Tax Reforms for Individual Tax payers 

Lok Samya Party is proud to introduce a bold step toward financial empowerment for hardworking Indians, as part of our Prosperous India Vision. Our first major Reform Agenda focuses on building a fairer tax system, putting an end to the disproportionate tax burden for all taxpayers. The current income tax rules limit the financial freedom of middle-class significantly, therefore the aim is to provide relief to the middle class on priority.

We propose following for a sustainable income tax collection:
a.      NO tax for income up to 25 Lakh (with additional exemptions for certain expenses)
b.      10% tax for income up to 1 Crore (with additional exemptions for certain expenses)
c.      15% tax for income up to 2 crore (with additional exemptions for certain expenses)
d.      20% tax for income above 2 Crore (with additional exemptions for certain expenses)

This approach will help middle-income earners save more, while high-income earners contribute fairly.

We further aim to simplify the individual income tax system through:
a.      Mandatory annual Self-Declaration of income through a simple form (to be submitted through simplified income tax portal, or in offline mode as well ) for ALL Individuals with income up to 50 Lakh. 
b.      Mandatory annual Audited Income-Declaration for income above 50 Lakh (to be submitted through simplified income tax portal) 

We strongly believe that these reforms will promote following:
1.      Better financial freedom for the larger section of society
2.      Availability of real income data to plan support policies for different income groups
3.      Reduction in back money as people will find beneficial to declare income and pay taxes
4.      Better utilization of employees Tax department as they will be able to focus on limited number of high earning individuals thereby increasing better tax collection

We also aim to bring favorable incentive and preferential programs for the income tax payers (relative to the tax paid).  It is important to recognize the contribution of taxpayers and work towards providing certain benefits that will encourage taxpayers to continue their contribution towards nation building.