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Old 15th May 2007, 21:13   #16
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Originally Posted by supremeBaleno View Post
Guys, I have had this doubt for a long time. Do our corrupt politicians pay Income Tax on their salary, allowances and perks like we do on our salary ?
Anyone has any clue ? Or did they just pass a resolution (unanimously, ofcourse) to not have tax for their income ?
No, they don't. For example, the many (all?) of the states have laws by which they pay their state MLA's income taxes. I'm sure the MP's must have a similar arrangement.

Technically, I think the income tax subsidy itself is supposed to be subject to income tax. I.e., if MLA earns 3 lakh as salary, tax is 1 lakh (approx.). So he gets 1 lakh from the state to pay his taxes. But the 1 lakh is taxable, too, so he's supposed to pay 33,000 or so in tax.

It'll be a cold day in hell before anyone does, though.
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