how did tax evation begin?

How did tax evation begin?

BACK TO HISTORY

When Income tax was introduced in 1860!!

Do you know what was the reaction from people???

Eh ? What do you mean?

Then the government explained

Income tax is your contribution from your personal income as a revenue to our country.

But… not everyone agreed

So the government abolished in 1873

• The reaction from the people were quite obvious

But how can government generate revenue if there is no income tax???

So it re introduced income tax again in 1886

I AM BACK!!

1950s

Exemption limit RS.1500

No of rates 4

Entry rate 4.93%

Peak rate 25%

Peak rate of income Rs.15000

REACTION ??

1960s

Exemption limit Rs.3000

No of rates 7

Entry rate 3.15%

Peak rate 26.25%Peak rate of income Rs.20000

REACTION

1970s

Exemption limit Rs.5000No of rates 11Entry rate 11%

Peak rate 93.5%Peak rate of income Rs.200000

Now what do you think will be the reaction?

What the *#*$#*%^&!@^?!?!??!

Since thenwhy should I pay?

SO Lets Evade!!

Year X` (Rs) Number of Rates

Entry Rate (%)

Peak Rate (%)

Peak rate income (Rs)

1985-86 18000 4 25 50 1000001990-92 22000 4 20 56 1000001995-96 40000 3 20 40 1200001997-98 40000 3 10 30 1500001998-99 50000 3 10 30 1500001999-00 50000 3 10 33 1500002000-01 50000 3 10 35.1 1500002001-02 50000 3 10 30.6 1500002002-03 50000 3 10 31.5 1500002003-04 50000 3 10 30 1500002004-05 50000 3 10 30 1500002005-06 100000 3 10 30 2500002006-07 100000 3 10 30 250000

Income Range General (non-senior citizens) Category

Women (Below 60 years of age)

Senior Citizens (Men and

Women above 60 years of age),

but below 80 years

Very Senior Citizens (Men and Women above 80 years of

age)(This category is abolished from this year and is thus is same as that of General

Category

Upto Rs. 2,00,000 Nil Nil Nil NilRs. 2,00,001 to Rs. 2,50,000 10% * 10% * Nil NilRs. 2,50,001 to Rs. 5,00,000 10% * 10% * 10% * NilRs. 5,00,001 to Rs. 10,00,000 20% 20% 20% 20%

Above Rs. 10,00,000 30% ** 30% ** 30% ** 30%**

* A tax rebate of Rs 2,000 from tax calculated will be available for people having an annual income upto Rs 5 lakh. However, this benefit of Rs2,000 tax credit will not be available if you cross the income range of Rs 5 lakh. Thus we can say that tax payable in 10% slab will be maximum Rs28,000 (taking into account Rs 2000 tax credit), but for people who fall in income range of Rs5 lakh and above, the tax will be Rs30,000 + 20% tax on income above Rs 5 lakh;

The following INCOME TAX RATES ARE applicable for the Financial Year ending March 31, 2014 (Financial Year 2013-14)-Assessment Year 2014-15):

PAST TREND

IPC

Exam Group I Group II Both Group Pass Pass Pass

% % %13-May 19.44% 14.83% 11.73%12-Nov 24.91% 20.39% 10.56%12-May 30.51% 27.39% 18.67%11-Nov 35.64% 30.17% 17.02%11-May 33.60% 29.36% 19.32%

PAST TREND

FINAL

ExamPass Percentage

Group 1 Group 2 Both Groups

May-13 13.79% 13.79% 18.65%

Nov-12 12.97 27.3 21.85May-12 25.32 29.62 16.38Nov-11 25.54 27.81 15.78May-11 36.34 26.67 20.51

ALL THE BEST