9 IDEAS TO REFORM INCOME TAX ACT

9 IDEAS TO REFORM INCOME TAX ACT ( OR IT MAY BE INCORPORATED IN DTC )

1. SOLUTION TO GIVE RELEIF 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%
 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.

SO WHAT CAN BE DONE?

1. GIVE PRIORITY IN PASSPORT LINE, AIRPORT TICKET COUNTERS
2. GIVE PRIORITY IN RAILWAY RESERVATION,
3. GIVING PRIORITY IN GETTING ANY GOIVERMENT DEPARTMENT WORK DONE,
4. GIVING THEM SOME RETRIEMNT BENEFIT IN PENSION
5. HEALTHCARE BENEFITS LIKE HEALTH INSURANCE FREELY ETC ETC ETC

3. SOLUTION TO BRING BLACK MONEY / UNDISCLOSED ASSETS INTO SYSTEM

DISCLOSE OF UNDISLOSED 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 & SECURITEIS 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. . TDS WILL 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 & DISLCOSE 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 DECIDE VALUATION & PAYMENT OF TAX DONE PROPERLY IF PROPERTY SOLD FOR MORE THAN 50 LACS.

PAYMENT OF TAX WILL BE AS ADVANCE TAX SO THAT GOVT. WILL GET REVENUE WITHIN 60 DAYS .
THIS CALCULATION WILL BE SAME FORMULA OF LTCG SCHEDULE IN ITR

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

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 PRESUMTIVE SCHEME OF TAXATION LIKE TURNOVER TAX. SOLUTION TO GET MORE REVENUE

AN ALTERNATE TAX TO BUSINESS CLASS FOR TURNOVER UPTO 5CR… IRRESPECTIVE WHETHER COMAPNY , 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. RATES ARE JUST EXAMPLARY.

MANUFACTURING CONCERN – 1.5 % TAX ON TURNOVER…
TRADING CONCERN – 1.25% TAX ON TURNOVER…
SERVICING INDUSTRY – 2% TAX OF TOTAL RECEIPTS…
ALL OTHER – 2% TAX OF TOTAL TURNOVER / RECEIPTS…

FOR EXAMPLE TURNOVER IS 5 CRORE PRESUMTIVE TAX ( IN PLACE OF REGULAR INCOME TAX ) – 7.5 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 UNDERREPORTING.