Friday, 15 January 2016

Giving up is not an option...




        In India we earn only to pay taxes and ending the gas subsidy is just another tax that we will have to pay. I am a doctor by profession but like any other salaried person I am also a tax expert or at least sort of. Here is a bird’s eye view of tax leeches : 


CENTRAL GOVERNMENT LEVIES TAXES ON THE FOLLOWING:

Income Tax: Tax on income of a person. Where the taxable income exceeds Rs. 10,00,000/-. Tax= Rs. 125,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/- 

Customs duties:
Duties on import and export of goods.

Central excise: Taxes on Manufacturing of dutiable goods.

Service tax: Taxes on provision of services Service Tax @ 14%.


STATE GOVERNMENT LEVIES THE FOLLOWING TAXES:

Value Added Tax (VAT):
This is tax on sale of goods.

Stamp duties and Land Revenue:
duties on transfer of immovable properties.

State Excise :on Liquor and certain agricultural goods.

Property Tax: India Property tax is levied on the real estate which consist of residential or commercial buildings or land attached to the buildings.

Professional Tax: taxes on professions, trades, callings and employments @ up to Rs.2,500 per person annually. Few municipal corporations are already collecting it and the SDMC will impose it soon on doctors, lawyers and accountants.

Entertainment tax: is a tax imposed by the government on feature films getting a wide release in India @ 45% and are reduced from gross collections.

Swachh Bharat cess: With the imposition of the cess, service tax rate will go up from 14 per cent to 14.5 per cent on all taxable services.

Fuel Surcharge: Extra charge @2.5% over and above the actual cost when we buy petrol by way of debit or credit card.

           So, we pay tax when we earn, we build home, we buy, we manufacture, we eat out, see movie, get car refueled and what not. Basically anything and everything we do is taxable. I wonder soon there will be a breathing tax. Even the odd-even rule supposedly meant to control pollution, which I agree is a good thing, is actually a rise in road tax by 100% because the car will now be usable for only half its life. You can't force people to be or do what you want.All you can do is share your desires clearly, and hope they keep an open mind and open heart.

Source: www.mhpbooks.com
       

        I am not being about patriotic or anti-national by paying or not paying these taxes. I pay each one of them but what I despise it that there is no accountability on part of the govt. I am concerned about how my hard earned money is being utilised. Yes I see the development but I also see thousand crore scams. I see 400% hike in salary of MPs and 15% for govt. employees. 


             In December 2012, India’s finance minister, P. Chidambaram, said that 2.89 percent of the population (about 36 million people) filed income taxes. In contrast, in the U.S., about 45 percent of the population pays taxes, which means that, despite India’s much-larger population, more Americans than Indians actually pay taxes. Even then the govt. recruitment is at its all time low despite shortcomings in each of the government department. Unemployment is rising by the minute which cannot be a good thing. Isn’t it shameful that 23 Lakh applicants appear for 368 posts of peon, as recently happened in UP. 

         So, given a choice I would not have given up my subsidy but now that there is no option, we can only hope that it will be used for the greater good.

14 comments:

  1. True, if ending gas subsidy is for a greater good, I think all will support. I Think people having annual income more than 10 lakh will not suffer for losing the subsidy.

    By the way 0.5% Swachh Bharat cess is a central levy.

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    Replies
    1. Thank you for correcting me Anupam:-)

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  2. Useful info...thanks for sharing.. :)

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  3. An apt post, while I'm struggling to save some pennies from the grubby hands of those lousy income tax collectors! :/

    Thanks a lot for the info!

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  4. True.. we all want to support the govt. and pay our share of taxes.. do away with subsidy.. anything.. but the question remains - will we get the benefit? will poor get gas connection? when will we see our roads without potholes..

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    Replies
    1. Yes indeed, I hope the outcome is worth the wait...

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  5. Good that you listed out all the taxes. M not sure if a greater good will be achieved given the corruption level we have in our country but this is sure that the service class is heavily penalized for their hard work, white money and honest tax paying!

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  6. Very apt. Thanks for sharing your views.

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