Fm Wants Removal Of Sops To Cut Tax Rates

Sushubh

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Oct 29, 2004
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Ahead of the budget, the finance ministry on Friday made it clear that it was going to prune all tax exemptions — including those available to individuals on various savings instruments.

http://timesofindia.indiatimes.com/articleshow/402100.cms[/b]



ab mera kya hoga?
 

blr_p

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....But the government did not give any timeframe to roll out its intention, which pointed towards the pruning of exemptions being its long-term goal for which finance minister P Chidambaram told the consultative committee, a consensus needs to be evolved.

..no need to freak out just yet ;)
 

netfreak

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It could be a good thing. That is if they do not mess it up. Actual tax rates are 20 - 22% for most ppl. If they remove exemptions and make 20% actual rate, it makes sense.But if they remove exemptions and keep rates at current level, thats trouble :( In situations like this, left parties look good since they might support salaried class.
 


blr_p

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QUOTE(netfreak @ Nov 12 2006, 08:00 PM) [snapback]68540[/snapback]
But if they remove exemptions and keep rates at current level, thats trouble :(
[/b]
Heh, how likely do you think this is the real objective.

..they are trying to assess how easy it will be to get away with it.

I'm not buying the removing-tax-exemptions... of the few

will result in lower taxes for all....unless they go after the corporates.
 

Sushubh

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if they remove exemptions, they better lower the starting level taxes. i hate to pay my taxes when i get electricity for like 10 hours in a day. and i hate to pay taxes when i end up getting wheel balanced on my car every second month due to bad roads in my city.