TaxTMI 
TaxTMI 
TaxTMI 
Proposed Suggestion for Budget 2009
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....roposed Suggestion for Budget 2009 <br>News and Press Release<br>Dated:- 20-6-2009<br><BR>SUGGESTIONS: 1. SALARY INCOME: In the present system of INCOME UNDER THE HEAD SALARIES, there are many definitions to arrive at what is an income, perquisite etc.. There are many deductions and exemptions, making the entire computation under this head a cumbersome process. Lots of man hours are lost in desi....
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....gning the salary packages and preparing the monthly payrolls, annual tax deduction documents in piles & reams of papers. The entire paper work in turn affects the Mother Nature. Why not consider taxing the payment made by emploYER to emploYEE either in cash or kind (rent free accommodation, free car, free telephone etc.) towards his remuneration or reward for his services in the hands of emploYEE....
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...., without there being any need for including/deducting any amount for perquisites/allowances or exempted perquisites / allowances. The total of such amount may be taxed at a special LOWER RATE OF TAX. The rates could be as under: say up to Rs. 2.50 lacs - Nil % , Rs. 2.51 - Rs.10.00 lacs - 5 or 7.5 % Rs.10.01 - Rs. 25.00 lacs - 15 % Rs.25.01 - Rs.50.00 lacs - 25% Above Rs. 50.00 lacs ....
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....- 30% Of course the rates of tax may be re-considered according to the statistics to ensure that revenue is not lost but the entire exercise gets simplified. This will have following benefits: > Unproductive man hours spent in working salary package can be used for productive work; > Will reduce hassles for employers; > Will create identical salary package for all employees where ever one wor....
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....ks; > Simplification; > No scope for tax avoidance; > Will encourage better tax compliance; > Taxation under this head may become litigation free; >Tax administration will become easy & manpower requirement in department will reduce. 2. CAPITAL GAINS: Do not have holding period & classification of short term & long term capital gains. Instead provide indexation benefit for assets held for m....
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....ore than TWO years in all cases. No exemption need be provided for reinvestment. No deduction be allowed for expenses for selling. Suggested slab rate is as under: Difference between sale price & purchase price - 5% Difference between sale price & indexed purchased price - 10% Of course the rates of tax may be re-considered according to the statistics to ensure that revenue is not lost but th....
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....e entire exercise gets simplified. 3. SOURCES OF INCOME: Entire income be taxed without specifying any heads of income ( 6 presently). As suggested under point 1 & 2 above there can be special tax rate for those two categories. All other income may be taxed at normal slab rate. 4. PERMANENT ACCOUNT NUMBER (PAN): All transactions, whether for personal or business purpose, must have requirement ....
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....to quote PAN. This should be made compulsory at the time of birth of a child and should be the only number quoted till the death of a person being single identification number for tax purposes. Best regards Sanjay Dave Managing Partner - Bangalore K S Aiyar & Co. Chartered Accountants # 19/1, 2nd Cross, LowerPalace Orchards Bangalore 560 003. Phone : (O) 91 80 2334 7171 / 2336 7171 (D) 91 ....
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....80 6599 9974 Fax : 91 80 23311221 E-Mail : [email protected] Web: www.ksaiyar.com<BR> News - Press release - PIB....