Taxable Income In India
Besides remuneration for work, individuals may be taxed on the following Income:
- Income from house property.
- Income From Salary.
- Income from business or professions.
- Income from capital gains.
- Income from other sources.
Spouses are treated separately for tax purposes and their income is not normally clubbed. However, income of all minors, except handicapped minors, is clubbed with the income of their parents unless the income is derived from manual work or an activity involving skill, specialised knowledge and experience.
Personal Taxable Incomes:
It is obligatory for any person residing in specific cities to file Tax Return under the existing law. It was compulsory to furnish his return of income, if he fulfilled any two of the given criteria:
- Occupation of an immovable property of specified dimensions:
- Ownership of a car.
- Subscription of a telephone.
- Foreign Travel during the year.
- Two more economic indicators were added to these
- Holding of a credit card not being an add-on card.
- Membership of a Club where entrance fee charged is Rs. 25000 or more.
There were amendments made in the laws and initially when there were 12 cities now there are 35 cities which are included under the obligatory laws. Also, now a person has to file his returns of income if he satisfies any one of the six criteria.
But blanket obligatory rules is going to cause very severe hardship to small traders and salary earners. These days owning a telephone or 'occupying' a property are the things that everyone, irrespective of his social status or income level, does. Combining two criteria had logic behind it, but this proposed amendment seems to have been drafted in haste, and might result in severe hardship to many. Moreover, the energy of the Income Tax Department would be wasted in handling petty cases.