India’s most abused taxpayers

Kumata

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Was going through some Old articles and found this Gem


Salary-earners pay highest per cent of income in taxes, get little in return and see their tax rupee get used for votes
‘Social equity in India means that a clerk earning Rs 6,000 each month in Mumbai must pay income tax but a strawberry farmer in Punjab’s Gurdaspur netting Rs 1.5 lakh every month should enjoy tax-free status.’ Twenty years ago, a journalist wrote this in anguish when that year’s budget raised the top rate of income tax just two years after it was cut to an all-time low of 30%.
The journalist is now a BJP MP, but the irony in his statement has only worsened in two decades. Senior clerks still pay income tax and farmers, however rich, don’t. And the effective peak rate of income tax has shot up by 13 percentage points above 30% that P Chidambaram had cut it to in 1997.
Honesty isn’t the best policy: How much tax you pay on income depends less on how much you earn and more on how much you can hide – or show income as non-taxable. The salary-earning class is the most disadvantaged because 100% of income tax is taken away even before the salary reaches them. It is also not allowed certain tax-free expenses that non-salary earners are allowed.
The 2018-19 budget speech noted that an average salary earner pays three times more income tax (Rs 76,306) than a non-salaried taxpayer (Rs 25,753). If non-salary income earners pay even 70% of what the salaried class pays government earnings would go up by Rs 50,000 crore a year. Finance ministers down the years have failed to correct this anomaly, surrendering to a system that penalises the honest.



The differential treatment of the two classes of taxpayers is not unique to India, but the large and widening gap in tax liability between the two is. With passing years, the system is getting more skewed. In the last 15 years, the number of people filing tax returns has grown four times faster than the number of taxpayers.
A large section of these ‘filers-but-not-payers’ is non-salary income earners. In fact, as a percentage of population, number of income taxpayers has been falling indicating, among other things, even heavier burden on the salaried class.
All tax, no service: There are countries with income tax rates higher than India’s. But taxpayers in those countries have access to services that have either never existed or have ceased to exist in India. Public education – from school to college – and public healthcare have disappeared from the lives of the urban middle class. Private expenditure on education and health in India is one of the highest in the world – this is in a country where the richest 10% of the population is poorer than the US’s poorest 10%.
Income tax payers are forced to pay for clean water, breathable air, private security and – now increasingly – road use in the form of toll. The majority of salary earners are in the private sector, and the tax they pay doesn’t entitle them to pension, unemployment support or post-retirement healthcare. The income tax for this class of people is increasingly becoming a forced charity, alienating them from the state.
Countries with high income tax rates also have a much lower rate of indirect taxes than India. Prices of cars, smart TVs, smartphones, laptops are 20% to 80% lower in most countries with higher income tax rates. A back-of-the envelope calculation shows that the buyer of a mid-level car in India has to pay 58% of his total expenses to government (see illustration). If he meets with an accident, government is unlikely to bear the cost of his treatment or provide income support if he loses his job.
One milch cow, many holy cows: The reason why income taxpayers, especially from the salaried class, are being milked again and again is because there are too many holy cows that government refuses to tax. Farmers, even the richest of them, enjoy tax free income. This leads to rampant leakages – an RTI query revealed that in 2012 over 8 lakh individuals declared agriculture income running into crores and paid zero tax on it. Several government panels have advocated taxing agriculture income, but clarity without courage is wasted wisdom.
Lawyers, doctors and coaching centres – among the most profitable and fast-growing professions – are exempt from service tax. Then there are MPs who enjoy privileges no taxpayer does – they decide their own salary, and tax on their income is not deducted at source. Much of their income is in the form of tax-free perks – 34 free flights a year with companion, free limitless first class train travel, free healthcare, rent-free house, Rs 20,000 monthly pension. None of this is to be grudged if MPs were to ensure that their paymasters – the taxpayers – are getting the basic services they are paying taxes for. But that is hardly the case.
One possible reason income taxpayers are uncared for is that they don’t matter as voters. Only 7% of Indian voters pay income tax. In Norway, 100% and in the US 70% voters are income taxpayers. Last year’s, and Nirmala Sitharaman’s first, Economic Survey did some sweet talk. Stating that “perceptions of fairness suffer when the employee class is forced to contribute disproportionately to income taxes while the class of self-employed gets away paying minimal taxes,” it proposed a few remedial baby steps. They included providing special conveniences to income taxpayers, like faster lanes at immigration counters and quicker passport issuance.
If and when the finance minister begins to walk this talk she can do another small favour. She can request the tax authorities to stop emailing certificate of appreciation to taxpayers. Given the outright taxpayer bias, these emails aren’t even worth the energy used in mailing them.
This is Circa Jan 2020 and much water have flown under the bridge.
Another enlightening thread as how honesty pays u back in current context.. well in not a good way :D
So basically

1651683461032.png

Guy paid 69% if the base price to GOI . Add to it the tolls , Lifetime Tax of approx 50% to 65% he will pay for each litre of fuel, How much should be enough for the FM tai. At the end of day , she will say "Thank you" to us TDS wala payers and go on to reduce the corporates tax and won't even get a "Thank you" :(
 

Love Charger

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Was going through some Old articles and found this Gem




This is Circa Jan 2020 and much water have flown under the bridge.
Another enlightening thread as how honesty pays u back in current context.. well in not a good way :D
So basically

View attachment 154233
Guy paid 69% if the base price to GOI . Add to it the tolls , Lifetime Tax of approx 50% to 65% he will pay for each litre of fuel, How much should be enough for the FM tai. At the end of day , she will say "Thank you" to us TDS wala payers and go on to reduce the corporates tax and won't even get a "Thank you" :(
Contribution to nation building is a Nobel cause , bourgeoise can atleast do it well , so That both proleariat and bourgeoisie can live in harmony .
And government's 20 pointer programme can be realised with greater zeal for the benefit of downtrodden classes.
 

Kumata

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Contribution to nation building is a Nobel cause , bourgeoise can atleast do it well , so That both proleariat and bourgeoisie can live in harmony .
And government's 20 pointer programme can be realised with greater zeal for the benefit of downtrodden classes.
Yeah it's a noble cause nibba but point is that it's exclusive to us salaried tax payers .. charity starts at home ..

All politicians declare their income as agriculture income to avoid building nation..

Bigger picture.. i earn post paying taxes and still i get taxed on my already taxed salary for everything... as i pay indirect taxes also.. while a bussiness man shows his house hold expenses as bussiness expenses to steal taxes..along with legitimate expenses. There are farmers living in audi's / mercs / BMW's with annual income in crores & will protest if they don,t get their free electricity and water with fertilizers and subsidised seeds... their whole input for a crop is heavily subsidised but they demand increase of MSP y O y and get it too....


A friend just switched jobs and his tax outgo increased by 100% while his inhand increased by meagre 30% despite 50% CTC hike... how fair is that...
 

Love Charger

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Yeah it's a noble cause nibba but point is that it's exclusive to us salaried tax payers .. charity starts at home ..

All politicians declare their income as agriculture income to avoid building nation..

Bigger picture.. i earn post paying taxes and still i get taxed on my already taxed salary for everything... as i pay indirect taxes also.. while a bussiness man shows his house hold expenses as bussiness expenses to steal taxes..along with legitimate expenses. There are farmers living in audi's / mercs / BMW's with annual income in crores & will protest if they don,t get their free electricity and water with fertilizers and subsidised seeds... their whole input for a crop is heavily subsidised but they demand increase of MSP y O y and get it too....


A friend just switched jobs and his tax outgo increased by 100% while his inhand increased by meagre 30% despite 50% CTC hike... how fair is that...
So we need better taxation of business men and rich farmers, even better .
The 20 pointer programme can be realised even better then .
 

Love Charger

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The kholkhoz of india and owners of means of production are shying from paying taxes, what a pity and we are socialists ?
Ram Manohar lohia and vinoba bhave cry in silence
 

Swesh

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Yeah it's a noble cause nibba but point is that it's exclusive to us salaried tax payers .. charity starts at home ..

All politicians declare their income as agriculture income to avoid building nation..

Bigger picture.. i earn post paying taxes and still i get taxed on my already taxed salary for everything... as i pay indirect taxes also.. while a bussiness man shows his house hold expenses as bussiness expenses to steal taxes..along with legitimate expenses. There are farmers living in audi's / mercs / BMW's with annual income in crores & will protest if they don,t get their free electricity and water with fertilizers and subsidised seeds... their whole input for a crop is heavily subsidised but they demand increase of MSP y O y and get it too....


A friend just switched jobs and his tax outgo increased by 100% while his inhand increased by meagre 30% despite 50% CTC hike... how fair is that...
You ask that businessmen get less tax than who besides those sarkar creates more salary wala people. People in this nation deliberately choose jobs or business i ve seen many of my friends lusting after job and get nothing than going for business or manufacturing where they atleast get anything...
 

Swesh

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Shoot the business and watch your communist distopyia come true. Kolkata was supposed to be next Maharashtra when Britishers left it prosecution of business fucked it's economy
 

Kumata

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So we need better taxation of business men and rich farmers, even better .
The 20 pointer programme can be realised even better then .
exactly. Govt need to move on from doing lip service of "wider tax net" to actualy implementing it. What's happening is that existing cows are getting overmilked while others are overfed filled with milk..

I have no issues with farming tax per se but govt need to draw a line... Either u don,t get subsidies or u don,t get IT exemption. Better atleast start taxing the farmers making above 50 L a year...this leaves the marginal one's..outside of net ...

Business man - same story.. they are required but hardly any one pays the GST bill... a friend bought sofa's for his house for 30K + GST .... to Avoid GST, Shop keeper generated the bill and got the good delivered ... once back, He cancelled the bill same day... no GST And my friend paid 30K via bank xfer...

TBH, govt need to take care step by step approach to bring these shop keepers into tax net & tighten the loopholes...

It seems like nation buiilding is left to Salaried class only :D
 

Kumata

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You ask that businessmen get less tax than who besides those sarkar creates more salary wala people. People in this nation deliberately choose jobs or business i ve seen many of my friends lusting after job and get nothing than going for business or manufacturing where they atleast get anything...
1651738674954.png
 

Swesh

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Besides government it's businessman who creates jobs. And there is a job menia in this nation everybody wants to do the job reather than doing business or manufacturing. People choose jobs over business (I guess that line is ruined by autocorrect). That is not a good trends . We are basically punishing who are doing governments job of providing employment
 

Kumata

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Besides government it's businessman who creates jobs. And there is a job menia in this nation everybody wants to do the job reather than doing business or manufacturing. People choose jobs over business (I guess that line is ruined by autocorrect). That is not a good trends . We are basically punishing who are doing governments job of providing employment
Here is my take

Bussiness do involve risks but govt do provide incentive like cheap loans etc as well. They have ample avenue available to factor in that risk. With recent changes, govt have put more money in their hands by lowering taxes ..

As for ease of bussiness goes, govt have eased a lot of compliance burden ...

My point was business man faking invoice & showing their personnel expenses as business to avoid paying taxes.

As for job creation goes, there is no charity involved... if a guy earn 10K from them, he gives back thrice or four times of output back to the bussines..
 

Swesh

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Here is my take

Bussiness do involve risks but govt do provide incentive like cheap loans etc as well. They have ample avenue available to factor in that risk. With recent changes, govt have put more money in their hands by lowering taxes ..

As for ease of bussiness goes, govt have eased a lot of compliance burden ...

My point was business man faking invoice & showing their personnel expenses as business to avoid paying taxes.

As for job creation goes, there is no charity involved... if a guy earn 10K from them, he gives back thrice or four times of output back to the bussines..
Does he share risk while earning kya uske bartan bhande biktey jab country main Paisa doobta sabse pehle business ki gardan katti hai also agar ye hi problem to fir automation pe log kyun rotey rehtey hai
 

Kumata

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Does he share risk while earning kya uske bartan bhande biktey jab country main Paisa doobta sabse pehle business ki gardan katti hai also agar ye hi problem to fir automation pe log kyun rotey rehtey hai
Well his risk is equated with multi fold profit also... Right???

Does he share his profit with employee .. no ..infact the moment he see his bussiness going down a 1% , he will fire that employee to save costs...but will not compromise on his own expenses...

Automation is a good but u still need people...crying is a socialist thinking...
 

Swesh

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Well his risk is equated with multi fold profit also... Right???

Does he share his profit with employee .. no ..infact the moment he see his bussiness going down a 1% , he will fire that employee to save costs...but will not compromise on his own expenses...

Automation is a good but u still need people...crying is a socialist thinking...
Who fires employees bro rationalization is a must practice but you are exaggerating it by 1% loss . Only low performance employees are fired at that time. And yes reward is directly proportional to risk it's as same motivation as salary is motivation for employee nobody fires a hardworking employees unless his business is winding up. People cry over automation because it reduces dependency on labor. Their fangs comes out when they see the "social charity" you say a businessman doesn't do" going out of window
 

Kumata

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Who fires employees bro rationalization is a must practice but you are exaggerating it by 1% loss . Only low performance employees are fired at that time. And yes reward is directly proportional to risk it's as same motivation as salary is motivation for employee nobody fires a hardworking employees unless his business is winding up. People cry over automation because it reduces dependency on labor. Their fangs comes out when they see the "social charity" you say a businessman doesn't do" going out of window
Now you are justifying it under "rationalization" .


Anyway.. you are missing my point being "business man faking invoice & showing their personnel expenses as business to avoid paying taxes & using myriad way to under estimate their incomes"
 

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GST collections have seen a upward trend but is there any way to gauge if the tax net has expanded significantly.
 

Swesh

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Now you are justifying it under "rationalization" .


Anyway.. you are missing my point being "business man faking invoice & showing their personnel expenses as business to avoid paying taxes & using myriad way to under estimate their incomes"
Nobody likes an dishonest businessmen and i do believe honest taxing is necessary but government salary class is basically overpaid people who deliberately underperform. And their salary is basically coming from our pockets of business taxpayer it's not that they genrates much
 

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Nobody likes an dishonest businessmen and i do believe honest taxing is necessary but government salary class is basically overpaid people who deliberately underperform. And their salary is basically coming from our pockets of business taxpayer it's not that they genrates much
Bruh what fuckery is this.

If anything the business class is the most dishonest taxpayer in the country.

You guys don't pay a dime in the name of taxes. Atleast govt and private job class have their taxes deducted automatically from their salaries every month where as you guys do everything in your power to generate fake bills income earned etc to escape taxes.
 

Swesh

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I gave example one of my friend got trouble in scrutiny few months back he got punished but I am a businessman i have seen marketmen skipping prospective customers that even I can convince just because of lathargical practices. It's job performance that evaluate a person's worth you don't pay them for existing
 

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Yes coz they don't genrates revenue in nation we do?
 

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