Wednesday, November 4, 2009

Hounding the Honest

Indians have long ceased to admire honesty. Read the news items:

http://timesofindia.indiatimes.com/biz/india-business/Lalit-Modi-Jagan-among-top-taxpayers/articleshow/5182297.cms

http://www.thehindu.com/2009/11/02/stories/2009110253770400.htm

“Jagan, who had paid just Rs 2.92 lakh tax for the entire financial year 2008-09, has paid Rs 6.6 crore advance tax in the first six months of this year, projecting a tax outgo of at least Rs 22 crore with his personal income expected to cross Rs 70 crore in 2009-10.”

"A contender for chief ministership of Andhra Pradesh, Jagan had paid no tax in H1 last year, but has paid Rs 6.6 crore in the first half this year. He is the only recognised politician in the top 100 taxpayers, according to sources."

Look at the very wording of these two news items. It is obnoxious, to say the least. Media and his political foes talk as though it is a sin to pay taxes. Personal income varies year after year and so does the tax liability; it is as simple as that. If Jagan’s estimated tax liability has gone up this year by a mere 75,342% it is due to his hardwork; sweat and blood. Fact that he paid it like an honest politician and became country’s highest tax paying politician overnight, toppling heavyweights like Mayawati, speaks volumes of his integrity. He deserves Bharat Ratna. Why is everyone hounding him? Talking behind his back? In front of him, they say he should be made CM! But for few honest people like him, revenues of Income-tax department would have exactly tallied with the taxes paid by the salaried class.

Perhaps his political allies and foes feel it is a sin to pay any taxes; even declaring a fraction of income and paying tax on it - a bad precedent, in any case - not the in thing. They want to influence the mind of one with an impressionable age as Jagan is. Politicians are there to serve people. Look at their pay-cheques! They are not even worth encashing. Do they get time to go to a bank and deposit when they are serving people 24x365? Then, where is the question of paying any Tax? In any case, what is tax on NIL income?

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