January 28, 2015
Some details of proposed wealth tax
.
Wealth tax credit , when system starts =
.
income tax paid in past 4 years
.
+ other taxes paid in past 4 years like excise , service tax, vat , stamp duty , taxes paid on electricity , taxes paid on phone bills
.
+ provident fund paid by employer (not employee) in past 4 years
.
======
.
Wealth tax to be paid every year =
.
1% of non agricultural land's circle rate (250 sqft land exempt per family member , 500 sqft for senior citizen)
.
[ I propose increase from of 0.2% every year till it becomes 2% , and same applies for all below ; where rate is 1%, I propose increase of 0.2% every year ]
.
+ 1% of construction value (500 sqft land exempt per family member, 1000 sqft for senior citizen)
.
+ 1% of agricultural land (1 acre per family member exempt, 2 acres for senior citizen)
.
+ 1 % disclosed value of furniture ( Rs 5 lakhs exempt per family member)
.
+ 1% market value of gold, silver , diamonds (100 grams gold equivalent exempt per family member)
.
+ 1% of depreciated value of vehicles owned
.
+ 1% of value of shares \ bonds issued minus value of land , construction , machineries, furniture etc] and this will apply only on companies and not on individuals
.
+ 1% of cash more that Rs 100000 or (income tax paid in past 4 year + 5% of salaries paid in past 4 years) , which ever is higher
.
+ 0% on FDs, bank savings etc
.
MINUS 50% income tax paid on salary income, interest income , other income
.
MiNUS 100% of income tax paid from business / rent incomes
.
MINUS taxes paid on electricity
.
MINUS 15% of salaries paid to employees (not contract paid, but salary paid only)
.
MINUS other taxes paid such as service tax, excise, vat etc (all these taxes will end , but it may take 3-4 years before they end)
.
MINUS Rs 500 per citizen who has registered himself as beneficiaries, and one citizen can register himself as beneficiary of 5 trusts, companies etc )
.
MINUS WEALTH TAX CREDIT
.
Wealth tax credit , when system starts =
.
income tax paid in past 4 years
.
+ other taxes paid in past 4 years like excise , service tax, vat , stamp duty , taxes paid on electricity , taxes paid on phone bills
.
+ provident fund paid by employer (not employee) in past 4 years
.
======
.
Wealth tax to be paid every year =
.
1% of non agricultural land's circle rate (250 sqft land exempt per family member , 500 sqft for senior citizen)
.
[ I propose increase from of 0.2% every year till it becomes 2% , and same applies for all below ; where rate is 1%, I propose increase of 0.2% every year ]
.
+ 1% of construction value (500 sqft land exempt per family member, 1000 sqft for senior citizen)
.
+ 1% of agricultural land (1 acre per family member exempt, 2 acres for senior citizen)
.
+ 1 % disclosed value of furniture ( Rs 5 lakhs exempt per family member)
.
+ 1% market value of gold, silver , diamonds (100 grams gold equivalent exempt per family member)
.
+ 1% of depreciated value of vehicles owned
.
+ 1% of value of shares \ bonds issued minus value of land , construction , machineries, furniture etc] and this will apply only on companies and not on individuals
.
+ 1% of cash more that Rs 100000 or (income tax paid in past 4 year + 5% of salaries paid in past 4 years) , which ever is higher
.
+ 0% on FDs, bank savings etc
.
MINUS 50% income tax paid on salary income, interest income , other income
.
MiNUS 100% of income tax paid from business / rent incomes
.
MINUS taxes paid on electricity
.
MINUS 15% of salaries paid to employees (not contract paid, but salary paid only)
.
MINUS other taxes paid such as service tax, excise, vat etc (all these taxes will end , but it may take 3-4 years before they end)
.
MINUS Rs 500 per citizen who has registered himself as beneficiaries, and one citizen can register himself as beneficiary of 5 trusts, companies etc )
.
MINUS WEALTH TAX CREDIT
=====
.
Pls note the last part --- "minus wealth tax credit is subtracted"
.
And if Wealth tax to be paid becomes negative, then it will become wealth tax credit for next year.
.
=====
.
Now you can make several scenarios, and you will see that proposed wealth tax will fall zero on any trust / company which generating income or giving salaries .. The tax will mainly fall on those who are hoarding land. If a trust is serving citizens, then it can ask citizens to become member of that trust and thus trust will NOT have to pay tax on its land
.
With wealth tax rate of 2%, one doesnt need inheritance tax.
.
You can work various scenarios, and you will see that tax on any "productive" person, company, trust etc will be zero. By productive, I mean someone who is either making profits or at least paying salaries or both.
.
chap-25 of rahulmehta. com/htm has some details , but not all. The chap doesnt have all the MINUS parts . "MINUS 15% of salaries paid" is something I thought of only few months back, while 301.pdf is over 4 years old . Also, it doesnt talk about "wealth tax credits". I made this concept only few months back
.
.
Pls note the last part --- "minus wealth tax credit is subtracted"
.
And if Wealth tax to be paid becomes negative, then it will become wealth tax credit for next year.
.
=====
.
Now you can make several scenarios, and you will see that proposed wealth tax will fall zero on any trust / company which generating income or giving salaries .. The tax will mainly fall on those who are hoarding land. If a trust is serving citizens, then it can ask citizens to become member of that trust and thus trust will NOT have to pay tax on its land
.
With wealth tax rate of 2%, one doesnt need inheritance tax.
.
You can work various scenarios, and you will see that tax on any "productive" person, company, trust etc will be zero. By productive, I mean someone who is either making profits or at least paying salaries or both.
.
chap-25 of rahulmehta. com/htm has some details , but not all. The chap doesnt have all the MINUS parts . "MINUS 15% of salaries paid" is something I thought of only few months back, while 301.pdf is over 4 years old . Also, it doesnt talk about "wealth tax credits". I made this concept only few months back
.
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