Tax is still being recovered through the backdoor: Raghav Chadha

Brut India

AAP MP Raghav Chadha argues how the tax rebate of Rs. 12 lakh alone does not benefit the middle class.

Transcript

00:00The middle class wants to sing a song to the government that we have lived our lives to the fullest,

00:05let us live for a moment.

00:07There has been a lot of discussion by the government that we should bring 12 lakhs tax relief for the middle class.

00:14As a chartered accountant, I want to say that this is not a tax exemption, nor is it a tax deduction,

00:23this is just a tax rebate.

00:25Sir, the first thing is that the government considers the middle class to be a soulless skeleton,

00:30which wants to build a 5 trillion dollar economy by climbing on its bones.

00:34There has been a lot of discussion by the government that we should bring 12 lakhs tax relief for the middle class.

00:41As a chartered accountant, I want to say that this is not a tax exemption, nor is it a tax deduction,

00:50this is just a tax rebate.

00:52We all welcome this rebate, we are all happy,

00:55but I want to tell you the difference between the three and show you how income tax is still being collected from the middle class.

01:04The first thing is that this income tax is not an exemption.

01:07An exemption is like an income tax on a source of income,

01:12like agricultural income in this country.

01:14No income tax is imposed on the income earned from agriculture.

01:17This is not that.

01:18This is not even a tax deduction.

01:20Tax deduction is like, suppose you earn 15 lakhs a year.

01:24If you get an income tax deduction of 12 lakhs, then you will have to pay an income tax of 3 lakhs.

01:31This is not even a tax deduction.

01:33This is a tax rebate.

01:34That is, if you earn up to 12 lakhs a year, then you do not have to pay an income tax,

01:39but as soon as you earn more than 12 lakhs, suppose you earn 12 lakhs and 1000 rupees,

01:44then you will be able to collect income tax on the entire 12 lakhs and 1000 rupees.

01:49And the second thing is on capital gains.

01:52That is, if you sell a house, sell gold, sell equities, sell shares,

01:58the tax that is imposed on capital gains, on profits,

02:02that will not come within this 12 lakhs limit.

02:04You will have to pay an additional tax on that.

02:07Sir, but how many people benefited from this 12 lakhs tax in India,

02:11this is also necessary to understand.

02:13We live in a country with a population of 140 crores,

02:16in which only 8 crore people pay income tax returns.

02:21And out of these 8 crore people, only 3 crore people also pay income tax.

02:28That is, 8 crore people pay income tax returns,

02:315 crore people show zero income and pay their income tax returns.

02:35Zero taxable income.

02:36And no income tax was collected from them.

02:38But the remaining 3 crore children only pay income tax.

02:42So, it is also necessary to understand who is benefiting from this.

02:46And you can compare this, sir.

02:48CMI's data shows that in this country,

02:51on the basis of consumption, 43 crore Indians,

02:5443 crore Indians come in the middle class of India.

02:58Out of 43 crore, only 2 to 3 crore people are going to benefit from this.

03:03We welcome that.

03:04But what about the rest?

03:06When the Minister of Finance announced this decision,

03:09he said that this will increase India's consumption.

03:13And the wheel of the economy will start moving.

03:16I want to tell you, and I predict in this meeting, sir,

03:19that this tax will not increase the consumption of this country.

03:24If you really want to increase the consumption of this country,

03:28then you will have to reduce the tax called GST along with the income tax.

03:34Because GST is the tax that the richest and poorest people of this country pay.

03:40When a poor man buys a matchbox to light a stove in his house,

03:44he also pays GST on that.

03:46And when a rich man buys a Mercedes and BMW to travel,

03:50he also pays GST on that.

03:52GST is also paid by those people who do not pay income tax.

03:55GST is also paid by those people to whom the government gives free ration to those 80 crore Indians.

04:00GST is also collected from them.

04:02In the same month, if you want to increase consumption in India,

04:06if you want to revive the economy,

04:08then you will have to reduce GST and streamline GST.

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