It refers to welcome launch of Transparent-Tax-System by Prime Minister on 13.08.2020 with innovative feature of faceless assessments and appeals. Prime Minister rightly stressed for widening of tax-base to bring more and more people under tax-net which presently is a very low percentage of total population. It can be practically increased by incorporating certain practical conveniences for people paying taxes like priority to tax-payers in queues for various government-provided facilities. Income Tax Department sends through emails appreciating coloured certificates for those paying more taxes. These certificates should be sent in laminated form so that proud tax-payers may get these framed to be put in their homes and offices. Names with photos of people paying more taxes can be put on websites in our status-conscious society where affording people race to spend on useless gimmickries to exhibit richness.
New Income Tax Act should be introduced to replace six-decades old Income Tax Act 1961 which is full of patches of amendments. British legacy of April-March fiscal-year should be changed to systematic calendar year to be in tune with most countries in the world as per recommendations of LK Jha committee. All exemptions including on agricultural income, donations and contributions to political parties now need to be abolished altogether with rupees five-lakhs fixed as basic exemption-limit. All these exemptions including on agricultural income are largely misused where ordinary farmer does not earn more than rupees five lakhs per annum. More than 2000 political parties are registered with only very few active in politics just to whiten their black income through exemption to contributions made to or received by political parties.
Highest tax-slab of 30-percent should be restored so that people may find it advantageous to bring complete income to books. Rather a permanent Voluntary Disclosure Scheme should be introduced whereby provision may be there in tax-return to declare at highest suggested tax-rate of 30-percent, any income without disclosing source of income.
MADHU AGRAWAL