Income Tax Dept warns public against cash dealings of Rs 2 lakh or more saying that the receiver of the amount will have to cough up an equal amount as penalty.

IRS Officers Propose Steep Hike In Taxes;CBDT Slams Them After Vehement Protests From Furious Taxpayers

Some eager-beaver IRS officers have landed themselves in hot water by circulating a document titled “FORCE 1.0” (Fiscal Options &Response to COVID-19 Epidemic).

The document is said to be “Recommendations of the Indian Revenue Service on revenue mobilization and economic impetus to fight COVID-19”.

Increase the peak income-tax rate to 40% to meet the deficit

Essentially, the recommendations are that since there will be a loss of revenue due to the Covid-19 Pandemic, more taxes should be imposed on the taxpayers, especially the affluent category.

“In times like these, the so called “super rich” have a higher obligation towards ensuring the larger public good. This is for multiple reasons – they enjoy a higher capacity to pay with significantly higher levels of disposable incomes compared with the rest, they have a higher stake in ensuring the economy springs back into action, and their current levels of wealth itself is a product of the social contract between the state and its citizens,” it is stated, reflecting the ideology of a socialist.

“Most high-income earners still have the luxury of working from home, and the wealthy can fall back upon their wealth to cope with the temporary shock. In view of several European economists, taxing the wealthy would be the most “progressive fiscal tool”, as wealth is far more concentrated than income and consumption,” it is added.

It is suggested in the report that this segment of the population can be taxed through two alternative means, both of which can be imposed for a limited, fixed period of time:

* raising highest slab rate to 40% for total income levels above a min. threshold of Rs. 1 crore

Or

* re-introduction of the wealth tax for those with net wealth of Rs. 5 crores or more.

Refer:https://itatonline.org/

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