Letters: A less taxing time

The ideas listed in S Kumar’s letter, “End tax exemptions” (March 1), as well as those in Ishan Bakshi’s article, “Data crunching: Are we a nation of tax evaders?” (February 28) — to which Kumar was responding — need to be examined and followed up on by policymakers. 

In Budget proposals, the rich and powerful get exemptions factored in. There is no logic or rationale in continuing the exclusion of agricultural income for tax purposes, as it is being done at present. Those who benefit from huge tax waivers or exemptions do not share any of it with society when they prosper later. 

With the launch of the goods and services tax, there will be an across-the-board rationalisation in taxation procedures outside the income tax (IT) net. The time is opportune to think of modalities to make IT less taxing for taxpayers. 

The present legislative set-up and procedures give the impression that paying IT is a punishment for earning more and that one should not mind spending a fortune to avoid paying it. The package of tax concessions and the procedures followed by the IT department to collect taxes make one think along these lines. 

Why not make the employer pay employment tax after making necessary adjustments in the compensation packages? 

Alternatively, given the development of technology, it should be possible to have dedicated bank accounts for salary payments and receipts, including other incomes forming part of the taxable income. The only negative impact would be rendering some employees jobless in some departments and organisations, including chartered accountancy firms.

Letters can be mailed, faxed or e-mailed to: 

The Editor, Business Standard

Nehru House, 4 Bahadur Shah Zafar Marg 

New Delhi 110 002 

Fax: (011) 23720201  ·  E-mail: letters@bsmail.in

All letters must have a postal address and telephone number

Letters can be mailed, faxed or e-mailed to: 

The Editor, Business Standard

Nehru House, 4 Bahadur Shah Zafar Marg 

New Delhi 110 002 

Fax: (011) 23720201  ·  E-mail: letters@bsmail.in

All letters must have a postal address and telephone number