Instilling hope once again amongst the personal taxpayers of the country, Revenue Secretary Tarun Bajaj on Wednesday said that the government is working on the proposal to make personal income taxes more relaxed and in favour of the people.
“On the personal income taxes, I have been asked many questions on this already. This is also work in progress and it would need some time from us,” said Bajaj at a CII forum.
He also requested the industry body CII to come up with suggestions on the issue and government will be welcoming in considering the same.
Taxpayers have been questioning the government post-Budget as to why the government remained silent and did not bring in any relaxations in the personal income tax rates despite high collections.
By introducing LTCG taxes on sticks & equity oriented mutual funds the government has wielded axe on long term savers when they sell shares or redeem mutual funds for children’s education/ wedding / buying a car etc. A retrograde step indeed. Form 2 filling is made a complicated task. The rules are becoming complex with every passing year. Section 80C is packed with various saving instruments with limit of 1.5 lakhs.
It would be better to limit number of saving instruments and increase tax threshold as also revising the slab limits upwards. It should also increase exemption for LTCG of MFs/shares to atleast 3 lakhs.
Govt can’t reduce taxes, because to take care of marginalised sector is priority, free food, support to kisan, Infra projects all require money, direct personal tax prayer are miniscule, their votes n views hardly matters for gaining control. they will reduce exemption in name of rationalisation, and further augment Taxes
Most easy to say it is work in progress. Can a tax payer also say something similar !!
The common salaried tax payer keeps on waiting. No one has time for him.
Perhaps our country is an exception where personal taxes are higher than corporate taxes.
Back door EET has been brought last year in EPF.
Common man will remain common for ever.
For too long governments at centre and state are marking huge amounts for “marginalised” sector. Everyone knows that a large chunk of it does not reach the intended persons. Why not collect electricity tariff from farmers? Let it be a small amount. Why not tax those getting crores as “agricultural income” and get away with paying nothing? The government has to have political will to tax them.
One should remember that the salaried persons who are prompt tax payers will limit their spending resulting lower business across sectors. Giving them some relief would have boded good for India’s economy. Seems that government is happy pandering to the needs of business class only