Does TAX tax IT people ?

**ssanjinika** · 20th April 2006, 07:34 PM

Really???

Does the IT Sector really pay more tax.I didnt know that!! When I was working in India I dont remember paying any extra tax.

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**Arthi** · 20th April 2006, 07:46 PM

Originally Posted by scorpio

BG- What type of 'realities' you'd like to address? Whatever we earn is 'white' and tax is deducted appropriately.

India is not the only country where income is taxed. More developed nations than us do have a similar tax structure. It hurts us most because our earnings are very transparent

Same here we cann't hide anything. I heard those who are working in MNC in India... their salary is very transperent they cann't hide anything. Whatever allowances they are getting it is shown in their salary slip also.. so they cann't hide anything from goverment.

**great** · 20th April 2006, 08:21 PM

Originally Posted by Arthi

Originally Posted by scorpio

BG- What type of 'realities' you'd like to address? Whatever we earn is 'white' and tax is deducted appropriately.

India is not the only country where income is taxed. More developed nations than us do have a similar tax structure. It hurts us most because our earnings are very transparent

Same here we cann't hide anything. I heard those who are working in MNC in India... their salary is very transperent they cann't hide anything. Whatever allowances they are getting it is shown in their salary slip also.. so they cann't hide anything from goverment.

Not for all employees for middle and lower level staff its like that

it might not be the case top level management. All the increment will be on variable only BPO`s hike the salary only on the varaible component not on the BASIC

**Fire111999** · 20th April 2006, 08:23 PM

this thread is going from tax to black money!

**rajraj** · 20th April 2006, 08:46 PM

Originally Posted by bingleguy

A major part of our money that we earn after a tiresome month ... goes to the IT ... Are we IT ians really concerned whether this money is really been used ? or does it go to someone elses pocket !

bingle: The tax rates are same for everyone. If you make more you pay more. People in IT sector make more than people in other areas like education, government etc. It is called telescopic rate. People at the bottom pay less or nothing.
The tax you pay goes for funding the army, air force,navy,educational institutions, road building etc. There may be waste. I don't think there is any pilfering of tax money. I will give you one example of how tax money comes back to the citizens.
When I was engineering student, I paid Rs 144 a year for tuition. But the government, I was told, spent Rs 10000 a year on me. Suppose the government decided to transfer the entire burden to the student only the super rich would have gotten an engineering degree those days. The IITs and government colleges are also funded from tax money. Income tax is a necessity. Be happy they brought it down from the top 85% !

**bingleguy** · 24th April 2006, 08:30 AM

Good point out Raj .... but does all ppl who mint more money pay proper taxes ! Sorry Sir ... No .... think about Business ? the undigestable fact is they would earn more than anybody else.... but pay tax less ! coz everything is in their hands...

but salaried ppl cannot escape from anybody ! ofcourse those who get low sal need not pay ! there are some ppl who study working in an org getting stipend but still liable to pay taxes !

Wat about actors,financiers ??? do they file their taxes perfectly ? except a few ?

**rajraj** · 24th April 2006, 09:17 AM

bingle: All who earn are expected to file income tax returns. What you describe relates to enforcement by the income tax dept.
In the US even waiters and waitresses in restaurants are expected to report the tips they get. If the government is serious they can make everyone pay their share of taxes.

**Sandeep** · 24th April 2006, 11:41 AM

Bingleguy,

Everyone is liable to pay tax, question is whether one can hide his income or not.

In India self-employed (non salary class) can easily hide their Income. But it is becoming more and more difficult. Many steps are being implemented by the Govt. PAN card is the baseline for this. Govt is also forcing banks and other financial institutions to keep track. Another step being contemplated is simplification of Tax laws. Already it has been enormously simplified for salaried employees

<1 Lakh - no tax
1 to 1.5 - 10%
1.5 to 2.5 - 20%
2.5 and above - 30%

Also there is Tax rebate for investments upto 1lakh.