Who Will Bell The Cat? KKSeptember 25, 2020Banking & Finance Post navigation PreviousNext People at the helm have started recognising honesty and contribution of Income Tax payers. Income Tax Department now issues gold, silver and bronze certificates to them according to their income.Despite that it is largely believed that that we are largely a tax ‘non- compliant’ society, as only 3.77 crores are filing IT Returns. Time and again, this concern has been voiced by our Prime Minister and Finance Minister, despite the fact that the reason is quite obvious.India in a population of 130 crore, has 82 crore voters. As they are adult, they can only earn income and become eligible for paying income tax.Now, 75% are agriculturists including politicians and film actors, whose earnings are exceptionally high, but are exempted from paying tax.Another 6% (i.e. 24% of the remaining 25%) belong to BPL class, who can’t earn taxable income.And 14% (i.e. about 75% of the remaining 19%) are senior citizens, wives, youth with no income, non-taxable income. Moreover, in India, all members in the family don’t earn income.As such, only 5% of 82 crore i.e. nearly 4 crore voters are eligible for paying income tax, which compares well with the data of 3.77 crore IT Return filers being given by IT Department.According to another datum only 2.5% Indians pay Income Tax, and less than 4% of taxpayers pay around 60% of the total tax.If tax net has to be widened, the only option left is not to exempt tax on agricultural income in toto. At least so called big farmers with more than Rs ten lac income or with a land hoding of more than ten acres should be subjected to income tax to start with.Instead of imposing penalties for late filing of returns, high tax payers should be given incentives in the form of priority in general services including medicare and insurance.Alternatively, GST or indirect tax rates may be hiked or number of activities widened to increase revenue, but it will defeat the very concept of socialism and welfare state.All politicians know where the malaise lies, but have no courage or intention to recognise and act. They know that any party going to bell the cat will face the music in the next election.So our destiny will remain the same, no matter which party comes and goes.–Kaushal Kishore Share this:TwitterFacebookMoreLinkedInTumblrWhatsAppLike this:Like Loading... Related
That’s odd that politicians and those with high incomes aren’t taxed. It sounds like the US where those with wealth know how to scam the system, use loopholes and not pay tax so it falls to middle and low income people to do. It is time for this inequality worldwide to end.
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I’m glad to read your comments. You are right, people are alike everywhere in finding out ways to derive undue advantage. But here it is sheer vote bank politics. Taxation on agricultural income will be quite unpopular step and will be a key factor for losing election. Thanks for coming over and having your words!!
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