If a serviceman earns Rs.10.0 lacs per year, he has very limited scope to avoid tax payment. He can at best save some money in tax saving schemes and reduce tax liability by at most 20 to 30 thousand rupees. He will have to pay Income tax to the tune of rupees one to two lacs as income tax per year.They cannot avoid tax payment but they can if they like ,earn bribe up to any extent to compensate they lose in tax payment.
But a manufacturing company earning profit of more than one crore per year can avoid tax payment completely by using various tools of tax avoidance suggested by tax officials, tax consultants and Chartered Accountants. In India one may find persons or firms in every town who guide businessmen how to avoid tax payment, who suggest various illegal ways for tax evasion and who works as broker for tax assessing officials and setting bribe sharing rates among tax officials , businessmen and broker himself for passing of IT assessment order from tax offices.
River of black money flaws from houses of these business icons only because they know many ways of tax avoidance and it is they who are master in creation of black money. It is they who keep politicians happy by giving them alms in many ways and it is they who in turn provide safety net to business houses from the clutches of tax officials. They altogether work in nexus with each other.
Similarly there are lacs of such doctors, chartered accountants or property valuers, ,builders , chartered engineer ,cine artists , tax consultants, stock brokers earning more than Rs.10.00 lacs per year but not paying Income tax at all or paying hardly a few thousands of rupees for name sake or for maintaining a Income tax file and keeping himself in the list of tax payees.
A service man earning 3 to 5 lacs rupees per year will have to pay income tax to the tune of 10 to 2o thousand rupees .But in India there are crores of traders who are earning more than ten lac rupees per year but not paying any tax or paying a few hundred rupees as income tax. These small traders and service providers are completely outside the purview of income tax or sales tax officials . They have to give a few thousands of rupees as Baksis (which means bribe) to tax officials from time to time.Tax avoidance is very common and imbibed in the blood of all businessmen.
As long as ministers in particular and politicians in general who are in power are corrupt, illegal money earners and are tax evaders, it will be foolish to expect that these politicians will ever be interested in making of any hard and effective law for completely stopping tax evasion or in ensuring punishment to tax evaders or taking action against black money creators.
As a matter of fact tax evasion and creation of black money and then parking it in banks in fake name or investing in landed property or parking the same at foreign banks is no new thing in India. Really speaking, politicians cannot survive if businessmen start honest payment of all taxes, complete tax compliance and stop all types of tax evasion.
But a manufacturing company earning profit of more than one crore per year can avoid tax payment completely by using various tools of tax avoidance suggested by tax officials, tax consultants and Chartered Accountants. In India one may find persons or firms in every town who guide businessmen how to avoid tax payment, who suggest various illegal ways for tax evasion and who works as broker for tax assessing officials and setting bribe sharing rates among tax officials , businessmen and broker himself for passing of IT assessment order from tax offices.
River of black money flaws from houses of these business icons only because they know many ways of tax avoidance and it is they who are master in creation of black money. It is they who keep politicians happy by giving them alms in many ways and it is they who in turn provide safety net to business houses from the clutches of tax officials. They altogether work in nexus with each other.
Similarly there are lacs of such doctors, chartered accountants or property valuers, ,builders , chartered engineer ,cine artists , tax consultants, stock brokers earning more than Rs.10.00 lacs per year but not paying Income tax at all or paying hardly a few thousands of rupees for name sake or for maintaining a Income tax file and keeping himself in the list of tax payees.
A service man earning 3 to 5 lacs rupees per year will have to pay income tax to the tune of 10 to 2o thousand rupees .But in India there are crores of traders who are earning more than ten lac rupees per year but not paying any tax or paying a few hundred rupees as income tax. These small traders and service providers are completely outside the purview of income tax or sales tax officials . They have to give a few thousands of rupees as Baksis (which means bribe) to tax officials from time to time.Tax avoidance is very common and imbibed in the blood of all businessmen.
As long as ministers in particular and politicians in general who are in power are corrupt, illegal money earners and are tax evaders, it will be foolish to expect that these politicians will ever be interested in making of any hard and effective law for completely stopping tax evasion or in ensuring punishment to tax evaders or taking action against black money creators.
As a matter of fact tax evasion and creation of black money and then parking it in banks in fake name or investing in landed property or parking the same at foreign banks is no new thing in India. Really speaking, politicians cannot survive if businessmen start honest payment of all taxes, complete tax compliance and stop all types of tax evasion.
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