It's Time for Income Tax / Govt change thier rules..

I started thinking why does the Govt requires the supporting / proof documents for Income T ax especially for salaried employees.. Some of their thinking and logics and decisions are very OLD school of think tank..

Some of the Selective items I would like to discuss and leave the options open are..

1. Conveyance allowance
2. HRA
3. Gratuity duration
4. LTA support bills
5. Medical support bills.

1. Conveyance allowance : this amount is fixed to 800.00 irrespective of the fluctuations in the markets, cost of living, International Crude rates / India's basket rate for Crude, Inflation, local Petrol and Diesel rates. This is very unfair. Its burden on the employees ..where they are paying the INCOME TAX when their issues are not taken care / considered . Does this give fair value to the citizen or salaried employee's hard earned money ?

2. Why does the Govt also need supporting document ie the rent receipt.? If the employee is working .. he is living right..? Since Govt fixed this as around 40 % of basic..how many cases it is still relevant..? Keeping rents, cost of living and many more factors..

3. About the Gratuity duration: As of now its 5 years of continuous Service in the company where he is working. Now in the IT/software industry where employees are changing the company frequently and are paying / contributing to high income tax collections kitty and also Govt itself provided the Income Tax exemption ( STPI registered companies) to IT Companies..recognizing need to grow this industry IT SHOULD AMEND THE CURRENT Laws to 2 years of Service rather than 5 years. Employees are losing their money at least 3-4 % of their CTC and this goes to a dead account where you don't know where these funds are utilized ? Why it is not given to employee like PF amount. Some of the reasons I can also add is .. When Companies lay off employees..govt does not provide any support to these employees. look at other countries like USA where you have SOCIAL SECURITY is available.

If this is the condition why should Employees pay INCOME TAX to Govt ? So I think Govt should scrap this rule and allow employees to with draw their Gratuity like PF when they are not working irrespective of no of years they have worked in that company.

If the Govt thinks we should provide the supporting documents and also pay income tax... then Why not Govt send their income and expense info to all the TAX Payers? The people should know how their money is spent in detail. Its Time to THINK RADICAL and also put the govt in accountable shape and form.