Govt has Lost its Minds? Charge More Income Tax to overcome Deficit?

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swatkats

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Employees earning more than Rs10 lakh a year, get ready to pay more tax. The finance ministry is likely to increase the tax rate in the salary slab over Rs10 lakh per annum to 35-40% from 30% now.

A bigger hit awaits those earning more than Rs20 lakh a year. The ministry is considering a new income tax slab for this segment — accordingly, income above Rs20 lakh is to be charged tax at 50%.
Would that hurt? Let’s see.
Say you earn Rs25 lakh a year. At current I-T slabs (excluding deductions, cess and surcharge), the tax payable works out to Rs5.8 lakh. At the new slabs (35-40% on income between Rs10 lakh and Rs20 lakh, and 50% on income above Rs20 lakh), you will end up paying Rs1.5-2 lakh more in taxes.

Tax scythe looms over Rs10 lakh+paycheques - Money - DNA
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Man this is Insane. How can they Expect us to pay 50% Tax on your Income Tax?
I believe we're not in Germany or London?

The government is looking at an increase in excise duty on most goods and service taxes by two percentage points to 14%, a move that could make most consumer products, including cars and white goods such as refrigerators, costlier. The higher duty would also make nearly all services dearer but will earn the exchequer Rs. 30,000-40,000 crore to fund welfare schemes to spin jobs and generate income in an election year.

Excise duty, service tax may go up - Hindustan Times
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Service Tax to 14%? :lemmings:
 
I'd take any DNA article with a pinch of salt. However there might be some truth in the service tax increase article.
 
Doesn't this news gel in with the other thread about leaving India and settling in another country?

Why pay such high taxes when you can't even reap the benefits? It's like funding corruption and goonda raj, and only those in power to handle public money will benefit from it, not the public which paid the tax in the first place.
 
And how many people earn more than 20 Lakhs, who report their income?
Not more than couple of lakhs.

What is govt gonna get out of this? Peanuts.
 
blufox said:
And how many people earn more than 20 Lakhs, who report their income?
Not more than couple of lakhs.

What is govt gonna get out of this? Peanuts.
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You are underestimating the Indian Population . Hiding income is turning out to be more expensive in the long run . People are shifting to declaring income voluntarily but this will just deter them .
 
For Salaried people its impossible to hide their income .. Businessmen can surely get away with it.

Whatever this plan is .. will never go through Parliament.
 
what facilities are we getting in return? NONE.....

They should get their Acts in place and first look at ways to improve infrastructure and facilities and then start charging taxes...
 
blkrb0t said:
Doesn't this news gel in with the other thread about leaving India and settling in another country?
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I thought of posting this, But i thought again this Topic was Irrelevant. ;)

blkrb0t said:
Why pay such high taxes when you can't even reap the benefits? It's like funding corruption and goonda raj, and only those in power to handle public money will benefit from it, not the public which paid the tax in the first place.
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Just my words :)

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Coming to the Topic!
I remember i followed last year's Budget. I read in papers that in India there are 3% of people who pay Income Taxes(Excludes Corporates).
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There's this Report by Parliamentary commitee that there only 1% Individual tax payers out of whole Population!
So instead of making Easy Slabs and Encouraging everyone to pay Income Tax these Guys are back of that Big IT payers who are 63% of IT payers. :yawn:

These Guys will never Change! but Still i want to live in this Country to Watch the Changes happen at least in the next 20 Years!
 
Congress is hammering nails into its coffin by trying to fill up their purses to the brim while they can for they know they would be ousted in 2014 after the Lok Sabha elections. We are just a tiny spark away from revolts like in Egypt or Syria.
 
BJP in order to win 2014 need to give face .They have multi face and all doesn't gel with one another and cuts their chances.

Now coming to taxes,Anything is possible when Chidabaram became finance minister.He was the one who brought fringe benefit taxes(bringing new taxes from other countries just for sake of taxing) .He was already up of charging legal cheque transaction with 25 rupees per cheque transaction even for white money transfers saying it will curtail black money(dont know how).

Also the way the Congress is busy wanting to put cash in peoples account shows their frustration of getting cash as deficit has already passed 5.2% level.

Regarding 30% plus taxes.Instead of that charging taxes on dividend of people receiving more than 50 lakhs rupees as dividends(super rich especially corporate or company holders) would fill cash registers fast.

Inheritance tax surely looks on card though.I have least hope of it being a populist budget.
 
when ever chidambaram is finance minister, indian citizens becomes poorer. same case with manmohan singh and montek ahluwalia. all these 3 guys are always ready to tax everyone and anyone to fill govt treasury. these 3 are the worst finance ministers of all time, after india got independence.
 
standard and cost of living has gone up na.. so has the pocket money requirements and other such essential expenditure some.. so how else are they going to recover and multiply their fortunes in the public exchequers coffers ;P ?
 
6pack said:
when ever chidambaram is finance minister, indian citizens becomes poorer. same case with manmohan singh and montek ahluwalia. all these 3 guys are always ready to tax everyone and anyone to fill govt treasury. these 3 are the worst finance ministers of all time, after india got independence.
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Correction::Montek singh ahluwalia was never finance minister of the country.
And Manmohan did splended job in Narsimha rao term.And he takes the credit for same.But it should pass to Narsimha rao not Manmohan.As he is an economist it was his duty to bring out and he had studied the route .Narsimha Rao went against all odds and pick Manmohan for the job and he deserves credit more than Manmohan.

mach9 said:
standard and cost of living has gone up na.. so has the pocket money requirements and other such essential expenditure some.. so how else are they going to recover and multiply their fortunes in the public exchequers coffers ;P ?
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But even paying 50% are you sure you will get trouble free environment to survive.With train fills like cattle and public transport the less you speak is more thats said.Also corruption and all mis-management.Its not easy to kick money out of pocket.
 
MAGNeT said:
But even paying 50% are you sure you will get trouble free environment to survive.With train fills like cattle and public transport the less you speak is more thats said.Also corruption and all mis-management.Its not easy to kick money out of pocket.
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Im not sure of anything. Rather, I pretty much have a simple understanding that my taxes pays for the hordes of incumbents & roadside hogs who have everything from Satellite cable TV connections to fridges and superb LCD Tv's in their "legitimate" properties but DONT pay a paisa in taxes. I also have the belief that my taxes in 1000s gets me returns by way of public returns/conveniences/facilities in probably less than 10 Rs worth

The condition of the roads is a simple point - there are probably 5 different types of road surfaces in mumbai, some of these can be fond over a 100 metre stretch with more potholes per sqft than the surface of the moon.

So yeah, sucks as it is, I'll take my bets saying the current pathetic situation of governance and moral ineptitude will continue to define India's failure in ever becoming a worthy country for honest citizens in the foreseeable future
 
mach9 said:
Im not sure of anything. Rather, I pretty much have a simple understanding that my taxes pays for the hordes of incumbents & roadside hogs who have everything from Satellite cable TV connections to fridges and superb LCD Tv's in their "legitimate" properties but DONT pay a paisa in taxes. I also have the belief that my taxes in 1000s gets me returns by way of public returns/conveniences/facilities in probably less than 10 Rs worth
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I am saying same.
They dont deserve above the present rates.If they try feeling the elite wont cry than they living in some different world.
 
6pack said:
when ever chidambaram is finance minister, indian citizens becomes poorer. same case with manmohan singh and montek ahluwalia.
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Very blasé statement there mate.

I would be surprised if India would have emerged as it is now without Dr. Manmohan Singh's deft economic changes. And for the record us having our devices, PC's is also thanks to him opening the market up, else we would have been like Cuba; releasing a Pentium I PC without access to the web and claiming a victory for technology.

Although I do agree that he is no rallying figure OR rabble-rouser for the masses.

A little respect for the man who has worked had to get qualifications, Dr. Manmohan Singh.
 
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