I find more people thinking about their tax saving investments by this time. Many Insurance Agents chasing salaried class people for investments. Almost everyone can find an insurance agents within their family and friends circle. Some times people start to avoid them. I guess the income tax generated in this country from salaried class should be very less. (probably less than 2 percentage). For this, the amount of effort wasted by the general public is not proportionate.
Despite Income Tax Department trying to simplify the documentations by introducing different types of Income Tax Returns (namely ITR1, ITR2 etc... for different category people)
I still find the process is more complicated. And the exemption in HRA is funny. More people tend to submit a fake rent receipts. For a single house, the exemption claimed for more than one tax payers of the same family. People are paying rent to their own parents. Most of the house owners are not ready to provide any rent receipts. Why we need a process which make people to evade tax?
I am not sure when I will get back my repayment of tax which I paid in excess for the last financial year.
Why dont the government think of the following scenarios
1. Deducting tax every month by the employer according to the slab and deposit to the government. At the end of the financial year, tax payers can submit their investment proofs and rent receipts, then get back their exempted money to their bank accounts immediately. This is how the current system works.. but instead of calculating and recalculating your tax liability, why dont they follow a constant TDS% and pay back the exemptions at the end of the year or can adjust the money towards the next tax year? With the ECS system, government can refund the amounts very quickly. Why government is not making use of the ECs effectively?
2. Why cant the insurance companies consider PRAS (Premium Relief At Source)? And government can remove exemptions for tax.
3. Why cant the government come out with a different method of taxing income to the salaried class?
4. Why cant they remove the income tax to salaried class?!!!!!!! Why its giving money and grabbing it back? Instead of that they can give a lower salary. For example, Government can impose Tax on companies depending upon the number of employees they have. So that companies will give a lower salary and in turn government will get their tax.... It will avoid so much of paper work and human energy... KISS it....
One of my dream project is to implement a common identity to the Indian Citizens.. some thing like SSN (social Security Number). Why cant we make the PAN number as a SSN to India and make a centralized and connected data of their financial transactions? Its quite possible and when are we going to do that with our software giants like TCS, Infosys etc...
We need to look beyond....
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