It refers to CBDT member Akhilesh Ranjan being appointed as new convenor of the panel formed for drafting new Income Tax Act to replace more than half-century old Income Tax Act 1961. The panel should draft new Act in a manner to minimise exemptions. There are many exemptions like on charity and contributions made to and received by political parties. These are grossly misused and should be abolished.
There should be a consolidated head for personal exemptions clubbing all heads like for medical-insurance, investments in government-schemes etc with consolidated limit being fixed at say rupees two lakhs. For senior citizens, such a limit can be some higher. There should be one single investment-plan for senior citizens attracting higher interest-rate of eight percent with clubbed investment-limit raised to say 50 lakhs merging Senior Citizen Saving Scheme and Pradhan Mantri Vaya Vandana Bima Yojna, with clubbed scheme available at all branches of different banks and post-offices.
Income Tax Department should study models of tax-system from countries with highest honesty-index like Newzealand, Denmark and advanced countries like US where tax-returns are voluntarily filed in a realistic manner. Act should incorporate features so that people may pay Income Tax cheerfully and voluntarily rather than under panic of tax-authorities. India should be turned gradually in a cashless country targeting bigger transactions rather than ordinary people.
MADHU AGRAWAL