No more burden of Personal Income Tax - an anticipation before Finance Budget 2018

This is the time when everyone is eagerly waiting for the Finance Budget 2018, and also making their own anticipation about the budget.  The time when the economy is in boost mode, it is going to put a lot of FM Arun Jaitley and his team to design a well balanced budget to maintain the economy’s boost. Impact on you

pressure on the

While there are a lot of anticipations, the most hot topic is whether the Government is going to abolish personal Income Tax.

In India out of 1.30 Billion people, there are barely 2% taxpayers. In a country where we can easily find luxury cars on the roads, people spending huge on luxurious homes, holiday destinations, it is hard to digest that their income is below the minimum taxable limit i.e. Rs 2,50,000.

                www.incometaxindia.gov.in

The data is speaking itself that India is "Tax Non Compliant" country, and this was mentioned correctly by the current FM Arun Jaitely earlier. And so the FM suggests to abolish tax on personal income and rather levy taxes on expenditure.

Many economists, including ruling party leader, Subramanian Swamy argue that abolishing the income tax will make the

cash white, and unnecessary holding of assets like gold and real estate property will go down.
Also it is going to boost the economy as people would either start spending or investing money instead of hiding the money from authorities. Consequently the cash will flow into the economy, which will accelerate the economic growth.


Let us know which are the other countries in the world which do not levy income tax on their citizens. There are a few such countries which are countable on fingers.

These countries are namely, Qatar, Kuwait, Bermuda Oman, Saudi Arabia, , Cayman Island, Bahamas, UAE, Bahrain, and Monaco. Out of these 10 countries, six are oil-rich countries, and earn a majority of revenues from oil trading. The other four countries are island nations.


Although this would be a revolutionary step if taken, but it does not seem feasible to do so at the moment. As the economy has already gone through major reforms of GST and Demonetisation, it would definitely be a tough call for the government to make.


It is very much evident that the ruling party is going to make all the effort to curb black money and fulfill its 2014 election promise

to the people of the nation. The common is going to have not mere "Achhe din" but “Behtar din”.
Now, this all is going to be clear on 1st February,2018 that whether the nation is going to witness another major reform. Hope the FM introduce a budget for all.


Please comment your opinion on this expected move of Government.

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