Collect income tax from affluent persons in unorganised sector
Some people argue that collection of income tax should be scrapped in the forthcoming national budget , since share of income tax collected in the overall income of the central government is not very significant. As justification for this suggestion, it is argued that stoppage of collection of income tax will leave people with more money that would improve their buying capacity and expand the market and spur the economy. This is a fallacious argument.
On the other hand, the suggestion should be to increase the income tax collection by identifying the individuals, who are affluent and belong to unorganized sector and do not pay tax as per the law.
In the unorganized sector, there are many professionals like doctors having private practice, lawyers , auditors, teachers conducting private tuitions and priests who get average income of more than Rs.1 lakh per month and earn the money by cash and do not give proper receipts .Several owners of educational institutions and hospitals also insist on cash payment. Most of them do not pay tax for the cash collected.
If this affluent class in unorganized sector can be tapped, who together earn several hundreds of crores of rupees every year all over the country and they are made to pay income tax, the tax collection for the government would substantially soar.
The question is how to do this ?
Obviously, fear has to be created in mindset of these people that they would be caught and this can be done only by conducting raids on them from time to time, based on intelligence reports. Of course, the so called activists would accuse the government of harassing but sometimes such harassments do lot of good for the country.
With over 250 million people in India living below poverty line and desperately needing welfare measures, there is nothing wrong in forcing the affluent persons in unorganized sector to pay income tax even by coercive methods. This would also ensure that black money circulation in the country would be considerably curbed with associated benefits.
N.S.Venkataraman
Nandini voice For The Deprived
nsvenkatchennai@gmail.com more
On the other hand, the suggestion should be to increase the income tax collection by identifying the individuals, who are affluent and belong to unorganized sector and do not pay tax as per the law.
In the unorganized sector, there are many professionals like doctors having private practice, lawyers , auditors, teachers conducting private tuitions and priests who get average income of more than Rs.1 lakh per month and earn the money by cash and do not give proper receipts .Several owners of educational institutions and hospitals also insist on cash payment. Most of them do not pay tax for the cash collected.
If this affluent class in unorganized sector can be tapped, who together earn several hundreds of crores of rupees every year all over the country and they are made to pay income tax, the tax collection for the government would substantially soar.
The question is how to do this ?
Obviously, fear has to be created in mindset of these people that they would be caught and this can be done only by conducting raids on them from time to time, based on intelligence reports. Of course, the so called activists would accuse the government of harassing but sometimes such harassments do lot of good for the country.
With over 250 million people in India living below poverty line and desperately needing welfare measures, there is nothing wrong in forcing the affluent persons in unorganized sector to pay income tax even by coercive methods. This would also ensure that black money circulation in the country would be considerably curbed with associated benefits.
N.S.Venkataraman
Nandini voice For The Deprived
nsvenkatchennai@gmail.com more
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Rich holding Concealed Income Questioning Financial Status requisitioned by Govt on Certain relevant Provisions more
Jan 06
Yes Mr. Venkataraman, evasion of taxes is quiet significant. Even CAs and businessmen seek and finds ways to avoid taxes. Even income tax can be made very simple by just charging a percentage of total income as income tax instead of all these exemptions while calculating tax liability which will not only reduce lot of paper work but help eliminate evasion. more
Jan 05
Individual Income ever be Concealed in the ABSENCE OF Bank Transactions limiting Cash to 200 and 2,000 . The present IT will be more than triple if these Corruption Controls are enforced. NATIONAL REVENUE, INCOME GETTING LOOTED IN THE FOLLOW OF CORRUPT PRACTICES. A Finance Bill must set right this Menace. Judiciary shall accept Linkage of Aadhar to All Realising the Responsibility of Guaranteed Justified Economy under Preamble of the Constitution . There is Necessity to Tax Income from Agricultural Cultivation on TEN AND ABOVE ACRES PER FAMILY in Terms of Land Ceiling Acts. Imposition of Wealth Tax ENFORCING Articles 38 and 39 is also a Must TO CATER THE BASIC NEEDS OF Articles 41, 45, 46 , 47 and 48 for Employable Education, Adequate Means of Livelihood , Healthcare and the Agricultural Sector in Toto of Provisions set in Article 48 . more
Jan 04
