Does india need "Income Tax" reform?

At present we have a very complicated self assessment system which requires us to engage services of so called experts, most of whom are agents for corrupt tax officials. If the whole process is simplified there would definitely be more compliance. Instead of having various exemptions and deductions, if we have a broad deduction from income varying across different slabs, even a child would be able to compute taxable income. At present we have three slabs of taxation, namely, 10%, 20% & 30%, before surcharge. I propose that an assesee first computes his gross total income which should be easy. Thereafter he would know which tax slab he falls into. If he falls in the 10% bracket he would be entitled to reduce his gross taxable income by 30%, for the 20% bracket by 20% and for the 30 % bracket by 10%. Thus he would arrive at his next taxable income and accordingly would pay his tax depending on which bracket his net taxable income falls into. This I think would do away with all the intermediaries and increase compliance to a large extent.

India needs to reform its tax policies on the following accounts:a) Even a Class IV employee is an asses-see now. Its a shame, that the lowest paid government employee is being taxed.The best option would be to index the Tax slabs inflatiion. b) To reduce the large army of clerks and officials, the government can exempt the Class IV and Class III employees both in private and government sectors, the government can collect taxes but exempt them from submitting/filing  tax returns.c) The government may remove all exemptions and simplify tax system,ie. the tax (by 10%) slabs may be lowered in case those with permanent employment and simply perform TDS and eliminate the ritual of filing returns.   d) The government should improve the tax base. Many a people in the unorganized sector earn more than the Group I officer of Government Service. There are many small business people who  The government should employ more field officers to rope them.

First and foremost the problem in India is not about what the government wants to do or what we want to do, the problem lies deep within.Just to shed some light on that note, we Indians are very narrow minded as in we have a very small vision when it comes to everything. What we care about is I,Me and Myself before everything, so when our government does this we have no right to complain. Check this, we as individuals think of saving a mere 2000 or 3000 TDS which is deducted every month and when the parties play vote bank politics we criticize them, that is plain and simple hypocrisy. I being no exception file for a refund and try to take back as much as i can but that is solely because i don't want my money ending up somewhere, where it shouldn't.At least for me if someone can show me proper utilization of my taxes i am more than happy to pay the taxes.Political parties understand the basic fact that feeding parasites( the illiterate crowd) is way more easier than working for a literate crowd as they would expect things from the government and they as a matter of fact understand what the political parties actually do when they come to power.I have always believed that the only solution to all such problems is Education, and by education i don't mean IITs or IAS, but basic elementary and secondary schooling.

Yes it needs a complete overhaul , even the Indian judiciary has ruled against the current tax regime , the government’s own Bombay high court is fed up with it and has passed a statement urging citizens to stop paying any taxes whatsoever.It is required by citizens of India to unite together and stop paying taxes until government stops corruption as suggested by Bombay high court. If enough citizens can come together then surely this is possible and there is absolutely nothing wrong to do so when even the Bombay HC encourages it to do it. Bombay High Court on Tuesday called on citizens to raise voice against "this menace" and "refuse to pay taxes by launching a non-cooperation movement" if the government fails to control it. http://timesofindia.indiatimes.com/city/nagpur/Dont-pay-taxes-if-government-fails-to-curb-corruption-HC/articleshow/50826888.cmsThe problem is that the same taxes that pay for good things government does - roads, police, courts, etc. also pay for bad things government does - wars, putting innocent people in prison , countless violations of people's rights, etc.modern system of forcefully taxing citizens is like extortion, which is against the principles of human rights and their http://welfare.in/ ancient India,there was a system of voluntary donations to meet the common expenditure incurred in running the govt.Great ancient economist and political philosopher, Chanakya has also said,citizenry should not be charged more than 5% of his resources. System of taxation is the gift of European civilation to the world. http://world.it/ was created to replace the forceful practices of loot and plunder,by the powerful and mighty,to legalise the plunder.Therefore,you may call it a legalised loot.Therefore, the system of taxation is the brain child of those robbers who became rulers subsequently.system of forcible taxation at the hands of state breeds dishonesty and corruption which help the ruler to keep its people in oppressed conditions,which serve their political purpose..On the contray,Voluntary donations keep the morale of its subjects high and lofty.One of the reasons why modern society is in the state of huge turmoil and turbulence, is the low moral standard created by system of forcible taxation.In ancient scriptures,there there are instructions and rules laid down for donations also.One of the rules prohibits donations/taxation to undeserving person,entities and organistions.If you go by the exhortations of these scriptures you will find that no govt in the world is morally deserving for any tax.Therefore,tax-evasion is in tune with the instructions of scriptures although it is regarded illegal in the eyes of modern laws.Chanakya has also said, when the rulers follow a luxurious standard of life, welfare of its citizenry would never be safe.This condition would give rise to revolt.We clearly see the sayings of Chanakya coming true.Revolt of diverse nature have already statred all over the world.Also tax evasion is not a crime in the same way as defending against a robbery is also not a crime even though in defence you may end up injuring or even killing the robber.Tax evasion is simply defense against forceful robbery and or extortion by the government.