These guidelines are primarily for India. But any democratic country that want better 'Tax Laws', may follow these guidlines.
Everything should be as simple as possible. Unfortunately, this is not happening in India. GOI (Government Of India) has made Income Tax Laws very complicated. General public find it difficult to understand it. Even he/she doesn't want to fill up the IT (Income Tax) form; because due to too many forms that person got confused as which one to fill up! And even if (s)he got the correct form the questions that (s)he has to answer make that person nervous.
This should be change. GOI should use 'Keep It Simple Stupid' (KISS) principle. For example, GOI can remove 'Ward/Circle/Special Range' field from the form. Also there is NO need to ask for Bank details again and again every year. GOI, can easily make central database where they can store taxpayers details to make 'asking same information repeatedly' unnecessary. 'Permanent Account Number' (PAN) can act as a 'Primary Number' to search all information related to that person.
Democracy demands equality. Government should make laws that treat all citizens equal. It's OK to give some extra relief to poor and needy but manipulating rich and wealthy is UNFAIR. Also making different income tax laws for male and, female is gender bias. It shouldn't happen.
Check out the current income tax rates. The rates percentage increases, as income increase slab wise. The person who earn more, is already paying more tax with same percentage; so increasing tax rate percentage is unfair. This leads to create 'Black Money'. So a fair income tax rates system will reduce (if not stopped) the process of turning 'White Money' into 'Black Money'.
This unfairness is not just in income tax laws but also in other rules and regulations, even in private sectors that are regulated by Government. For example, check your electricity bill.
In normal economy, if you buy some product or service in bulk then you get discount. But these government regulated private companies are charging extra to their customers with permission of the democratic government. It's unfair and against democratic values. Anyway, this is beyond the scope of #ITR2015; so let's not talk further.
'Income Tax' rates are not only needed to be fair but also needed to be as low as possible. People shouldn't feel that government is robbing them. Such feeling is making people unwilling to pay their taxes honestly. So they start looking for ways to save taxes; and most of the time these ways leads to generate 'Black Money'.
Lower tax rates will make people willing to pay their taxes honestly. Hence, it will cut down the process of turning 'White Money' into 'Black Money', as there won't be any significant benefit doing so; unless the income amount is huge.
Lower tax rates will also boost 'White Money Economy', as people will spend more, as they save money because of lower tax rates. It will also increase government income from other taxes like 'Sales Tax' etc.
Democracy should allow people to control their own life, and so their own income. Let people decide what to do with their earned money. Government shouldn't make any law to force people to do any investment, savings or spending to save income tax. All deductions (except 'Standard Deduction') and similar 'Income Tax' rules/laws should be cancelled. There shouldn't be any tax-saving bond or scheme. Let people decide, if they want to save, invest or spend as per their own needs.
There are people earning good money that put them into highest income tax slab. But still they don't have to pay any income tax; thanks to Income Tax Laws that allow them to enjoy tax free income.
The best example is 'Agriculture Income'. It is exempt under Indian Income Tax Act.
Government should modify the laws to make these types of income as taxable income. So, if the total income comes in taxable income slab then that person should pay the income tax as per the slab rate.
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