According to sources most people are reluctant to pay tax in India and the reason behind this is they think that the tax rates are very high, and also that the money they pay in taxes is not properly utilized by the government for the welfare of the people of this country. Even tax experts believe that income tax rates are high in India and the tax compliance will increase if the people are given some incentives in the form of lower taxes.
Sources have stated that in the upcoming budget to be presented on February 1, there are chances that the government will have to bring the passage of these legislation to the centre stage before going into the next general elections. Meanwhile the bigger challenge, however, for the government would be on the taxation front, both indirect and direct taxes.
Accordingly PM Modi and FM Jaitley must grab this
opportunity of establishing a reasonable, clean and easy to operate direct and
indirect tax structures in the next budget, which may ultimately prove to be a
win-win situation in terms of political gains and reforms also. Moreover the
most important area where major changes are needed is direct taxes, and PM Modi
has already hinted at the need to lessen the tax burden here.
