[pavanmadhini]

While I would badly love to see fuel prices reduced, and even though this might make me seem like a selfish, narcissistic, privileged brat, I’d still go ahead and vote for a reduction in income tax.

Why? It’s really, really perverse.

From my 1st salary of 15000 rupees per month about a decade back, I’ve made it to the highest tax slab now, and with each level up in my career, it felt like I was being penalised for working hard and doing well for myself. If you do well, you pay for it. Again and again and again. Pay income tax, and then pay GST, road tax and whatnot to buy a car, and then again pay obscene taxes on fuel to drive that car. If you don’t do well, the government will take care of you with subsidies and loan waivers and other social welfare schemes designed to keep the masses where they are. I’m sorry to say this - but the incentives are really skewed.

[gauravdgr8]

Originally Posted by pavanmadhini

While I would badly love to see fuel prices reduced, and even though this might make me seem like a selfish, narcissistic, privileged brat, I’d still go ahead and vote for a reduction in income tax.

Why? It’s really, really perverse.

From my 1st salary of 15000 rupees per month about a decade back, I’ve made it to the highest tax slab now, and with each level up in my career, it felt like I was being penalised for working hard and doing well for myself. If you do well, you pay for it. Again and again and again. Pay income tax, and then pay GST, road tax and whatnot to buy a car, and then again pay obscene taxes on fuel to drive that car. If you don’t do well, the government will take care of you with subsidies and loan waivers and other social welfare schemes designed to keep the masses where they are. I’m sorry to say this - but the incentives are really skewed.

I too am in the social strata as yours, however, I would say otherwise. Do you really want a lifestyle based on subsidies? I wouldn't want to stand in line for subsidized sugar.

Aren't you better off with a much better lifestyle based on your hard work by paying that extra buck on the tax.

[buzzy_boy]

How about a novel idea for a change? You get credit points proportional to the amount of income tax that you pay. You can redeem them for all sorts of things - from fuel, priority access to govt. services - like land registration, to VIP dharshan in Tirupati! It just might incentivise more people to pay their income tax, Just saying!

[nitin_knw]

Originally Posted by thanixravindran

So the biggest area that needs fixing is the Direct taxes - Income tax. A decade ago, I was hopeful that Direct taxes code will come but it never came. Only piece meal work is done in Capital gains or bringing in the dividend income under taxation, tweaking rates/slabs etc. I think the new Income tax regime will also become mainstream in few years. There are too many exemptions/loop holes in the system that needs to be plugged. So next set of big reforms should be in the Income tax with "Aadhar" unleashed here including mandatory filing requirements.

Agree, I laugh when I read the list of commodity getting cheaper post budget announcement every year but never see it happening, for me relaxing Income tax slabs and fuel price cut will add some money back to my pocket.

[NitinzM]

Since I am a newbie hence replying here due to lack of voting rights

In my opinion, Govt should completely do away with Income taxes as its double taxation majorly for salaried class.

[.sushilkumar]

Originally Posted by pavanmadhini

From my 1st salary of 15000 rupees per month about a decade back, I’ve made it to the highest tax slab now, and with each level up in my career, it felt like I was being penalised for working hard and doing well for myself. If you do well, you pay for it.

Just to add context to above. I voted for reduction in income tax.

I recently Switched jobs with a approx. 40% hike on my CTC. I was in top tax bracket anyways so no worries there. Below percentage is calculated keeping my earlier salary as base.

Actual Increase in take home - 39%
Actual Increase in my income tax outgo - 111%.

I have already exhausted all my tax saving instrument limits including EPFO & only remaining option is house loan, which i do not intend to take up.

You do get punished for working hard & doing well for yourself

[aquavivarium]

Reduce taxes on fuel and make all fuel payments cashless ,straight to bank not even wallet to wallet.

There are rumours that tax evasion is done in private pumps.

Tax collection will increase, which can lead to more subsidies on Electric vehicles.

[pavanmadhini]

Originally Posted by gauravdgr8

I too am in the social strata as yours, however, I would say otherwise. Do you really want a lifestyle based on subsidies? I wouldn't want to stand in line for subsidized sugar.

Aren't you better off with a much better lifestyle based on your hard work by paying that extra buck on the tax.

With all due respect Sir, I think you completely missed the point. Never did I say I want to live off subsidies. All I’m saying is, don’t penalise me disproportionately for doing well in life.

[SnS_12]

Even though a small percentage of the countries population pays taxes (are actually eligible to pay taxes) the gross tax collection from personal income tax in 21-22 was 7.10 lakh crore.

The gross collection of Rs. 15,50,364.2 crore includes Corporation Tax (CIT) at Rs. 8,36,838.2 crore and Personal Income Tax (PIT) including Security Transaction Tax(STT) at Rs. 7,10,056.8 crore

Link https://www.incometaxindia.gov.in/Li...-over-48.4.pdf

On the other hand government's earnings from taxes on fuel for FY 21 was 3.71 lakh crore.

The Centre earned nearly Rs 8.02 lakh crore from taxes on petrol and diesel during the last three fiscal years, of which more than Rs 3.71 lakh crore was collected in FY21

Link https://www.newindianexpress.com/bus...m-2395514.html

So, the salaried class will continued to get milked in the form of Income taxes, with no actual benefits including GST credits.

[KGS]

Even though reducing fuel prices will have more positive impact on controlling inflation , I would personally prefer abolition of Income tax.

As a direct tax payer it will help me save some money, save lots of headache to count all the pennies that came in my account including peanuts named salary, any dividend , Mutual Fund transactions, etc, etc.

On top of it, there can be huge saving by disbanding Income Tax department. Overall a win win for common tax payers.

[r24x7]

Voted for reduction in IT

I and the missus together are salaried , own a budget hatchback , pay taxes cumulatively worth the cost of a hatchback everyyear , whilst my next level of Kin ( Parents + ILs ) who own luxury cars ; pay more money to the auditor filing their taxes than the tax amounts iteslf. ( No wonder , they are into business and not salaried )

Laws of the land that I do not understand

[wildsdi5530]

Originally Posted by John Jacob13128

On the above statement, the NET Tax collected under PIT (Personal Income tax) and STT (Security Transactions Tax) came in at 6,40,588.3 crore (net of refund).

Originally Posted by SnS_12

Even though a small percentage of the countries population pays taxes (are actually eligible to pay taxes) the gross tax collection from personal income tax in 21-22 was 7.10 lakh crore.
On the other hand government's earnings from taxes on fuel for FY 21 was 3.71 lakh crore.

This is the total tax collected as income tax. Most people get some of this back as a tax refund. Also there is a huge department employing 60K people just to oversee this collection. I would really like to know the actual amount finally in the govt kitty after all the expenses and refunds.

The fuel tax described by SnS_12 is only the central govt's share. There is a larger state govt share. So the figure is definitely above 7.41 Lakh cr. And there is no separate fuel tax dept. As yet.

Of course these discussions are moot as neither of these will be reduced. It's just wishful thinking by a group of frustrated tax payers. You find them in every country.

[krishnakarthik1]

And the story goes that the rich BHPians silently thanked those 72% of the voters for funding their roads, wished their auditors a long life and left this thread to never return again. The end!

[DonHyd]

A lot of people are of the opinion that income tax is unfair and I fully concur with it. It really pains to see someone earning more than you paying less tax because his income is not documented or some loopholes. I know a number of shopkeepers and dhabha owners who earn between 10k to 50k per day but all their income is in cash. And then there are so called farmers who own dozens of acres with plantations but don't know what income tax is.

Further income tax is highly inefficient. In my opinion, Income tax as well as the entire department should be abolished. Similarly, GST should be levied only at production and not at any other stage. I am no expert but taking an automobile example, a company produces a car and sells it to the dealer. Here gst is paid by the company. When the dealer sells it to the customer, he again pays gst but claims input tax credit. Why not do away with this step? Whatever net money you are getting in this multi step process, take it directly from the company. Imagine some other product which goes through producer- distributor- wholesaler- retailer etc. Instead of taxing at every step and giving tax credit, wouldn't it be easier to tax the producer alone? It will bring down the chance of evasion to zero.

[techmotor]

Voted for fuel tax reduction. I too belong to that minority where the TDS is applied on my salary. And while I strongly advocate for getting some benefits/perks for contributing a significant chunk of my salary(for example get some reduction in road tax while buying a vehicle), if we consider the bigger picture, a reduction in fuel tax is what will benefit us. The reason is pretty simple: Higher fuel tax impacts all of the economy and the price will shoot up for all consumables. So people like us who already are being taxed multiple times on post-tax income would need to spend even further. Ultimately we’ll be affected the most.