Dear Pranabda (Finance
Minister),
Recently you tabled Direct
Tax Code (popularly known as DTC which reminds me of DDT used for killing
mosquitoes) in the Parliament in August, 2010 when inflation was raining cats
and dogs outside. What a great achievement ! You’ve been the Finance Minister a
number of times. Your predecessors (like P. Chidambaram, the most innovative
Finance Minister we’ve ever had) and you have tinkered me, amended me,
simplified (?) me by adding or deleting sections, sub-sections, clauses,
sub-clauses, explanations, using all the alphabets and roman numbers available
on earth and what not through the finance bills and ordinances one after
another. Still you’re unhappy with me. I’ve been in service of the nation since
1961, nearly 50 years. I could have celebrated my golden jubilee in 2011. But
alas ! You’re trying to evict me from the Indian economy for no worthwhile
reasons in sight. That’s what I hear from economists (excluding our Prime
Minister Dr. Manmohan Singh), tax experts, chartered accountants,
industrialists, even laymen, etc. Believe me, I have everything you want. But
you’re deliberately ignoring it since you are a man of words. You want to leave
a mark on the annals of Indian economy. So it’s nothing but a prestige issue. I
wonder, is it not possible for you to achieve your avowed objective of
simplification through me, though your predecessors and you’ve kept simplifying
me for years together. Do you think with the introduction of my ‘step’ law, I
mean DTC, everything will be simple and easy ? Had it been so, why did you
revise the DTC before its birth ? My dear Pranabda, from my experience since
1961, I can say that income-tax law in India can never be simple, it’ll continue
to be complicated, be it me or DTC. Even you’ll agree with me, at least in
private if not openly. Look, the term ‘simplification’ is very illusory, it is
like a mirage. With the passage of time something that’s simple today becomes
complicated tomorrow. Moreover, on the one hand you talk about simplification
and on the other hand you introduce stringent anti-tax avoidance provisions to
make the life of taxpayers miserable and at the mercy of tax authorities with
powers to suspect (read as discretionary powers). Is it a way to simplify
income-tax law ? In fact, I’ve been more abused by tax authorities than by
taxpayers of this country.
Regarding withdrawal of various exemptions — a number of exemptions have been
phased out in the past. In fact, I am burdened with the number of redundant
sections, sub-sections, clauses, sub-clauses, and explanations for years now. I
didn’t utter a word.
My
dear Pranabda, eventually what you want is ‘tax’ on income. I heard that with
the introduction of DTC, revenue will go down substantially due to changes in
slabs in the initial years of DTC. Is it worth it ? When taxpayers are ready to
pay, why are you losing this revenue ? Your political party is voted to power by
‘aam adami’ and not by taxpayers. You must be aware that your party needs
official money for welfare schemes of the ‘aam adami’ to get re-elected and
govern this country. I urge you to let me continue. You’re committing a blunder.
People have already started criticising the DTC as my ‘clone’ or as old wine in
a new bottle and what not. I feel very sad.
So
my dear Pranabda, I earnestly request you to let me continue to serve this
country of millions. I’m capable of generating enough revenue for the
government. I won’t spare any tax dodger, be it a politician of your party or
opposition. You can make me as simple as you please. Give more discretionary
powers to tax authorities so that they can directly withdraw tax from the
taxpayer’s bank account apart from raids and surveys. I’m sure that I have
enough power to deal with economic offenders. If you find me inadequate on this
front, make me more stringent by introducing death penalty to economic
offenders. I don’t mind. Introduce ‘daily advance tax’ like a piggy collection
for corporate tax-payers, forget about MAT. Keep on reversing the decisions of
the Supreme Court and lower courts shielding the taxpayers by amending me from
time to time, I don’t mind.
Lastly let me celebrate the golden jubilee of my existence – 2011.
Jai Hind !
Yours faithfully,
Income-tax Act, 1961
