Originally posted by : SHIB CHARAN SEN
	YES, I AGREE WITH SOURAV THAT 99% OF THE SALARIED EMPLOYEE HAVE  AT LEAST ONE SAVINGS BANK A/C WHICH EARN SOME INTEREST.

 Y2Care for CAs, CAs hav so many sorces of Income, various clients, isse koi fark nahi girega.... coz fees from such clients is quite low, i prractice in MUMBAI and m sure my clients still want returns file, jai MAHARASHTRA """"" 

I agree with  LKR. 

I hope Ministry of Finance is well aware all such other things as mentioned by other respected friends, who are not in agreement with LKR  that

there is no person having only Salary

there are saving bank accounts with interest on it

Dividends from Shares etc.

The clarification may soon come in the Notification and prove the real and right concen of Mr. LKR.

His concern is justified and practical.

Hs is concerned about the young newly entrants and upcoming CAs.

Set aside the Big Chartertered Accountants Firms first and then think.

Morever, everybody is commenting on what the Government has done and what the Government is doing.  No body is raising their voice against the decision or suggestion any wayout for the same.

Well, as earlier said, once again, there is one suggestion as mentioned below, which may be taken up with the Government and all concerned, which will result more revenue to the Government, less burden of Tax on individuals and generate more incomes to the Chartered Accountants.

20 per cent and 30 per cent Tax on Income are not advisable, as higher income groups may consider it painful to pay high taxes and there are chances that they may opt to evade taxes in one way or the other.

Well, Income Tax may be considered to be charged at a single flat rate of 10 per cent on total Gross Income as TDS just like a Service Tax only, the minimum.

 However, this 10 per cent Income Tax amount on total gross income may be borne by Employer and Employee in the following ratio and amount:

The implementation of the above System of bearing the tax burden both by the Employer and Employees may be considered as an effective tool for reducing the tax liability on employees (individuals) and reduces the chances of evasion of Tax by Employers, as sometimes, employers show inflated/bogus/more salaries in their accounts to reflect less income or profits. 

Moreover, Government may consider reduced/lower single slab Income Tax rates i.e. 1 per cent, 2 per cent, 3 per cent and 4 per cent on  Total Gross Income upto 50,000, 1,00,000, 1,50,000, 2,00,000 respectively, in the form of TDS for lower income groups, which is to be wholly borne by the Employer, instead of Employee.

However, people below the poverty line may be given exemption of this 10 per cent Tax.

            Incomes of All small firms, different businessmen, wholesalers, retailers, Actors, Musicians, etc. may be considered to be charged at a single flat rate of 10 per cent either it is  25 lacs or 50 lacs or more.

            Spiritual organizations, Charitable Institutions, Clubs, Welfare Organizations etc. may be considered to be liable to Pay Tax at a single flat rate of 10 per cent on all incomes/donations/receipts.

Incomes from 1.  Interest 2. Dividends 3. Short / Long Capital Gain 4. House Property may be considered to be charged at a single flat rate of 10 per cent as TDS just like a Service Tax.  However, people below the poverty line may be given exemption of this 10 per cent Tax.

            Initially, Income Tax of single flat rate of 10 per cent on total Gross Income as TDS may be considered to be applicable for employees of Government, Public Sector Undertakings and Public Limited Companies.  Its scope may be further extended to Private Limited Companies, then small firms, then different businessmen, then wholesalers, then retailers and so on.

Wealth Tax may be considered to be abolished.

STT may be considered to be allowed to be continued and may not be considered to abolish the same.

One new Tax on trading of Shares in the Stock Market may be introduced i.e. 0.001% on delivery and 0.0001% intra-day, which will go into the pockets of individual companies, whose shares have been transacted or traded, proportionately according to their volume of transactions.  It is a pity that thousand crores of shares are trasacted every year, and the respective individual company gets not even a single paise, on whose name, the shares are traded purchased or sold.

When all the incomes are charged at a single flat rate of 10 per cent, then ultimately, the revenue from Income Tax shall definitely be manifold.  Then there are chances of less Tax evasion, less burden of filing returns.  

All investments and purchases should be free from any compulsion in liberalized economy and as such, all Tax Saving Investment Schemes may be considered to be abolished.  People should decide its own priorities for purchases and investments with 90 per cent amount available at its disposal - after paying 10 per cent Income Tax.  Then People shall have the option either to invest the savings or purchase some more items/things out of the savings. In both the cases, the Government will earn revenue either in the form of Tax on interests/Dividends or Tax on Excise/Sales Tax.

  The implementation of this single flat rate of 10 per cent Tax on Total Gross Income may be considered to be an effective tool for overcoming recession and will definitively increase production, employment opportunities and investments, in addition to reduction of black-money, un-accounted income and tax evasion.

The implementation of this 10%  single slab  payable by both employer and employee in  some ratios, will enhance the scope of earnings for CAs,  as the following will also come forward to utilise the of CAs for maintaining and auditing the accounts of salaried employees or part time workers :

 1.         Small firms

 2.          Wholesalers

  3.          Retailers

  4.          small factory owners

  5.          Agents dealing with Governments for liaisonining

   6.          Film Producers

   7.           Producers for TV Serials

   8.           Models working in Fashion Industry

   9.           Small contractors

   10.         Fruits & Vegetable Sellers

   11.         Sub-brokers, small agents  etc.

 1,     The work of existing Companies Pvt. Ltd. or Public Ltd. shall be increased for maintaining the  accounts of their  employees and audit work will increase considerably

      2.     The area and scope of filing returns on behalf of their employees will increase and the work of CAs \  will increase.

         3.   CAs services shall be utilised by the above mentioned 1-11 people, for maintaining their accounts and submission of returns on their behalf.

Please acknowledge receipt.

With regards

 Bobby

I am concerened about the loss of  income generated by small CA firms by filing returns of salaried employees .See i am a govt employee and have been filing my returns for the last 15 years without the aid of any accountant not to talk of any qualified CA . The forms like saral , ITR1,ITR2 etc are so simplified that one simply has to fill them, where is the need for outsourcing help? More over all govt oficces provide detailed performa for calculating  employees  tax liability  and in the last it is the duty of our DDO /Administrative officers to cross check the calculations. 

Khushboo gupta

Yes,  99% individuals having salary income must have an income form other sources.....mainly u/s 56. so the amendment can not blow CAs at large.but still the blow is 1%.

NOTHING TO WORRY ABOUT IT