USA is still super power amid COVID-19
DEBATE(1)
United States America (USA) is still supper power as far as military strength is concerned. Coronavirus Disease (COVID-19) will not much wreck havoc on the country.
Anup Kumar
Attention Finance Minister
A paper title FORCE (Fiscal Options & Response to COVID-19 Epidemic) developed by nearly 50 IRS officers, the cream of tax experts, is excellent paper for revival of various sectors and boost the revenue. But the paper could not address the real issues of tax leakage and evasions in the system. IRS officers are ground level officers and know the system very well but not able to bring the real issues due to its own limitations. As 10% of population has more than 70% of country wealth and this unequal distribution of wealth is primarily due to aberrations in the tax system. It is estimated that there are people earning more than millions of rupees per TV shows, selling toilet cleaners, selling houses (without physical houses), selling bhujias, endorsing ad. of particular items/brands, performing in stages etc earning millions and millions but how much tax is paid by such professionals, it is to reviewed. Tax professionals should have come with some proposals how to assess the real income of such professionals thru some innovative tools, methodologies etc. in order to reduce the tax leakages and increase the tax revenues. Professionals can show 80% of earning as expenditures and pay the taxes on 20%. Such aberrations should be minimised. A professional earning 50 lakhs get 50% deduction straightway, why it is so? Whereas Salaried class is not even given Rs. 50000/ as standard deduction in the new system.This needs to be seen. Country is passing thru a very difficult time due to Covid-19 and expenditure is being cut to meet the social obligations. But we are allowing tax exemptions to NGOs, trusts, educational institutions etc, These institutions can be brought under income tax act thru an amendment to pay taxes on their donations and contributions. This will solve many problems during this crisis and open a path to increase the tax revenue. As these organisation are already serving the society at large only now the scope will increase to serve the country also by paying the taxes. This will empower the Govt, to know the financial transactions and assets they have when they file their income tax returns otherwise IT and ED takes years to find the details and source of funds. Of course IRS officers can not put such proposals in the paper as it needs a view from highest level to implement such things but this is worth considering in the larger interest of the country. Vivad se Vishwas is good scheme and make it vision of the department .to solve most of the cases. Bring the pendency to zero for the cases older than 5 years. There is no point of dragging the cases. Close the cases if no tax liabilities have been imposed and are in initial stages of notices create the brand TRUST between tax payers and tax administration. Do not chase small tax payers, Sr. Citizens, house wives etc. Conserve the man power and time for more innovative work to reduce tax leakages in the systems. More work is required to assess the income of professionals, traders, contractors etc. using present day technology. Income tax department has done wonderful work developing their website for filing returns and refund is processed very fast now a days, They need appreciations but the fear still continues in the mind of public to go near to the department. This has to go and brand TRUST is developed. ITR filing should remain simple so more people file their returns without the help of CAs. Simplicity is the key to success.
Naveen
United States America (USA) is still supper power as far as military strength is concerned. Coronavirus Disease (COVID-19) will not much wreck havoc on the country.
Anup Kumar
Attention Finance Minister
A paper title FORCE (Fiscal Options & Response to COVID-19 Epidemic) developed by nearly 50 IRS officers, the cream of tax experts, is excellent paper for revival of various sectors and boost the revenue. But the paper could not address the real issues of tax leakage and evasions in the system. IRS officers are ground level officers and know the system very well but not able to bring the real issues due to its own limitations. As 10% of population has more than 70% of country wealth and this unequal distribution of wealth is primarily due to aberrations in the tax system. It is estimated that there are people earning more than millions of rupees per TV shows, selling toilet cleaners, selling houses (without physical houses), selling bhujias, endorsing ad. of particular items/brands, performing in stages etc earning millions and millions but how much tax is paid by such professionals, it is to reviewed. Tax professionals should have come with some proposals how to assess the real income of such professionals thru some innovative tools, methodologies etc. in order to reduce the tax leakages and increase the tax revenues. Professionals can show 80% of earning as expenditures and pay the taxes on 20%. Such aberrations should be minimised. A professional earning 50 lakhs get 50% deduction straightway, why it is so? Whereas Salaried class is not even given Rs. 50000/ as standard deduction in the new system.This needs to be seen. Country is passing thru a very difficult time due to Covid-19 and expenditure is being cut to meet the social obligations. But we are allowing tax exemptions to NGOs, trusts, educational institutions etc, These institutions can be brought under income tax act thru an amendment to pay taxes on their donations and contributions. This will solve many problems during this crisis and open a path to increase the tax revenue. As these organisation are already serving the society at large only now the scope will increase to serve the country also by paying the taxes. This will empower the Govt, to know the financial transactions and assets they have when they file their income tax returns otherwise IT and ED takes years to find the details and source of funds. Of course IRS officers can not put such proposals in the paper as it needs a view from highest level to implement such things but this is worth considering in the larger interest of the country. Vivad se Vishwas is good scheme and make it vision of the department .to solve most of the cases. Bring the pendency to zero for the cases older than 5 years. There is no point of dragging the cases. Close the cases if no tax liabilities have been imposed and are in initial stages of notices create the brand TRUST between tax payers and tax administration. Do not chase small tax payers, Sr. Citizens, house wives etc. Conserve the man power and time for more innovative work to reduce tax leakages in the systems. More work is required to assess the income of professionals, traders, contractors etc. using present day technology. Income tax department has done wonderful work developing their website for filing returns and refund is processed very fast now a days, They need appreciations but the fear still continues in the mind of public to go near to the department. This has to go and brand TRUST is developed. ITR filing should remain simple so more people file their returns without the help of CAs. Simplicity is the key to success.
Naveen