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  • Category: Miscellaneous

    Should we have two different Tax Regimes in our country?

    Generally, 31st July used to be the last day for filing IT returns. So, this thought came in my mind about the Income Tax. This year, owing to COVID-19 and its effect, the last date for filing IT returns has been extended till 30 November 2020.

    In the last budget, the FM has introduced a new tax regime, and also retained the old Tax regime. This year, we will be filing IT returns for AY 2019 - 20 in the old regime only. Next year, we have the option to choose the old or new regime.

    Now my question for discussion is - Should we have two different Tax regimes in one country where we are trying to make everything simple like OROP, OIOP, etc.

    In fact, two different regimes will confuse the taxpayers and the Income Tax department. Instead of simplifying the system, we are making the system tough. I think the FM should give a second thought to this, and make one easy Tax Regime for all to follow.

    What are your views, opinion and comment, please?
  • #706043
    The process of IT filing has to be made simpler. It's true that keeping the two regimes side by side will confuse the taxpayers about which one to choose. I think the government should think of only one regime and design the system in such a way that the general taxpayers can file their own returns. For organizations and businessmen, there are dedicated people who look after the matters related to Income Tax but for a general taxpayer, it may not be possible to consult a tax consultant every time and pay a good amount as consultancy fees. Only one regime is sufficient for that like it was earlier but with more clarification. The government may be experimenting with the two regimes to find out which one the majority chooses and can decide their next course of action depending on the outcome.

    "Life is easier when you enjoy what you do"

  • #706096
    I have also not understood the rationale behind giving two options to us. Generally such options are not given by the Govt. Now we have to work out in both the options and fill the return in the one which is beneficial to us.
    Thoughts exchanged is knowledge gained.

  • #706105
    I believe that the government will do away with the old system of tax calculation and will keep the new method only in the coming years. They may keep both the regimes for one or two years and then withdraw the old regime.
    Alternatively these two years they may study the mind of the people. They will try to understand which one of the two is getting good attention and which one is having more adoption. Based on that they may retain that one and stop the second regime.
    One nation one tax system is very important and the government also aware of this fact, I think. But if they stop the old regime immediately there will be dissent among some taxpayers and the opposition parties may take advantage of that situation. To avoid such confrontation the Finance Minister and the Prime Minister might have thought that it is better to have both in force for some time.

    always confident

  • #706117
    Reforms is needed in every sector so that the new ways and means is also tested by retaining the old practice therefore the Modi government want to have two tax regimes which should not have the reservations.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

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