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This refers to reports about the new law being drafted to replace the more than half-decade-old Income Tax Act of 1961 having too many patch works in the form of amendments.

The new law should have provision whereby accumulation of black money may not be possible even if it might have been somehow generated like through property deals. There should be a permanent provision of Voluntary Disclosure in Income Tax returns whereby any amount of undisclosed income may be allowed to be disclosed on a tax rate 50 per cent higher than a combined rate. This will get nab those purchasing property with unaccounted cash.

Considering gross misuse of tax exemptions like donations, these should be abolished. Likewise, exemptions for contributions made to and received by political parties should also be discontinued.

Author : MADHU AGRAWAL
(Guinness Record Holder for letters in newspapers)

Disclaimer : The views expressed above are the author’s own.