TAX SYSTEM NEEDS URGENT REFORMS

Income Tax Reform and other tax reform is much needed reform in India to ensure higher growth and balanced development. Qatar have no income tax, but still progressing. Due to corrupt and complicated tax system of India ensured high level of corruption, misgovernance, maladministration and above all, creating billions of black money. The low tax in the country, there will be low corruption. more  

I am reproducing a post by Sri Ram Maruri in the circle " Transform India with Modi" Transforming Tax Policies Mr. Anil Bokil , one of the key member of Arthakranti Sansthan was given time to share to PM Modi. He was given 9 mins for sharing but Mr Modi heard him for 2 hrs. Arthakranti Proposal; What is Arthakranti Proposal & who has given the proposal? “Arthakranti Proposal” has been given by a Pune a Maharashtra based “Arthakranti Sansthan” which is an Economic Advisory body constituted by a group of Chartered Accountants & Engineers. This funda has been Patented by the Sansthan. Arthakranti Proposal is an effective and guaranteed solution of Black Money Generation, Price rise & Inflation, Corruption, Fiscal Deficit, Unemployment, Ransom, GDP & Industrial growth, Tackle Terrorism & for Good Governance of the Country. Whats in the Proposal ? “Arthakranti Proposal has 5 point of actions simultaneously. (1) Scrap all 56 Taxes including income tax Excluding import duty. (2) Recall & scrap high denomination currencies of 100, 500 & 1000 rupees. (3) All high value transaction to be made only through banking system like Cheque, DD, online & electronic media. (4) Fix limit of cash transaction & no taxing on cash transaction. (5) For Govt. revenue collection introduce single point tax system through banking system – Banking Transaction Tax (2% to 0.7%) on only Credit Amount Important Points to note: (1) As on today total banking transaction is more than 2.7 lakh crores per day say more than 800 lakh crores annually. (2) Less than 20% transaction is made through banking system as on today & more than 80% transaction made in cash only, which is not traceable. (3) 78% of Indian population spend less than 20/- rupees daily then why they need 1000/- rupee note. What will happen if all 56 Taxes including income tax scrapped : (1) Salaried people will bring home more money which will increase purchasing power of the family. (2) All commodities including Petrol, Diesel, FMCG will become cheaper by 35% to 52% . (3) No question of Tax evasion so no black money generation. (4) Business sector will get boosted. So self employment. What will happen if 1000/ 500/ 100 Rupees currency notes recalled and scrapped : (1) Corruption through cash will stopped 100%. (2) Black money will be either converted to white or will vanish as billions of 100/500 & 1000 currency notes hidden in bags without use will become simple pieces of papers. (3) Unaccounted hidden huge cash is skyrocketing the prices of properties, land, houses, jewellery etc & hard earned money is loosing its value; this trend will stop immediately. (4) Kidnapping and ransom, “Supari killing” will stop. (5) Terrorism supported by cash transaction will stop. (6) Cannot buy high value property in cash showing very less registry prices. (7) Circulation of “Fake Currency” will stop because fake currency printing for less value notes will not be viable. What will happen when Banking Transaction Tax (2% to 0.7%) is implemented : (1) As on today if BTT is implemented govt can fetch 800 x 2% = 16 lakh crore where as current taxing system is generating less than 14 lakh crore revenue. (2) When 50% of total transaction will be covered by BTT sizing 2000 to 2500 lakh crores, Govt will need to fix BTT as low as 1% to 0.7% and this will boost again banking transaction many fold. (3) No separate machinery like income tax department will be needed and tax amount will directly deposited in State/Central/District administration account immediately. (4) As transaction tax amount will be very less, public will prefer it instead paying huge amount against directly/indirectly 56 taxes. (5) There will be no tax evasion and govt will get huge revenue for development & employment generation. (6) For any special revenue for special projects, govt can slightly raise BTT say from 1% to 1.2% and this 0.2% increase will generate 4,00,000 crores additional fund. Effects if implemented today : (01) Prices of all things will come down. (02) Salaried people will get more cash in hand. (03) Purchasing power of Society will increase. . (04) Demand will boost, so will production & industrialization & ultimately more employment opportunity for youth. (05) Surplus revenue to the govt for effective health/ education/ infrastructure/ security/ social works. (06) Cheaper and easy loans from banks, interest rate will come down. (07) Tendency of society will changes from scarcity to quantity. (08) Spare money for political system for clean politics, (09) Prices of land/ property will come down, (10) No need to export beef to cover up trade deficit (11) Sufficient fund for research and development. (12) Society will be free from “Bad elements”. A very nice n simple compilation with logical impact. Worth sharing!! "ArthaKranti proposal - It will Fully Change India" on YouTube - https://youtu.be/GVfmUmB0bpM more  

Abolish all direct and indirect taxes excluding import and customs duty. Introduce Bank Transaction Tax at 2% on all bank credits. At present level of banking transactions, the present total tax revenue of Rs.14 lakh crores will increase to Rs.250 lakhs. Demonetize and all transactions above Rs.1000 through banks only. This will further increase Government tax revenue. Kindly go links below:- https://youtu.be/GVfmUmB0bpM http://www.arthakranti.org/ more