Income tax and Union Budget 2017
The expectations from Union Budget 2017 on the income tax front by most taxpayers have been belied as no significant benefits are given. The fincial hardships of tax payers, especially of middle class, has not been accounted for in any way.
The exemption limit has not been raised to suitable amount – a minor relief of 5% for income up to Rs 5 lakh through reduction in tax rate from 10% to 5% is idequate. Senior citizens and super senior citizens (above 80 years) will not get its full extra benefit of Rs 12,500 on their income tax liability since their exemption limit of Rs 3 lakh and Rs 5 lakh has not been increased at all. Who cares for senior citizens who need the most cash in hand to survive the ever increasing inflatiory trend? Also senior citizens need relief from Tax Deduction at Source (TDS) rules. At present, there is no requirement for Advance Tax by senior citizens – same way relief is required for abolishing the requirement of TDS and of filing Form 15H by senior citizens.
What should be provided to stimulate savings by tax payers?
The proposed one-page Saral form for tax payers having no business income to file income tax return up to an income of Rs 5 lakh must be extended to all tax payers.
The maximum dotion receivable from unknown source by a political party will be Rs 2000. It should be made nil; as it is seen in the past that cash collections in crores of rupees are claimed as received in smaller amounts from crores of its donors. This needs to be plugged in – checked forever. Otherwise its purpose is defeated.
The proposed fee for delay in filing income tax return of Rs 5,000 – after due date till December and Rs 10,000 in all other cases (except Rs 1,000 fine for total income up to Rs 5 lakh) is too harsh. This will discourage filing IT returns. The government’s objective of maximum returns to be filed will be hit badly. This section must be dropped for better and more tax compliance.
The increasing number of vehicles in Guwahati is causing traffic jams in various places in the city. People going to offices face a lot of trouble due to jams. The rich are becoming richer while the poor are getting poorer. The standard of living of the rich is getting higher; as a result, they are buying swankier cars. The roads of Guwahati are not broad as compared to other metros. This is another reason for traffic jams. Everyone wants to go faster due to which accidents occur. There seems to be no respite, particularly in peak hours. Car pooling system can help in avoiding such jams. So, the traffic authority should think of motivating vehicle owners to go for car pooling and other sensible solutions.