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'It is unfair to remove all exemptions'

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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 15:43:31 2002
Name:PK Mishra
Email: prabhatkumarmishra_cmpdi@yahoo.com
Your Views: Proposal seems to be totally unfair. It has targeted only fixed income salaried group who are honest taxpayers. No effort is being made to tap surplus amount from tax evaders like law-practitioners, doctors, private professionals, businessmen etc. There will be slump in housing industries and unemployment in labour sector due to abolition of tax benefit on house building loans. It will be a jolt to the middle class people and financial institutions overall development of country due to negative growth. As far as rebate on savings are concerned because it will be cheating by the Govt. to the salaried person opting LIC policy, ULIP etc. mainly for tax rebate. Govt should keep this in mind while finalizing the proposal.

Fri Nov 29 15:45:30 2002
Name:faisal gandhi
Email: faisalg@vsnl.netsimpl
Your Views: simplifying of the tax slabs is correct since it gives lesser chance for evasion. do not agree however with doing away of all shelters.to my mind 3 shelters r a must. 1. against a home loan. 2. against life insurance on self, spouse children. 3. on mediaclaim. other than this all other shelters should be done away with, will inn my view lead to greater compliance.

Fri Nov 29 15:46:19 2002
Name:ASHUTOSH SHARMA
Email: ashutoshs@netscape.net
Your Views: I feel it is most unfortunate to truble the salaried class further. THe IT guys should widen their TAX NET by including the shopkeepers and small business houses as well as carporate world and should push tham to pay taxes . Most of the business men of unorganized sectors are evading the tax or paying pie nuts as tax where as their earnings are substantial. Salaried class is already over burdoned. They are also not getting the advantage of paying taxes , what extra return they get for being honest tax payer???

Fri Nov 29 15:46:28 2002
Name:Sriram
Email: aru_sri@rediffmail.com
Your Views: The 3 fundamental problems with the taxation system in India are: a. Pathetic tax base b. Inefficient targeting & implementation, and c. High Complexity for the taxpayer without incentives The tax rates per se are not such a big issue, if these other issues are sorted out. But I find the report of the Kelkar Commission (or atleast the more discussed parts) deal with those who already are into the tax base, which to me is completely off track. Much heat is generated while we discuss these threadbare, while multi-millionaire traders/agriculturists continue happily to be holy cows. As usual, the salaried class will crib, crib, sob & finally succumb to being the sole milch cow for the government.

Fri Nov 29 15:46:31 2002
Name:Sudarshan Upadhya
Email: staurus12@hotmail.com
Your Views: The proposal is to bomb the interests of the middle class. Those, like me, who have invested keeping in mind the tax benifits will end up nowhere.

Fri Nov 29 15:47:00 2002
Name:Dr R Sharma
Email: drrsms@rediffmail.com
Your Views: The salaried class is allready overburdened with tax . If Kelkar report is recommended it shall be a disaster and most unfair for salaried class who pay tax regularly and most correctly . What about the crores who do not file returns

Fri Nov 29 15:48:39 2002
Name:Sushil Krishnani
Email: sushilkrishnani@rediffmail.com
Your Views: I do not agree with the recommendation as it will discourage savings.In absence of any social security bi govt each individual has to provide security cover if he becomes jobless(which is very common these days) as such saving is the need of the hour and if any tax is levied on entire income then the self insurance will become still difficult.

Fri Nov 29 15:48:57 2002
Name:percy a doctor
Email: pdoctor@vsnl.com
Your Views: Removing exemptions is most unfair on the salaried class, which incidentally constitute the bulk of the middle class.Does the Govt think it is a joke that they give expt onc year & withdraw them in the next yr. What sort of tax planning can the person do. Its time to start taxing the Agricultural sector, look at flaunting of wealth done by them. Dont flogg a dead Horse , try to flogg a live one

Fri Nov 29 15:50:48 2002
Name:sunny
Email: sunneyyman@hotmail.com
Your Views: I think all the reccomendations made by the KELKAR committee are a fraud on the people of India, specially the most hardworking class i.e. Middle Class people. Doesnt everyone knows that the Tax evasion is due to lax tax implementations of Tax laws. Everybody is harping on the exemptions provided in Income TAx laws. BUT WHY IS NOBODY TALKING ABOUT TALKING THE TAX EVASION WHICH IS HAPPENING. THE REVENUE GENERATION IS BEING AFFECTED NOT BECAUSE OF EXEMPTIONS GIVEN IN THE INCOME TAX ACT BUT DUE TO HEAVY TAX EVASION. SO PLEASE FIRST STOP TAX EVASION & ONLY THEN TALK OF REMOVING TAX EMEMPTIONS. THE GOVT. HAS FAILED TO STOP TAX EVASION & HENCE IS TALKING OF PEIRPHERAL ISSUES OF EXEMPTIONS ETC. THE PUBLIC SHOULD POINT THIS TO THE GOVT. AS THE GOVT IS DIVERTING ATTENTION FROM THE MAIN ISSUE TO HIDE ITS FAILURE.PLEASE ASK THE GOVT TO STOP EVASION

Fri Nov 29 15:51:32 2002
Name:kumaran
Email: kumaran_100@hotmail.com
Your Views: why not Mr.kelkar think of making the rich people pay more and find out methods to seize all their black money instead of just ripping money from the honest middle class people who constitutes the majority of tax payers in the country. Rich people can survive themselves and the poor are taken care by the govt, but the middle class people are left alone. Nobody comes to their rescue, instead these beurocrats and politicians think on ways to crush them more. Instead of trying to make poor people even more poorer by lifting Standard deductions and all exemptions he should think of reducing the burden of taxations from the middle class people and still increase the web of tax payers. Lifting of certain exemptions on income savings will also affect other businesses especially realestate businesses, insurance sectors and even banking sector.If these recommendations are implemented, it will also make the tax payers think on ways to cheat the government to avoid thoses taxes rather than complying them. Instead of increasing the tax and increasing the corruption, the ministry could think of lowering the tax rates and make the people submit their returns honestly.

Fri Nov 29 15:51:44 2002
Name:U.V. Ravi Mohan
Email: mohan_upin@yahoo.com
Your Views: According to me his views are only benificial for the upper class community and not at all for the middle and lower middle class people.In our country almost more than 80% of the people are belonging to this community and where from u thik if u implement his suggestions these people are going to be get benifited.

Fri Nov 29 15:52:37 2002
Name:Ashish Mody
Email: ashishjm@indiatimes.com
Your Views: Dear Sir, i would like to known that why always the salaried class are worsenned of, who are actually the only honest tax payaers in the country. Suggstions: 1. Treat the salaried class seperately from the business class 2. Cant the govt fullfil its budget allocation to a aprt extent, by taxing agricultural incomes. 3. It is very unfair to tax out Rs. 20000/- from a salaried person who earns 2 lakh yearly, what will he save and where will he expend. 4. Sir our country firstly does not have good retiremnt benefits schems not does a person get any medical etc benefits from the govtunlike developed countries, so how will he save money for his future health and childeren

Fri Nov 29 15:53:23 2002
Name:SHEKAR
Email: CNS@SATYAM.NET.IN
Your Views: Lifting of Std. deduction and exemption on savings is a big hit on the middle class, who contribute the major Tax to the government.

Fri Nov 29 15:54:26 2002
Name:n agrawal
Email: nag@huntindia.com
Your Views: my view is that whatever proposals are accepted, it should be in line with what other countries are following and what benefits are being extended to honest tax payers in terms of social security etc. a person earning rs 5.01 pa lakhs in india is paying tax close to rs.1.25 lakhs. in $ terms 10000$ earning and 2500$ tax. with no benefit and only harassment. what are the equivalent taxes in other countries with earnings of 7000$, 10000$ and 15000$ should be taken into account. earlier mr yashwant sinha has been fooling the general public about low tax rates instead absolute tax payments.as per Et datd.26-8-02 indian middle class bears the highest tax burden. 90% of the tax returns filed between 1.5 and 5 lakhs are from govt salaried class who are squeezed every time and other professional and business men go scot free but enjoying much better life style. why this discrimination? in today's time a person earning 5 lakhs is classified as high income. average aerning og 40,000=00 pm. just imagine out of this 5000 goes to cpf, 10000 towards tax. left with around 25000 to take care of children education, tranportation, food, telephone, scooter/car maint. daily rations clothes festivals

Fri Nov 29 15:54:52 2002
Name:U.V. Ravi Mohan
Email: mohan_upin@yahoo.com
Your Views: According to me his views are only benificial for the upper class community and not at all for the middle and lower middle class people.In our country almost more than 80% of the people are belonging to this community and where from u thik if u implement his suggestions these people are going to be get benifited.

Fri Nov 29 15:55:07 2002
Name:vargheseg
Email: vargheseg@iocl.co.in
Your Views: As a whole the tax proposal is in line with the requirement for the growth and development. However, a slight variation in the proposal could have been more meaningful, i.e., each and every one who earns should contribute to the ex-chequer in the form of tax irrespective of the income he receives. The tax rate could be even 5 or 10%. The standard deductions and exemptions should go. The Financial Institutions which came out with tax saving instruments can wait for its maturity and no further instruments need to be issued for tax exemption. The exemptions for ladies and senior citizines should be also included in the list of deletion. One should accept the reality rather than avoiding the same through concessions. Let us be bold enough to strengthen the economy by our contribution than depending on the charity. Will the Finance Minister be bold enough to accept the recommendations in toto ? Or will be it be shelved for the sake of popularity. A popular manager is never effective and an effective manager will never be popular. Popularity cannot provide the mouthful to needy. Therefore,be bold and effective in doing away the unwanted concessions and exemptions to save the nation.

Fri Nov 29 15:55:55 2002
Name:abc
Email: abc@abc.co
Your Views: no

Fri Nov 29 15:56:14 2002
Name:Dr P S Reddy
Email: sourireddy@medvarsity.com
Your Views: Mr Kelkar's proposals on income tax are totally un justified and unfair to say the least, his proposals are anti farmar and anti employee in their content, There is no point in milking a cow dry when these sectors are one of the biggest tax earners directly or indirectly.

Fri Nov 29 15:56:28 2002
Name:mg
Email: guptam@rediffmail.com
Your Views: I think the recomendations are very fair. One has to look in totality. Actually the taxes are getting lowere and the system is getting simplified.

Fri Nov 29 15:56:38 2002
Name:Ramanathan
Email: ramanv@vsnl.com
Your Views: Kelkar recommendations are good for long term. Exemptions have made the whole process simple. Any such initiative must be direct and never indirect. To avoid paying 20 in tax, people put in 100 in savings instrument (sec 88) - is it not ridiculous. More ridiculous is to claim that such exemptions cultivate 'savings habit'.

Fri Nov 29 15:57:16 2002
Name:chennaiite
Email: chennaiite@hotmail.com
Your Views: i think its high time everyone started paying their taxes and reduce the debt burden on the country !! perhaps that would give the govt., the money to invest on the basic infrastructure .. perhaps the money to put a man on moon .. hey wouldn't that be kewl now ??

Fri Nov 29 15:58:03 2002
Name:Abhijeet Awekar
Email: abhi2475@hotmail.com
Your Views: Hi Actually that is a samart move to keep 2 slab tax rates. But the govt. should provide for staandard deduction and profession tax to the salaries employees. Apart from the above the govt should also not lift the deduction allowable for housing loan interest. Last but not the least the govt should still provide for deduction U/s 80D, 80CCC and other deductions for various diaseases.

Fri Nov 29 15:58:50 2002
Name:Aniruddha Pimpalkhare
Email: anip321@rediffmail.com
Your Views: This is the worst proposal for us middle class people, what about lakhs of people who are not pauing taxes and still enjoying? How much tax does our ministers pay and what is teh amountof perks they enjoy for ruining this country? Can this so called Dr. Kelkar do something about that?

Fri Nov 29 15:59:05 2002
Name:C.Sreekumar
Email: chatapadkumar@rediffmail.com
Your Views: I totally agree with Dr.VijayKelkar.Only thing i would like to emphasise is the transparency on the source of income.Our country is enormously wealhty,but the wealth is placed on selected corrupt people.If we can evolve a system of more transparency in income,Dr.Kelkar is right.Fundamentally our literacy percentage should up before we implement the advice of Dr.Kelkar.He has Sown the seed. C.Sreekumar

Fri Nov 29 15:59:43 2002
Name:Rupesh Shah
Email: rcs_shah@rediffmail.com
Your Views: not fair ro middle class. Also tax benefit on housing loan should not be remeoved within 10 years.

Fri Nov 29 15:59:45 2002
Name:S Dutta
Email: krikydutta@ yahoo.com
Your Views: The proposals are horrid. I personally think that the small business community should be forced to pay there share of taxes.There lies the real problem.

Fri Nov 29 15:59:49 2002
Name:Anuj
Email: anujmithani@hotmail.com
Your Views: rationalisation/simplificationof laws is welcome-will make life easier and reduce needless litigation. However, the tax laws remain harshest for the salaried individual, and his package may only intensify this.

Fri Nov 29 16:00:07 2002
Name:aijaz husain
Email: aiju29@rediffmail.com
Your Views: This is very unfair that in our country where there is no social security system exists Dr kelkar suggests not to promote savings.this is very unfortunate.

Fri Nov 29 16:00:23 2002
Name:Venkatesh G
Email: venkatesh_g@yahoo.com
Your Views: Its unfair. Withdrawing rebates on house loans and savings is just too much. What about the people who are dreaming about owning the house?

Fri Nov 29 16:01:09 2002
Name:C.Sreekumar
Email: chatapadkumar@rediffmail.com
Your Views: I totally agree with Dr.VijayKelkar.Only thing i would like to emphasise is the transparency on the source of income.Our country is enormously wealhty,but the wealth is placed on selected corrupt people.If we can evolve a system of more transparency in income,Dr.Kelkar is right.Fundamentally our literacy percentage should up before we implement the advice of Dr.Kelkar.He has Sown the seed. C.Sreekumar

Fri Nov 29 16:03:53 2002
Name:A.Raghavan
Email: raga94@yahoo.com
Your Views: I support the proposed new structure but a modification to allow the standard deduction. Please take note that revenue from middle class is ranking first instead the highest earnings big-wigs get away with nasty tax planning. Otherwise, simplification of tax structure has my support.

Fri Nov 29 16:03:53 2002
Name:LS RAJPUT
Email: lsrajput00@yahoo.co.in
Your Views: Yes it is unfair to remove all exemption. The middle class is mostly depending on their saving under this instrument. In indian society you need lot of money for your children marriage etc. which comes in later days of your life. That time this money only gives a person the courage. After removal of exemptions there are very remote chance that person will save money for future. The result of this step will be apparent afetr 15-20 years to come. Think again before going ahead with these proposal. Indian society is entirely different from other societies of the world.

Fri Nov 29 16:04:25 2002
Name:M.P.Kushwaha
Email: kushwahamp@hotmail.com
Your Views: Last year heavy burden has already been given to middle salarised class so ateast saving should have been allowed. The interest rate has been lowered so some social security must be created for retired persion of Private sectors like existing in Developped country.

Fri Nov 29 16:05:48 2002
Name:vinayak nayak
Email: vinayak@goatelecom.com
Your Views: The proposals are fair nd should be implemented by the finance minister. These proposals will encourage people to voluntarily pay taxes and will eliminate the requirement for a CA for salaried people. The exemption limit of rs 60000/- should be there as the minimum survival amount for a family in India is rs 5000/- per month.

Fri Nov 29 16:06:17 2002
Name:Ravi
Email: beyondexpectations@indiatimes.com
Your Views: Of course, it is unfair. After years of giving us, the great indian middle class, umpteen reasons to save instead of returns, his proposals intend to yank us to reality ? And pay huge taxes for what ? A slobbering, mangy bureaucracy full of babus and our stupid netas who dont know how to spell 'governance' ? Who have only vested interests in mind and pockets to line ? Who can't address the issue of the rich getting richer while the poor pay the price ? There are thousands of politicians and their ilk who have siphoned off hundreds of crores from banks and i get to pay for this ? And what about the white elephants in the form of psu's ? Why can't the government decide and get rid of them once and for all ? What about our infrastructure ? Have you guys ridden on any of these so called 'roads' in Chennai ? Or in Delhi, for that matter ? Look at the silly excuses that we call 'airports'. And what about our trains..the so claimed 'largest railway network in the world ' anyone seen the stench coming from railway platforms ? Unless he intends to tell me how my hard earned money is going to be spent for, he can go take a walk !! I ain't paying a paise !!!

Fri Nov 29 16:06:42 2002
Name:kiran
Email: kirangattamaneni@rediffmail.com
Your Views: this is really unfair. we are already paying for insurence and all those things. what is this. they are playing with middle class.how can we survive in metros like this.

Fri Nov 29 16:07:00 2002
Name:Kishore Manelkar
Email: kishoremanelkar@rediffmail.com
Your Views: Dr. Kelkar's recommendation is like a Doctor's Knife... On one hand it will cut open and hurt the taxpayer (by removing the standard deductions and exemptions) .... but also bring in the revenues to cure the nation's mounting fiscal burdens ... So to comment whether it is bad or good would depend on which of the above two is more important ...

Fri Nov 29 16:10:33 2002
Name:P.D.Sahay
Email: pdsahay@rediffmail.com
Your Views: It will make filing returns very SIMPLE,very STRAIGHT & very SMOOTH & perhaps more upfront.It will make the taxpayer walk in,ask for the one-page form,fillup his/her return,file it(maybe a drop box)& walk away with a smile. I wish someone thought of this 20 yrs. back.

Fri Nov 29 16:10:45 2002
Name:v k shankar
Email: vk_shankar@yahoo.com
Your Views: Mr. Kelkar's proposals, are too simplistic as regards their views on the spending power of the middle class. The majority of middle class citizens, who make up the roughly 20 million assessees in the country, are at various stages of wealth accumulation. An average middle class individual who earns an income of Rs.2/- lacs a year, has to contend with huge living expenses on account of food, children's education, travelling expenses, saving for medical exigencies. Mr Kelkar seems to turned a blind eye to these all - too prevalent issues, by suggesting removal /reduction of exemptions for above - 1.5 lac income earners' category. It appears that if a lower middle class person, comes up in life the tough and honest way, by virtue of education and hardwork, and somehow starts earning an income of above Rs.1.5/- lac, he/she should be punished with a repressive tax regime - which again wants him to be restored on par with the lower middle class - under such circumstances, where is the incentive to work hard and accumulate wealth. Removal of all taxes upto an income level of Rs.5/- lacs will motivate ordinary people to push their efforts to come to this socially desirable target.

Fri Nov 29 16:11:20 2002
Name:Anil Garg
Email: anilg@setindia.com
Your Views: Pensioners and Senior Citizens having incomes in the range of 100,000 and 260,000/- will have to pay increased taxes on the basis of the proposed changes recommended by the Task Force. Is this fair?

Fri Nov 29 16:13:03 2002
Name:AHER BAPU
Email: aherbapu@rediffmail.com
Your Views: Government always targeted salaried persons. Exemtions on PF, PPF & LIC should be continued. Interest rate should be further reduced for those who are earning between 1 Lack to 5 Lacks.

Fri Nov 29 16:13:04 2002
Name:N Padmanabhan
Email: padu001@yahoo.com
Your Views: Already burdened salaried class should not be further taxed in the name of tax reforms. At the same time we should not reject the proposals outright which is basically meant for much needed simplification in the Act, which can be understood and interpreted only by the tax consultants.

Fri Nov 29 16:14:39 2002
Name:SHAFIQUL ABIDIN
Email: shafiqulabidin@yahoo.co.in
Your Views: The main focus should be on the eradiction of corruption. India is on of the most corrupted country in the world. More than 90 per cnet govt officials are corrupt. To get more revenue corruption must be eliminated. Just look the example of Delhi Traffic Police Constable - who leaves signal violator just getting bribe of just half of the fine. It means money have been collecting or generating in one or the other ways but not being deposited to the govt revenue. In the same way there are lot of deptt which generate revenue for themselves - DDA, Raiwayrs - Noida authority, MCA - thousands of thosands of such deptt.

Fri Nov 29 16:16:22 2002
Name:Franklin
Email: franklinjerald@rediffmail.com
Your Views: In my view,it will be a great blow to the middle class salaried employee.

Fri Nov 29 16:17:08 2002
Name:Sayeed
Email: ahmadsayeed@rediffmail.com
Your Views: The tax proposals of Vijay Kelkar are quiet radical but these are radical times. Radical times need radical actions. What Mr. Kelkar has done is to simplify the tax maze for the general public without affecting the revenue to the government and to the people in general. The only issue here is what should the government do about the promises made like exemptions on Housing loans. Other exemptions like NSC require a new investment every year but the housing loan burden on an individual is a long term commitment. Any salaried middle-class Indian would have taken the loan taking into consideration the salutary effects of the tax relief. Secondly, the housing sector as such needs a boost and the construction sector has a knock-on effect on other sectors leading to an increased demand in the domestic economy. Instead of the reduction of the exemption on housing loans availed in three years, this could be extended to five years. This would alleviate the extra burden on the house buyer as the initial years are the years when the interest outgo is on the higher side. Other exemptions like postal savings, NSC give interest which is beyond the market rate and they are unsustainable.

Fri Nov 29 16:18:00 2002
Name:pramod kokate
Email: jhtcfsexp@marsk.com
Your Views: the proposal is highly unfaire for specially middle class people. the govt. shd go after the defaulters and business class who are not accountable for any tax payments. the more benifits shd be passed to middle class people.the corrupt people in india are scotfree and not paying single peenny towards tax.

Fri Nov 29 16:19:40 2002
Name:prafful.jain
Email: jainpra_23@rediffmail.com
Your Views: yes it can indirecly make unnesorry burden to middle class family.though by its text it can show many promises to middle class family. but it cant yield theresult.

Fri Nov 29 16:19:57 2002
Name:Ramkumar
Email: vvramkumar@rediffmail.com
Your Views: It is totally unfair and it shows the inability of the government. Kelkar should be hanged till death.

Fri Nov 29 16:21:04 2002
Name:Golda
Email: p_golda@yahoo.com
Your Views: It would also be better if Mr.Kelkar advises us as how to live and pay the bills with the remaining money. It is quite outrageous that the gov. wants to exploit the salaried class. Mostly film stars, politicians and business magnets have pending taxes and no action has been taken.If these pay the taxes and pay the bank loans our country's financial situation would improve. Also let the gov. cut all extra expenditure.Let all public servants live as an average Indian. What is the need to send the central minister Mr.Maran to Houston spending crores of tax payers money when all the very best facilities are available in India itself? Accepting bribes sholud be abolished at all levels. Comeon, let the people and media wake up and let us reform our gov. and people.

Fri Nov 29 16:21:16 2002
Name:R.C. Seth
Email: rcseth1@rediffmail.com
Your Views: The middle class especially service class should be given relief in Income Tax. Every time they remain hand to mouth or debitor. R.C. Seth

Fri Nov 29 16:22:07 2002
Name:PC JAIN
Email: shreeujjn@sancharnet.in
Your Views: THIS PROPOSAL IS QUITE OK AND ACCEPTABLE.

Fri Nov 29 16:22:31 2002
Name:shashikant supekar
Email: kant39@rediffmail.com
Your Views: Bhai ab kya baccho ke jaan lena hai kya. Hiding your failures through wrong coatings. What is being done to increase taxes from Corporates? What are plans for excise collections through fair means and the steps to clears the IT appeals faster for balance recovery. As simple economic knowledge what is being done to reduce balance of payment on import vs export gap. Has anybody thought hw will todays young tax payers live w/o pension and low intt rates on savings (being discouraged so harshly) moreover have no undisclosable income ( meant bribes). IS THIS THAT SWEET DREAMT OPENING-UP OF ECONOMY & GLOBALISATION.

Fri Nov 29 16:23:01 2002
Name:Anil
Email: anilal@rediffmail.com
Your Views: More tax, More evasion More evasion, More Audits More Audits,more expenditure More tax again. HEADS AWAKE!

Fri Nov 29 16:23:17 2002
Name:Ashok Acharya
Email: acharyaashok304@hotmail.com
Your Views: Since the recommended proposals are largely going to effect the Middle class Salaried people , I feel it is very unfair to penalise this section of people who pay the Income Tax religiously. Government should first implement the Social Security System , so that a common man can spend without worrying on his Savings. In the current infrastructure provided by our Govt does not give any hope to a common man about his security. By withdrawing the exemptions on Savings Govt is not giving any incentive to a common man. In my opinion, we can easily tax Rich farmers and compensate the Revenue short fall and spare the common person.

Fri Nov 29 16:24:14 2002
Name:M N SRINATH
Email: srinathmn@rediffmail.com
Your Views: While the efforts of Dr Kelkar to streamline the direct taxes is laudable he has found like all other finance ministers the middle class( the milch cow) as an easy target and to impose these new tax terms. The salaried and middle class are easy to target as they don't have any union to fight unitedly these unfair policies. We agree to all the terms of Dr. Kelkar provided the rest of the society like self employed professionals,high income agriculture farmers, business community also share the tax burden and pay taxes which they evade easily in connivance with the tax officials. The finance ministry and Dr. Kelkar should concentrate their focus on widening the tax base, bringing more service jobs under tax net, punish people who evade tax and computerise the IT operations which will make everybody's life easier. WE MIDDLE CLASS WILL NOT TAKE IT LYING DOWN ANY LONGER. WE WILL PAY OUR SHARE PROVIDED THE REST OF SOCIETY ALSO CONTRIBUTE THEIR SHARE EQUALLY. Mr.finance minister and dr. Kelkar: please wake up and take some action

Fri Nov 29 16:24:21 2002
Name:s.sadagopan
Email: sadagopa@rediffmail.com
Your Views: yes. the proposals are unfair to the middle class and particularly to the aged. post retirement, the rates of interest have fallen drastically. income tax exemption of rs.15000/ for senior citizens and rs. 5000/ for ladies and exemptions u/s 88 were the main redeeming features to some extent. taking away even these concessions will hit the aged hard. unlike foreign countries, where old age protection is there for aged, in india one has to save not only for your present living, but also for your post retirement living. while taxing the agricultural income is the right step, no party is willing to do so. if the govt can tighten the debt recovery,avoid wasteful expenses and adopt proper govrnance, they can save a lot. all the political parties lack a sense of decency and integrity. no consistency in their outlook.if the same policies adopted by the ruling party, are adopted by the next party in power, these are opposed by the now opposition party forgetting that these were the same policies adopted by them when they were in power. dont they have any shame? they have only short term political plan and no long term plan for the people.

Fri Nov 29 16:25:33 2002
Name:Swati
Email: s_bhagwat@rediffmail.com
Your Views: Will the government offer social security for everyone? It is very easy to say: remove all the exemptions, i think the government would benefit more if they saw to it that the business persons paid up their taxes, why punish the salaried middle class whose tax is always deducted at source, just so that the goverment has a sure shot way of earning more? This isn't fair to the salaried middle class. There is no need to ape the west, they also have safeguards like social security, here the middle class should earn, pay taxes and still save for their old age!! How are they going to do all that? And the real culprits will always get away.

Fri Nov 29 16:25:56 2002
Name:M N SRINATH
Email: srinathmn@rediffmail.com
Your Views: While the efforts of Dr Kelkar to streamline the direct taxes is laudable he has found like all other finance ministers the middle class( the milch cow) as an easy target and to impose these new tax terms. The salaried and middle class are easy to target as they don't have any union to fight unitedly these unfair policies. We agree to all the terms of Dr. Kelkar provided the rest of the society like self employed professionals,high income agriculture farmers, business community also share the tax burden and pay taxes which they evade easily in connivance with the tax officials. The finance ministry and Dr. Kelkar should concentrate their focus on widening the tax base, bringing more service jobs under tax net, punish people who evade tax and computerise the IT operations which will make everybody's life easier. WE MIDDLE CLASS WILL NOT TAKE IT LYING DOWN ANY LONGER. WE WILL PAY OUR SHARE PROVIDED THE REST OF SOCIETY ALSO CONTRIBUTE THEIR SHARE EQUALLY. Mr.finance minister and dr. Kelkar: please wake up and take some action

Fri Nov 29 16:26:06 2002
Name:A. Raja Rao
Email: arajarao@rediffmail.com
Your Views: I do not claim to have studied Kelkar's proposal in detail, but carry the impression that his only considerations are to simplify and enhance the tax collection to the exclusion of all other considerations. For example with interest rates falling, non-pension retirees are hurt so badly that the only option open to many of them is to take poison, just as the farmers did. But he does not seem to recognise that this class of citizens need some degree of protection. This is just an example.

Fri Nov 29 16:26:06 2002
Name:P. Dalgado
Email: pdalgado@hotmail.com
Your Views: Kelkar's proposals are pro rich. They will reduce the incentive for individuals, to save and invest. Lifting of Tax concessions to Retired persons and to women are retrogade and unacceptable.

Fri Nov 29 16:26:09 2002
Name:k prabhakar
Email: mamathaprabhakar@yahoo.com
Your Views: The standard deduction limit some 10 to 12 years ago was Rs.20000/ . After 1990 the value of Rupee has eroded like anything. By going by that method the standard deduction should have been somewhere between Rs.1 lac to 1.2 lac per annum. Taking into account withdrawal of other Tax rebates under section 88, the non taxaable income should be Rs.2 lac to Rs.2.5 lac. Hence the Fin Minister should not charge Income tax on income upto 2.5 lacs and thereafter 20% upto income 5 lacs and 30% on and abvoe Rs.5 lacs. By this method an average person will not have any burden of IT whereas rich people will pay IT @30%. Secondly the rich agriculturist should be brought under IT. Imagine a agriculturist like sugar barrons not paying IT and the people working under him in his factory paying IT on his meagre Salary. Hope some day good will prevail upon everybody. Jai Bharat.

Fri Nov 29 16:27:04 2002
Name:Bipin Lokhande
Email: bsl@fluent.co.in
Your Views: I guess the proposals are very fair. If implemented would lead to less tax and more liquidity in the hands of people. An income between 1lac is very minimal in current living conditions. Exempting this is a very noble idea. Also 30% tax on 1.5lac above income is no mean justified. I think the recommendation should be implemented by removing all tax exemptions except for the housing interest.

Fri Nov 29 16:27:34 2002
Name:Dr. B.Ramanujam
Email: ramanujamb@rediffmail.com
Your Views: Tax rate for the Ist slsb (>1 Lakh to <4lakh)should be at 10% Tax rate for the IInd slsb (>4 Lakh )should be at 20% Standard Deduction and Tax rebates for Savings can be removed. However Tax rebate for the interest amount paid on Housing loan should be continued

Fri Nov 29 16:28:17 2002
Name:deepak pandit
Email: dmpandit@eth.net
Your Views: if our corporate sector fulfills its obligations & all these captains of industry pillars of our country viz the politicians, bureaucrats,judiciary &the intelligensia stop eating into our moral material fibre we dont hv to find ways & means to force people to pay their dues. where the so called gandhians and pillar of honesty goes to usa for treatment while India has best doctors & the old pensioner who has worked for 35 yrs in a govt job cannot claim for certain procedures or is reimbursed only part of it. where the cabinet minister says he was not aware of income tax rules & had not paid same for yrs.& people want to raise a memorial for him. where the IAS lobby wants a telephone handler for their homes. where every year every MP/MLA & others of their ilk spend 100 of crores as constituency funds & it has not helped any person or group of persons who need most.where a soldier dies for the country & the politician & bureaucrat nexus makes the life of the family miserable as he wants a slice of the cake. where a minister is caught with crores in his house & he claims political vendatta & gets away with it.list is long. do something about these & will solve all problems

Fri Nov 29 16:29:38 2002
Name:M L Jain
Email: mljain53@rediffmail.com
Your Views: The proposals will spell doom for BJP Govt.They rose to power through salaried Middle Class and so-far they are lynching this class only similar to earlier Cong.Govts.Kelkar must do something to rope in businessmen majority of whom evade all sort of taxes.Taxing the so called agricultural income of non-agriculturists is a wecome move.But the all powerful people will manage to escape somehow or the other by producing false certificates.

Fri Nov 29 16:30:24 2002
Name:Ravi MENON
Email: ravipmenon@rediffmail.com
Your Views: I feeel that the recomendations made by Mr. Kelkar is an excellent one, if the taxes are reduced and the overall take home salary is increased, then their is no need for any concessions, moreover investments attract a very low yeild. So why should one invest to save taxes and block heirr money for 3 years. Instead let people spend which will be better for the economy, as the govt will collect more taxes by way of excise, sales and other taxes. I suggest that the taxes abv 1 lakh shd be 10%, abv 2 lakh 15% abv 3 lakh 20% and abv 5 lakh 25% thats it. People in general have been used to subsidy and grants from the govt since independence. REgards, Ravi MENON

Fri Nov 29 16:32:07 2002
Name:G. Srinivas
Email: moilyganasri@rediffmail.com
Your Views: Dear Sir, Firstly, let the government make it clear to the citizens, why an individual should feel happy to pay income tax. We pay tax, to the government for betterment in infrastructure, protection, town planning. Infrastructure : Road conditions and traffic, not worth a penny. Protection : Simply cannot solicit a Police Staff member as a Friend, they are worse than criminals. Town Planning : No comments on sanitary conditions, slum clearence, National Highway vehicles disrupting city traffic.

Fri Nov 29 16:33:26 2002
Name:Dr. T.N. Suresh Kumar
Email: drsureshtn@rediffmail.com
Your Views: Instaed of reducing the tax base, it should be increased. At present only the salaried class have been burdened with taxes. With the new proposals the burden on salaried class is getting increased further. The savings, particularly on housing, is not only a saving, but also an investment which will benefit the economy. India has not reached a stage to implement such a proposal.

Fri Nov 29 16:34:31 2002
Name:Sriram
Email: srsriram@vsnl.com
Your Views: Yes we the middle class welcome tax reforms. But why always the salaried are cornered. Why not the so called rich and famous who inspite of corrupt accounting practices dont even pay for the falsly reported income and which are well known to the tax department. Is it because the middle class doesnt have any unity/muscle power or is it because the aim of finance ministry is to do away with middle class and hence establish only rich and poor.

Fri Nov 29 16:34:41 2002
Name:yogesh rajgor
Email: ysrajgor@vsnl.com
Your Views: The proposal may not be practical. The clarity on investments made, Housing loan availed for a tenure of 20 years whether factored while deleting all the deductions

Fri Nov 29 16:36:10 2002
Name:tushar mallik
Email: mallik_tushar@rediffmail.com
Your Views: If Dr Kelkar has actually recommended that the standard deduction and the exemption on certain savings be completely withdrawn without compensatory rebates on tax, then it is unfair and we should know if Dr. Kelkar has an axe to grind ! The tax system needs overhaul and restructuring but the government should not act in a fiendish manner. In fact a panel of worthies should be appointed and not Dr Kelkar alone.The issues are complex .Hasty impositions in the name of tax restructuring should be avoided at all cost. Indians are heavily taxed as it is - a look at the per capita income will suffice. So the tendency is to tax the salaried class - which is not fair.Agricultural income should be taxed to start with. A system should be evolved which ensures the optimum collection of taxes.India should have a system of taxation which would be unique to the country, it need not conform with the tax structures of the developed or developing countries as we must solve our problems by charting our own unique path of growth that may be emulated by other countries. First, let us find out our exact needs. Only after that should we venture to chalk out a taxation map for India.

Fri Nov 29 16:36:21 2002
Name:susanta
Email: susant_a@rediffmail.com
Your Views: 1)currently I am paying more than a lakh as my income tax from my salary account.Suppose,Tomorrow,if I will be unemployed,will the state take care of me? 2)for health,education,communication and security I depend on Private parties and paying for govt. utility services.Why should I pay high taxes to the government? 3)Most of tax schemes are designed for industries,who are the biggest defaulters. 4)It is a common knoeledge that the salaried tax payers are squezrrd by every government where as others go happily all the way to the bank. 5)what about taxing political parties?Why politicians are not taxed on their black money.May be another amensty scheme will follow.

Fri Nov 29 16:36:39 2002
Name:ARABINDA SAIN
Email: arabinda_sain@hotmail.com
Your Views: Dr. Kelkar's tax formula is really progressive one. Now-a-days there is hardly any money left for middle income group members to invest on various tax saving schemes. On the other hand if the rate of tax being decreased then certainly it will be helpful for the tax payers to save tax without going for an investment. The idea of Dr. Kelkar is really superb. It will change the spending pattern for the service holders also.

Fri Nov 29 16:38:08 2002
Name:Supriyo Chatterjee
Email: supchat@hotmail.com
Your Views: To some extent it is unfair. While the task force's observation of subsidizing tax through exemptions and deductions also has some justification, there are some long planned decisions taken by the middle class based on these exemptions and deductions that would get disturbed and hence the salaried middle class would be affected highly. As an example Life Insurance premium is one thing which is chosen based on its tax benefit also. Maybe one would chhose a Term Plan rather than a money back plan if there was no tax benefit. Similar example is Home loan where the tax benefit plays a greater role while calculating the effect of EMI on monthly NET income (NET salary - EMI). Though the NET income is decreased by EMI amount, at the same time it is increased by the amount of tax benefit on the interest (which gets the benefit of the corresponding highest tax bracket of everyone) as also 20% on the principal. Most of the salaried persons calculate this benefit while deciding on the amount of loan and hence EMI. But at the same time the benefit on one time investments like NSC and furhter investments like fresh LICs/ULIP or new house building loans etc. can be restricted.

Fri Nov 29 16:38:09 2002
Name:ARUNKUMAR SIVARAMAN
Email: arun_junta@rediffmail.com
Your Views: Why do we need fresh taxes? And that too one that will raise the burden for the common man. If the govt can compliment the raise in taxes by cutting down all incentives given to the netas, put a freeze on hiring for govt jobs, thrash out anyone whose above 50yrs, pass a law that will make elections to be held only once in every 5 yrs. Any raise of any sort in any dept (like water works, electricity, public works) will be tabled b4 the general public and they will decide whether we need the hike. Btw, the general public here in all count doesn't include the govt machinery. So, that in effect would cut out a high percentage of indians but they don't matter. So, the public would be made of the remaining numbers. If all the EARLIER STEPS are taken then maybe then we can think of a fresh tax regime. Till then tax the netas and businessman or anyone whose making money 'left & right'.

Fri Nov 29 16:38:14 2002
Name:S.M. MEHTA
Email: mehtasm@hotmail.com
Your Views: Mr. Kelkar needs to understand that tax exemption are only for those who files their retrun of income. For those who do not file their return of income, whole income is exempt from tax. Sir, why can't you develop a system where every person who have taxable income needs to file the return. To make more and more people compell to pay tax do the following amendment in Income tax Act, 1961. a. Searches can be carried out only for those who have not filed their last retrun of income by due date. b. Survey can be carried out only for those who has filed last return of income by due date. NO searchs should be allowed in this cases. c. Total Number of Searches in any range should match the number of survey in the same range. d. No of scrutiny to be reduced to only 3% cases and this must be selected on random basis thru computer. I hope this will create the awareness amongst the public. The tax payer will feel pround and will also feel not being cheated. I hope my message will be sent across to ministy of finance. a.

Fri Nov 29 16:38:30 2002
Name:Shantharam
Email: kshantharam@rediffmail.com
Your Views: The benefits meted out of the standard deduction are largely middle class people. They are the highest contributors to the taxation and they are being targeted again....!! Dr Kelkarji, please look at the large lot of tax evaders and the TREASURES who are exempted from taxation (land lords). Ironically some are still drawing subsidies from Electricity board?c!!

Fri Nov 29 16:41:35 2002
Name:KK RAGHUPATHY
Email: kk.raghupathy@pgenindia.com
Your Views: I would whole herartedly support the recommendations of Dr. Kelkar. In India we have been talking a lot of 'Equity" and "simplicity" but never really end up practicing the same. In one sweep, just like we cleaned up our Exim Policy, Dr. Kelkar wants to clean up the tax regime by removing all the complicated deductions and exemptions, particularly the Section 80 and some from 32, 33 and some from setion 10. I do not see why the middle class should feel hurt. The savings exemptions are merely a psychological relief. Ultimately if we do need the tax rates to come down the exemptions must go. We cannot ask for both. Agricultural Income-Tax on the rich farmers is a must. If a salaried employee can be taxed just because the onus of tax deduction is on the employer, the agriculturists who make good money also needs to be taxed. it is incorrect to say that agricultural production will suffer. The poor farmer will still be exempt. The method of quantifying the income however will be extremely difficult as there are a lot of barter systems working in tandem. Removal of Cap Gains on equity (LT) is commendable. This will encourage long-term holding of scrips. MAT does need to be e

Fri Nov 29 16:41:40 2002
Name:Dayanand Poojary, Mumbai
Email: poojary_dk@rediffmail.com
Your Views: To, Respected Finance Minister, Sir, Let Mr. Kelkar return all the tax free perks and benefits which draws from Government for his stupidious advisory role. These exchequer is of public money. mr. Jaswant Singhji should impose taxe at the rates in the following manner : 1. Income upto 1 lac -no tax 2. Income above 1 lac upto 3 lacs - Tax @ 15% 3. Income above Rs. 3 lacs upto 5 lacs tax @ 20% 4. Income above Rs. 5 lacs - Tax @ 25% Exemptions on investments should continue with higher limits to encourage savings in the interest of Nation otherwise money will be removed from circulation which will badly effect the economy. Exice and customs duty should be uniform with simple flat rates at 30% slab and do away with Sales tax or any other taxing on goods and services to avoid double taxation and to stop increasing prices of commodities and thereby increase purchasing power of the people. Tank u Sir.

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