Reply to #664706
Tax is a not mere revenue Generating tool for Government. It is a policy decision too. Now even the distinction betwen salaries and Bussiness people(I mean by companies the reference is made to Bussiness class peole) cannot be bought in as again it places salaried people at a different treatment than Bussiness people. Next there is no clear distinction between salary and Bussiness people in this scenario. A person can be employed in a company earn salary and invest a part in shares, Real estate, engage in Absentee Landlordism thereby generating revenue from various sources. Now he has to pay tax for his income in total and not for his nature of income.
Then what about the points I have given in #664702.
Here we must under few points.
1. Neither Tax is a lump sum payment norTax rate is fixed , it changes progessively. Suppose I earn 6 lakhs/year. I must decide whether I want to pay tax for the 1,00,000 which is Rs1000 and do some consumption expenditure for 99,000 or have to invest in some Savings scheme or invest in shares or Insurance thereby saving Rs 1000.
2. Equally placed people must be treated equally. Irrespective I earn by salary or bussiness I have to pay tax and cannot enjoy Ta free salary. I must be made to realise that Government runs on my money and accountable. I show loyalty to my country.
3. The title and respone #664694 suggests tax free salary while #664706 suggests TDS. Even in TDS as company or HUF case person must be given the option to decide for himself. The company/Government can pay tax on behalf therby reducing accounting burdern but finally the person must decide his options. So there is no way by which he does not knows about.