3.1

 Direct Taxation

3.1.1

 Basic exemption to individuals up to Rs. 1,20,000/-.

3.1.2

Individuals to pay tax @ 7.5 % of taxable income.

3.1.3

All others to pay @ 15% of taxable income or 1.25% of their gross turnover / receipts whichever is more irrespective of profit or loss.

3.1.4

Accounting Year should be calendar year.

3.1.5

Payment of advance tax should be made on half yearly basis 30th June & 31st December.

3.1.6

Income to be taxed only on cash basis & not on accrual basis.

3.1.7

Expenses to be allowed only on cash basis.

3.1.8

Individuals will not be allowed any other deduction.

3.1.9

Only direct business expenditure should be allowed to set off while calculating business profit.

3.1.10

 Depreciation on all assets to be calculated @ 15% on Written Down Value basis.

3.1.11

No Carry Forward / Set Off of losses for anyone.

3.1.12

Where in a business foreign ownership is more than 50 %, tax rate will be 30% of taxable income.

3.1.13

All tax returns to be filed on or before 31st May.

3.1.14

All first assessments should be completed by 30th April.

3.1.15

Returns to carry a statement of income, assets & liabilities.

3.1.16

Department scrutiny by random picking of 10% returns.

3.1.17

0.5% selection for scrutiny by the department.

3.1.18

All returns to be certified by Chartered Accountants. They should not only draft the returns but also verify the facts in all cases.

3.1.19

Scrutiny should be conducted on the basis of standardised questionnaire valid for the entire country. Questionnaire should be skillfully drafted so that all facts are crosschecked in questionnaire itself automatically.

3.1.20

All first assessment orders to be signed by (3) Joint Commissioner Income Tax, Assessing Officer and an Inspector.

3.1.21

Assessee can make only one appeal against the order of the department to an Appellate Authority (Bench of 11 Judges). Order of Appellate Authority will be final and no further appeals should be permitted. Appellate Tribunals to be setup in reasonable numbers. Judges should represent I. T. Department, Chartered Accountants, Legal Professionals, Govt. Representatives etc. All appellate appeals should be settled in maximum three hearings or a period of six months from the filing of the appeal.

3.1.22

Incase of default / delay in payment of tax on time assesses should be charged interest @ 18%.

3.1.23

In case, Assessing Officer or the Appellate Authority discovers willful negligence or intentional tax theft, assessee should be subject to minimum 1 day imprisonment, which can exceed to 16 years depending on the seriousness and level of offence.

3.1.24

Chartered Accountant certifying Returns / Balance Sheet should pay a fine of Rs. 5000/- for incorrect certifications.

3.1.25

If more than five clients of a Chartered Accountant are prosecuted in a block of five years, he should surrender licence to practice.

3.1.26

All public servants should declare their family assets as on 31st December every year. A Separate authority to be created to check these statements.

3.1.27

Farmers earning agricultural income in excess of Rs. 2,00,000 or holding more than 40 acres of land should be subject to tax.

3.1.28

All non-individuals to deduct 5% TDS from payments like salaries, interest, rent, winnings, dividends etc.

3.1.29

Any individual living in the country for less than 180 days in a calendar year should be treated as Non-Resident Indians. All others are Residents.

3.1.30

All Indian income of Non Residents to be taxed at 7.5%.

3.1.31

Income earned by foreign citizens outside India not to be taxed in India irrespective of the duration of their stay in India.

3.1.32

Capital gains should be taxed like any other income. Capital gain to be calculated on the basis of net sale price less net purchase price. If the asset sold, was not purchased by the seller, the entire sale price to be treated as income.

3.1.33

Dividend income to be taxed as any other income.

3.1.34

Non-filing / Late filing of returns to attract minimum fine of Rs. 1500/- or 25% of tax and interest due whichever is more.

3.1.35

All kinds donations to be allowed as business expenditure subject to maximum 5% of the taxable income.

3.1.36

All money gifts to be treated as normal income except received from blood relations of first or second level. All marriage gifts to be taxed as normal income irrespective of donor. Gifts in kind in excess of Rs. 40,000/- to be taxed as normal income.

3.1.37

Wealth tax to be charged at 2.5% of net wealth in excess of Rs. 10,00,000/-. The wealth means only Gold, Silver and Cash. Rests are all exempted assets. The logic behind taxation of wealth should be discouraging people from keeping their resources idle.

3.1.38

Estate duty should be charged @1% on net wealth in excess of Rs. 25,00,000 inherited by a person.

3.1.39

Raids & Surveys should only be undertaken in unavoidable circumstances with the specific permission of Chief Commissioners & Chairman CBDT. Officers recommending raid proposals should be accountable. Details of raids conducted and their results should be placed in the Parliament.

3.1.40

Anyone in possession of any currency in excess of Rs. 10,00,000 without proper explanation should also be subject of police action.

3.1.41

One person should be allowed to open maximum two bank accounts in one city.

3.2

Other Taxes

3.2.1

 Excise duty be charged @ 8% of the turnover of a manufacturing concern where annual sale is in excess of Rs. 25,00,000. No exceptions & exemptions.

3.2.2

MODVAT credit to be allowed.

3.2.3

Provisions regarding assessment, interest, appeal, etc. can be common with direct taxes.

3.2.4

Service tax should be abolished as it amount to multiple taxation.

4.

General Provisions

4.1

Cheque Bouncing should be treated as a criminal offence. Punishment u/s 138 is not sufficient. More strict & enforceable law required.

4.2

Individual loan defaulters and all directors of defaulting companies should be blacklisted and their names be published on 1st January every year in the national newspapers. Passport of all such persons should be cancelled. No further loans to be granted. Action under any other law also possible. Withdrawal of voting right etc.

4.3

A special status should be given to all citizens who have achieved exceptional success in their business or profession. The criteria of selection could be anyone of the following:

4.3.1

 Chairman of the company employing more than 5,000 persons.

4.3.2

Capital employment of more than 2,500 cr.

4.3.3

Corporate income tax contribution of more than 100 cr.

4.3.4

Corporate excise duty / customs payment of more than 200 cr.

4.3.5

Individual tax contribution of more than 10 cr.

4.3.6

Corporate Exporting more than 2,000 cr.

4.3.7

Imports more than 5,000 cr.

4.3.8

Turnover more than 10,000 cr.

4.4

Special status scheme should provide for:

4.4.1

Business award by the President

4.4.2

Diplomat Status for the Chairman of such corporates

4.4.3

Free Personal Security by state

4.4.4

Central Cabinet Member Status

4.4.5

Red Light Vehicle.

4.4.6

Etc.