Govt has Lost its Minds? Charge More Income Tax to overcome Deficit?
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That's not how taxes work in India. Read the DNA article, it gives you the figures. Currently, a person earning 25 lacs has gross tax of around 6 lacs. Once you factor in savings and you do tax savings, they usually pay around 4.5 lacs. Under this system, it will be around 6 lacs.
The 50% is on the salary above 20 lacs, and then add the fixed component to it. At least in CBSE, this used to be taught in class 10 maths.
Brother you need to learn how taxes apply.
Above a limit means money above that figure is taxed at 50%(or whatever limit mentioned) and not the total figure.
Thats the problem of this country.People goto elite school for education but for self finance planning their basic knowledge is handicapped.
Also by the way government wont be taking this steps its just some wild thought by some wild writer at DNA.
Easiest step which might take place is increase in excise and service tax by further 2%.
Will earn 30-40 thousand crores and thats enough for a year to survive and put money in pocket.
Mr.J
Innovator
Actually I know it doesn't work like that, but still it was the first (crazy) thought that came to my mind.
Won't that place burden on every citizen unlike the increase in income tax which (at least on the surface) affects the super-rich?
Won't that place burden on every citizen unlike the increase in income tax which (at least on the surface) affects the super-rich?
Income Tax Calculator AY 2013-14 this should explain you how it works. you should've studied CBSE, it was a 10 mark question.
It will but getting money indirectly is easy than direct tax.The more direct they go the more income will be hidden.
Indirectly even if yu pay cash from hidden money part of taxes goes to government and component will increase by 2%
Also indirect tax contribution has increased significantly than direct.
@MAGNeT, thanks for the correction. montek singh was never finance minister.
@ALPHA17, i think Rajiv Gandhi was the person responsible for bringing computers into india. He met with a lot of opposition from everyone - trade unions, opposition parties, even people saying they will loose their jobs to computers. And Manmohan is mostly known for opening up FDI to foreign investment. This does not mean he's a wise man. He did it only because the govt were in serious economic crisis in that time and required funds from the capitalist IMF or world bank and other countries.
Growth does not mean everything. On one hand all this capitalist growth has only bought a huge divide among the masses. The rich have become richer. The poor become poorer every year. Growth is a double edged sword. Not every persons salary increases every year. But the prices of goods increases by 100-150% every year. Just look at the prices of essential commodities like milk, rice, pulses, vegetables etc. Add to this random hikes in increase in prices of cooking gas, diesel, kerosene every six months. Add to this hikes in power and water tariff, taxes, etc. All these factor directly into increasing the cost price of manufacturing companies resulting in a cascading hike in prices virtually across every sector. All the companies are owned by rich business houses who only care about profits. Any sort of hike in any raw/finished materials is conveniently put on the consumers head so that they still manage to rake in healthy profits. All this so the management can get a hike in their salary after pleasing their bosses. That leaves the poor and middle class people to fend for themselves. The poor can beg. Can the middle class do that?
Look at China, They are way ahead on the same path India is walking on. China is galloping like a race horse while India is walking. Look at the divide in quality of life in China. All the people living in cities have become ultra rich, Corruption has increased due to this insane amount of money floating in banks and the city population. Then look at the villages. They are ultra poor. Many places villagers have left their villages to work in construction sites in the cities. Recently due to the senkaku islands controversy there were some riots in china. Most of the riots was supposed to aim at the japanese govt and establishments in china. but the mob ended up destroying everything that came in their way. from chinese malls, shops. From cars to buses to even factories that chinese people used to work in. It looked like a poor vs rich battle.
If prices still keep on increasing every six months then its not far away that India might start to see such angry demonstrations from people frustrated on not being able to make ends meet. Add to that their daily life lost in slaving for a company. Plus inhuman traveling conditions. This is like a volcano just waiting to burst open one day. The Anna Hazare protests were such crowd pullers because people were showing signs of frustration with the govt not on equal wavelength with them. The govt just forgot that by now. They are planning to increase petrol, lpg, diesel prices yet again. Go figure.
@ALPHA17, i think Rajiv Gandhi was the person responsible for bringing computers into india. He met with a lot of opposition from everyone - trade unions, opposition parties, even people saying they will loose their jobs to computers. And Manmohan is mostly known for opening up FDI to foreign investment. This does not mean he's a wise man. He did it only because the govt were in serious economic crisis in that time and required funds from the capitalist IMF or world bank and other countries.
Growth does not mean everything. On one hand all this capitalist growth has only bought a huge divide among the masses. The rich have become richer. The poor become poorer every year. Growth is a double edged sword. Not every persons salary increases every year. But the prices of goods increases by 100-150% every year. Just look at the prices of essential commodities like milk, rice, pulses, vegetables etc. Add to this random hikes in increase in prices of cooking gas, diesel, kerosene every six months. Add to this hikes in power and water tariff, taxes, etc. All these factor directly into increasing the cost price of manufacturing companies resulting in a cascading hike in prices virtually across every sector. All the companies are owned by rich business houses who only care about profits. Any sort of hike in any raw/finished materials is conveniently put on the consumers head so that they still manage to rake in healthy profits. All this so the management can get a hike in their salary after pleasing their bosses. That leaves the poor and middle class people to fend for themselves. The poor can beg. Can the middle class do that?
Look at China, They are way ahead on the same path India is walking on. China is galloping like a race horse while India is walking. Look at the divide in quality of life in China. All the people living in cities have become ultra rich, Corruption has increased due to this insane amount of money floating in banks and the city population. Then look at the villages. They are ultra poor. Many places villagers have left their villages to work in construction sites in the cities. Recently due to the senkaku islands controversy there were some riots in china. Most of the riots was supposed to aim at the japanese govt and establishments in china. but the mob ended up destroying everything that came in their way. from chinese malls, shops. From cars to buses to even factories that chinese people used to work in. It looked like a poor vs rich battle.
If prices still keep on increasing every six months then its not far away that India might start to see such angry demonstrations from people frustrated on not being able to make ends meet. Add to that their daily life lost in slaving for a company. Plus inhuman traveling conditions. This is like a volcano just waiting to burst open one day. The Anna Hazare protests were such crowd pullers because people were showing signs of frustration with the govt not on equal wavelength with them. The govt just forgot that by now. They are planning to increase petrol, lpg, diesel prices yet again. Go figure.
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I am not saying anything in a uni-dimensional sense.
It is a collaborative effort of several people but the negation of Dr. Singh's contribution and P.V. Narsimha Rao in backing him up on that count also played a role in where we are today. Like the Nuclear Program initiated by Mrs. Indira Gandhi only bore fruition in the BJP led NDA-coalition in 1998, the atmosphere and overall political layout forced our hand; CON's amongst others were that again we were slapped with sanctions.
Every decision taken is a double edged sabre, it will have its PRO's and damn well extra-long list of CON's but nothing is perfect in this world.
I am not looking for a socio-political showdown OR real-politik discussion about which party is right OR wrong, just saying that in my view your statement was rather flat.
That be all. Cheers!
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Manmohan (3 times) and Chidambaram (4 times) have got these posts more than anyone else. So they have the most knowledge among 2 of themselves. Still they end up hiking up prices and taxes instead of cutting down on expenditure in govt. From 2004 onwards, these 2 guys have been ruling in finance ministry (between themselves) with exception of Pranab who came once.
10 years and you think they could have thought out something. But they are just like other politicians who end up doing patch work policies like hiking taxes to increase income in short term rather than looking at long term plans.
Still whether it was a flat statement or not, I'm entitled to my views. I view these 2 guys as the main people responsible in bringing down india. You might see them as responsible for the growth of india. Its just that our views differ.
10 years and you think they could have thought out something. But they are just like other politicians who end up doing patch work policies like hiking taxes to increase income in short term rather than looking at long term plans.
Still whether it was a flat statement or not, I'm entitled to my views. I view these 2 guys as the main people responsible in bringing down india. You might see them as responsible for the growth of india. Its just that our views differ.
The jury is out on whether India has grown OR shrunk under their policies, I'm neutral on that. For now.
Emboldened, is nailing the sentiment. Doesn't mean we have a wall between us on other topics. Cheers!
W@rrier
Contributor
:sign06:
But cant help myself from asking ! when did u people do your tenth std ?? :/ I did CBSE too, and i have absolutely no recollection of this being taught in SS !!
This is not present since a few years . Earlier this was moved to 12th Class maths and then completely removed . Not in existence since past 4-5 years at least .
Rajiv Gandhi inititated the reforms in '85 or '86 . He was a visionary . As usual the reforms were met with criticism and thus none was implemented .People Never realized its importance un till the crisis of early 1990's .
Mr. Manmohan Singh was never a effective Fm . People failed to realize that it was on the basis of World Bank's And IMF's Recommendation ,These reforms were implemented, It still took them months to table this and implement the policies .
They had to do this . No money was left even for politician's official rather personal expenses .
Lets assume in the next 5-6 years India's Literacy rate increases to 92-95% , Will you still say its Kabil sibbal's Brain behind it ?
W@rrier
Contributor
LOL... i did it a decade after u
and trust me, i never heard of these stuff in my school life 
Aces170
Forerunner
Uhh I think most of the people need to brush up their economic history. Narashima Rao and the Congress government before that were the ones which bought India to the brink of bankruptcy in 90-91. India did not have foreign reserves to pay for even 3 months of oil imports, World bank and IMF had knife up our backs that if India does not open its economy we would not get a loan to purchase oil. So the credit of India opening up the economy should technically goto the economists at IMF and World bank etc.
I am very much aware of how we had reached the 'brink', that statement is just to illustrate the uni-dimensionality of points as well as to attest the fact that only when sh1t gets real people get a move on.
Nevertheless I do credit Dr. Singh and P.V. Narsimha Rao for turning our struggling license Raj and opening it up to the outside market. Look where we are, do you think if somehow 1990 had not happened we would have been in a better situation?
That's precisely what i wanted to say in my previous post . India Had no money to even spend on foreign trips which the politicians love to go on every month .
Manmohan singh had to agree to most of the terms of IMF to secure a loan . Plus india had already pledged around 60-70 Tonnes of gold . No country pledge's its gold Until and unless no option is left . Since foreign reserves could not even sustain the country for more than a month India needed money and had to follow what economists at IMF recommended .
Agreed the guide-lines and terms were dictated by the IMF and the other loaning parties but that does not mean that they were to be applied rote and raw to the country. Changes and restructuring these guidelines to accommodate Indian sensibilities had to be carried out.
And by the way if you are so badly intent on teaching me a history lesson, maybe you should know that it wasn't P.V. Narsimha Rao's government that authorized the loaning of India's Gold reserves. It was Prime Minister Chandra Shekhar in his term who had initiated the plan, lost popularity, government dissolved and up-to the following coalition to clean up the mess.
1991 India economic crisis - Wikipedia, the free encyclopedia
To para-phrase it in a current world event, American jingoism to enter Afghanistan, next Iraq extend themselves and then, when a New President takes up office expect him to clean up everything within a set-term.
Every action sets of a ripple of other counter-actions / reactions that cannot always be factored in otherwise the world will be stuck in eternal policy-paralysis.
So I repeat, the jury is out on whether Dr. Singh's policies improved OR devastated India but for all said and done there are benefits and we are certainly availing of it. Now.
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