Direct Tax code Some required rationale reforms

Direct Tax code Some required rationale reforms

A/ Under the I.T Act No benefit is granted in case of coaching fee paid for the personal coaching. As it is not considered education fee levied by institution.
It is well accepted belief now a days that right from K.G to Gate, GMAT competitive exam or for Net OR CIVIL services EXAM TOO. CANDIDATES./ Students are attending coaching classes with huge fee.
If the same is granted for eligible deduction than obviously unaccounted money of thousands of coaching classes will be taxable too in the form of service as well as income tax. This issue needs to be addressed ./
B/ Other issue is Salaried class was given standard deduction previously, But now that has been scrapped. After all to the salary class also they have to spend money for communication. Perquisite given & exempted in this regard may not be sufficient , They have to spend more. Their counterpart taxpayer professional persons are getting exemption as expenditure incurred for profession, or business man in the name of business income expenditure like Office car maintenance, repairing, depreciation to furniture or purchase of furniture & fixture for profession or business, electricity & telephone or mobile bill payment etc. While salary class eventhogh using their personal computer, laptop or phones, many a times using own electricity for office work by officers etc are not considered for any kind of deduction This kind of discrimination should be resolved
Even if thought in broad sense if some of the expenditure narrated above salary class should also be benefited.
c/ Another issue is Government has never thought of bringing more & more earning person under tax net rather than increasing tax slab.
To cover more & more earners under the tax net Government may declare a scheme that whoever produces maximum bank transaction purchase along with Pan Number of seller or dealer should be rewarded some % of tax likely to be covered from such purchase from pan card holder subject to purchaser's total net tax liability.
Under the scheme many objectives may be fulfilled.
1/ Maximum transactions in white money can be encouraged.
2/ Menace of black money can be curbed substantially.
3/Purchaser's purchasing capacity can be assessed on the basis of his declared known source of income.
4/ Unorganized sector remaining out of tax net can be covered.
5/ More & more people will have tendency to avail the scheme thus it may result in good incentive toward increasing direct as well as indirect tax net in the long run.

d/ Under existing I.T provisions there is no provision in the case if any body doing security transaction him self / herself without taking assistance or services of broker. To allow deduction for the internet expenditure, computer or lap top, & other in fractures. While broker is getting all this as deduction as business income But if any salaried person or other than broker any businessman is doing security trading from own computer net work with internet facility he should also be allowed all these deduction before deducting short term Or long term capital gain Else tendency to tax evasion may be develop among them . After all they have to incur expenditure in that regard than only they can earn some thing . If it is not allowed it will not be rationale policy.
This is the era of E. Governance More & more people in the time to come may be prompted towards this If rational policy will be there they may declare on their own Other wise only I.T. department or government machinery is not sufficient alone to trace it out or investigate & book them .Even there the chances of corruption can not be rule out. So More citizen friendly & citizen participative measures should be adopted.



Hirnesh Bhavsar