Independence Day Special: Freedom From Tax Terrorism Need Of An Hour

Most of the people falsely claims that earlier there were complaints and terms like “tax terrorism” which were common. Today, however, the country is moving towards tax transparency. This change has come because the country is now moving forward with the vision of reform, performance, and transformation. There are reforms in rules and processes, in which a lot of help from technology has been taken. However, there is nothing solved till today.

1. Tax Deducted Without Permission Of A Payer

In India, salaried taxpayers have no choice but just to pay tax as it is taken away at the source itself (TDS), however when it comes to businessmen they are left at their will and the scrutiny is a choice of the department.

2. Govt. Open Support To Tax Terrorism: Electoral Bonds

Yet another recent scam was related to electoral bonds which were used by giant companies as bribes to get contracts, to protect themselves from the Enforcement Directorate (ED) and the CBI and to save themselves from drug regulators. Rs 5,000-crore worth of electoral bonds were issued, resulting in the sanctioning of contracts worth Rs 5 lakh-crore. The bonds worth Rs 2,500 crore were provided by companies that were subjected to raids by the CBI, ED, or the Income Tax department. Curiously, investigations into these companies abruptly ceased following the issuance of the bonds. Tax terrorism has been openly supported by the government and the middle class man has just got to read the news with a feeling of being cheated.

3. Double Taxation

Double taxation is no less than a terrorism. A middle person has to pay a tax on the salary received as per the income tax slab rate, which is a direct tax. Subsequently, from a very basic necessity to a luxury again a citizen has to pay indirect taxes like GST, etc. After getting a tax deducted on the citizen’s actual income again a tax is deducted when he goes to a market for buying grocery, availing restaurant services, buying medicines, even this vicious circle of taxation has not even left the premiums of insurance policies.

4. Allowing Incentives And Tax benefits to big businesses at the cost of salaried class

The government has offered a gamut of opportunities for saving tax for the business class at the cost of salaried class.