Saturday, October 24, 2020
Home Opinions Dear Mr Jaitley, we do not want tax terrorism

Dear Mr Jaitley, we do not want tax terrorism

Dear Mr Arun Jaitley,

India is aggressively pushing itself as a business-friendly location. Make-in-India is being popularized by Prime Minister Narendra Modi all over the world, inviting companies to set up shop in India. We are trying to improve our position in the Ease of doing business rankings as fast as possible. You yourself have made many such statements that India will follow a non-adversarial, stable tax regime. That retrospective taxation will be a thing of the past. But unfortunately your actions do not match your words.

Recently we have seen a $3.3 billion notice slapped on Cairn India for a transaction which took place in 2007. And over a 100 FIIs have been issued tax notices worth $6 billion. While such notices harm India’s image in the eyes of big investors, they do not directly affect India’s common man. What did affect was your sudden and abrupt introduction of a host of changes in the Tax Audit Report just a couple of months before its due date. You did extend the due date, but as a practising Chartered Accountant, I can assure you we faced severe difficulties in complying with such sudden sweeping changes in a short span of time. And you sir lost a lot of goodwill, atleast among the medium size businesses who were affected by the above change.

Let us come to your Budget 2015. There was almost nothing in it for the salaried class, the small tax payers. Nothing. Not any substantive tax benefit. Even a token decrease in tax would have been enough to satisfy the common man, but common sense eluded you. On the other hand, Service Tax was hiked to 14%. I know it was done to get in line with GST next year, but the next step left me stunned. You added 2% to this 14% under Swacch Bharat Cess. As the budget is worded, this makes it 14% + 2% = 16% on all services. Ideally, this 2%  should have been on 14% i.e. total rate should have been 14.28% but since there is no clarification yet, we are still guessing.

Some of the goodwill was earned back by your thrust to GST and the Anti-black money bill, but all this will be undone by your latest salvo fired at the salaried class. In a notification dated 15/04/2015, you have managed to extend Tax Terrorism to the lowest strata of people. You now expect the smallest of smallest tax payers to furnish details of ALL BANK ACCOUNTS held by them. Why? Don’t you already know all this? Most bank accounts are already linked to the PAN, so you already have the information. Why don’t you make Bank update their KYC records and insist on PAN details for all?

And what is the use of all this? Bank already deducts TDS on any Interest above Rs 10000. This directly gets captured in IT records. The amount which may escape TDS and taxation is the Interest below Rs 10000. It is foolish for the Government to go after such small amounts . Instead of reducing hindrances and promoting  higher compliance, you are making it harder for honest Indians to file their Tax returns. Of course, needless to say, laws for India’s largest reservoir of Black Money, Real Estate, are still not being tightened.

The logic given is hilarious: You want to tackle black money. Dear Sir, does anyone having black money put it in banks? Then why ask details of ALL my bank accounts? And you are asking this even from salaried class. Does salaried class have any black money? Even the poor fellow who earns only bank interest and files a tax return only to get a refund, now has to go through an exercise supposedly meant to catch black money?

You also now want us to tell you details of our Foreign Travels. Why? Why does the Government need to know where I went for a holiday and how much I spent on it? As long as my Income is taxed at the proper rates the Government has no business asking for details of my personal expenditure. This is a gross violation of privacy. Again, this rule has been extended to the salaried class too, instead of keeping it only for the high income zone.

As far as all the talk of “friendly tax regime” is going on, there is zero movement on the ground. Tax Officers are still given targets, they still harass tax payers, my own clients keep getting frivolous orders. And I wont even mention the corruption, because it will take much more time to come down. As far as the hilariously idiotic Central Processing Centre at Bangalore is concerned, it keeps churning non-nonsensical notices without the slightest application of mind on a daily basis to the smallest of smallest tax payers. In fact people are getting notices for incomes of over 10 years back:

In college, we were taught the Pareto principle, also called the 80-20 rule which states roughly 80% of effects come from only 20% of causes. Hence we were told to focus on this 20% of causes. In Tax terms, I am pretty sure at-least 80% of tax revenues comes from the 20% High Income sector, whereas just 20% comes from the large salaried middle class. In your case you have foolishly gone after the 80% of the tax payers, who contribute a pittance to tax revenues. This will only lead to lower compliance and shrinking tax base, setting us back even more. I hope you reconsider this absurd decision.

– A Tax Payer and Chartered Accountant

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

Gauravhttp://bwoyblunder.co.in/
co-founder, OpIndia.com

Related Articles

Trending now

Pakistan fumes over reports of Saudi denying permission for ‘Kashmir Black Day’ program after it voted against it at FATF

After certain media reports suggested that Saudi Arabia had voted against Pakistan at the FATF plenary keeping it in grey list, the Arab nation has now reportedly denied Pakistan permission to hold 'Kashmir Black Day' on 27th October.

Faisal Khan says he wants to come out of brother Aamir Khan’s shadow who had earlier called him ‘mentally ill’

Faisal Khan said he will have to break out of his superstar brother's shadow and make his own decisions so that people recognise him as an individual

Exclusive: Conversation that shows how Mumbai Police is trying to coerce witness into naming Republic TV in TRP scam

While Hansa Research report and the FIR filed named India Today in TRP scam, in less than 24 hours, Mumbai Police had seemingly made up its mind that Republic TV was the culprit

Param Bir Singh now wants details of every purchase and expense made by Republic TV, even microphones, toilet papers, makeup and stationery

"This an overt attempt to harass a news organisation, infringe on its operations and bring back the Emergency-era way of functioning," Republic TV stated.

Bihar’s ‘lantern’ era has ended, those who made the state ‘Bimaru’ can not come back to power: PM Modi in Sasaram

PM Narendra Modi addressed his first election rally at Biada Maidan in Sasaram days before Bihar polls.

Legendary cricketer Kapil Dev suffers heart attack, admitted to Delhi hospital

Kapil Dev undergoes angioplasty surgery in Delhi after suffering a heart attack

Recently Popular

‘He supplies drugs and girls’: Estranged wife of Mahesh Bhatt’s nephew Luviena Lodh alleges harassment by nephew-uncle duo

Luviena Lodh said that Mahesh Bhatt is the don of the industry, and he controls everything that goes on in the film industry

Exclusive: Conversation that shows how Mumbai Police is trying to coerce witness into naming Republic TV in TRP scam

While Hansa Research report and the FIR filed named India Today in TRP scam, in less than 24 hours, Mumbai Police had seemingly made up its mind that Republic TV was the culprit

France: Charlie Hebdo cartoons projected on government building to express solidarity with deceased teacher who was beheaded by Islamic terrorist

Days after the barbaric beheading of teacher Samuel Paty on the streets of Paris by a terrorist for showing the cartoons of Prophet Mohammad to his students, support continues to pour in for the deceased teacher.

‘Jism ki garmi’: How Hindi film industry disregarded consent and normalised rape and molestation over the years

The Hindi film industry has, knowingly or unknowingly, convinced a generation of people that rape is normal when done in light of 'greater good'.

Lucknow: Jama Mazar caretaker ‘Kale Baba’ caught running sex racket, video goes viral

The caretaker has allegedly confessed to police that he was sexually exploiting women and engaging them in illicit activities in the name of curing infertility and other ailments.

Complaints filed against Eros Now and Arré for vulgar social media posts related to Navratri

Both Eros Now and Arre had published social media posts linking Navratri festival with sex and vulgarity
- Advertisement -

Pakistan fumes over reports of Saudi denying permission for ‘Kashmir Black Day’ program after it voted against it at FATF

After certain media reports suggested that Saudi Arabia had voted against Pakistan at the FATF plenary keeping it in grey list, the Arab nation has now reportedly denied Pakistan permission to hold 'Kashmir Black Day' on 27th October.

ED summons Punjab CM Captain Amarinder Singh’s son Raninder Singh in FEMA violation case

Amarinder Singh’s son Raninder Singh summoned by ED in relation to a trust named Jacaranda Trust & subsidiaries in British Virgin Islands

Delhi: Already married twice, e-rickshaw driver Dilbar Qureshi poses as Rahul to trap 13-year-old Hindu girl, calls the second wife his sister to deceive...

Dildar Qureshi elopes with minor Hindu girl in Delhi after introducing himself as Rahul, police launches a manhunt

OpIndia exclusive report vindicated: Bombay HC directs India Today to deposit Rs 5 lakh fine imposed by BARC for viewership data malpractice

OpIndia was the first to expose the matter regarding the show-cause notice being sent to India Today by BARC in April this year

‘He supplies drugs and girls’: Estranged wife of Mahesh Bhatt’s nephew Luviena Lodh alleges harassment by nephew-uncle duo

Luviena Lodh said that Mahesh Bhatt is the don of the industry, and he controls everything that goes on in the film industry

Mumbai Police registers FIR against the entire editorial team of Republic TV alleging incitement of disaffection among Mumbai police and defamation

FIR filed against the entire editorial team of the Republic TV for allegedly citing Hansa Research's report on the TRP scam case

Dalit woman gang-raped in Jalore in Rajasthan, victim files case after the accused circulate a video of the act

The victim had reportedly taken her goats for grazing when she was gang-raped by three persons in Jalore in Rajasthan 4 months ago

Tamil Nadu: Chidambaram MP Thol Thirumavalavan says Sanatana Dharma treats women as ‘sex workers’

"Women are basically created as prostitutes by God. All women are prostitutes as per Hindu Dharma, Manu Dharma. All women are prostitutes. This is what the Sanatana Dharma says", said the MP.

139 villages in Gujarat set an example in preventing Coronavirus before the world with not a single positive case recorded so far

The people in these villages have been strictly following the Coronavirus guidelines by wearing masks and following social distancing.

Kashmir: Two terrorists, Abid and Mehraj, surrender before the Indian army after the intervention of parents

When the presence of terrorists was confirmed, security forces called their parents to convince them to surrender

Connect with us

245,563FansLike
467,330FollowersFollow
19,100SubscribersSubscribe