A New Sub-Regime Of Taxation Under Income Tax. Minimal Tax To Be Collected @ 0.01% Of Networth For All Super Rich Having 10 Crore Or More Networth

“Disclosure Of Assets “To Be Introduced As A New Schedule In Itr Form .& Also Payment Of This Minimal Tax Only Applicable To Super Rich As Explained In Detail As Below.

For Example High Net worth Tax
First Year – Rs. 10 Crore Net worth Tax At 0.01% Rs. 10000
Next FY – Rs. 11 Crore Net worth Tax At 0.01% Rs. 11000
Next FY –Rs. 16 Crore Net worth Tax At 0.01% Rs. 16000

FINANCIAL ASSETS TO BE COVERED

1. Any Building Or Land Appurtenant Whether Used For Residential/ Other Purposes Except Rural Agriculture Land

2. Motorcars

3. Jewellery, Bullion, Furniture, Utensils Or Other Articles Made Fully/ Partly Of Gold, Silver, Platinum Or Such Precious Metals

4. Yachts, Boats And Aircrafts

5. Financial Assets With Specific Interest Rates Like Bonds , Fd , Loans Given , Deposits Etc

This Will Ensure More Transparency To Disclose All Assets. A Minimal Tax Will Increase Revenue For Government From Super Rich. And Purpose Is To Get More Information.

9. An Alternative Presumptive Scheme Of Taxation Like Turnover Tax. Solution To Get More Revenue

An Alternate Tax To Business Class For Turnover Upto 5cr… Irrespective Whether Company , Individual , LLP , Firm Etc.. Replacing Section 44ad , 44ae Forever.

A Turnover Based Tax. Not On Income. So As To Get Some Revenue From Business Class Which Hardly Shows Profit.

Manufacturing Concern – 1.5 % Tax On Turnover… For Example Turnover Is 5 Crore Presumptive Tax (In Place Of Regular Income Tax) – 7.5 Lacs As Tax Govt. Can Get
Trading Concern – 1.25% Tax On Turnover… For Example Turnover Is 5 Crore Presumptive Tax (In Place Of Regular Income Tax) – 6.25 Lacs As Tax Govt. Can Get
Servicing Industry – 2% Tax Of Total Receipts… For Example Turnover Is 5 Crore Presumptive Tax (In Place Of Regular Income Tax) – 10 Lacs As Tax Govt. Can Get
All Other – 2% Tax Of Total Turnover / Receipts… For Example Turnover Is 5 Crore Presumptive Tax (In Place Of Regular Income Tax) – 10 Lacs As Tax Govt. Can Get

This Will Work Like Alternative Scheme Of Taxation For Every Year.

Business Concern Will Not Have To Go Through Any Proceedings / Any Scrutiny Unless Found Under-reporting.

Author Bio

More Under Income Tax

One Comment

  1. GANDHI MOHAN BHARATI says:

    Item 8 – taxation on assets is revisiting wealth tax inviting lot of litigation on valuation. Not worth the trouble.
    For non business class simplify the procedure by removing all exemptions and significantly lower the tax rate on total income

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

September 2020
M T W T F S S
 123456
78910111213
14151617181920
21222324252627
282930