This
blog is a real world that a genuine taxpayer of the country faces. No matter
the health issues, no matter the availability of support, an individual who is
either neck deep into running a successful business or is an agile/ailing
human, who pays his tax in time duly and effectively has nothing to cherish.
Except the only happiness is that, this taxpayer is paying for the protection
of his country. I personally am paying taxes as part of it, is being
distributed to defense sector.
The
defense budget for 2024–2025 in India is Rs 6,21,940.85 crores, which is about
4.78% higher than the 2023–2024 budget estimate. This is the largest allocation
of any ministry and accounts for 13% of the central government's total
expenditure.
No
doubt tax is required to be collected for road, railways, government hospitals
etc. It is definitely for the welfare of the public at large. But with this comes
an excessive burden on the socio-economic factors. We are also a good country
since the tax rates are quiet low compared to the developed world. We should be
happy that we are not restricted economy. We can be called a developing
country. It is highly uneven and here are the reasons:
1. Seniors
of our country
Today
you will barely find a senior citizen (person above age of 60) who will not
require medical support. Whether he is well off or not, depending on his
financial condition he will go to the like doctors or hospitals. If he can
afford a posh hospital, he will go to such a place or else any cheaper medical
facility like a clinic of some start up or not a well-recognized doctor. The
point is that income does get reduced with the sky rocketing prices of medical
facilities and doctor fees. There is nothing wrong about it, but is the
Government allowing any higher deduction than petty Rs. 2000 u/s 80D of the
Act? Why can a senior citizen paying for his own cost (unlike foreign countries
where seniors are taken care of by their governments) claim the expenses for
their support staff specially those who are physically challenged?
The
Act, allow deduction of Rs. 1.75L u/s 80DDB. For which a certificate and a form
needs to be filed before e filing the ITR.
2. Lesser
the taxpayers, higher the dependents
From
100 crore Indians, including the non-residents who stay abroad, 3 crore returns
are filed in India. Present date records shows that some 7.08 crore returns
were filed by 31st July 2024. Each year PIB publishes the data on
the comparison. What is the success and joy all about? A compliance which is
required to be made only to report an income against which most of the expenses
are not allowed, which should be & also, multi faced reporting where a
person has to disclose foreign incomes and foreign assets, GST and on top of
that Tax Auditor has to report the taxpayer’s compliance not only under GST,
PT, TDS but also any other law for time being in force.
From
AY 24-25, the taxpayer also needs to report any expenses being claimed as
business expense which is paid towards offence or which is prohibited by law
outside India as well. So much is the policing that citizens run away from
filing returns and try to escape.
Extract
of PIB released on 2nd August, 2024
“The
filing of ITRs peaked on 31st July, 2024 (due date for salaried taxpayers and
other non-tax audit cases) with over 69.92 lakh ITRs being filed on a single
day i.e. on 31st July, 2024. The e-filing portal also observed its highest per
hour rate of 5.07 lakh of ITR filing between 07:00 pm to 08:00 pm on
31.07.2024. The highest per second rate of ITR filing was 917 (17.07.2024,
08:13:54 am) and highest per minute rate of ITR filing was 9,367 (31.07.2024,
08:08 pm).”
Is
this an information! Or just a silly data which has nothing to do with any
outcome and success.
The
above construes that the family members will not do anything, and the financial
burden will be that of man of the family, perhaps father. Hence, I connote that
the highest taxpayers like Shah Rukh Khan who pays Rs. 92Cr as Annual Income
Tax, is the father of the nation!!!
3. Salary
Class and the Professionals
Salaries
class get refund. Pay low taxes and get away. What's there for professionals
and businesses. Most deductions and slab rates are helpful for those earning
only salaries.
The
ones who grow the market, the so-called investors and the GDP of the country
are taxed on even buy back as dividend now. The cost of those shares cannot be
even considered as loss and set off if no capital gains for next 8 years. It
shall lapse.
TDS
gets deducted for the salaried class, but those into business and profession
have to pay advance tax. In case of short fall, interest is charged - 3
different kinds u/s 234A/B and C. Why can’t the finance minister keep a single
interest rate for such a default and that too at the time of filing the ITR and
perhaps higher if she feels it is too less presently, possibly 18% p.a. instead
of 12%.
4. Interest
on Refund – Lower when Govt has to pay us
A
mere 0.5% interest per month when the government has to pay tax refund. The
refund which is paid as per their free will. No time limits are followed
specially when they try to set off and top up their treasury u/s 245 of the
Act. A complete uneven and unbalanced approach.
When
the govt wants to recover, we are only given 30 days to revert/ or pay. Still
receive notices u/s 245. This is just too much. A harassment.
5. No
time limit for CIT Appeals and effect
Why
should the appellant wait endlessly and send reminders to the Appellate
Authorities to their jobs. Why can’t the system remind them to close the
appeals and complete the orders. Why are only taxpayers receiving messages,
emails and endless communications. Isn’t it bizarre?
Once
the orders are passed, a copy of it goes to the Departmental Tax officer and
the Appellant, why should the taxpayer (appellant) follow up for getting the
effect of CIT appeal done against the original assessment order.
Ridiculous!
6. Exempt
if Govt doesn’t understand
If
government doesn’t understand how to tax, they will exempt the income or purely
put at MMR or 30% tax. There is no middle way. They cannot image anything in
the slab rate. Why have two regimes.
Conclusion:
CAs
are ridiculed by the PM in a ground full of 1000s of citizens on 1st
July, ICAI Founding DAY! And the janta (general public) is expected to applaud.
And they did! What a shame! They should have shouted shame! shame! and not
clapped.
It
is us who break the most complex law to easeful language. We disclose, present
and represent. We built the submissions and we ensure compliance. So, what if
take fees. Doesn’t the govt get exempt salaries?
Partners
of a CA firm now being applicable to TDS on their remuneration. For what?
How
does it matter if remuneration. How will the firm know profits before the year
end to spend remuneration and fork it out. What is the year end remuneration is
more than Rs. 30,000 and TDS is applicable from the first date of provision or
payment? Who will understand that?
CAs
are the Financial Soldiers of the nation! Your treasuries are full because of
us.
