There are individuals/HUFs deriving tax free income of more than Rs.1,00,00,000/- (One Crore) p.a. by smart tax planning. There is nothing wrong with that as far as it is within the legal framework. When we talk of legal framework, there are various provisions which give an edge in terms of tax planning to certain section of society (or say certain section of tax payers). A few of the provisions are: a. Agricultural Income b. Dividend Income c. Tax free bonds d. Long term capital gains from listed securities A simple provision of taxing the tax free income where total tax free income claimed is above say Rs.1,00,00,000/- (One Crore) or any other threshold at a rate of say 10% would help changing that in a big way. I know it would require a huge political will, but if implemented the effects would be...
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