Each year, the Union Budget is presented and individuals expect some drastic measures be taken on the Income Tax front. Each year, there is some marginal benefit doled out to the citizens, but nothing drastic happens. My argument is, why collect Personal Income Tax – a form of Direct Tax Collection by the Government?
I am not against other forms of direct tax collection like TDS, FBT, etc. but to charge tax on personal income tax is not right. The amount of work, time, money and resources that go into preparing of income tax statements, paying the same and collecting the same is according to me much more than the collected tax! While counting the total amount of resources people forget things like the fuel costs, the paper / tax statement preparation time and so on.
I think most individuals would agree, that the Government needs to phase out Personal Income Tax and give individuals some extra money to spend.
Do share your thoughts in this matter.