Income Tax rates in India are too high. The tax rates are around 30%. Whatever profits one make, 30% of that will go to income tax department.
Dont we think the rates are very high and demotivate to earn high incomes?
The high rates can be held as responsible for generation of black money. People do all wrong things to save money.
If the tax rates are low, people will invest more money in the system and economy will boom.
Posted 3 years, 1 month ago by Rahul Rai
The reasons for high income tax rates are high are:
I have written the possible reason. You can choose one that suites your needs.
Posted 3 years, 1 month ago by Bada Mouth
India is growing at a good speed. To fund the growth, government need money.
The money comes from taxes, either by Indirect taxes or Direct Taxes.
Income tax is direct tax and so the heat can be felt. In reality we pay more taxes than just income taxes.
You buy any thing, we end up paying Excise and VAT on that.
Whatever extra is left with public, government takes the share.
Rates are high, but government does have rules to manage the taxes. One need to plan the taxes at begining of year rather than end of the year.
Compared to other countries, tax rates are higher. I sincerly believe that rates should be reduced to motivate people to pump more money in system.
For example, almost in all cases the true value of land transaction are never disclosed. Reason, too high tax.
If government reduce the tax, the entire money will be disclosed and this money will flow in system.
Today people dont buy flats or cars, even if they have money. Reason is they have undisclosed money. The moment they buy anything, tax department starts investigating.
Posted 3 years, 1 month ago by CA Pulkit Sharma
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