PRIME MINISTER AND INCOME TAX DATA
Bureau,Odishabarta
Delhi:Prime Minister in a recent event expressed shock, and rightly too, on 1.5 crore cars sold and 3 crores foreign-visits made by Indians while just 1.5 crores Indians declare income above rupees 5 lakhs with only 3 lakh people declaring income above rupees 50 lakhs. Only 2200 professionals from all fields and services declare incomes above rupees one crore.
While this is a bitter fact that in present system, people in general are prone to evade taxes rather than paying taxes smilingly and voluntarily. Apart from other aspects, biggest problem is agricultural-income being totally tax-free and thus naturally accounted. Therefore it is quite likely that cited 1.5 sold cars and 3 crore foreign-visits might have major share of those persons who might have declared tax-free agricultural income.
Total exemption on agricultural income is mainly misused by ultra-rich including even known personalities to whiten their uncounted income by declaring it as agricultural-income. Since normal farmers usually have agricultural-income below now-declared basic annual exemption-limit of rupees five lakhs, gimmick of making agricultural-income tax-free should be abolished.
Concept of tax-exemptions which are mostly misused should be totally abolished in view of recent hike in basic exemption limit to now rupees five lakhs. Nowhere in the world, there are nearly 100 types of Income-Tax exemptions. Idea should be to have voluntarily and smiling tax-compliance rather than people and their chartered-accountants devising ways of tax-evasion.
Input;Ms.Madhu
