Fifth budget of Arun Jaitley as Finance Minister:
Finance Minister of India announced the budget plans, last week. Interesting point was that he could not manage to curtail fiscal deficit. Another highlight is that this budget aims at pushing rural economy and healthcare. No candy has been provided to tax paying middle class by way of reduction in income tax unlike last year when many argue that the relief was academic.
The accounting of budget 2017-18 is here. As may be seen the revenue from non corporation income tax improved by over 20% and this buoyancy has perhaps led to the Government to ignore the long standing demand to simplify the Income Tax laws.
Income Tax in India:
My Dushahra Greetings to all.
Vijaydashami is another name for Dushahra Festival. It means the tenth day which marked victory. It is celebration of victory of good over evil and right over wrong. It is a day when we may find the wrongs within and set them right. There are many wrongs which PM Narendra Government has to fix in coming days. With opposition busy in finding emotional issues for its vote banks, constructive issue based opposition is the casualty. In democracy, opposition is a necessity but an ignorant opposition or the one which is merely rhetorical is a dis-service. Anyhow these are some of the topics which should attract the attention of the Government may not be in same order in which these are listed below:
Every one is crying hoarse that GST has devastated but without actually putting finger on the problem. Of course it is now admitted fact that GST Network suffers from incapacity. hope it shall be rectified and bandwidth of servers shall be increased. Mr. Jaitly needs to be explained by some technical expert, that capacity of 100 thousand users per hour is actually just 10 users per second or at any given time. Therefore the technical staff need to be dealt with and bandwidth need to be increased which is poor.
However the worse problem is B2B SME traders. Small traders with a turnover of less then 20 lacs need not pay GST. In business to business transaction the buyer will prefer to buy GST paid goods so that he may get credit of GST already paid. This has suddenly made traders supplying to big businesses, redundant. Business who are paying GST want to buy only GST paid goods. This is the biggest mess. Continue reading
One Country One Market One Tax.
Goods and Services Tax is finally here. GST is tad bit late. Say by a decade. Starting from Canada, Australia, Japan, Europe and even Malaysia has it. All had to face its share of woes in switching to new system of taxation. Historically the idea is as new as Internet. Taxation is prerogative of every sovereign authority. In democracy there are too many sovereign authority in practice than in theory. GST will replace, Excise, Counter-veiling duty, VAT (Sales Tax), Luxury Tax, Entertainment Tax, Entry Tax and Octroi among others. But let’s note the key benefits.
Eliminate tax on tax.
As mentioned above many taxes are imposed on the price inclusive of goods. For example excise is levied when goods leave factory and is included in the price realised by manufacturer. Sales tax or VAT is levied when goods are sold by retailer. Yet again luxury tax is levied if sale is made at an establishment treated as luxurious viz 5 star Hotel. Continue reading
Is HRBlock.in duping people?
Thuggery is an ancient offence. It is an act of stupefying another human being by winning his/her confidence. Now a days it is called Conman act. Thuggery was also violent in the end. Often culprit used to kill people. I hope HRBlock is not that brutal. In India ancient name of offender was Thug. They would deceive by tempting people with attractive offer but releasing selective piece of information or concealing material information. Such acts are also a fraud u/s 17 of Contract Act. Read here about the ingredients and effect of fraud.
HR Block is an online Income Tax Return preparer cum filing facility which uses API’s of Income Tax Department of India. Its profile proclaims: Continue reading
Open source vs. proprietary software.
Govt of India has reiterated its policy to prefer open source software over proprietary software as part of its Digital India Initiative which is available here. However when it comes to application, different department behave differently. For over ten years income tax department forces citizens of India to use Window and Excel which is a proprietary software of Microsoft. Few years back they brought out an alternative and introduced a Java version of ITR as well. Though it does not work at all, never the less look at the choice. This time they picked Oracle proprietary version of Java. Why not pick open source? No body seems to know anything. Few months back, I had posted a grievance ticket too on their website. The officer who called up, knew nothing and kept on trying to convince me that I should borrow somebody’s window lap top to do the needful. Arrogance in stupidity.
Now I have asked following questions from Government of India under RTI Act
Kindly provide following Information under RTI Act:
1. Who is officer responsible for checking the functioning of ITR 3 Java Version, Please provide his name address and phone Number? If an entire team is responsible please provide the details of team leader.
2.If the aforesaid Officer is in the service of Govt. of India, please provide the name, designation, address of the disciplinary authority over him.
3. What is policy of Income Tax department about using open source software ? If no policy has been formulated please do state so. Continue reading