Rationalisation of new tax code

New tax code


Some what is heard from media about new tax code wherein all withdrawal is to be going to make taxable. Housing loan & other investment incentives are going to be withdrawn etc.
But before bringing such code we should think of present scenario.
If government wants to generate more & more tax more & more expenditure incurred on appropriate business, service, professional incidental should be allowed. Thus more money in to economy, circulation of money will keep the economy healthy too, giving impetus to the industry too. If all withdrawal kept taxable it may affect long turn saving rate also which is not good for banking sector as well as society & government as as a whole.
If long term gain or short term gain kept reinvested it should be exempted until rotated in particular financial year.
This kind of strategy may prevent corruptive practices also. E.g. If thought education which very expensive now a days, if expenditure on it is not allowed fully reimbursed certainly government & public servant will resort to corruption., while business & service, Professional community to black money.
Thus we must keep in mind all these factors at the time of bringing new code so as to incorporate all these in to it.