Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday, 30 September 2019

Not a day too soon !




In fact, late by 5 years  !



Context :



Highlights :

The government is considering rationalising personal income tax rates in a move that will result in the increase of disposable incomes, especially among the middle class, and hopefully drive consumption and, therefore, growth

Depending on the impact the decision could have on revenue, various scenarios are being considered, the officials added.

But the idea is to giveat least a 5 percentage point benefit to every taxpayer

One of the options is to introduce a 10% slab for people having taxable income between Rs 5 lakh and Rs 10 lakh.

Currently, this slab attracts a 20% tax rate.

There are also options to remove cess, surcharge and several tax exemptions and reduce tax rate of the highest slab from  30%  to  25%,  

Currently, taxable income between Rs 3 lakh and Rs 5 lakh attracts a 5% rate.

A 20% tax is levied on the second slab (Rs 5-10 lakh taxable income) and 30% tax on income above Rs 10 lakh.

Income up to Rs 2.5 lakh is, however, tax free


====================================================


Why 5 years too late ?


Following is an extract from my 5 year old email to the Cabinet Ministers :


Immediately modify  PERSONAL INCOME TAX  regime as shown in last column below :


   
 Tax Slab ( Rs L )
2019 Tax Rate ( % )
Now being considered
Proposed in my 2014 E Mail below

Upto 2.5
Nil
-
Nil

2.5 – 5.0
5
NIL ( ? )
Nil

5  -  10
20
10 %
8 %

10 - 20 
30
25 %
6 %

20 – 50
30
25 %
5 %


50 – 100  
30
25 %
3 %

Ø  100
30
25 %
1 %


  
   

For justification for this INVERSE TAX REGIME , read :

        Don't Ask " How " ?             /  07  April  2014  ]




Without doubt, cutting down on tax rates will :

Ø  increase of disposable incomes

Ø  drive consumption and, therefore, growth



To know who will spend this “ Consumer  Surplus “ on what kind of “ Consumption “ , and how will this boost the Economy, read :



What would they do ?                  [ 03  May  2016 ]



Proposed tax cuts might  – temporarily -  increase online sale of Amazon / Flipkart etc by  $ 10 billion over the forthcoming Diwali holidays


But these cuts are unlikely to set into motion, that VIRTUOUS CIRCLE which alone can take India to a $ 5 Trillion GDP by 2024

What will ?

Better late than Never           [  20 Sept 2019 ]


Listen to the Lone Voice !       [ 28 Sept 2019 ]


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01     Oct  2019
     Rsvp :  hcp@RecruitGuru.com




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