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Salaried becoming beggars soon in India

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This is the time for the salaried people to emphasis central government and Finance minister to take necessary action to reform / amend Income tax act 1961 especially for salaried category.

As promised to the citizens of India by our honorable Prime Minister Shri. Narendra Modi during his election campaign in the year 2014 to increase the standard deduction to Rs.5.0 Lakhs was denied for past couple of budgets sessions. This clearly shows that the government doesn’t have any interest to consider the request of salaried people.
Further to the above, as an employee we are forced to pay tax on our consumables goods such as central excise, sales tax, service tax etc., which lead to overburden to the employees. In other words, salaried people are forced to pay more than ~50% of tax on their income and they have to meet their children education and family members hospitalization which is very expensive during this modern world. It would be more pathetic when a family is having single earning person where the Job is also not guaranteed.
Above are the reasons forced the salaried people to urge the central government and finance minister to take necessary action for the amendments on the income tax act 1961 and hence I request to Sign my petition to make it happen :-
Standard deduction: In the current scenario, for the assessment year 2018-19 the standard deduction has given as Rs. 250,000 per employee which is just Rs. 20,800 per month per employee. This should be calculated based on the family income  (income should be clubbed where both husband and wife are employees) rather than per employee income which is unethical. In other words, the house hold expenses are common whether the family has single earning or multiple earnings and hence standard deduction per family is logical. This will benefit the families having single income and the other way this will increase the tax income to the government as well.

Primary income / Secondary income: Indians are neither getting equal opportunity in education nor in Jobs and we are bonding with family values and culture and hence, Income tax calculations based on the individual earnings are unethical. The tax slab should be defined separately for primary income and secondary income (primary income is the one which is mainly used for house hold expenses or the higher income of the family earned by husband/wife and secondary income is other than the primary income either earned by husband / wife or lesser than the primary income – bachelors income should be treated as primary income) for which more relaxation should be given to primary income and more tax can be levied on secondary income which would increase the tax income of the government and further will benefit primary income holders or the family is having only single income. Importantly the husband and wife’s PAN card should be interlinked to assess their income efficiently.

HRA Exemption:  Recent days we have seen there are some stringent actions going to be taken by income tax authorities on the violation of HRA exemption. It’s really surprised when

1)    there is no appropriate system to ensure all the landlords are having the PAN Card?

2)    There is no proper system to link the assessee and their property given for let out?

3)    There is no mandate law enforcing the landlord to provide their PAN card to their tenants?

4)    There is no mandate law to make rental payments only through bank transactions? In case of, cash transactions there is no proper instruction given to the landlords to provide the receipts to the tenants?

5)    Its clear evident that the central government can’t eradicate black money from the society (example: implementation of demonetization during 2016) and salaried also living within the black money society. Unless government take stringent action to eradicate the black money from the society, they can’t simply impose something on the salaried people.

Honestly, most of the landlords are denied to give their PAN cards and they forced to vacate the houses if employees ask for PAN card of the landlord. In this scenario, it’s really strange when government is forcing only salaried people when the government is unable to streamline the rental system. This may be a punishment for the genuine tax payers.  The HRA exemption can be wiped off instead Government can give more deduction in the standard deduction itself. This will enable at least salaried people to be more genuine than making them also corrupted because of our law.

School Fees:  In the recent scenario, the school fees has been increased drastically and the salaried people are eligible to get exemption under section 80C for the maximum extend of Rs. 150,000 for two children. However, there is no CBSE or ICSE board of education institutions are charging less than Rs. 75,000 tuition fees per annum. Apart from that, Donation, transportation cost, books, accessories, uniform, lab expenses, sports all are part of the education. It’s really unethical to ignore all these expenses associated to the education. Hence, the education expenses should be brought outside section 80C and provide the exemption on the actuals which relates to education fees including expenses incurred on sports.

Debt relief fund: Directly or indirectly, central government forcing the salaried people to invest in the real estate where our labour law is not very strong. When government can’t ensure the guaranteed job for the private sector employees they should stop encouraging salaried people to go for home loan which will end up with hazardous situation when an employee is losing their job. Government either should stop providing relief on home loan or should maintain debt relief fund to help the employees in case of any Job loss.

TDS on Salaried:  Finally, the Tax deducted at source by the employer on the salary payment should be limited maximum upto 10% as like other source of income and Government should enable the employees to file the audited profit and loss / income & expenses account duly signed by the qualified ICAI professionals on their salary income generated and their expenses incurred for the respective year. In that case, there is no need to provide any exemptions such as standard deduction, HRA, home loan, etc., so that the employees also can get an opportunity to transparently show their expenses against their income earned as like other business people genuinely with the help of ICAI professionals.  

I request all the salaried people to cascade this to everyone and sign my petition without fail.


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