Wednesday, July 1, 2009

Should Tax Paid be treated as Income

TAX PAID IS NOT AN INCOME
Every year they call suggestions from public when they are to put the yearly budget in the Parliament as if they really consider all the suggestions from public. I also complete the formality to send my single suggestion each year as if that shall find place in the budget. Both parts are formal.
The Yearly budget is prepared by senior babus of the country. If some thing strikes they consider. It is very much right that a policy is fixed by the people’s Representatives before finalizing the outlines of Budget. Every exercise is done in the name of the welfare of the nation.
I had been a civil servant for a long time and that year I found myself puzzled when my annual income crossed the figure fixed for non income tax payees. Since than my concentration had always been towards that minimum tax should be levied and for that purpose so many investments like P.F. Deposits, Insurance etc. and keeping their accounts had been a boring story. Now my only agenda after retirement is that pay the due tax simply and do not invest any where for the purpose of saving tax.
Every year I urged to the Minister and officials that Tax is on the income. But tax paid by an assessed should not be deemed to be an income. That amount which has been paid as income tax should be deducted from income. That will be a great relief for income tax payee. Similarly other taxes like sales tax, entertainment tax, customs etc. etc. should also be taken as minus income for individuals and traders to some extent.
The suggestion is innovative with a view that tax payees in such case will honestly deposit the tax to get the relief and traders will adopt more regular approach to save income tax. I think this time this Blog will approach to common persons for making pressure for the demand. I beg excuse from professional thinkers who always think in the terms that if the idea has not come from their brain then that is a flop idea.
Damodar Mishra

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