FloatingBagel

Inept income tax dept

Inspite of so many "better than earlier govts" reforms in the last 10 years...the govt hasnt done much needed reforms in the income tax regime.

The govt is doing a few good things like dissolving inept psu's, selling off entities like Air India (privatisation), etc. But when and how are we going to increase the tax base?? Why is govt failing to do so? It is high time we rationalise it. We cannot dream of becoming a prosperous country with such poor policies in place

https://timesofindia.indiatimes.com/pay-income-tax-be-political-orphans-why-it-matters-for-indias-economy/articleshow/107405605.cms

10mo ago

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SillyHamster

Stealth10mo

Populist policies designed to disregard the taxable middle class.

Did you know the tax paying base has shrunk 50% in the last 2 years but collections are up 30% for the same period

Squeeze us to death Nirmala

DancingDonut

Stealth10mo

This isn't the right picture, because a lot of it is due to shift to new income tax regime. A more accurate number would be to look at say number of people in >10L bucket, which has increased by 4x over an 8 year period.

A lot of it is driven by improvement in compliance. Systems talk to each other, there are collections at source, cashless transactions are being recorded and monitored.

I strongly feel this 88L.number is in no way a reflection of the truth. If these people also come under Tax purview, that is how government can reduce dependence on the ones paying taxes currently.

Source: https://www.moneycontrol.com/news/opinion/surge-in-indias-taxpayer-base-mirrors-upward-mobility-11696101.html

SillyHamster

Stealth10mo

Thanks for the insight! I just wanted to rage at NS while stuck in traffic on Monday morning lol

SnoozyRaccoon

Broadcom10mo

Whats the effective direct tax percentage a person pays. I think for 50LPA it would be around 30% which is pretty good for a developing nation . Not a sanghi but I think its fair enough, for living peacefully and some of the opportunities created. Only thing I feel I want from the gov is better education system which should be made free and affordable housing.

DancingHamster

Stealth10mo

And what do you get in return after being a responsible citizen and helping the govt feed 80cr people for free?

SnoozyJellybean

Microsoft5mo

It is actually 22.5% I think if you go by the new regime.

CosmicQuokka

Paralleldots10mo

When 80 crores population votes for free aata dal chawal, why would they risk elections for betterment of tiny population.

CosmicLlama

Stealth10mo

It's not possible for the time being. Two things are important for political parties to succeed, - vote bank and money. Majority of our population is poor. Even though they are not land owning farmers, no political party can touch even the rich farmers. Any tax on even farmers earning 1cr, will be branded as anti poor and will be death blow to that party. Money- politicians cannot touch the rich as they pay valuable hafta.. eg - movie stars have option to pay 8% tax under 44 ad. So , even smaller actors who earn 1cr per movie pay just 4 lakhs in tax. A I'd level software engineer will probably pay more tax.
So untill the sun explodes increasing tax base in India is not possible.

ZoomyMuffin

Stealth10mo

Hire good data analysts and give them targets to find for potential collection. Digital infra and payments data has increased over last 7-8 years and will be increasing more. Most payments and deals are linked to PAN/Aadhar.

People can try to evade taxes by some treachery in 2024, but it will stay and can be dug out in next 3-4y if serious intent is present.

For example: It shud be very hard to pay fake rents and for the landlords not to pay taxes on that said rent.

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