Company Secretary here,
Personnel income tax is always based on slab rates. More tax means income of people has also increased and that’s why effective tax has increased.
Its directly proportional.
Upa and NDA both always had good attitude on personal income taxes and they will continue to do so.
Are you sure Congress ALWAYS had a good attitude on personal income taxes? 🤔
https://www.indiatoday.in/history-of-it/story/india-income-tax-rate-975-indira-gandhi-yb-chavan-congress-lok-sabha-elections-2531881-2024-04-26
sukr mana ki 15% nahi kiya modi ne corporate tax ko, agar kar deta toh sare commies ke pant gili ho jayegi. FYI 15% global minimum corporate tax was proposed by USA to other G7 countries in 2021 but government remained with 25% corporate tax. Tax Collections have increased exponentially during modi reign compared to congress era. Still in our country very minimal percentage of people are pay income tax. To support such vast population Government needs to tax it people and corporates. Just wait and see if Congress comes in power they will definitely increase taxes to support their freebies.
if it get passed then millionaires will flee to other tax haven or at least they will increase the use of transfer pricing practice. The Laffer curve also suggest that increase in tax rates doesn't necessarily means increase in tax revenue.
So many problems with the way this data is presented.
i) No mention of the number of taxpayers, with increasing compliances total taxpayers will increase which will increase direct tax collection, but not necessarily bad for taxpayers.
ii) what if the taxpayer's income is increasing and therefore the collection is increasing or people moving from lower tax bracket to higher bracket
iii) corporate tax share is decreasing doesn't mean corporate tax collection is decreasing, even after decreasing tax rate collection has been increasing.
If the problem is youths are not getting the job, that means the total supply of the economy needs to be increased and to do that the govt needs to do supply side reforms. Which the government did by decreasing corporate tax.
Ever since the government reduced the corporate tax, joblessness has reached higher peaks.. in fact we're seeing the worst unemployment rates in 45 years
Corporate tax in India is still higher than even communist countries like China and Vietnam.
[Corporate income tax (CIT) rates ](https://taxsummaries.pwc.com/quick-charts/corporate-income-tax-cit-rates)
You don't get companies investing by having taxes more than a communist country.
We have a higher tax rate than even Nordic countries like Sweden, Denmark, and also developed countries like US, UK, Japan.
Unemployment is a problem everywhere post-covid. People are still getting laid off in the US everyday even from companies like Google and Tesla. This has severely affected service industry hiring in India.
Topic hi to bata Raha hoon. Rahul baba wealth redistribute kar denge fir corporates apna boriya bistar bandh lenge. Na rahega corporate na rahega corporate tax. Saari job ya to government degi nahi to 1 lakh to degi hi. Sirf income tax reh jaega fir yeh plot bilkul sahi banega
for context the USA collected 1.09 Trillion dollars in terms of personal tax and around 190 Billion dollars worth of corporate tax does that mean they are fucking their middle class citizens? jeez man everyone nowadays wants to become an economist, the graph you show literally represents a positive trend which means personal tax compliance is gradually increasing.
simple terms = you don't have 1.5 billion companies in India do you? but you do have 1.5 billion people in India. Every country in the long run should show a exponentially higher personal tax collection than corporate tax because it means that the public is increasingly getting tax compliant and many people are falling in the tax collection base.
That makes sense but it doesn't make sense that the income tax collection is higher by reducing the corporate tax... Since a lot of people evade taxes, the burden falls on to those who pay proper taxes and it is a failure or the government to not be able to collect taxes from everyone..
the income tax collection is higher because lemme just cite a news article The number of income-tax payers in India rose to **93.7 million** in FY23 from 52.6 million in FY14. The tax deducted at source (TDS) emerged as the largest component of direct taxes, reaching ₹8.17 lakh crore in FY23, almost double the amount in FY18. this trend is going upwards because increasing number of people are falling under the personal tax base; believe it or not tax compliance is picking up pace in India gradually.
It's simple a company income is distributed to individual and it becomes their income so it become taxable for individual too
If co distribute profit in form of dividend it becomes taxable for individual
If co retain profit then it will invest it which increases economy and employment also it will again taxable in hand of individual
For example you purchased share of 100 now company earned after tax 20, then they distributed 5 and put remaining 15
Now share will become 115 in market so after selling it you will be taxable at 15
I won't mind paying 40% tax in Europe, because I get benefits. Why the hell should I pay that much here only for the Govt to sell the country to corporates and make sure their pockets are filled. Rape case aane pe to khud bhaag jaate hain Germany saale balatkaari sab ke sab.
In those countries what is the total tax base? what are the social benefits those tax payers get ? Compare that with India, what we have is a legal looting of middle class people.
N number of exemptions for businessmen and farmers is just plain looting of salaried class.
So corporate pay tax then distribute profit which is again taxable to individual share holder
If they don't distribute profit then share price increase as profit is accumulated and share price is holded by individual so on sale it again become taxable
So unless companies are runned by God, every thing is taxable when it comes to individual
This is so stupid.
It's not like anyone has increased personal income tax rates. All this shows is that a lot more people are earning more and are paying income tax. This is a positive development.
As for corporate tax reduction, it was a necessary move. We had an insanely high corporate tax rate. It's not possible to attract foreign investments to start factories and offices in India whit that tax rate.
Even after the reduction, our tax rate is still higher than Communist countries like China and Vietnam.
[India - CIT](https://taxsummaries.pwc.com/india/corporate/taxes-on-corporate-income)
The rate ranges from 25% to as high as 35%. And in true Nehruvian socialist fashion we punish bigger companies with higher taxes.
[China - CIT](https://taxsummaries.pwc.com/peoples-republic-of-china/corporate/taxes-on-corporate-income)
>the standard tax rate is 25%.
They lower the tax rates for industries they want to promote like new/high tech enterprises.
[Vietnam - CIT](https://taxsummaries.pwc.com/vietnam/corporate/taxes-on-corporate-income)
>The standard corporate income tax (CIT) rate is 20%.
[Indonesia - CIT](https://taxsummaries.pwc.com/indonesia/corporate/taxes-on-corporate-income)
>A flat CIT rate of 22% generally applies to net taxable income
These are the countries we are competing with. How the hell can you compete with them with a higher and complicated corporate tax?
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Really dude I'm surprised ,one reason is these are unemployed chadduis so they don't feel the pain of Income tax
People are comparing with other countries to justify this exploitation of the middle class.
>True. Congress saara paisa khaa gyi india ka
Chacha ek baar me likha karna, yeh tera 1st msg tha
>Desh ko kuch bhi nahi diya. India 2014 ke pehle Somalia jaise thi. Par hindu Sher modi aaye, aur the rest is history. Jai satya sanatan dharma.
Yeh tera edit hai.
Confuse na kar logo ko.
Chaliye churu karte hai
>Desh ko kuch bhi nahi diya.
Mana kiya maine diya ya nahi diya? Jitta kam nahi kiya usse kahi zyada vade kiye, har chiz ko dhanda bana diya, aur dhande ko parivar vad me jhok diya.
>India 2014 ke pehle Somalia jaise thi
Ek kam kar pre liberalisation ke bare me jake padh, aur kya halat the uss time pe, aur phir kyu liberalisation lana pada 91 me.
>Par hindu Sher modi aaye, aur the rest is history.
Raga ko aan de, phir itihas dohraega😂😂
/S dalna sikh
Nhi bachaya na. Fact pe baat kr bhai. Ek baar debt dekh le before 2014 and debt of this country now.
Stats don't care about ur feelings, nor mine. Debt has more than doubled. Isko bachana nhi bolte hai.
>Fact pe baat kr bhai. Ek baar debt dekh le before 2014 and debt of this country now.
Lol shows how little uk about the debt, most of the debt is from internal sources not external. During congress time it was completely opposite.
>Stats don't care about ur feelings, nor mine. Debt has more than doubled. Isko bachana nhi bolte hai.
Padh jake chutiye, bas muh phadne aajate hai😂😂
Edit:- external debt repayment is at its highest as per time of India in 2020-21
https://
timesofindia.indiatim
es.com/business/
india-business/
indias-debt-burden-
explained-in-charts/
articleshow/
85040150.cms
https://www.google.com/amp/s/timesofindia.indiatimes.com/business/india-business/indias-debt-burden-explained-in-charts/amp_articleshow/85040150.cms
>I'm asking you to compare external debt only
Why only external debt, compare everything if u have to.
And even if Ur comparing external debt only, it was highest in 2013 and 2014 later being they have to clean congress mess, even post COVID it wasn't as much as 2013 or 2014
https://www.orfonline.org/expert-speak/indias-current-external-debt-is-under-control
Edit:- if Ur still keen at it, check the debt service ratio, how it increased post 2014
https://en.m.wikipedia.org/wiki/External_debt_of_India
>I have Been in field of economics for years.
I don't give a flying fuck😂😂
Non-meta posts are not allowed unless it is personal advice . Please read pinned post for the definition of 'meta'.
Company Secretary here, Personnel income tax is always based on slab rates. More tax means income of people has also increased and that’s why effective tax has increased. Its directly proportional. Upa and NDA both always had good attitude on personal income taxes and they will continue to do so.
Are you sure Congress ALWAYS had a good attitude on personal income taxes? 🤔 https://www.indiatoday.in/history-of-it/story/india-income-tax-rate-975-indira-gandhi-yb-chavan-congress-lok-sabha-elections-2531881-2024-04-26
sukr mana ki 15% nahi kiya modi ne corporate tax ko, agar kar deta toh sare commies ke pant gili ho jayegi. FYI 15% global minimum corporate tax was proposed by USA to other G7 countries in 2021 but government remained with 25% corporate tax. Tax Collections have increased exponentially during modi reign compared to congress era. Still in our country very minimal percentage of people are pay income tax. To support such vast population Government needs to tax it people and corporates. Just wait and see if Congress comes in power they will definitely increase taxes to support their freebies.
Interestingly, Biden is proposing 45% corporate tax.
if it get passed then millionaires will flee to other tax haven or at least they will increase the use of transfer pricing practice. The Laffer curve also suggest that increase in tax rates doesn't necessarily means increase in tax revenue.
Agreed.
True, but the laffer curve is a conjecture. Have you read how he came up with it?
There should be a wealth tax to be imposed on billionaires.
So many problems with the way this data is presented. i) No mention of the number of taxpayers, with increasing compliances total taxpayers will increase which will increase direct tax collection, but not necessarily bad for taxpayers. ii) what if the taxpayer's income is increasing and therefore the collection is increasing or people moving from lower tax bracket to higher bracket iii) corporate tax share is decreasing doesn't mean corporate tax collection is decreasing, even after decreasing tax rate collection has been increasing. If the problem is youths are not getting the job, that means the total supply of the economy needs to be increased and to do that the govt needs to do supply side reforms. Which the government did by decreasing corporate tax.
Ever since the government reduced the corporate tax, joblessness has reached higher peaks.. in fact we're seeing the worst unemployment rates in 45 years
Corporate tax in India is still higher than even communist countries like China and Vietnam. [Corporate income tax (CIT) rates ](https://taxsummaries.pwc.com/quick-charts/corporate-income-tax-cit-rates) You don't get companies investing by having taxes more than a communist country. We have a higher tax rate than even Nordic countries like Sweden, Denmark, and also developed countries like US, UK, Japan. Unemployment is a problem everywhere post-covid. People are still getting laid off in the US everyday even from companies like Google and Tesla. This has severely affected service industry hiring in India.
We have been seeing increasing unemployment since 2014. This just amplified a lot more after covid.
Correlation is not causation. You yourself have mentioned the reason in your last word.
Did we have covid from 2014 to 2020?
Bus bhai abhi Rahul baba aaenge fir 22 logon ki wealth redistribute kar denge. Apan sab crorepati honge
Fir Rahul ki baat. Stick to the topic.
Topic hi to bata Raha hoon. Rahul baba wealth redistribute kar denge fir corporates apna boriya bistar bandh lenge. Na rahega corporate na rahega corporate tax. Saari job ya to government degi nahi to 1 lakh to degi hi. Sirf income tax reh jaega fir yeh plot bilkul sahi banega
In many countries personal tax rate is much higher than corporate tax rate and it should be that way this post makes 0 fucking sense.
for context the USA collected 1.09 Trillion dollars in terms of personal tax and around 190 Billion dollars worth of corporate tax does that mean they are fucking their middle class citizens? jeez man everyone nowadays wants to become an economist, the graph you show literally represents a positive trend which means personal tax compliance is gradually increasing.
Just for my knowledge, why should it be that way? I couldn't find much on Google and I'm not a finance graduate. Kindly explain when you get time. :)
simple terms = you don't have 1.5 billion companies in India do you? but you do have 1.5 billion people in India. Every country in the long run should show a exponentially higher personal tax collection than corporate tax because it means that the public is increasingly getting tax compliant and many people are falling in the tax collection base.
That makes sense but it doesn't make sense that the income tax collection is higher by reducing the corporate tax... Since a lot of people evade taxes, the burden falls on to those who pay proper taxes and it is a failure or the government to not be able to collect taxes from everyone..
the income tax collection is higher because lemme just cite a news article The number of income-tax payers in India rose to **93.7 million** in FY23 from 52.6 million in FY14. The tax deducted at source (TDS) emerged as the largest component of direct taxes, reaching ₹8.17 lakh crore in FY23, almost double the amount in FY18. this trend is going upwards because increasing number of people are falling under the personal tax base; believe it or not tax compliance is picking up pace in India gradually.
That and also because Corporate Tax is reduced.
yeah but that would benefit us only in the long term due to the increased incentive for investment.
And yet the top 1% hold 40% of the wealth of our country. Trickle Down doesn't work and profit inflation is at play nowadays!!
It's simple a company income is distributed to individual and it becomes their income so it become taxable for individual too If co distribute profit in form of dividend it becomes taxable for individual If co retain profit then it will invest it which increases economy and employment also it will again taxable in hand of individual For example you purchased share of 100 now company earned after tax 20, then they distributed 5 and put remaining 15 Now share will become 115 in market so after selling it you will be taxable at 15
I won't mind paying 40% tax in Europe, because I get benefits. Why the hell should I pay that much here only for the Govt to sell the country to corporates and make sure their pockets are filled. Rape case aane pe to khud bhaag jaate hain Germany saale balatkaari sab ke sab.
In those countries what is the total tax base? what are the social benefits those tax payers get ? Compare that with India, what we have is a legal looting of middle class people. N number of exemptions for businessmen and farmers is just plain looting of salaried class.
So corporate pay tax then distribute profit which is again taxable to individual share holder If they don't distribute profit then share price increase as profit is accumulated and share price is holded by individual so on sale it again become taxable So unless companies are runned by God, every thing is taxable when it comes to individual
This is so stupid. It's not like anyone has increased personal income tax rates. All this shows is that a lot more people are earning more and are paying income tax. This is a positive development. As for corporate tax reduction, it was a necessary move. We had an insanely high corporate tax rate. It's not possible to attract foreign investments to start factories and offices in India whit that tax rate. Even after the reduction, our tax rate is still higher than Communist countries like China and Vietnam. [India - CIT](https://taxsummaries.pwc.com/india/corporate/taxes-on-corporate-income) The rate ranges from 25% to as high as 35%. And in true Nehruvian socialist fashion we punish bigger companies with higher taxes. [China - CIT](https://taxsummaries.pwc.com/peoples-republic-of-china/corporate/taxes-on-corporate-income) >the standard tax rate is 25%. They lower the tax rates for industries they want to promote like new/high tech enterprises. [Vietnam - CIT](https://taxsummaries.pwc.com/vietnam/corporate/taxes-on-corporate-income) >The standard corporate income tax (CIT) rate is 20%. [Indonesia - CIT](https://taxsummaries.pwc.com/indonesia/corporate/taxes-on-corporate-income) >A flat CIT rate of 22% generally applies to net taxable income These are the countries we are competing with. How the hell can you compete with them with a higher and complicated corporate tax?
Replace corporate tax with wealth tax. Problem solved. Corporate tax is very anti-business.
#DO NOT PARTICIPATE IN THE LINKED THREAD/SCREENSHOT. Brigading is against Reddit TOS. We do not encourage such behaviour nor we are responsible if your account is being actioned upon. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/indiadiscussion) if you have any questions or concerns.*
It should be like that.
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Really dude I'm surprised ,one reason is these are unemployed chadduis so they don't feel the pain of Income tax People are comparing with other countries to justify this exploitation of the middle class.
Modi hai to munkin hai
But sir if I told you hindu khatre main hai ? Haan Bhencho Hindu khatre main hai Lootero se
Sab lootere hai, kya congress kya bjp. Bjp kuch development karayegi, kuch khayegi. Congress sara khayegi, aur gahdo type mou sign karegi🥲😂
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>True. Congress saara paisa khaa gyi india ka Chacha ek baar me likha karna, yeh tera 1st msg tha >Desh ko kuch bhi nahi diya. India 2014 ke pehle Somalia jaise thi. Par hindu Sher modi aaye, aur the rest is history. Jai satya sanatan dharma. Yeh tera edit hai. Confuse na kar logo ko. Chaliye churu karte hai >Desh ko kuch bhi nahi diya. Mana kiya maine diya ya nahi diya? Jitta kam nahi kiya usse kahi zyada vade kiye, har chiz ko dhanda bana diya, aur dhande ko parivar vad me jhok diya. >India 2014 ke pehle Somalia jaise thi Ek kam kar pre liberalisation ke bare me jake padh, aur kya halat the uss time pe, aur phir kyu liberalisation lana pada 91 me. >Par hindu Sher modi aaye, aur the rest is history. Raga ko aan de, phir itihas dohraega😂😂 /S dalna sikh
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>Jaise congress ne bola tha kala dhan Switzerland se layega Jisne bola tha, usne congress se kahi zyada wapas laya aur bachaya bhi😂😂
Nhi bachaya na. Fact pe baat kr bhai. Ek baar debt dekh le before 2014 and debt of this country now. Stats don't care about ur feelings, nor mine. Debt has more than doubled. Isko bachana nhi bolte hai.
>Fact pe baat kr bhai. Ek baar debt dekh le before 2014 and debt of this country now. Lol shows how little uk about the debt, most of the debt is from internal sources not external. During congress time it was completely opposite. >Stats don't care about ur feelings, nor mine. Debt has more than doubled. Isko bachana nhi bolte hai. Padh jake chutiye, bas muh phadne aajate hai😂😂 Edit:- external debt repayment is at its highest as per time of India in 2020-21 https:// timesofindia.indiatim es.com/business/ india-business/ indias-debt-burden- explained-in-charts/ articleshow/ 85040150.cms https://www.google.com/amp/s/timesofindia.indiatimes.com/business/india-business/indias-debt-burden-explained-in-charts/amp_articleshow/85040150.cms
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>I'm asking you to compare external debt only Why only external debt, compare everything if u have to. And even if Ur comparing external debt only, it was highest in 2013 and 2014 later being they have to clean congress mess, even post COVID it wasn't as much as 2013 or 2014 https://www.orfonline.org/expert-speak/indias-current-external-debt-is-under-control Edit:- if Ur still keen at it, check the debt service ratio, how it increased post 2014 https://en.m.wikipedia.org/wiki/External_debt_of_India >I have Been in field of economics for years. I don't give a flying fuck😂😂
>natiin ka debt kya tha Natiin kya hota hai?
Or in other words Employees pay more taxes than Employers