Income Tax

[Sushubh]

Tax scythe looms over Rs10 lakh+paycheques - Money - DNA

35-40% tax over Rs. 10 lakhs
50% tax over Rs. 20 lakhs

could be implemented from the next budget. this government is insane.


Employees earning more than Rs10 lakh a year, get ready to pay more tax. The finance ministry is likely to increase the tax rate in the salary slab over Rs10 lakh per annum to 35-40% from 30% now.

A bigger hit awaits those earning more than Rs20 lakh a year. The ministry is considering a new income tax slab for this segment — accordingly, income above Rs20 lakh is to be charged tax at 50%.

 

[gadgetcrazy]

lag jaayegi. Does any other country have such high tax rates? I have the impression that US taxes at 30-35% across the board. Besides this is going to increase tax evasion and black money.

 

[Sushubh]

most developed european countries have higher taxes i believe. 55% even. and this applies to everyone i think. not slabs like we have here in india. (i could be wrong though). but then these countries have complete medicare for everyone (even heart transplants are totally free for example) and of course the infrastructure and all that. the criticism is all related to what we do not get for paying taxes. another criticism is that only the middle class ends up paying taxes. rich people find the loophole. so basically if you have struggled enough to reach a stage where you are making 2-3L per month in your management (or whatever) job, the government is out to get you. if you are a businessman, you have plenty of space to play around to evade tax paying.

 

[mhsabir]

Yes. The concern is more on what we "get", for what we pay. I mean, we hear how the tax will eventually benefit us back in terms of better infrastructure & stuff. I was discussing with a friend a while ago, as to how conveyance exemption is only Rs.800, whereas the public bus transport pass itself has crossed that & is now 1000 per month & on an average it costs 600 & above for non A/c travel for most people for an average distance of about 10-15 km.

 

[Sushubh]

inflation is at 10%. most people do not even get a 5% hike in salary on a yearly basis.

my situation is rather hilarious. i am making much less money than i was making 5 years ago 😛

 

[mhsabir]

I remember people were actually hoping they would increase the tax free limit to 3 lakhs a while ago. Guess, they have just given up.

 

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[Sushubh]

i gave up waiting for them to hike the service tax limit. it is at 10L which is absurd.

 

[moindear]

This is really irritating, they are torturing the people who pay tax loyally (read service class) and redirecting this money to some Govt schemes where the money is siphoned off.I dont mind paying 50% tax if I get facilities like developed countries.Seems the day is not far when there is going to be a big revolution, so much discontentment among the people...

 

[Sushubh]

Thankfully this would not affect majority of tax payers in the country!

 

[dineshr1988]

Crapgress on the force.. So all other tax will be abolished??

 

[Sushubh]

lol. last i heard they were also planning to lower the service tax window from Rs. 10L to Rs. 8L.

 

[jazzyjazzy]

I wont mind paying even 60% tax or more, if I am sure that I will get health and old age security from Govt, beside the less privileged and poor people of my country are well taken care of by the govt with my tax money.Sadly this wont happen, atleast in next few decades and I might end up paying over 50% tax according to this thread.

 

[Sushubh]

i guess they would use aadhaar as an excuse for the tax hike. something like we are going to use aadhaar as the social security thing in the usa (and similar schemes in other countries). the cash transfer scheme for example. brilliant way to legally pay people to vote for your party in the next elections 😀

 

[Deleted member 7160]

I haven't even got tax refund of Rs.2767/- from last year! Fed up following up..This is the case after filing returns online 😕

 

[gaurang08]

If this happens then this will surely give rise to more black money .. 50% over 20 lakhs really is insane to say the least ... Even 35-40% over 10 lakhs is stupidity .. Whats next ?? 80% tax ??