Income Tax: ...........

No Government till date has done justice to the toiling middle class. Taxes are being raised every year. The Breadwinner has to struggle endlessly to provide the basics without aspiring for a better quality life. Considering the average expenditure of a family of four living in Metros and having a reasonable standard of living at Rs.15000/- per month, (and accordingly defined for Cities, Towns and Villages,) it is necessary to raise the Individual Tax Free limits to Rs.180,000/- per annum. Any amount earned above this should be taxed at source prorata. Tax deduction by Companies should be on Monthly basis. If individuals annual income is less than the Tax Free limit, he can claim a refund on the Tax paid by filing his returns. Gross Family Income per annum should be defined (say Rs.240000/-) and those filing returns can claim refund based on the size of their families, status/expense of each member and the total income earned in the family. If the individual without greasing of palms genuinely receives refunds into his account, you will observe all Indians filing their returns, if only to claim his refund. Standard deductions as provided presently should be done away with and the Returns Form should have columns classifying these saving facilities to reduce the tax burden. Taxes should be levied only on amounts above the Tax-free limit.

Tax structure should then be 30% for Family incomes of those earning above free limit upto Rs.3 lakhs  above limit. 

                          40% for above free limit upto Rs 4 lakh                          50 % for above free limit upto 5 lakhs                          55% for above this limit.

For every 5000 taxpayers a Computer with an Accounts officer should be dedicated in the village / Town / District from where the tax is collected. This accountant will be fully conversant with the existing taxes and assist the individuals for filing returns rather than harass. All information when computerised with the forms so designed that it includes cross-references will prevent the tendency of giving wrong information. This measure will cause employment and also Payment of Taxes by all. It must be emphasised that the Administrative costs for collection should not exceed 0.01% of the Tax collected at the centre.