Indian Finance Minister Honorable Arun Jaitley is going to present his 4th budget on 2nd Feb 2017. It's everyone expectation that Mr.Arun Jaitley will come out with many benefits for masses to win over their heart to negate the negative mindset post demonetization and to ensure that Budget 2017 can be used as brownies during upcoming election in five states. As per the analyst and report, Finance Minister Mr.Arun Jaitley will increase the exception level to reduced tax slab. He will come out big to promote cashless transaction to increase the indirect tax collection. It is also expected that he will increase the duration in order to avail long term capital gains. Lower housing loan to gain the support of masses.
After reading the above, everyone will think that the upcoming budget is going to increase the take home and it will help all of us to save some money. We should not neglect that Government of India is trying to implement Goods and Service Tax (GST) to remove the bottleneck of seamless business process. It is expected that Finance Minister will increase service tax again to fill the loss of revenue due to mass oriented budget.
In my point of view, Indian Taxpayer's are paying maximum taxes without having any facilities. In my point of view, if I already paid taxes then why I am supposed to pay service tax for eating outside, flight ticket and bunch of other service. If I fall in 30% slab and paid it to government then I am effectively paying 46% plus cess tax to government in the form of direct and indirect taxes. As finance minister is concerned that only 39 million file income tax and government want to increase it and it can be increased only if government come out with disruptive mechanism.
Current government is master of using or reusing digital medium and already developed infrastructure which connects the disconnected dots. Government should offer Taxpayer relaxation of paying service tax whereas should put high service tax on non Taxpayer community. If one is not paying taxes but frequent in eating outside or travel frequently will get the message and will be paying direct taxes in the form of indirect taxes.
In the current form of scheme which is going to presented on 2nd Feb 2017 is not going to offer any monetary relief. In case reader agree or disagree, they are most welcome to comment.
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