A simple point to consider - if one were to look at the cost indexation chart for India, it is 519 in 2006-07 vs 1081 in 2015-16. Almost double.
When it is accepted that the "presented" cost has doubled, the limits for taxable income should also be increased. Imo, exemption limit of taxable income of a single individual should be kept INR 20 lakhs for any financial year. I believe that this itself could perhaps reduce some of the black money transactions in the market. Plus, the reduction in tax burden could offset the reduction in subsidies, if any, done by the govt.
And we could think of introducing luxury tax on sale of certain classes of vehicles for personal use.
Also, CG tax should be waived off on selected infrastucture securities, if held for a period of 15 years or more.
When it is accepted that the "presented" cost has doubled, the limits for taxable income should also be increased. Imo, exemption limit of taxable income of a single individual should be kept INR 20 lakhs for any financial year. I believe that this itself could perhaps reduce some of the black money transactions in the market. Plus, the reduction in tax burden could offset the reduction in subsidies, if any, done by the govt.
And we could think of introducing luxury tax on sale of certain classes of vehicles for personal use.
Also, CG tax should be waived off on selected infrastucture securities, if held for a period of 15 years or more.