by S.SATHEESH KUMAR, Chartered Accountant Chennai,
&& The basic income tax limit Rs. 2 lakhs is not now sufficient, because the basic limit is given only for the purpose of running the day to day affairs of the family. To survive middle class family and lower middle class family they need not less than Rs. 25,000 to Rs. 30,000 p.m., we hope that the basic limit will be increased from Rs. 2 lakhs to atleast Rs. 3 lakhs, if it is above Rs. 3 lakhs it will be comfortable for living purpose.
The slab rate can be
Rs. 3 lakhs to Rs. 10 lakhs 10 %
Rs. 10 lakhs to Rs. 25 lakhs 20 %
Rs. 25 lakhs to Rs. 50 lakhs 25 %
Rs. 50 lakhs and above onwards it can be 30 %
If surcharge and education cess can be avoided to simplify the taxation points. If the slab rate is like this all the black money will be unearthened.
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| Satheesh Kumar , Auditor, Chennai. |
&&. We have expected the Income Tax Code very long back, it had been given for discussion during 2009 July itself, even after 4 years it has not been completed. If it is coming into effect it will be comfortable for all the people. But it has to be introduced without any complication.
&& The corporate Tax slab can go at par with present situation.
&& Instead of tightening the existing assesses the new assesse has to be found out.
&& Present Limit on Expenditure on cash payment of Rs. 20,000, it was introduced during 1997 this has to be increased to Rs.1 lakh because within the span of 16 years the inflation is increased more than 5 times. This can be adopted for loans and deposits availed or repaid by way of cash .
&& 80C limit has to be increased from Rs1 lakh to Rs.2 Lakhs. But we are of the opinion but it may be Rs.1.80 Lakhs
&& House Property Now a days the Property Value is in a Highly increasing trend. So the interest exemption for self occupied house can be increased from Rs.1.5 Lakhs to Rs.2.5 Lakhs so that everyone can have their own dream house without burning their fingers for taxation purpose.
&& The rate of interest for government infrastructure bonds has to be increased and special incentive has to be given for investment in government infrastructure bonds. So, Govt can have more funds ,they can reduce their borrowings from world bank. So that people will come forward to invest under the government schemes and get the maximum benefits, so funds will be unearthened.
&&. It is suggested to introduce clearance certificate from Income Tax Department for selling of property above one crore. So that People will pay tax at the time of selling the property itself. Now the criminal and investigation wings officials are catching them. Instead of giving torture to assesses ,Income tax department has to be user friendly.
&&. All the retrospective amendments has to be withdrawn, all the circulars and notification should be only prospective.
&& 80GG Rent paid -maximum amount allowed is now Rs. 2000/- p.m. It is very low this has to be increased to Rs. 10,000 per month.
&& Now a days getting PAN is easy but correction in PAN is very difficult. The corrections made in the PAN has to be updated with the Income Tax Department immediately once the correction card is dispatched .This process has to be simplified .
&& For filing TDS return instead of Quarterly Returns it can be annualised, so people can do their business comfortably without going behind always with the auditors but payment of TDS has to be made every month.
&& All State Government panchayath offices and other Government offices are to be educated for filing TDS return regularly.
&& U/s 69 (unexplained investments) U/s 69 C ( unexplained Expenditure) has to be tightened. Now-a-days people are forgetting this sections.
&& It is suggested to introduce voluntary disclosure of Income Scheme (VDIS). It can be introduced again. The taxation point can be very minimum, so that the Government Gajana will be filled up completely.
&& Re-opening of completed assessments of Assessee can be reduced to 3 years from 6 years, normally people may forget things happened over three years or above . Instead of torturing the assesses , department friendly- assesses can be maintained.
&& Reduce Service Tax from 12.36 % to 5 % otherwise evasion of tax will come.
&& As far as Service tax relating to construction of building is concerned the followings has to be kept in mind:
a. service tax should not be charged for middle class and lower middle class persons.
b. those who are purchasing the first house the service tax exemption has to be given to the purchaser.
c. service tax department has to follow only the present revenues, without torturing the previous years.
d. small builders to be given some exemptions for payment of service tax
&& Depreciation rates for Plant and machinery has to be increased from 15% to 25%
&& Basic Exemption for senior citizens can be increased to Rs. 5 lakhs and super senior citizen limit has to be increased to Rs. 7 lakhs , because their medical expenses are very high and their travelling cost are also very high.
&& Interest earned on Saving Bank a/c for senior citizens has to be exempted .
&& GST to be introduced .
S.SATHEESH KUMAR & CO
Description - Chartered Accountant
Location - 805,Velachery Main Road,Camp Road Junction,Selaiyur, Chennai
22 / 22 A,Mylai Ranganathan Street, T.Nagar
Chennai - 600073
Call: 95000 06521, 94443 85844 , 044 - 2227 6611
Email : satheesh_ss@bsnl.in
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