The government is not powerful unless we make it. Govt needs money to provide relief to people from the impact of the coronavirus. I propose a suggestion to have a Corona Relief Fund and appeal for donation even Rs 1000. I also propose a new kind of tax credit for the next 6 years on this donation.
The Tax Credit can work on the following rules:
1. All money donated to Corona Relief Fund is Tax Credit. The amount must be Rs 20,000 or above. This will be shown Form 26AS,/AIS
2. Tax Credit can be claimed for Next 6 Years in equal installment or Rs 20,000 whichever is higher
3. Amount of Tax Credit -Nearly 16% pa will be treated as Advance tax by the people. It reduces nearly 3.67% interest under 234C and help
4. No refund is allowed. Unclaimed credit can be used next year.
5. 2%Tax relief will be claimed in Addition to above credit. Its double saving. -Avoiding Advance Tax interest+2% Relief -Nearly 6%Saving
What Govt gets
1. Its gets money +Participation from people
2. It helps govt with money which they had lost GST+IT loss bcz of Corona
3 Avoids external borrowings
4. Even future tax flows are not going to affect
5. Technology helps to track donors and their credits. Brings transparency in govt too
6. People will help govt not as donation, but as tax credit. This mindset brings confidence on govt. It brings huge money.
(This suggestion is voluntary to help my govt with my CA Skill )
Tags :income tax