What to expect in our National Budget 2007?
To make thing simple, remove the surcharge.... for the super charged economy..
Hike the PF contribution to 15%, while allocating 5% to social security.
This social security should pay 18 months salary, till the person finds another job, for equal or greater pay. Later at reduced proportions, to ensure people are getting trained for a new job, limiting to 50%.
Medicare should be governed by government fund, for the poor.
Increase the pension and mediclaim exemptions.... to 50 K from the current 15 K.
Increase the transport exemption allowance from Rs 800 a month to atleast Rs 1500 a month.
Altenate minimum tax including the software companies to 15% revising to 17% in next year!
I propose 4 different tax structures (for individuals and corporates).
(1) Upto 1.5 lakhs nil ( For Senior Citizens and Women at 2 Lakhs )
(2) 1.5 Lakhs to 2.5 Lakhs @ 20%
(3) 2.5 Lakhs to 4 Lakhs @ 25% and
(4) Above 4 Lakhs @ 30%
Remove FBT and add it to max tax rate at 2% extra.
Family based exemption for people, to tune up the standard deduction. This should be inflation based. (Casino effect)
May be the 2% cess can be removed too, right now giving about 5000 crores, which can be mopped up easily.
Found on the net.... (author unknown)
VDIS. Make a law that IT officers are non abusive with their power, by restricting to the onus of honesty exhibited by tax payers, ensuring only last 5 previous years of income shall be accounted and the rest taxed at 40% minus any tax paid. As an example, if a persons current net cash asset is worth Rs 1 crore and the current FY income is 20 lakhs, for the rest of 80 lakhs, make him pay 40% at 32 lakhs minus any TDS. For salaried, a leniency for the act of non filing can be given, with a small penalty, but with existing tax rates for those FYs. I can dream that our entire trillions deficit will be wiped out.