'These proposals will kill the common man'
On November 2, the task force on direct taxes headed by Vijay Kelkar, advisor to Finance Minister Jaswant Singh, made some proposals that have become a matter of heated debate across the country.
Among other things, the Kelkar panel recommended a two-slab tax structure, the total removal of all exemptions on savings, housing loans and other income, lifting of standard deduction and the imposition of on agri income of non-agriculturists.
We asked our readers what they thought about Kelkar's tax proposals. Are they unfair to the middle class? Will they discourage savings? Or are they good for the economy?
We got a strong reaction from our readers. Almost all, barring a few exceptions, thought the proposals are unfair to the salaried class.
Here, we reproduce some of the readers' responses.
Fri Nov 29 14:04:29 2002
Name: P.Bhaskara Rao
Email: bhas_rao2002@yahoo.com
Your Views: The proposal is totally unfail.Why everybody,in all budgets,are after salaried people only leaving other categories?
Fri Nov 29 14:07:10 2002
Name: Nagendra Prasad
Email: dnagu@rediffmail.com
Your Views: Kelkar proposals are unfair for the following reasons: 1. There is a logic and reason behind why exemptions are given at least in a majority of them. Summarily taking off all exemptions is not accepatable. If House subsidy is taken off it will have cascading effect, put economy in reverse as it will have negative impact on housing, cement, steel, development of real estate etc. All these sectors are driving otherwise a lackluster industrial / services progress
Fri Nov 29 14:07:54 2002
Name: Sheeba
Email: asheeba@karvy.com
Your Views: I feel that the proposals need to be as implemented as they are fair and would treat all the tax payers equally.
Fri Nov 29 14:08:09 2002
Name: rajesh
Email: rajesh@yhaoo.com
Your Views: In my opinion the proposals look be well thought and rational. This might be our first step towards making a simple and transparent tax system, where you don't have to depends on so called "tax experts" for saving taxes and filling your returns.
Fri Nov 29 14:08:39 2002
Name: Ujjwal Deb
Email: bappa_deb@hotmail.com
Your Views: This report is a step in the right direction - it simplifies the tax structure so that there are no "loopholes" to take advantage of. For most income brackets , it will result in more money in the hands of the individual. Ujjwal
Fri Nov 29 14:08:47 2002
Name: Arvind Dixit
Email: ardixit@yahoo.com
Your Views: The tax proposals are only as fair as the fact of 3% of the people supporting all could be. Why ca't some urgency be shown for not only widening the tax base but also collecting the correct amount of tax from everybody. How could people earning at least twice as much as I am are paying only one fourth of what I am as tax? How can the tax authorities and the planners not see the difference in the lifestyles of a office goer earning about two laks per annum in salary and a businessmen spending not less than five laks per annum on household and still collect more tax from the office goer.
Fri Nov 29 14:10:50 2002
Name: lucy dsouza
Email: lucy7959@yahoo.com
Your Views: Why in India only middle class working people made a target in all spheres of life?
Fri Nov 29 14:11:20 2002
Name: Dr. A. Srinivasa Rao
Email: asreera@rediffmail.com
Your Views: These proposals hurt the retired government employees and senior citizens as the tax concession of Rs.15,000 given to the senior citizens will also be removed. Most senior citizens have invested in monthly income schemes and the interest is already reduced to 9.0%. According to Kelkar, even this amount of interest is liable for income tax and this will hurt the senior citizens. It is, therefore, necessary to give some concession for the above category. Most of the working government employees generally have incomes above Rs. one lakh and they should be happy aboput this even though the standard deduction is removed. Hope the Government will look into the case of senior citizens before they think about implementing the recommendations/
Fri Nov 29 14:11:48 2002
Name: Mahalingam
Email: Mahalingam@biggie.com
Your Views: The key thing to be looking at is tax rate per 100 Rs of actual earning. If that is maintained at a reasonable level, the policy would be OK. But if the taxes paid were to increase in real terms it would be unfair.
Fri Nov 29 14:12:16 2002
Name: cutecheeks
Email: cutecheeksin@yahoo.co.in
Your Views: Very sad for the middle class and salaried employees. Please tax the businessmen not salaried class. Why salaried class is the worst hit.
Fri Nov 29 14:12:42 2002
Name: Sankalp
Email: Sankalp_W@rediffmail.com
Your Views: Unfair they are. Unfair because after years of living with these Tax Exemptions our populace has got too spoiled and has begun to take these Exemptions for granted. In any case, there is not much that can be done about it. No government will have the guts to implement these Tax Reforms. And if they do, then they can consider their future sealed. The simple plain reason why the middle class would never accept this is because they have their eyes open and they can see that there are THOUSANDS of filthy rich people out here who do not pay their taxes. It's common knowledge that if the government gets them to pay their taxes then there would be absolutely no reason to remove the Tax Exemptions. It's high time the Middle class stopped carrying the weight of the Taxes on their own shoulders.
Fri Nov 29 14:04:20 2002
Email: paragbhujbal@rediffmail.com
Your Views: yes .. ofcourse... it shall be a big blow to the common man, & the biggest loser will be undoubtfully the salaried class. can't the F.M. do something to tax those MPs/MLAs enjoying all the luxeries at the expense of the poor common man. should we pay for their luxuries... the tax payers in business community have devised many tools to avoid, evade and rob of the tax... can't he do anything to put a plug on them... what is more important is an effective machinery to pull such people and also a mechanism to hold the govt responsible and answerable for the taxes... good governance .. thats all we want and not withdrawal of tax benefits.
Fri Nov 29 14:14:10 2002
Name: Mithilesh Singh Yadav
Email: singhmithi@rediffmail.com
Your Views: Yes, I agree with the sentiments of middle class people. In middle class most of the tax payers are salaried people. They are already over burdened to taxation. I think that the need is to correct the basics of taxation. Business persons simply get away from taxation using the loop holes of tax rule and every next government milks the middle class specially salaried class. In most part of our country, house owner don't give receipts to their tenants and simply they don't show income from rent etc. This can be one examle only. Also, middle class of India is mover of economy. So this class needs to have more money in their pockets. Specially when job security is always on stake, the government and any other committe who is thinking of milking the middle class should think twice before doing that. Thanks, -Mithilesh
Fri Nov 29 14:14:27 2002
Name: I.MURUGAVEL
Email: i_murugavel@hotmail.com
Your Views: As the minimum limit is suggested to be increased to 100000, practically no impact will be there.sec88 may be atleast limited to the compulsory pf deduction. other exemptions on pesonal income tax may be removed in stages as suggested and make the filing of return simpler.while doing this the tax rate also must be brought down.
Fri Nov 29 14:14:38 2002
Name: PRAKASH MADHUKAR DESHPANDE
Email: pmd@telco.co.in
Your Views: I HAD PLANNED MY HOUSING ACCORDING TO THE PRESENT TAX STRUCTURE. WITH KELKAR STRUCTURE MY TAKE HOME SALARY WOULD BE MINUS AT THIS AGE OF 49. I AM REALLY WORRIED ABOUT THE UNFAIRNESS OF THE GOVERNMENT POLICIES AT ALL LEVELS (LOCAL, STATE AND CENTRAL), TOWARDS ALL TAX STRUCTURES.
Fri Nov 29 14:14:41 2002
Name: PADMESH GURBAXANI
Email: pgurbuxani@hotmail.com
Your Views: Say goodbye to a roof over your head. Say goodbye to savings. Say goodbye to happiness. These tax proposals will kill the common, salaried man. Why doesn't the government try to expand the tax base, instead of sucking our blood and letting rich tax evaders?
Fri Nov 29 14:14:43 2002
Name: sv
Email: yesveekaye@rediffmail.com
Your Views: NO...............
Fri Nov 29 14:14:50 2002
Name: mahesh gupta
Email: maheshcg@hotmail.com
Your Views: The suggestions are very good esp from the point of view of simplification.However the habit of savings thru compulsory requirement will now not be there.A provision for savings should be there so that at the old age this could be used.
Fri Nov 29 14:15:18 2002
Name: Arvinder Singh
Email: gulatias@yahoo.com
Your Views: The removal of standard deduction is totally unfair. Just compare the living standards of a businessman who declares his income at Rs 2 lakh p.a. and a salaried class with same income. Removal of concessions under Sec 88 will be counter-productive. This would mean no savings and cash crunch for Govt.'s development work. Post office deposits in NSCs will hit the most. There is need to give more relief to middle class salaried persons.
Fri Nov 29 14:15:50 2002
Name: kccherian
Email: kccherian@hotmail.com
Your Views: The tax concessions on savings and housing should be applicable and should not be taken away as all these years the hard earned savings were done in good faith that the tax concessions will be applicable throught out. Else what was the use of savings ?The middle class should not be cheated. India is a highly populated country and I am sure if each India is asked to pay 5% tax he will willingly do and increase the tax collection and reduce Tax evasion. Let all the ploticians businessman and agriculutrist pay tax and dont burden the middle class alone. Is our govt. so in capable to collect tax from every Indianl. Regards cherian
Fri Nov 29 14:16:18 2002
Name: P. SAIKIRAN
Email: saikiran81@rediffmail.com
Your Views: The persons sitting in the A/c rooms should understand the problems of a common man working in the hot. The simplification of Tax laws does not mean that we should remove all the exemptions and deductions available to the Income Tax assessees. Before hitting at the stomaches of the employees it is better one should concentrate on the black money generated by the Big businessmen and also the corporate houses.
Fri Nov 29 14:16:28 2002
Name: kiran
Email: kiranmr@hotmail.com
Your Views: Instead of targeting the faithful tax payers .. he should concentrate on getting all the citizens into the tax net.
Fri Nov 29 14:17:01 2002
Name: CLARENCE LOUIS
Email: clarence.louis@icici-infotech.com
Your Views: The tax exemptions on housing loan should not be phased out as it is a very strong incentive for housing investment.Without this it would be very difficult for the salaried individual to own a roof over his head.
Fri Nov 29 14:17:29 2002
Name: VINOD BALGI
Email: vinodbalgi@yahoo.com
Your Views: I DO CERTAINLY FEEL THAT THESE PROPOSALS ARE UNFAIR ,BECAUSE THESE EXPERIMENTS ARE BEING DONE ON HALF A MILLION TAX HONEST PAYERS IN THE COUNTRY . IT IS QUITE SHOCKING THAT IN A COUNTRY OF 1 BILLION PEOPLE THEY ARE ABLE TO COLLECT TAX FROM 0.5% PEOPLE OUT OF WHICH 50% MAY BE FROM BOMBAY. HOW ABOUT REST OF THE COUNTRY. WHAT SAFE OPTIONS ARE THERE WITH THE PEOPLE TO SAVE AT SUCH DECREASING INTEREST RATE AND WHO SHALL LOOK AFTER THEM DURING RETIREMENT AGE . SECONDLY IF THE TAX OPTIONS ARE WITHDRAWN WHY ARE THE GIVEN IN THE FIRST PLACE ,SPECIALLY THE TAX BENEFIT ON HOUSING . IF THE GOVT FEELS THEY CANNOT TAKE CARE OF THE PEOPLE THEY HAVE NO RIGHT TO RULE . I FEEL IF THE GOVT TARGET PEOPLE WHOSE AGRICULTURE INCOME IS SAY 10 LAKHS THEY CAN GET A SIZEABLE TAX REVENUE . WHAT SHALL THE TAX MINISTRY ACHIEVE BY SAVING 7000 CRORES BY REMOVING TAX INCENTIVES OF MIDDLE CLASS PEOPLE WHEN THEY SPEND MORE ON UNWANTED THINGS AND NO ONE TO QUESTION THEM . FOR IE I WISH TO KNOW WHAT WERE THE AMOUNT SPEND BY POSTING TROOPS ON INDIAN BORDER AND WHAT WAS FINALLY ACHIEVED .I FEEL THIS AMOUNT WAS CERTAINLY MORE THAN WHAT FINANCE MINISTRY PLANS TO COLLECT . GOD SAVE MIDDLE CLASS OF INDIA.
Fri Nov 29 14:17:31 2002
Name: NILESH H. ASHAR
Email: nileshashar_079@rediffmail.com
Your Views: MR. KELKAR MAY BE RICH ENOUGH TO SERVE HIMSELF & HIS FAMILY. BUT HE SHOULD THINK OF MILLIONS OF INDIANS WHOSE INCOME IS FROM POST, BANKS, PPF, INTEREST. THEY CANT DO ANY THING BUT DEPEND ON THIS ONLY MONEY AS THERI INCOME. ALSO THE OLD WIDOWS, DEPENDENTS SHOLD BE THOUGHT OVER BEFORE THIS DECESION
Fri Nov 29 14:17:55 2002
Name: Sandeep Datar
Email: datars@vsnl.com
Your Views: They are very much unfair to the salaried class. First of all the IT dept should try focusing on other people and stop harassing the salaried middle class. People have bought houses under the assumption that they are going to get the exemptions. Now the total caluclations would fall apart.
Fri Nov 29 14:17:59 2002
Name: Roopam Garg
Email: roopamgarg@hotmail.com
Your Views: This is breach of trust
Fri Nov 29 14:19:26 2002
Name: Rana
Email: godhulibeteille@rediffmail.com
Your Views: The proposals, if implemented, will deprive a lot of middle-men [read CAs and Tax Consultants]of their easy earnings. The idea of Housing loan becoming dearer is a hoax.People should ask for cheaper houses [meaning less profit for contractors / promoters] rather than break their head over a round about incentive through tax exemption on interest. The proposals direct toward the long overdue requirement of taxing Agricultural income - pending because of limp inclination on the part of interestd politikos. The recommendations however do not consider the senior citizens' agony. Unlike the west, we don't have the social security number to take care of our old age and the increasing erosion in interest rates leave the retired class a rather helpless lot. The proposals could have been more benevolent to this class. The people [at least the ones claiming to be educated]need to understand that removal of standard deduction and numerous half baked exemptions coupled with a two tire tax structure will drastically simplify the system to the benefit of an honest citizen. Hope we have some streamlining in the indirect taxes too.
Fri Nov 29 14:20:11 2002
Name: Deepak Jalan
Email: deepak_jalan_1@rediffmail.com
Your Views: Only one thing should be done with his proposal - throw it in the nearest waste paper basket available. To sum up his proposals it means that you cannot save tax in any form. He wants to abolish all sorts of tax rebates and also standard deduction in case of salaried segment. This will have two effects - Firstly, Tax evasion (by underquoting income) and secondly Government securities (Tax saving ones) will no longer be able to raise funds resulting in lower funds in the hand of Government to carry on development activities. Fiscal deficits will rise. So, I on behalf of the masses would ask Mr. Kelkar to propose one more thing - Would he himself withdraw his proposals or we should dump it.
Fri Nov 29 14:20:47 2002
Name: R.Srinivasan
Email: ramansrini@rediffmail.com
Your Views: The proposal aims to simplify the tax procedures. Filing of tax returns would become simple. The rate of tax for people drawing up to Rs.5 lakhs should be reduced, the rate for income over Rs.5 lakhs should be incresaed substantially. There must be provision for tax rate above Rs. 10 lakhs. This rate can be 50% to 60%. The area of real concern is lack of incentive for savings. The rate of interest on savings are already very low. The life of peoplle planning for their retirement will become miserable. If this proposal is implemented without taking care for people planning for retirement, the life of such people will become miserable. They will have no other alternative than to plan for commiting suicide. One has to remember that unlike in foreign countries there is no social security system in India.
Fri Nov 29 14:21:27 2002
Name: girish
Email: girish@cwlglobal.com
Your Views: I feel middle class does not have a representative in the Government, this is the reason time and again middle class people are being put to this sort of torture. We are the only honest tax payers in the country. Why don't Kelkar target the Rice businessmen who don't pay a single rupee and also get benefits of Rural india. I strongly oppose this, and this will lead to the downfall of economy bcas the millions of people associated with HOUSING INDUSTRY will be badly effected due to this.
Fri Nov 29 14:24:06 2002
Name: sudhi
Email: hnsudhi1@rediffmail.com
Your Views: Yes it is unfair towards the most honest middle class and upper middle class who propptly pay up tax and do savings cutting there day today expenses for the future. This report should not be implementd.
Fri Nov 29 14:24:42 2002
Name: chandramohan pathak
Email: chandra_pathak@rediffmail.com
Your Views: The slab which was of 2 lacs rupees should be increaed to 2.5 lacs for proposed 20 percent tax rate. Also the tax rate up to 2.5 lac should be 15 percent and not 20 percent to get some relief to salaried class persons. Salaried class people can not hide their any income, as usually done by business class or people in agreculture.
Fri Nov 29 14:25:30 2002
Name: Debabrata Parida
Email: db_parida@rediffmail.com
Your Views: This depicts the situation of a bonded labour. Where he is only allowed to keep his body and soul together. The basic reason of these kind of recomendation is break the back bone of Indians, who has just learned to stand. This may be good for a developing country not for India. Person must have mis-understood the middle class.
Fri Nov 29 14:25:38 2002
Name: Tarun Kochhar
Email: tarun_kochhar@yahoo.com
Your Views: Well, I just want to say that YES! i belong to the group which says that the proposals are unfair. I think this Mr. Kelkar should rethink his strategies and should think about people who are leading a retired and peaceful life. Well they are trying to adopt a proposal which is greatly influenced by the west wow! sounds great but then the GOVT. should provide the facilities which the people there get. Our GOVT. increase the tax no probs but then provide free electricity, bear the cost of our childrens' education, provide medical facilities to all and provide a basic remuneration to unemployed. If one gets this then no problem in paying 50% of your income as tax, but to pay 50% of your income as tax and then bear all the expenses is not possible. If one by goes by Mr. Kelkar then the politicians and Mr. Kelkar himslef be surviving in India common man would have to hang himself and go to GODs house for survival. May GOD put some common sense in this so called Dr. Vijay Kelkar HUH!!
Fri Nov 29 14:26:38 2002
Name: Gowtham
Email: gosure@rediffmail.com
Your Views: I oppose the recommendations about removing exemptions on savings, house loans etc for middle class group. These recommendations seem to be trying to solve the effects of a problem and not the problem itself. Why are we forgetting that more than 90% of the retail sellers in India do not provide bills to consumers and hence evade sales tax. If we tap this segment and enformce plans to make sure that all transactions are recorded the tax generated out of this will definitely boost the Govt kitties more than the income tax. I urge the finance minister and the committees to look into this angle.
Fri Nov 29 14:26:51 2002
Name: RUCHITA VERMA
Email: ruchi_verma3@rediffmail.com
Your Views: REBATES & EXEMTIONS SHOULD BE PHASED OUT OVER THE NEXT 5 YEARS OR ELSE THE MIDDLE CLASS PEOPLE WILL SUFFER EVEN MORE. THE SLAB SHOULD ALSO BE INCREASED TO RS. 200000/- AND MORE SO THAT PEOPLE WHO ARE HIDING OR SHYING FROM TAXES WILL BE FORCED TO PAY. THE CIRRENT RECOMMENDATION WILL SQUEEZE THE MIDDLE CLASS DRY. IT LOOKS LIKE POLITICIANS AND THEIR ADVISORS ARE OUT TO RUIN THE LIVES OF MIDDLE CLASS CITIZENS OF INDIA.
Fri Nov 29 14:27:04 2002
Name: Prosun Kumar Roy
Email: prosun_roy@ril.com
Your Views: On the whole the Proposal is a positive document. But following points needs consideration: 1. Some Sec 88 items like Life Insurance, which are long term plan made by individuals, should not be removed immediately. 2. Pension Plan exemption u/s 80ccc should be increased to 20,000 from present 10,000. This plan is a must for private sector employees who have very little retirement benifits. 3. Exemptions for HRA and that for Interest paid on House Loan should be mutually exclusive. 4. People claiming extemption for HRA, should also apply TDS on the rent and deposit the same. Afterall very few House-owner named by this people to get HRA extemption, do actually pay tax. 5. While 100,000-200,000 slab should attract 15%, 200,000-500,000 attract 20%, 500,000-1500,000 attract 25% and >1500,000 attract 30% IT. 6. TDS on Interest should be exempted upto 24,000 pa for people above 58 years. Afterall that's their only source of income. Thanks.
Fri Nov 29 14:27:38 2002
Name: vilas Morajkar
Email: vnm@epc.ltindia.com
Your Views: Standard deduction and exeption on savings should not be removed as it will jeoparadise the entire saving system which is dependent only on this tax saving system.
Fri Nov 29 14:29:05 2002
Name: Gosavi D P
Email: dpgosavi@tatatechnologies.com
Your Views: The said proposals are unfair.The basic idea of only 2 slabs of taxes is good but standard deductions & current exemptions on savings should be there as it is.Otherwise middle class people like we are doing savings because of that only..
Fri Nov 29 14:29:12 2002
Name: Paritosh Uttam
Email: paritoshuttam@rediffmail.com
Your Views: Yes, I do think the tax recommendations are unfair to the middle, salaried class. This is the section that should be rewarded for paying its taxes so honestly, and this is the section that is getting most penalized now. The house loan benefits are one of the most important attractions for the middle class. It should not be removed.
Fri Nov 29 14:29:18 2002
Name: jai
Email: jai@rediffmail.com
Your Views: Unfair... highly unfair
Fri Nov 29 14:29:39 2002
Name: Sunny
Email: svensun@indiatimes.com
Your Views: The standard deduction should be increased or the limit of income should be increased to 1 lakh. Only the salaried class is burdened. No businessman pays honest tax. The recommendations should not be accepted
Fri Nov 29 14:29:49 2002
Name: sukumar
Email: sukumar@proddatur.com
Your Views: Yes they are its because , see those who earn between 1.5 - 3 lakhs may end paying at least 70000 tax as there are no savings any thing allowed causing them to loose 1/3 of their money , where as this was not the case in earlier case , it means a person who earns 2.5 laks will be left with only 1.65 laks of income , in case we take a person who earns 1.5 laks he will surely get around 1.3 laks its irony , and even his propasal take out 80% of 20% tax payers out of the box and it gives no merits to 20% of 80% tax payers who work day and night in private sector under strict strees , so I stornly feel those propasals should be thrown into dust bin.
Fri Nov 29 14:29:54 2002
Name: Malapati Raja Sekhar
Email: malapati@yifan.net
Your Views: It is timefor reforms. One must support it (but with slighter modification) ..so that middle level family does not get much effect .. infact it supports indian economy and there by our daily lives.
Fri Nov 29 14:31:29 2002
Name: d relan
Email: deepakrelan@hotmail.com
Your Views: Proposal is not practical especially for Income Tax deductions for Salary at 3.0lakhs.Since such heavy deductions would not encourage a intelligent professional to invest himself in India.Also keeping in view the ciost of living ,this much deduction for IT is absurd for a professional in salary of 3.0 lac per year.Mr Kelkar looks to be from too rich a family that he doesnot know the reality of life outside his sphere.The IT deductions upto 3.50 lacs need to be once again reviewed by Mr Kelkar as a practical proposal & not to make the parliament happy and make others poorer .
Fri Nov 29 14:31:35 2002
Name: Rishi Srivastava
Email: rishi1964@yahoo.com
Your Views: The recommendations made by Mr. Kelkar's are a sort of cheating with the citizen of this country. Hardly a few years ago, Govt. had declared that it will give relief on Income Tax if someone invested in property and if he is paying interest on the loan taken, he would be entitled for the tax benefits. Many people for whom owning a house was a distant dream, somehow dared to take the loan. There are many cases in which they have just moved in to their new houses. The tax benefits starts only when the house is completed and self occupied. The instalments of the loan taken would continue for the next 15-20 years. That means they could hardly claim tax benefits for 1-2 years only. And now the proposal is for withdrawing the benefits. Is it not cheating with those who have already purchased the house and could hardly claim the benefits? First lure somebody in a scheme of 15-20 years and then after 2 years leave him to fend for himself. In my opinion, if at all it is needed then it should be made applicable to only those who buy a house after the tax proposals are notified by the Govt.
Fri Nov 29 14:31:42 2002
Name: M.Godan
Email: godan@india.com
Your Views: Hi, Its quite unfair to have such kind of proposal and I am sure this will be a major setback to all the middle class people in India. I hope this will not be implemented and if its implemented the Government will face the consequences of it and will not get a second chance to rule India for the next time.
Fri Nov 29 14:32:51 2002
Name: PUNEET
Email: pkpsmos@hotmail.com
Your Views: WHEN GOVT GIVES ITS CITIZENS A LONG TERM COMMITMENT BY ITS GESTURES AS WAS THE CASE IN TAX CONCESSIONS FOR HOUSING ANY ABRUPT WITHDRAWAL WOULD PUT THEM IN FIX AS THEY HAD ALL PLANNED FOR 15 YEARS PERIOD. IT SHOULD BE DONE, IF AT ALL, IN PHASED MANNER.
Fri Nov 29 14:32:57 2002
Name: Siddhartha S. Savant
Email: ss_sid@indiatimes.com
Your Views: Dr.Kelkar's recommendations on taxation is further increasing burden on middle class people who are already surviving with hand-to-mouth earnings. These recommendations if implemented, will slaughter the middle class and Kelkar's future as well. My full support to the Government not to accept these third class proposals. In fact, salaried people are the only people who are paying Income tax judiciously.
Fri Nov 29 14:33:00 2002
Name: n
Email: nsingla@hotmail.com
Your Views: Proposals are totally fair. These proposals will root the corruption out of taxation departments in a single stroke.
Fri Nov 29 14:33:18 2002
Name: U S Rai
Email: usrai@tubes.tatasteel.com
Your Views: This is totally unfair because salaried middle class people are already undes severe pressure due to perks and other facilities have already been made taxable.After lifting tax rebate from savings and standard deductions, they will be paying more tax, which is not genuine.
Fri Nov 29 14:33:54 2002
Name: Virinchi K V N
Email: virinchikvn@hotmail.com
Your Views: The Proposal can be divided into two components. The tax rate that is totally unfair and other the removal of exemptions. The removal of exemption is an excellent idea and should be implemented in a phased manner. However the tax rate should be reduced in lieu of removal of exemptions. In other countries, for the tax paid there is a social security attached. The maximum tax rate of 30% should be for tax slabs of 30 lakhs and above, which is similar to the model followed by China. The reduction in tax rates will leave more money in the hands of user for spending. This is turn will revive the economy along with savings. (Frankly speaking I had read an article that mentions Kelkar method would leave more money in the hands of the user, if you DO NOT consider the savings component. Riducilous, as money saved is also money in the hands of users) Savings with tax rebates can also be considered as this the only means of income after retirement (besides PF). I also suggest some benefits to be provided to honest tax payers like providing priority in railway reservation, concessions in suburban (after all it our tax that is used to subsidize)
Fri Nov 29 14:34:21 2002
Name: Vijai Bosco John
Email: vijai_bjohn@hotmail.com
Your Views: Is this the govt's reward to the salaried class for paying their taxes on time? Before screwing the fixed salary group why don't you collect the taxes from beer barons and business tycoons?
Fri Nov 29 14:35:12 2002
Name: Mayuresh
Email: mahagaonkarm@rediffmail.com
Your Views: Is he planning to reduce the economy to reduce savings. Has he studied the percentage of tax which a middle cast person has to spend. And why only middle class. I feel he should wear shoes of middle class & think of the proposal. I feel this proposal is totally unfair.
Fri Nov 29 14:35:35 2002
Name: Ramesh
Email: ramesh_sundaram1962@rediffmail.com
Your Views: Every successive Committee, set of politicians have always taken the middle class - particularly salary earners for a ride. Milking the salaried class is the easiest way of making money because the onus for deduction is on the employers and failure to do so is fraught with the risk of possible stringent penal actions. The salaried class is harassed the maximum. They do not have representative bodies like Exporters Association, or Industries Association, or manufacturers association. For far too long this has been going on without respite. What the Kelkar Panel has suggested is only going to add to the feeling of despair and helplessness on the part of the salaried class. This should certainly set the salaried class thinking at the time of next General Elections.
Fri Nov 29 14:35:52 2002
Name: SK
Email: sree145@hotmail.com
Your Views: All the reforms and changes is Only for the minority Upper Class People and these reforms and changes are not helping the Majority Midlle Class and Lower Class People. If some thing is useful, that benifit is not getting to them.
Fri Nov 29 14:36:33 2002
Name: S Srinivasan
Email: dss@lmlindia.com
Your Views: Any proposal has to benefit common people.Already Over burdened middle class should not be distubed by this kind of suggestions. Middle class always has less choice and so increase tax exemption and give opportunity to save and live peacefully. Allow existing system to continue and allow common people feel happy with what they get in the form of salary . There are so many ways of structuring or simplifying the Tax system . We agree the Tax system in India is the most confusing one and it gives ways to manipulate. But it does not mean that any proposal would adversely affect the middle calss.After all they are the only society which pays tax relegiously. Modify the sytem in such a way that affluient people including business people , political parties,cinema actors and actresses and sports persons who earn through advertisements will be forecfully pay the tax. Even a small amount collected from them would erase poverty of this nation.
Fri Nov 29 14:36:46 2002
Name: PIYUSH
Email: pkd_1969@yahoo.com
Your Views: housing is relating to intrastracureal indus.and if govt.lift the tax rebate on housing loan which is helpful to middle class people if this rebate elimiated than dream house of middle class will remain dream only. and 88 deduction has made indirect provision for long age. as such govt.not giving any education / unemployment/ retirement/medical facility to middle class. This recomendation is totally unfair for common man
Fri Nov 29 14:37:48 2002
Name: M S KHAN
Email: MSK195658@HOTMAIL.COM
Your Views: I THANK MR KELKAR RECOMMENDATION IS GOOD BUT AS PER MY RECOMMENDATION I.TAX RATE SHOULD BE COME DOWN FROM 20% TO 10%.
Fri Nov 29 14:38:01 2002
Name: JK Sood
Email: jksood5@hotmail.com
Your Views: It is not only unfair but hard hitting on middle income group and specially the salaried white income class. There would be an increase of around Rs. 12000/- additional tax burden on me. More over, there would be no incentive to save. ALREADY, INTEREST RATES ARE COMING DOWN AND DEPOSITS ARE ALSO NOT A VIABLE PROPOSITION. How to sustain life in future. From where to get money for children education. At least, statutory deductions under PF AND SAS (Supernnanuation Schemes) up to the limits fixed by the govt. should be exempted. After this exemption on PF & SAS, there should be three slabs : First one from 100000 to 300000 @ 15% AND above 300000 to 450000 @ 25 % and above 450000/- @ 35%. All Pre-requisites incomes (ADDITIONAL PF INTEREST, low interest conveyance, HBA, HRA etc.)should be excluded from income to calculate tax for the income up to 3.0 lakh.
Fri Nov 29 14:38:14 2002
Name: Satyendra Sinha
Email: satyenps@hotmail.com
Your Views: I too feel like fellow countrymen. His recommendation on phasing out the tax benefits on Housing loan would turn out to be nightmare for the common middle class man who has dreams to have his own house. This will have direct impact on various industries associated with housing industry. Furthermore the banks and financial institutions who employ a big workforce to cater home finance division will see a steep downfall in business. This would result into heavy layoffs and unemployment. Kelkar, like Yashwant Sinha, has failed to understand the ground realities of the common man in India. The BJP has already suffered huge political losses due to Johny Bravo style working of Mr. Sinha who had been consistently irritating/jeering the real tax payers for over 4 years. I hope Mr. Kelkar's proposals deserve to bite dust and he should rather go and display it in some western country.
Fri Nov 29 14:39:05 2002
Name: Shankar Narayan
Email: shankarnarayan76@rediffmail.com
Your Views: For a nation pampered with sops and subsidies and misled by the bullshit rhetoric of the political class, it is no surprise that there is so much criticism of Kelkar's proposals by the ignorant. We crib of being a high cost economy and clamour for the reduction in tax rates. All these years, the government was giving sops for the salaried class under the guise of Sec 88, Standard Deduction and so on on one hand and making good for it by levying a blood-sucking tax regime on the other hand. But a lazy middle class, with its "chalta hai" attitude and inability to think on its feet, did not even have the brains to realize it. It was satisfying itself with reasons like "using my life's earnings for my son's education, daughter's marriage etc" and kept falsely cursing creators of wealth as greedy and selfish. When someone like Kelkar even tries setting this anomaly right, people try to pull him down. By the way, has the middle class ever bothered to question where the tax money is being used? It is either that Kelkar is ahead of his times or people criticizing his proposals are from the Dark Middle Ages. God save this country!!! A good-for-nothing middle class is not bothered anyway.
Fri Nov 29 14:39:06 2002
Name: Damodharan.S.N.
Email: sndamu@rediffmail.com
Your Views: The recommendations in the proposal, if accepted, will be a great blow to the honest tax paying salaried middle class. It will have a disastrous effort if the rebate under section 88 is removed. In fact to encourage saving, it would be better to increase the limit under this section. Also the housing industry which is on the upswing will be completely destroyed in one stroke, if his recommendation to remove the interest subsidy is implemented. If this is done in such a short period of time( 3 years as in the report)the people will loose their faith in the system. In case if this is absolutely a must, then the gradual removal of the same in the next 8 or 10 years should be considered instead of 3 years. Standard deduction should not be disturbed(if possible this is to be revised upward) as salaried persons will be affected adversely. However, the recommendations regarding divident tax and agricultural tax is a laudable one.
Fri Nov 29 14:39:16 2002
Name: Anil Kumar
Email: pasakr@vsnl.com
Your Views: Kelkar proposals are typical of a Bureacratic view to Taxation in India . He has never faced a tax scrutiny or assessment hassles like ordinary people have gone thro. He has not addressed the fundamental problem in our country - THE CORRUPT TAXATION MACHINERY. More money is spend on them offically and unofficially than what is collected by way as TAX No one can solve this problem . So why not suggest ways and means to remove them from the system all together. Proposals should be to tax at those points from were we cannot escape like TDS on salaries, Bank Fds,savings/other statutory items which are essential . Add cess on petrol/diesel as income tax and items from where you can directly collect tax like excise/sales tax . If at all they need to have a slab it should be above Rs 5.0 Lakh @ 25% with no exemptions whatsoever. Make it so simple that we do not need a CA to make our return Leave individuals below 5.0 lakh income out of tax ambit and concentrate only on corporates who have the machinery to deal with the taxation system. Let there be more money in the hands of the people to spend . This will boost the economy and automatically increase the indirect taxes
Fri Nov 29 14:39:50 2002
Name: Paramjit Singh
Email: singhp2k2@rediffmail.com
Your Views: 1.My views are positive. How the Govt. will run in case a person earning more than a lakh per annum can not pay Rs 1000/-. 2.At least a rational formulla is adopted for taxation of individuals earning more than 5 lakhs otherwise a salary of Rs. 5 lakh and 50 lakhs were on the same cart. 3.Some relaxation must be given to lower salary slabs by giving them a chance of savings.
Fri Nov 29 14:40:14 2002
Name: JK Sood
Email: jksood5@hotmail.com
Your Views: It is not only unfair but hard hitting on middle income group and specially the salaried white income class. There would be an increase of around Rs. 12000/- additional tax burden on me. More over, there would be no incentive to save. ALREADY, INTEREST RATES ARE COMING DOWN AND DEPOSITS ARE ALSO NOT A VIABLE PROPOSITION. How to sustain life in future. From where to get money for children education. At least, statutory deductions under PF AND SAS (Supernnanuation Schemes) up to the limits fixed by the govt. should be exempted. After this exemption on PF & SAS, there should be three slabs : First one from 100000 to 300000 @ 15% AND above 300000 to 450000 @ 25 % and above 450000/- @ 35%. All Pre-requisites incomes (ADDITIONAL PF INTEREST, low interest conveyance, HBA, HRA etc.)should be excluded from income to calculate tax for the income up to 3.0 lakh.
Fri Nov 29 14:40:17 2002
Name: RSW
Email: rosy_sk@yahoo.com
Your Views: Whatever rates, whatever slabs are proposed on paper or implemented; until unless strict tax recovery measures are in place, they are of absolutely no use. In absence on effective tax recovery processes currently, I can not understand how one can compare current rates with proposed rates, because we do not even have idea of how much is being recovred and how much are we losing?
Fri Nov 29 14:40:55 2002
Name: sudheer Kumar Singh
Email: sudsing@magnum.barc,ernet.in
Your Views: It is going to hit many other business area, insted of generating anyyhing genuine idia from his mind he starightway implementing us idia in india.This is just to hit service class.
Fri Nov 29 14:41:50 2002
Name: SAMRAT ADHIKARI
Email: samrat_jitu@yahoo.co.in
Your Views: sir,i think u need to elaborate the introduction first of the marits and demerits of the current system of taxation.so that we can come to a conclusion that what should be done and what should not.
Fri Nov 29 14:41:58 2002
Name: nitin
Email: nitinsk1@rediffmail.com
Your Views: I feel that instead of catching the businessmen in tax net Dr.Kelkar is trying to break down the living of middle class people. The only sin of Employeed people is that their income can be seen on Paper in Black and White and the Businessmen can hide the same in No. of ways. First ITax from all the so called celebrities like Film actors, Business tycoons needs to be recoverd and then Expenditure Tax may be levied. Aslo a vigil on Disco Thecks and Dance Bars may be kept to see who are the regular visitors who have not declared their income to IT dept.
Fri Nov 29 14:42:14 2002
Name: sunil khanna
Email: sunil239@rediffmail.com
Your Views: Income upto 1 lac - There shud be no tax - because in Delhi You can not live with this income. Reasonable tax for income between 1 lac to 2 lac should be only 10% And 15% for Income between 2 lac to 3 lac And 20% for Income 3-5 Lac and 30% for Income above 5 Lac. Income means groos income. However, it is only salary class which is covered under such type of laws. No Businessman actually pays tax honestly. What is the LAW for them. Sincerely, Govt. should persue at least professional business people like doctors, lawyers, CA's etc. to pay their taxes honestly. I know this will not HAPPEN and only we salary class is going to pay taxes. Also 545 MPS, they should declare their income and TAX publically to create transperency in the system. Thank you.
Fri Nov 29 14:42:20 2002
Name: S Krishnan
Email: krishtimes@yahoo.com
Your Views: Yes I think it is not fair to remove the standard deduction. It might heavily affect the senior citizens who are drawing pension. Removing the exemptions will discourage savings in those schemes like NSC or development bonds as well. If the exemption on housing loans and interest are removed then that will be a big blow to middle class people. Government should be considerate on these issues. Instead of only burdening the salaried class, the government should try and enlarge the tax network and bring in more people who are not basically salaried class.
Fri Nov 29 14:42:41 2002
Name: PIYUSH
Email: pkd_1969@yahoo.com
Your Views: housing is relating to intrastracureal indus.and if govt.lift the tax rebate on housing loan which is helpful to middle class people if this rebate elimiated than dream house of middle class will remain dream only. and 88 deduction has made indirect provision for long age. as such govt.not giving any education / unemployment/ retirement/medical facility to middle class. This recomendation is totally unfair for common man
Fri Nov 29 14:43:19 2002
Name: Dr.S Srinivasan
Email: dss@lmlindia.com
Your Views: Any proposal has to benefit common people.Already Over burdened middle class should not be distubed by this kind of suggestions. Middle class always has less choice and so increase tax exemption and give opportunity to save and live peacefully. Allow existing system to continue and allow common people feel happy with what they get in the form of salary . There are so many ways of structuring or simplifying the Tax system . We agree the Tax system in India is the most confusing one and it gives ways to manipulate. But it does not mean that any proposal would adversely affect the middle calss.After all they are the only society which pays tax relegiously. Modify the sytem in such a way that affluient people including business people , political parties,cinema actors and actresses and sports persons who earn through advertisements will be forecfully pay the tax. Even a small amount collected from them would erase poverty of this nation.
Fri Nov 29 14:43:24 2002
Name: Dr. B. C. Roy
Email: bcroy1969@rediffmail.com
Your Views: My views are restricted to personal income tax only. I think we need to do away with excemption raj and this government should show some character (most unlikely). Why only salaried class (milking cow?) be trapped?. One sabji vendor or a auto driver earn more than an average salaried person. But who cares for salaried class or dares to trap income from agriculture and business. I have lost faith on finance ministers.
Fri Nov 29 14:43:53 2002
Name: Vinod Dattatray MAddi
Email: vinodmaddi@rediffmail.com
Your Views: It is fair in all cases except in case of salaried persons. In my openion the standard deduction should not be lifted. All other proposals are OK which leads to enhancement of purchasing power of Individuals. This will be in the interest of our economy.
Fri Nov 29 14:44:27 2002
Name: Jayesh D.Shah
Email: jayesh1963@rediffmail.com
Your Views: This recomandations are not accetapable sinc this effects savings of the salaries pepole because these deductin fores us to do compulsiory saving in deduction form which wil be very usefull for us for saving,
Fri Nov 29 14:44:45 2002
Name: murali laxmanan
Email: murali_myli@hotmail.com
Your Views: The income tax rates suggested by Dr.Vijay Kelkar is not clear specially for housing loans interest part of loan exemption limit. Is this applicable for person who will take loan after two years or also for the people who have taken loan already.
Fri Nov 29 14:45:54 2002
Name: Sanjay Kejriwal
Email: skejriwal@hughestele.net
Your Views: Yes, they are quite fair
Fri Nov 29 14:46:13 2002
Name: Appaji Suneel Kumar ACA
Email: appajiappaji@rediffmail.com
Your Views: In fact the expectations were more from a committee like Kelkar committee/ I feel they have not applied their mind in evaluating the economy position as of date and the mind sets of tax payers I was surprised to see such low rated proposals Let these babus sitting in finance ministry or north block read and understand the "Artha sastra" by 'Kautilya' before doing something lower reabates does not meen elimination of the provision. The taxes are to be collected similar to that of a bee sucking the honey from flowers when any rebate is given, it shall add value to taxpayer as well as government the proposals by kelkar committee are inferior compared to the knowledge of the committee members Regards Appaji
Fri Nov 29 14:46:24 2002
Name: I.JAGANATH RAO
Email: ijrao@rediff.com
Your Views: the proposals are unfair, because the middle class people who are saving due to only getting relif from the tax are never able to save for theirself in the course of service period.So no doubt it is a eassy process for calculating the tax by the department.But its not a good proposal for the public who are saving in the name of tax relife.
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