TaxTMI 
TaxTMI 
TaxTMI 
Here are some suggestions for consideration by honorable Finance Minister in next budget for salaried people.
Standard Deduction:
Standard deduction should be rationalized and certain percentage of salary may be allowed in different slabs instead of ₹ 40K / 50K and salary whichever is low for aY 2019-20 and 2020-21 respectively. For example, slabs can be:
10 % of salary up to Rs. Five lakh
7% of salary for amount above five lakh and up to ten lakh.
5% of salary above Rs.ten lakh and up to twenty lakh.
3% of salary above Rs. Tweny lakh
Therefore deduction shall be as follows for a person having salary income:
Rs. Three lakh ₹ 30K
Rs. Five lakh ₹ 50K
Rs. Ten lakh ₹ 85 K (50 +35)
Rs, twenty lakh ₹ 135 K (50+35+50)
In excess of Rs. Twenty lakh ₹ 135K + 3% of salary which is above Rs. twenty lakh. Therefore
Salary Rs. Thirty lakh 135K + 30K = 165 K
Salary Rs. One crore 135K + 240 K = 375 K
Depreciation:
Depreciation on building, furniture plant and equipment, vehicles , apparatus etc. which are required to maintain suitable standard of living, physical fitness and in performance of duties should be allowed. Good standard of living and good health will improve productivity. As personal use will also be there therefore, deduction equal to 50% of normal rate of depreciation can be allowed to salaried people.
Salary earners use some assets like houses, furniture and fixtures, vehicles, computers, mobile phones, equipment’s etc. owned by them. The use is to some extent in connection with employment but depreciation is not allowed to them though such assets also suffer wear and tear. If such assets are used by self-employed persons or business person, including by providing such assets to employees, they become entitled to depreciation allowance. As these assets suffer wear and tear and obsolescence it is desirable that depreciation should be allowed on such assets to salary earner also as a deduction from salary income.
Long-term savings and investments:
Amount of deductions and exemptions for long-term savings and investments should be increased.
Business loss should be allowed:
Salaried persons who have saved capital, have experience and knowledge and have contacts also , can enter into business. There is risk in business, therefore, in case in business loss is suffered the same should be allowed to be set off against salary income. In this regard businesses should generate employment and investment of capital in infrastructure ( fixed assets) should take place. And some business can be put into negative list for example speculation loss, gambling loss, etc. should not be allowed to be set off.
Depreciation on house properties can be allowed:
Depreciation on house properties acquired and used to let out should be allowed to all including salaried people. This will boost investment in infrastructure.
Clean all sins schemes should be introduced:
Greed is god made, power makes people greedier. Both result into corruption. This is reason that people in power by exercisable authority or denial of exercise of authority have scope to make extra money by obliging others.
It is well known that people in service of government and private sectors both who enjoy powers are more likely to be corrupt then others because power and greed and scope of exercising power can lead to extra income (upri kamai). Ground reality is that such extra income is well known in social circles.
Unaccounted income and wealth can be found with such persons. Some examples of people having income/ wealth more than known means are just tip of iceberg.
A clean all sins scheme can be introduced for salaried persons (including government servants and politicians) to disclose their undisclosed income and wealth either in own name or in name of any family member (parents , wife, and children) on payment of tax of 40% assuring that no further question will be asked and there will be no repercussion on their future service or political period as the case may be.