Its return filing time. With demonetization last year, this year’s returns are crucial for the government in its quest to widen the tax base, increase the tax revenue, and generally drive people to be more honest with the government than they have been in the recent past. How will they do it? Brian Fernandes examines
Only 1.5% (1.9 Crore Individuals) of the Indian Population of 125 Crore pay income tax. Top 0.1% (23932) individuals account for 26% of the tax revenue. The 0.1% declare an income of over Rs: 1 Crore a year, 6.6% declare an income of Rs: 10 Lakhs to 1 Crore and 93.3% declare an income of Rs: 0 to Rs: 10 Lakhs a year.
The value proposition
Statistics show that Tax revenue has increased but the number of Tax payers has fallen. 93% of India is not liable for income tax they are either BPL or Farmers, or those earning less than Rs: 2.5 Lakhs a year and exempt from income tax by law. Also, professionals often declare less than they actually earn, paying a lower rate of income tax.
These statistics indicate 93 percent of the Tax payers are middle class. A middle class family in India in the Metros and tier II cities of India does need in excess of Rs: 50000.00 a month net of taxes to live fairly and put some away for a rainy day, which most families do. Saving for a rainy day is ingrained in them unlike in the west, where living is more day to day. That would boil down to a gross income of a little over 10 lakhs a year which would result in an income tax payout of around 25% overall, given the slabs in place.
The tragedy is that from the net income generated after income tax, families have to pay indirect taxes on almost all goods and services they buy or use (now GST) in the average range of 20 Percent - from soap to Life insurance premiums, from hospital bills to telephone bills and everything in between.
Thus the total incidence of tax on a middle class family in the range of 50 to 55% of his income. Incidentally even as the Central Government is promoting a cashless transaction culture post demonetization, sadly it has taxed those cashless transactions too.
Denne historien er fra August 2017-utgaven av Karnataka Today.
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Denne historien er fra August 2017-utgaven av Karnataka Today.
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Fish Vends - No Longer A Fishy Tale
New vends are redefining the way fish is sold in the fish loving city of Mangaluru. M Raghuram tell us more
Karnataka Gets Its First Chess Grand Master!
“It has taken me longer than I expected to secure the Grand Master rating mainly due to a lack of permanent sponsorship”, Karnataka’s first Chess Grand Master told R. Uday Kumar during a wide ranging chat in which he discussed his motivation, and displayed his determination to win more laurels for the state.
Travel. Be A Great Leader- Here's How!
Travel is delightful. It relaxes, enriches the eye and the soul, and generally reinvigorates. That is something we all know. But it also provides us with invaluable business leadership skills, says Deepshikha Dhankhar
Mahindra KUV100 NXT A New Ride For The Millennial
The facelifted Mahindra KUV100 has officially gone on sale in India. The refreshed model comes with about 40 new updates and features which is why the company has rechristened it ‘KUV100 NXT’. Karthick Annamalai examines the claim.
The Bald Truth of hair transplant clinics
They are everywhere, like hair on a full head of hair! In newspapers. On websites. In advertisements, on banners and hoardings. Or, right around the corner where you live. Hair transplantation clinics with before-andafter photographs are everywhere! They nail the lie that bald is beautiful! It’s the bald and balding that rush in to these clinics where angels fear to tread! But is it safe? Is your life at risk when you undergo this procedure? Raina Paul finds out.
My work is my business card, says Ramesh Aravind
The USP of Ramesh Aravind is his gregariousness, humility and humbleness. Affectionately called as a Kannada Kamal Hasan by his friends and well-wishers, Ramesh has reached the coveted mile stone of acting in a century of films in 25 years. The specialty of Ramesh Aravind is his immunity to any controversy or gossip in Sandalwood. He considers his journey that began 25 years ago as a beautiful and wonderful journey. He has played a variety of roles and taken up a variety of responsibilities in the film industry - acting, directing, script-writing and anchoring. He shares his sweet memories and the journey with Y Maheswara Reddy.
The Cauvery dilemma
Both north and south Karnataka are in a tizzy over water. North Karnataka over the utilisation of waters of the Mahadayi River (see article on Page 24) and South Karnataka over the utilization of the Cauvery River. This is probably the result of a skewed discourse which is framed by the limited terms of water availability. It’s an I win you lose kind of discourse - water allocated to one state is the loss of another, and the water that reaches the sea is a waste. Is there a way to deal with these disputes other than the legal? Prabhu Mallikarjunan traces the history and outcome of the dispute and puts forth the farmer’s perspective.
In contempt of the People's Court
Can the Government of the people, by the people and more importantly for the people, ignore the voice of the people in a democracy is the moot question this article throws up. Public consultation is important and there will always be dissenting voices. But when they are overwhelming, is the government justified in unilaterally overruling public sentiment?
Playing the Piano Is Like Breathing for Me: Rhys Concessao
Rhys Concessao is a musical prodigy. At the age of 12, he is already a performer on the world’s best stages, from the prestigious Carnegie Hall in New York City to the Queen Elizabeth Hall in London and is the winner of multiple awards including the Most Distinguished Pianist Award and the Young Talent Encouragement award. He is also the Music Ambassador for the Lang Lang International Music Foundation, a very prestigious foundation in the musical world. Karnataka is proud of his achievements as his roots are in Mangaluru on the western coast of Karnataka. Here is Rhys answering a few questions for our readers about his musical journey put to him by Karnataka Today’s Allwyn Mascarenhas.
Robin Mathews : Samajwadi Party candidates will enter Karnataka Vidhana Soudha in 2018
The party of Mulayam Singh Yadav, the strong man of Uttar Pradesh, Samajwadi Party (SP) made its debut in Karnataka bagging one seat in the Assembly elections held in 2013. Robin Mathews heads the party in Karnataka and is hopeful of strengthening its base in the run up to the state’s assembly elections in 2018. He spoke to Y Maheswara Reddy about the state of the party and his plans to the make it the party of the state!
