Government should stop so many exemptions and rebates and deductions.Instead it should just do 2 things.Reduce tax rates substantially and then make tax evasion highly punishable offense with huge penalties and promote savings in the country and its investment in priority sector.All this nonsense of wealth tax etc should go.Wealth is built by paying income tax.So why again it has to be taxed? What signal it gives? People should not accumulate wealth? This means government should encourage expenditure of money? This sure will result into huge inflation in country.Welfare schemes like PPF and PF etc should be kept out of EET system and should continue as EEE because there is already limits of savings in these instruments and money is used in old age for survival.Government should make laws and forms simple one page and online and limit evasion by making PAN compulsory in all transactions above Rs 10,000/-.Until and unless property taxes and property marketing system in India is improved,the black money will keep generating and stored in form of real estate.This must be reversed.Indian property market has become too hot and out of proportion to per capita income ( property prices rose by 400-500% over last 7 years)and have thrown economy into bad gear.We should make property an unwanted asset in the country. Most of black money goes in land,real estate and gold.Our babudom and so called taxation experts should come out of old rut and think fresh from ground zero. Prof R K Gupta IndiaFORCE
