30 December 2013
NEW SCHEME FOR COLLECTION OF INDIAN TAX.
Friend’s Indian economy has the third place in whole of world, and is in growing phase. Indian economical structure are running through the collection of revenue by Indian Government from different sources like collection through levies of different tax or Government engage in different business activities. Collection of Indian Tax is so Important for Indian economy that it give heavy contribution to reach upward to Indian economy i.e. most of the collection of Indian government is arising from Indian Tax system, but this structure is so complex that normal tax payer’s are unable to understand this because of the following; 1. Fulfillment of various tax compliance like payment of tax on due date, filing of tax return on due date and produce various information and documentations before the authorized officer as require by him. 2. Amendment in legislature from time to time to fill up the low fall and insertion of new explanation & section, due to this it is difficult to update for every tax payer and they fell burdensome and don’t make 100% concentrate in their business/profession. 3. If a normal business man conducting business innocently, it is not possible for him to aware all the legislature which is levies on transaction occurring in his business and he has to spend lots of money for hiring of consultant. 4. Heavy expensive structure, because Indian Government spends almost 16% per year in the process of collection of Indian Tax Revenue. In order to remove these inconveniences I have an idea in my mind to make easy this structure which will be easy to follow and simple to understand. There will be no need to follow various formalities by tax payer from time to time and neither requires spending more time and money to comply provision of various nor need to spend various expenditure by government to collect tax.
PROPOSAL Government of India should adopt a process for collection of tax through banking channel. The following process should be adopted. 1. For the removal of black money it will require to stop the transaction in cash i.e. make a scheme for conducting all the transaction through banking channel which is exceeding Rs. 3000/- 2. Give the instruction to Indian Bank to deduct tax @ 2.06% on each transaction (except exempt transaction) and remit the remaining balance to the beneficiary. 3. Further make the bifurcation of deducted tax into the following. i. .70% Secure for Central Government. ii. .70% Secure for those States Government in which beneficiary of transaction are conducting business\profession. iii. .30% secure for Education sector iv. .30% Secure for agriculture sector v. .06% for Banks for its management purpose
The following are the exempt transaction. 1. Transaction is occurring for agriculture purpose. i. Transaction for hiring of agriculture land ii. Purchase various fertilizer by agriculturist for growing iii. Sale of agriculture product by agriculturist.
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