According to PTI online news of 18.12.2009, “The Government is considering taxing most of the perquisites, including housing and conveyance at the hands of the employees during this fiscal.
According to official sources, the salaried class may have to bear an additional tax burden on their perquisites in the form of housing, conveyance, or monetary compensations in lieu of them, among other benefits”.
Whenever I go for some purchases at ‘more’ or ‘food world’, I find quite a few buyers make their payment through coupons. Both the malls are near Shantinagar colony where many residents are IT employees. I always wondered what kind of coupons they were. They carry a big ‘book’ of coupons and tear out some for purchases worth over thousand rupees. One day I asked a buyer with coupons and his reply was that the companies they were employed by gave them coupons as part of certain portion of their salary. He agreed when I said it was one way of avoiding Income Tax. What does the Government intend to do in such cases?
The other huge area is dividends. Shareholders do not pay tax on income from dividends. Just imagine the amount of money large shareholders make through dividends. If the government is serious about revenue collection they should make dividends taxable beyond a reasonable amount.