I have been following debates on Indian govt’s new policy on taxation and I am amazed to find that it is I and people like me who will be at loss, again 😦
Today the salaried working class individual, who earns more than INR 250000/- annually, working in organised (registered) organization, ends up paying 100% tax through the ‘Tax Deducted at Source’ scheme. This means people working in Govt orgs, public & private firms/cos. Also, add the business corporate who are subject to corporate tax.
According to media report, only 3% of the Indians pay income tax! Among the G20 only Italians rank above Indians in paying taxes.
Anybody earning below INR 250000/- is exempted from tax, so are the Indian farmers. Businesses have Chartered Accountants to help identify / form ‘tax minimize’ strategy. And the rich are unwilling to pay tax by stashing away overseas.
And I still wonder why a whole range of politicians / NGOs / Self Appointed Crusaders-Protectors still think that more needs to be done for the ‘oppressed section(s)’. Who is / are the ‘oppressed section(s)?
I will come back with more details, causes & effects, recommendations, etc in future posts. In the mean time do enjoy the following links