Prof. Dr. Prakash R. Somani

Public survey on income tax and dependent persons

Subject: Income tax and dependent persons
Introduction: A person’s income tax is calculated by considering his/her total income in that financial year and has to pay according to the Govt. of India rules. However, during such calculations, there are no consideration for the number of dependents (except tuition fee for the children) that he/she has.
India is facing the burning issue of unemployment and we need to support our family members who are not earning (if so); especially older parents and their medical needs; brothers/sisters/spouse (who might be educated and more than 18 years of old but unemployed), so on. In my personal opinion, due consideration needs to be given for such facts and some concession needs to be considered in the income tax for a person if he/she is looking after the dependents. As per my estimate, a person needs at least Rs. 5000/- per month to live (just to live). Hence, a standard deducation (on which income tax should not be calculated) of about Rs. 50,000/- per year per dependent person should be considered. For example: If a person has 5 dependents, a standard deduction of Rs. 2,50,000/- should be deducted from his/her annual income (along with all other deductions applicable as per Govt. of India’s current rules and regulations).
India still has an intact family system and values. Looking after the parents is our moral, ethical, social, and genetic responsibility. If or not, such consideration is given by the Govt. and modify the existing income tax rules; we will continue to look after our loved ones. For some reason, if people do not look after their dependents; will create a completely miserable social situation.
Currently, millions of youths (educated and more than 18 years old) are unemployed in India and are supported by their family members (typically the family head). Engaging such youths in productive and constructive activities (by providing them suitable work/job/mission) is the responsibility of this society as well as the Govt. of India (as a Governing body of the entire nation). In countries like Japan, unemployment benefits/insurance are present. However, there is no such system in India.
An additional point of observation is that a working women (wife, daughter, sister, mother) has to pay a seperate income tax on her annual income. However, there is no consideration (in the form of concession i.e. standard deduction) if such family members are not earning and are dependent on the income of the family head.
If the number of dependents (i.e. family members not working/earning by themselves and depends on the income of the family head) are many then the actual income (although apparently high) is less than a similar person who do not have any such dependents.
I pointed out these facts to Prime Minister of India (PMO) office and requested to give suitable consideration for dependents while calculating the income tax on the annual income of an Indian. Since my request was related to policy decision under Ministry of Finance, my request has been transferred to Ministry of Finance (See Grievance Status attached).
Positive consideration from the Govt. of India is expected in this matter with a suitable policy (income tax rules and regulations) change. However, this may decrease the revenue of the Govt. of India – a bit. Hence, not sure if Govt. of India will consider this request positively and make the policy change.
If no consideration is given by Govt. of India; the last option will be to file a ‘Public Interest Litigation (PIL)’ in the High Court or Supreme Court. This is a bit costly job (may need anywhere between 10 - 20 Lakhs or even more).
Via this survey, I am interested to understand how many of you agree or disagree with my opinions and above described request. How many of you will support (including financially) if decided to go for filing a PIL in this matter?
I request you to fill out the questionary with your honest answers so that I can get a clear picture leading towards a definite conclusion and action.
I hereby declare that I have no wrong intentions, political or otherwise from this.
With best regards
Yours truely,
Dr. Prakash R. Somani
Founder and Research Director
Applied Science Innovations Pvt. Ltd., India
www.applied-science-innovations.com
  Please fill survey form:

Note: The information that you type in the form will be added to the web page directly in an unedited manner. Once submitted, you will not be able to delete or modify the information. The information will be displyed publically – for public information.

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  Survey List:

No Name of person Dependents Agree support Comments
1 Dr. Prakash R. Somani 5 Yes Yes Strongly agree
2 Ranjeet Ghodake 2 Yes Yes Yes I am agree with Income tax and dependent persons Survey topic .
3 Sunil S 4 Yes No Yes. I agree
4 Rakesh k 1 Yes Yes Yes I agree some changes need to be done.
5 Sachin C. L. 0 Yes Yes Strongly agreed.
6 Nayan K. R. 0 Yes No I support your view on this issue.
7 Mohini Shinde 2 Yes Yes Yes I agree some changes need to be done.
8 Dr. Parag Parandkar 4 Yes No I am the only member earning in my family and therefore there are four dependents on my income. However I am not privileged to get any benefit that so ever in my Income-tax return filing, even if I am carrying the income dependencies to that level. In this regard I strongly recommend that some relief should be given to those who pertain to my status. Also at the same time, salaried persons like me, who do not have any alternative source of income, and whose all the income sources are in white, should have been given some relaxation in terms of being a loyal income tax payers.
9 Dr. Savita P. Somani 1 Yes No I strongly agree that dependent persons should be taken into account while calculating the income tax for a person. Some rebate must be given by the Govt. in addition to the standard deduction applicable at present.
10 Santosh G. Mokashi 4 Yes Yes Strongly agree that number of dependent persons should be taken into account while calculating the income tax. Indian Govt. should give consideration to this proposal positively.
11 Sanjay gramopadhye 2 Yes Yes Fully agree
12 Sangeeta S Mokashi 1 Yes Yes Agree
13 Bindu pandey 0 Yes Yes Our Indian tax system and banking system is working like as organized loot program.
14 Smita Nitin Karandikar 3 Yes Yes 100% agreed , that the depends should be taken into consideration in the income tax.
15 Nitin vaman Karandikar 3 Yes Yes Totally agreed, as pervious last decade s one person was earning and his family sons and daughters , mother and father were dependent. And that time family means whole group of member
16 Amole Somani 2 Yes Yes I agree 100%. Govt. must give due consideration for this proposal. In India, the real situation is one person is earning and there will be many dependents on him/her. Thus, some concession in the form of standard deduction must be given while calculating the income tax.
17 Harish R 5 Yes Yes Fully agree
18 Veena S G 3 Yes Yes Fully agree
19 Pavan A. G. 0 Yes Yes Strongly agree
20 Ashok Maruti Datir 5 Yes Yes I agree with this, the dependent may vary family to family. Also income, health problem also different. Employees who paying income Tax honestly he or she should be get benefited.
21 Ashok Maruti Datir 5 Yes Yes I agree with this, the dependent may vary family to family. Also income, health problem also different. Employees who paying income Tax honestly he or she should be get benefited.
22 Ashok Maruti Datir 5 Yes Yes I agree with this, the dependent may vary family to family. Also income, health problem also different. Employees who paying income Tax honestly he or she should be get benefited.
23 Ashok Maruti Datir 5 Yes Yes I agree with this, the dependent may vary family to family. Also income, health problem also different. Employees who paying income Tax honestly he or she should be get benefited.
24 Subrahmanya Bhat 2 Yes Yes Yes I too feel the same
25 Dr AJINKYA GIRISH NENE 1 Yes Yes Agree ! This is a good solution. Also government should provide jobs to educated youth according to there capacity. Highly educated young people have no future in present scanario. There moral is becoming low. Government needs to take this point seriously.
26 Savita k S 5 Yes Yes Yes, some concession needs to be considered in the income tax for a person who has dependents
27 Tejaswi Kumar G k 0 Yes Yes Govt of India has to think twice while calculating income tax. They should also include number of dependents in the family.
28 Mohammad Rizwanur Rahman 5 Yes Yes This tax slab is very high. It should be change. We are paying GST, SERVICE TAX, and normal tax slab. So I request our government to consider it. Thanks
29 Dr Naseem Deshpande 4 Yes Yes I strongly agree with the proposal. Income tax payer's children, though meritorious, are not eligible for any scholarship or concessions in fees. Thus one has to manage the expenditure on children's education as well as parents/in-laws medical care.
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