ABOLISH PERSONAL INCOME TAX
I-T Dept Backs Up PM’s Professional Tax Return Claims
We have so many professionals – big doctors, lawyers, chartered accountants, etc. But only 2,200 professionals declare their annual income of over ₹1 crore. Just 2,200 professionals! There would be more like this in the Supreme Court itself,” Modi had said.
The department added that the number of individual tax payers who have disclosed income above ₹5 crore across the country was 8,600, while 316,000 individual tax payers have disclosed income above ₹50 lakh.
In the current fiscal, 57.8 million individuals have filed returns for their FY19 income. On the other end of the spectrum, 10.3 million individuals showed income below ₹2.5 lakh, while 32.9 million had taxable income between ₹2.5 lakh and ₹5 lakh.
A total of 43.2 million individuals have disclosed income up to ₹5 lakh but are not liable to pay taxes since they are exempt under Finance Act 2019. This leaves only around 14.6 million individual tax payers liable to pay income-tax.
The department added that around 10 million individuals disclosed income between ₹5 lakh and ₹10 lakh, while 4.6 million declared income above ₹10 lakh.
Since the number of personal tax payers is so less a strong case is made out for abolishing personal income tax. The advantages would be manifold:
• No need for black money
• People will deposit cash in Banks.
• Massive reduction in Carbon foot print
• Accounting & Paper work will reduce tremendously
• No IT returns of individuals
• No need for exemptions
• No need to use unfair means to reduce tax liability
• No fraud due to refunds
Many countries are managing their affairs without personal income tax. Revenue can be collected by tweaking the GST rates without input tax credit. more
We have so many professionals – big doctors, lawyers, chartered accountants, etc. But only 2,200 professionals declare their annual income of over ₹1 crore. Just 2,200 professionals! There would be more like this in the Supreme Court itself,” Modi had said.
The department added that the number of individual tax payers who have disclosed income above ₹5 crore across the country was 8,600, while 316,000 individual tax payers have disclosed income above ₹50 lakh.
In the current fiscal, 57.8 million individuals have filed returns for their FY19 income. On the other end of the spectrum, 10.3 million individuals showed income below ₹2.5 lakh, while 32.9 million had taxable income between ₹2.5 lakh and ₹5 lakh.
A total of 43.2 million individuals have disclosed income up to ₹5 lakh but are not liable to pay taxes since they are exempt under Finance Act 2019. This leaves only around 14.6 million individual tax payers liable to pay income-tax.
The department added that around 10 million individuals disclosed income between ₹5 lakh and ₹10 lakh, while 4.6 million declared income above ₹10 lakh.
Since the number of personal tax payers is so less a strong case is made out for abolishing personal income tax. The advantages would be manifold:
• No need for black money
• People will deposit cash in Banks.
• Massive reduction in Carbon foot print
• Accounting & Paper work will reduce tremendously
• No IT returns of individuals
• No need for exemptions
• No need to use unfair means to reduce tax liability
• No fraud due to refunds
Many countries are managing their affairs without personal income tax. Revenue can be collected by tweaking the GST rates without input tax credit. more
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View all 8 comments Below 8 comments
We pay tax for income and expenditure. Remove income tax, increase expenditure tax. Collection will be more. more
Nov 23
Even if Tax is abolished, no one will pay the tax, if so, how to run the Govt schemes? Rather, every activity to be linked to Aadhar (of course, it has to be made stronger, means data theft, etc. should not happen) and the tax can be collected directly at the source rather than asking for tax payment. Tax payment depends on transaction value - if it is affordable they are going to purchase, means they have to pay tax for the transaction value. more
Feb 18
sir,pay tax for transaction value,it is white money,ok but in cases of lands and buildings sale and purchase actual transaction is many fold than it is declared on paper.There should be a system developed to find out the actual transaction also, this will definitely help reducing the black money. more
Feb 19
Before coming to abolition, have a moot questions. Many properties 1 crore and above,the various departments can have an access and source of funds besides paying capacity. Likewise on cars of RS 20L and above, high value two wheelers besides Imported cars. Further one holds lots of residential property and palatial houses. A proper IT software created to link these from PAN, Voter ID, Ration card, Aadhaar and Cellphone number will be much useful in eradicating corruption and skyhigh realty prices. more
Feb 16
Just because there are thieves , we cannot declare robbery as acceptable. Income Tax is a progressive tax, where one is taxed based on his paying capacity ( income), whereas an Indirect tax such as GST is a regressive one, where even a poor person pays tax. The need is to simply need to abolish all the exclusions under the income tax and go after all who have some basic prerequisites -like foreign travel, car ( learned persons can contribute ) more
Feb 16
In fact there should be no personal income tax, no cess, no surcharge etc. Instead there should be one rate of GST at 20% with NO exception. more
Feb 15
