AGP,
Felt nice to know that you feel like 20 year old !
( that makes me feel 30 years old )
It is heartening to know that you want to contribute ( funds ? )
to some social cause and are thinking of creating a trust for that purpose
Couple of years back , I had a similar idea but it was pointed
out by my tax consultant , that , apart from procedure to " create /
register " a trust , there are following problems :
# Keeping meticulous accounts of receipts / expenditures (
item wise ) and filing regular returns
# Observing various " stipulations " governing
what donations can be made to whom ( and why ? ) and
ensuring income ( to the trust ) in the same
/ following year , in order to avoid paying taxes
# Need for some honest person to look after the affairs of
the trust
My consultant's advice was :
Just donate whatever funds you wish to donate ( and whenever you
wish ) , to existing reputed Charitable Trusts ( such as Ramakrishna Mission )
, who give you tax-exemption receipt under 80 G
I hope this helps you to take your own decision
Warm Regards,
Hemen Parekh
(M)=91 – 98,67,55,08,08
From: arun patkar
[mailto:patkarag@yahoo.co.uk]
Sent: Wednesday, May 04, 2016 1:36 PM
To: Hemen Parekh
Subject: Re: WHAT WOULD THEY DO ?
Sent: Wednesday, May 04, 2016 1:36 PM
To: Hemen Parekh
Subject: Re: WHAT WOULD THEY DO ?
Sir
I have retired in 1998, after
working in L&T Ltd. for 38 yrs.
I am in much better position
than what you have put in. I want
to create a trust for social
cause. Can you suggest a bank, a
co. or a person who would carry
on the job honestly after I am
no more in this world. This
june i will be young man of 20 with
58 yrs. expirience.
AGP
On Wednesday, 4 May 2016, 11:39,
Hemen Parekh <hcp@recruitguru.com>
wrote:
What
would they do ?
For the year 2012-13,
Personal Income Tax paid by individuals is as follows :
-------------------------------------------------------------------------------------
( Number of Tax
payers ) ( Total tax amount paid - Rs Crore )
-----------------------------------------------------------------------------------
(
3
)........ (
437 ).... Super Rich
(
5430
)........ ( 8,907 )....
Rich
( 14
Lakh )........
( 253,656 ).... Middle Class
( 111
Lakh )........
( 23,000 ).... Neo Middle ( Minimum Slab )
( 162
Lakh ).........
( NIL )....
Poor ( Tax Exempt )
-------------------------------------------------------------------------------------
( Total =
287 Lakh ).........( 2.86 lakh*Crore )
-------------------------------------------------------------------------------------
Now , I have repeatedly
advocated total abolition of Personal Income
Tax
So , it would be natural to
ask :
If these people did not have
to pay personal income tax , then what would they do with this ( Rs 2.86
lakh*crore ) tax amount saved ?
MY
GUESS :
# 3
Super Rich individuals
They might buy some more gold
/ ornaments / flats or take more holidays abroad
Of course , the expenditure
for the purchase of flats and ornaments will help
the economy
# 5430
Rich persons
Some of them would also
indulge in buying gold / flats
Many would buy luxury cars /
luxury goods ( Consumer Durables , like domestic appliances or Consumables like
expensive clothes / ornaments / purses etc )
All of this expenditure will
, no doubt , help the economy grow and create
more jobs
# 14
lakh Middle Class persons
From the above data , it is
obvious that it is this Middle Class persons ( 14 lakhs ) , who bear the brunt
of the Personal Tax collection !
And , as Rajiv Gandhi once
said , for every rupee of tax that they pay , only 15 paise worth of " Civic
Services " ( infrastructure / drinking water / health-care etc ),
returns to them !
And , on top of everything ,
they have no " Social Security " of any kind !
So , I believe that they
would invest the saved tax money in bank fixed deposits / mutual funds / life
insurance / Public Provident Fund etc , to ensure a small - but steady - source of income after retirement
Now , if Rs 2 lakh*crore of
this tax saving were to become " Bank Deposits ", it would enable
these persons to raise their " Credit Rating / Loan Repayment Capacity
" and take out bigger loans for homes / cars etc
This would give a huge boost to our economy !
That would also raise our Domestic Saving Rate , once again , above 30 %
That would also relieve some
pressure on the Government to introduce a forced " Pension Regime "
And , if this group spends
some more money in sending their girl-child to
better schools , they would be investing in a better future of their
children - a highly desirable type of expenditure !
And do not discount the long
term social impact of investing for
retirement
In most middle class Indian
families , parents today depend upon their SONS , to look after them in their
old age . Male child is THE only retirement assurance for these people
When tax savings make it
possible for them to become independent of their male child , the desire to
have a male child ( at the cost of aborting a female child ) , will go down !
# 111
lakh , Neo - Middle Class persons
They have just entered the
minimum tax slab ( 10 % ? )
Without doubt , they would
spend the saved tax money in buying items of daily NECESSITY - food being the foremost ! May be some cheap clothes !
By being able to meet the
Cost of Living a little better , these persons would be able to live a dignified life - even if living in slum-like
conditions !
Their tax-saving would just
not be enough for them to book a 250 sq ft flat !
WHAT
WOULD HAPPEN ?
And since there would be no
Personal Income Tax to be paid, no one would want to hide any income !
Every rupee of income would
get accounted for in official banking channels !
Other than small daily
purchases , large CASH payments will disappear !
Official payments ( through
electronic transfer / credit cards / mobile wallets etc ) will dramatically go
up !
Banks will
get huge amounts of deposits and be in a position to engage in micro
- lending !
P2P lending platforms will
take off like a rocket !
Especially those "
RICH " and the " SUPER RICH " will now start lending to Start
Ups and Self Employed Entrepreneurs , through this P2P web sites
I request Shri Arun Jaitleyji to seriously consider my
suggestion in the forthcoming Central Budget
I am confident that not a
single Political Party will oppose this , either in Lok Sabha or in Rajya Sabha
It will be a political "
Harakiri " for anyone to oppose !
-----------------------------------------------------------------------------------
www.hemenparekh.in /
blogs
04 May 2016
Warm Regards,
Hemen Parekh
(M)=91 – 98,67,55,08,08
No comments:
Post a Comment