[rascalangel]

Charles Wheelan in Naked Statistics said that statistics is a great tool ,but can be used to lie. Also the underlying data is more important than the inference from statistics.

Like already mentioned by V, the % of people paying tax should be against the total number eligible, else that statistics means nothing and at best,is a lie. However instead of households i feel it should be on individual basis, although more difficult probably. However the modern tools of ML and big data can be used right?

Another thing I often wondered was why not a creamy layer tax on agri income? But as one of the members pointed out, agri income has constitutional protection! What?!!. Can't the government go for a amendment? especially the current establishment, citing benefit of the nation and poor people dying? But alas the politicians themselves being likely landlords there won't be political will I guess.

P.S. my form 14 hasn't come yet. I just remembered.

[Thad E Ginathom]

Originally Posted by Sutripta

TEG, did you take part in the street protests against Thatcher's poll tax proposal?

I have to confess that I have never taken part in a protest. Only thing is that I had never bothered to vote before Thatcher: she gave me a reason to make sure I was registered and go to the polling booth and do it

[landcruiser123]

No wonder we have the opportunity to create such threads: https://www.team-bhp.com/forum/india...uce-taxes.html (Government sermons to auto industry = reduce costs; Auto industry to govt = reduce taxes)

If the government can't fill it's coffers with tax on income, it'll resort to all indirect tax and cess. All the things middle class love consuming: cars, gas, electronics, clothing etc will be the ones charged the heaviest. These indirect taxes aren't sustainable in the long run and might lead to migration. At some point, it'll start hurting the people it intended to protect. The poor/lower middle class will feel the pinch with the marginal price increase of every item due to diesel(transportation) & other raw material price increases.

I'd say that India needs to educate it's poor, increase the % of workers in the formal sector, and push wages up. That's the only way collection from income tax can be increased.

[Ranabegins]

Originally Posted by hondafanboy

I am not trying to preach here but Since you know these wealthy doctors , shopkeepers , why dont you report them anonymously ? I agree with you that government should have the system in place and catch them themselves but I think citizens can report too and IT's website has some info on the methods to report. Who knows, someone like Ajay devgan from the movie Raid will catch that tip and execute 😀? Again, easier said than done but as someone once said, be the change you want to see.

I absolutely agree with your point and I have searched about reporting process but I did realize that they do need your information when you report someone and one thing I don't want to make is enemies. I clearly know how the system works, someone with enough clout can find out about the complaint and where it came from. They don't even give attention to a tax fraud until its big enough and even if they do the first thing they do is ask for bribe to settle the matter.
This reminded me of a story, When I was in class 12th, CBSE sent a form to the school and it had a column for Parent's yearly income. I studied in Bihar where tax evasion is at it's maximum. The cost of education at my school including everything was atleast 70k-75k per year and the parents sent forms filling they make 2 lakhs per annum. I did ask many people about this as I knew they belonged from well-off business families and their reply was that if we show real income we will have to pay real taxes and all of our income in cash.
Thanks to the government for pushing cashless economy as this has lead to a decrease in false reporting of income.

[ais]

Originally Posted by KPR

My desire: Why not remove these direct taxes altogether and add it to the indirect means? Pathetic data on tax payers in India.
Such data makes me introspect my career choices. But only green grass there is that a tax payer is honest. Is there a trophy for that?

That's a good idea, but its been around since the Mughal Empire era! The government has had only one economist as a prime minister, and he happened to be 'not too vocal'.

Tax payers also pay out of compulsion. Given a choice, they would not pay honestly.

Indirect taxes are a good way to ensure taxes are paid, but they are already too high. We pay 18% GST anyway as a minimum on anything and everything we do/buy. Plus several other taxes.

India has a poor system of taxation with an entire gamut of not just taxes, but exemptions too. Consider Singapore, that has a low income tax rate and a fixed GST. If we do away with direct taxes (which I feel should be done), lakhs of government employees in the taxation and allied departments will go jobless.

Finally, yes we do have a system of trophies. We get a certificate of appreciation for paying taxes. When I get that email every year, I just smile!

[srishiva]

Originally Posted by Ranabegins

Let me state one fact very clearly here, people do steal taxes and a majority of people do that. I know Doctors, teachers, shopkeepers who earn in Lakhs per month but haven't paid a single dime or next to none in taxes. I have seen people who own multiple cars but still haven't ever paid taxes. The mistake is not only of those people but also of the government as the government hasn't set up a system to catch these kind of people. The government needs to catch these kind of people in big number and make an example out of them.

There are facilitators who help you evade with these things for a fee ! You cant expect something right in a corrupt system like ours. If only you could codify all the tactics, it could be many times more than the actual tax codes.