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  • Category: Miscellaneous

    Why not the Government abolish Income Tax on individuals?


    Do you think income tax should be abolished on individuals? Give your views in this discussion thread.



    We all have to earn money to live. The Government levies income tax on the money earned. So we are paying tax on the money earned. The earned money is spent on buying the necessities of the family. Here again, we are paying tax on the money spent. Thus, we are paying tax on the same money for which we have already paid taxes. The money saved for future necessities also attract taxes. It will be a relief for the individuals if the Government abolishes the income tax totally or increases the zero tax slab to ten lakh rupees.
  • #610779
    Yes. On our income, we are paying tax basing on our income from 10% to 30% of the income. The remaining only is our money. From that, we spent money for the purchase of household items, clothes, stationery, utensils, fuel, so on and so forth. All the items will come under GST and we will be paying the tax starting from 8% to 28%. Of course, the tax on diesel or petrol is higher than this. Here are also we are paying the tax as a consumer for the articles we have purchased. Then we are travelling and all these travelling charges we are paying taxes. Medicines we are purchasing and these medicines also attract taxes and that we are paying. If you sum up the total tax amount almost 50% of our earnings are going as taxes Government. Government is not providing us with the job but taking tax from us. However, the government will not completely waive of income tax. This tax is there in all the countries. If they reduce the tax liability from an employee it will be helpful to the employee.
    drrao
    always confident

  • #610784
    Good suggestion from the author. But it has been keenly observed that government gets lots of revenue from the salaried class through Income tax and that cannot be avoided. For the government it is easy to recover the amount also as standing instructions have been given to the cashier and accounts departments. to deduct the income tax and then pay the amount to the Individual. So it is the cake walk income for the government which cannot be abolished altogether. However with steep increase of GST in many products, government may provide some cushion on income tax as rebates in future.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #610809
    It would have been nice if the government abolished the Income tax on Salaries of individuals. But if it did so it would lose a lot of revenue in the form of taxes. And no government will every try to do this. Since India does not have much natural resources it depends mostly on taxes from individuals etc. Hope that as India grows we will see the government reduce taxes.
    Regards,

    Sunil

  • #610816
    When the Government is planning to bring other people in the tax net, here some Members are discussing exemption of salaried class and professionals from payment of Income Tax! Why? This is not possible in another hundred years, not only in India, but also in all the major economic countries of the world.
    Caution: Explosive. Handle with care.

  • #610826
    It's nice to dream of no taxes but it's far from the real world.

    I don't think the members truly don't want to pay taxes. It's just the anger and burden that only the taxpayer is often made to shell out his or her hard earned money when many people around us go scot free ( right from the clever corner shop owner to the well heeled sophisticated criminals.
    It's the anger that arises when the person duly pays his taxes seeing people have extravagant lifestyles, flashy cars and ornaments.
    it's the anger when the poor taxpayer has to bear the burnt of crores of rupees that are given as loan to so-called businessmen who make banks collapse.
    It's the anger that wells up when some politicians get 100% pay hike when the common man has to fight inflation, rising expenses and various forms of taxes.
    It's the anger as to why the taxpayer always has to be at the receiving end, why not go after the corrupt, dishonest bigwigs who are glove in hand with the officials and always go scott free.

  • #610843
    Good thought and we the earners will agree to the idea. However I don't think government will put an end to Income tax as they are making so much revenue out of it. In-fact expenses on certain things has increased with the implementation of GST. Lets hope for the good.
    Regards
    Chitra
    "Do not give up, things might not favour you always"

  • #610881
    The Finance Minister Arun Jaitley while speaking at Amritsar in April 2014, demanded that the income tax slab should be raised to Rs 500000/. He stated that three crore people will be benefited by twenty crore rupees. He further added that the impact on the National Tax Fund will be negligible. The BJP at one time thought about income tax abolition which it dropped later. The BJP came to power in 2014. More than three years elapsed. I am of very much hope that our Finance Minister will either abolish income tax or raise the limit to Rs 1000000/, as he himself felt three years back that the limit should be raised to Rs 500000/. Dr Subrahmanya Swamy, the BJP lawmaker and eminent economist also reiterated that the abolition of income tax can be done. He further stated that the loss of income of two lakh crores can be raised by other means easily. I am very hopeful about the income tax slab change or abolition of the same altogether as the BJP is in power now.
    " Be Good and Do Good "


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