New Direct Tax Code: Pay less in taxes from April 2011
What a relief to the salaried class! Thanks to the economic reforms followed by others like taxation, land, industrial relations, power sector, banking sector reforms in India since 1991. This is yet another milestone in Taxation reforms that one has incentive to earn and save besides of course spending instead of ending up with shelling out tax payment. Generally, the pain starts from October month onwards for tax planning. And in the three months of Jan-March, it is hell. Follow the next three-four months of collecting various deduction certificates and filing the return with some more payments!
Direct Tax Code should give the tax payers some comfort to know where he or she stands. At least, looking at the inflation and rising prices, every year all middle class people, be it salaried class or businessmen or professionals, eagerly wait for the Finance Minister to offer some sops in his budget speech; but every time gets disappointed. The facilities offered are never commensurate with the efforts and earnings. Another funny experience is that on a Fixed Deposit kept with a bank for say five years, the interest accumulates (but not paid immediately) in the bank's books; they deduct 10% TDS but while finalising the return the Tax Payer ends up paying over 30% on a future income that is going to be received. It is pinching but has no remedy.
That is way, it is said that Death and Taxes are inevitable; you can escape; you can evade; you may not avoid; you may at best manage.