ALL INCOME TAX EXEMPTIONS MAY BE ABOLISHED (?).
Bureau,Odishabarta
DELHI: Presently there are too many exemptions available under Income Tax Act. In case of exemptions of personal nature, already option was given to tax-payers either to opt tax-exemptions or availing increased basic exemption limit of rupees five lakhs per annum.
Many of tax-exemptions like on charity and donations are often misused. Even tax-exemption for contribution received and made by or to political parties are often under activism where India has over two thousand registered political parties out of which very few are seriously contesting elections and more than 80-percent of registered political parties even not having contested any election with sole motto of whitening black money. Otherwise also political parties in general are super-rich bodies requiring no tax-exemption in view of their heavily spending on elections.
In present economic requirements developed due to corona-spread, it is time that all Income-Tax exemptions of any kind may be totally abolished. Revenue required for urgent national need is rather more necessary than charity, donation or contribution for political parties.
Since ordinary farmer does not have income above rupees five lakhs per annum, provision of tax-free agricultural income may also be abolished which is misused by super-rich celebrities and others to evade tax in name of agricultural income by purchasing some land only for the purpose. Even such agricultural income can be shown through their lavish farm-houses.
However highest income-tax rate may be restored back to 30-percent firstly to avoid tax-evasion and secondly making donors comfortable in charity work with such restricted upper tax-limit.
Input; Mr Subash
