9 Ides To Reform Income Tax Act
9 Ideas To Reform Income Tax Act
1. Solution To Give Relief 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
- FROM 0 TO 5 LAC INCOME – 0%
- FROM 5 LAC TO 10 LAC – 10%
- FROM 10 LAC TO 20 LAC – 20%
- FROM 20 LAC AND ABOVE – 30%
2. Solution To Increase Tax Payer Trust & Trust In Our Taxation System-
It’s high time that the Government should think for giving some benefits to those taxpayers (only individuals) who have contributed to the Economy by paying high taxes in the last 70 years. They are the true nation-building partner. They are true contributors to the growth of our country. Its high time Government should think of giving them back & salute their contribution to economy, honesty & loyalty towards the country. We have to see other countries how they respect their High taxpayers like the USA giving more retirement benefits based on Tax paid in the past. A proper scheme should be thought upon.
3. Solution To Bring Black Money / Undisclosed Assets Into System-
Disclose Of Undisclosed 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 & Securities 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 Financial 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.
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. TDSWill Be Deducted By Jeweler & Reporting In Form 26AS To Be Done As Usual. Again, This Will Ensure That All Such Transactions Will Be Reported Under ITR.
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 & Disclose 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 Uploading Valuer Certificate & Ca Certificate So As To ensure that Valuation & Payment Of Tax Done Properly If Property Sold is For More Than 50 Lacs.
8. Solution To Get More Information & More Disclosures From Super Rich- ( After 2024 Or Some Years)-
“Disclosure Of Assets “To Be Introduced As A New Schedule In It Form .& Also Payment Of This Minimal Tax Only Applicable To Super Rich As Explained In Detail As Below.
| For Example | High Net-worth Tax | |
| First Year – Rs. 10 Crore Net worth | Tax At 0.01% | Rs. 10000 |
| Next FY – Rs. 11 Crore Net worth | Tax At 0.01% | Rs. 11000 |
| Next FY –Rs. 16 Crore Net worth | Tax At 0.01% | Rs. 16000 |
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 Presumptive Scheme Of Taxation Like Turnover Tax. Solution To Get More Revenue-
An Alternate Tax To Business Class For Turnover Upto 5cr… Irrespective Whether Company, 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.
This Will Work Like an Alternative Scheme Of Taxation For Every Year.
Business Concern Will Not Have To Go Through Any Proceedings / Any Scrutiny Unless Found Under-reporting.
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