Reform Personal Income Tax for Salaried Income People ( TDS Deductions ):

Reform Personal Income Tax for Salaried Income People ( TDS Deductions ):

 

The truth is Salaried people are taxed thru TDS and the most obedient tax payers. Beyond saving Rs 1 Lakh, a person cannot save tax. An additional Rs 1.5 Lakhs can be saved only through investment in Home Loans.?? WHY ??

 

The problem is taking a house and paying EMI for 10-15 years is a very risky matter in terms of stability, financial security/ sudden financial requirements. The govt should also include other loans which people take to fulfill their short term demands and requirements like personal loan, Car Loan, 2 wheeler loans, monthly dependant parental support,  this will not only boost the other business sector  but also help people to fulfill their financial/ social requirement/needs and duty with less burden due to taxations.

 

A short term loan is always better than Long term loans in terms of financial risk, rather than 10-20 years EMI of Home Loans. This is where the US Govt got a hit, still Indian Govt is not understanding.

 

A person takes personal loans only when there is a acute need for a additional money. Spending like marriage/ household consumer durable requirement/ donation for child school/ sudden medical requirements/ parental support/  etc. If govt includes this also in the deductions. The common man who is only dependent on salary will survive better.

 

Moreover, all type of loans should be included along with Home Loans, since in a way the economy is benefited through interest which banks earns. And also the common man who is taxed less. This will boost other sector also.

 

The Credit Card interest and late fees should be included, since the money goes back to economy.

 

The government should come out from the notion of only HOME LOAN factor and should include all type of LOANS under tax saving structure.

 

A salaried income person should be excluded from all the taxes which he pays as an when for the hard saving he does later after paying the TDS at the time of Salary also. Today any investment a person does,  do get  taxed, so there is a double taxation which keeps happening.

 

The saving backet should be increased.

 

A salaried income person should be exempted from paying taxes with his saving. ( both short term and long term )

 

How will a person save when  getting  pay-slip with tax deducted, saving that he does from deducted salary, when he invest he again pay taxes for short term capital gains/ sometime in long term capital gains also.

 

Moreover, the slabs inside tax saving are age old indexing. Like average House Rent is almost 2-3 times higher than allowed, kid education of Rs 1200 pa, today standard schools people will be paying almost 3 thousand per month., Like wise so many factors.

 

It seems people/ economist/ policy makers/ editors/ TV Programs/ all talk only one side things only, but people are not demanding the factors mentioned above.

 

WHY ???

 

 

Regards

Dhritimann Ghosh

Chanigarh

 

 

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