In the upcoming
budget i.e. 2023-24, Salary Person
have more expectation for taxes relief. It's really a major concern for salary Person. In India personal income tax...
started from 5% and goes about 42.74% (37% surcharge on net income >5 Crore along with
surcharge and cess 4%. If we are comparing
to other countries taxes then it feels like our India personal tax rate are
very high... Like: Personal tax rate of
Hong Kong 15%, Sri Lanka 18%, Singapore 22%. Revision in the Tax Slabs Rates:- Now salaried
person have the optionto choose and Pay taxes either old tax
regime or new tax regime. The old tax
regime that comprises exemption and
standard deduction but the new concessional tax system missing exemptions
or standard deductions. These two system creates various issues and confusion
among salary person.In the opinion of tax expert, old taxation system is much better than the new one. The new tax
regime requires revamping. For example:- “Somebody with an income of Rs 7 lakh in the old regime does not
have to pay any taxes, but in the new regime, you have to pay taxes once you
cross the threshold of Rs 2.5 lakh,” So the latest
tax regime should raising the limit for paying the taxes to Rs 7 lakh. Providing Exemptions Would be Effective:-
As per our Indian personal tax
system...a person or the businesses whose yearly income is Rs. 5 cr and exceeds then They should be liable to pay taxes at the
highest rate i.e. 42.74%. But if we are comparing with the overseas
countries such as USA, Canada and other.. they encourage to save their taxes by investing in social security schemes
such as medical and pension for every citizen. This system is missing in India. Tax experts mentioned that “Long life
savings by contribution to Public Provident Fund and National Savings
Certificates etc are the financial safety for the citizens. So, if the exemptions are withdrawn like in
the new tax regime, then people will be left without social security. If
there are no tax exemptions for life insurance policies then people will not
buy and they won’t have security in case they land up in some difficulty,” Requirement for the Tax Simplification: The taxation procedure would require to
be simplified. As the process of
taxation becomes simpler, tax compliance
shall get increase. As per the
confederation of Indian Industries (CII), confusion has been made by different TDS rates for the assesses
which enhances the compliance load and
various issues. For example:- The same would be hard to differentiate
between fees for technical services 2% and the fees for professional services
10%. Way Forward: 1. Hong Kong (15%), Sri Lanka(18%),
Bangladesh (25%), and Singapore (22%) has lower personal tax rates compared to
India. 2. The effective tax rate on a person who
makes more than Rs 5 cr in India would be 42.74%. 3. If the exemptions are withdrawn like
in the new tax regime, then people will be left without social security. 4. Old taxation system is much
better than the new one. The new tax regime requires revamping. 5. There would be
requirements for making the taxation process easier.
