Is There A Better Way Of Honoring The Honest Taxpayer In India?
Everyone seems to be talking about you, the honest tax payer these days. You pay taxes in time. You support the Nation. Yes, the Nation runs on the back of you…the honest taxpayer. This is a fact which will shock you, Only 76 Lakh of our citizens showed an income above INR 5 Lakhs. This is out of a Nation which has more than a Billion citizens. Even the Finance Minister Arun Jaitley, has said that tax evasion has become a way of life. What happens when most citizens of our country evade taxes? Well….the burden falls on honest tax payers.
The Government recognizes the contribution of the honest tax payer and is rewarding him. But, are these rewards enough? Is There A Better Way Of Honoring The Honest Taxpayer In India? Want to learn more on tax planning? Just leave a missed call on IndianMoney.com financial education helpline 02261816111 or just post a request on IndianMoney.com website. IndianMoney.com offers Free, Unbiased and on-call financial advice on Insurance, Mutual Funds, Real Estate, Loans, Bank Accounts and capital markets.
How the Nation honors honest taxpayers?
1. Finance Minister Cuts Income Tax Rates
About 3.7 crore citizens filed ITR in 2015–16. Out of this, 1.95 crore citizens showed an income between INR 2.5 Lakhs to INR 5 Lakhs. This shows that a majority of honest tax payers are those who earn an income between INR 2.5 Lakhs to INR 5 Lakhs.
The Finance Minister wants to honor you and other honest tax payers and has done so in Union Budget 2017. The Finance Minister has cut income tax rates from 10% to 5%, for citizens earning INR 2.5 Lakhs to INR 5 Lakhs a year. A tax rebate of INR 2500 on income up to INR 3 Lakhs for FY 2017–18, was also announced.
The Finance Minister said this was the first Budget in India’s history in which every taxpayer’s tax was reduced. Even tax payers falling in tax slabs above INR 5 Lakhs would get an annual benefit of INR 12,500. Is this enough for the honest taxpayer? You decide.
2. Rewarding the honest taxpayer with certificates
Sometime last year, the Government had come up with a unique scheme to reward you and other honest taxpayers. You were honored with certificates of appreciation. These certificates issued by the CBDT (Central Board of Direct Taxes), were sent to you and other taxpayers by email. This is a unique way to connect with you…the honest tax payer…and give you a just reward.
Don’t you feel this is too little? Doesn’t more need to be done?
Can more be done to reward the honest taxpayer?
1. This is how honest taxpayers are rewarded in foreign countries
In Japan, honest taxpayers have their photograph taken with the Emperor. What if you, the honest taxpayer, were honored by having your photograph taken with the Prime Minister of India or perhaps the President? In South Korea, honest tax payers are given access to airport VIP Rooms and free parking. Is it too much for you, the honest taxpayer, to get a cut in fares on public transport travel?
In Finland, honest tax payers are given tax benefits including tax credits, which can be used even for nursing homes. Just ponder a moment and think….Could not you and other honest taxpayers be rewarded with bonus points, when you seek admission in Government institutions for engineering, medicine or MBA seats? Maybe certain special benefits or a cut in fares, when you travel by the Government operated airlines? What best than an opportunity to be employed with the Government?
2. Is demonetization the biggest gift to the honest taxpayer
The Prime Minister Narendra Modi, scrapped 500 and 1000 Rupee notes on November 8th 2016, in a move called demonetization. This move has destroyed corruption and nearly halted black money in the economy. Tax evaders have no place to hide.Demonetization could be the greatest gift, to you the honest taxpayer.
Dishonest and unscrupulous citizens used to say, look at you honestly paying taxes. This is a very foolish move. Look at us enjoying, while you work so hard. Corruption and evading tax is the only way you can enjoy yourself. Today the shoe in on the other foot. You, the honest taxpayer can enjoy yourself and rest trouble free, while tax evaders with no escape have to pay taxes and penalties.
Is demonetization the greatest gift to you, the honest taxpayer? You be the judge.
The honest taxpayer is worth his weight in gold. Every Nation and India is no exception, loves the honest tax payer. As India looks to scale peaks never scaled before…think the launch of 104 satellites by ISRO at one go…the honest taxpayer has to play his part. Be Wise, Get Rich.