Taxation, over and over

Updated: Jul 31 2006, 05:30am hrs
Whenever there is a natural calamity, a bomb blast or any other unfortunate incident, the government announces compensation for the victims and their dependents. At the same time, the income tax department announces that such amounts disbursed are subject to the maximum slab for taxation.

What is the logic of one arm of the government giving and the other taking away a major chunk as tax
Again, lottery promoters pay high taxes on the sale of tickets. Lottery winners, too, are taxed under the highest slab. Lottery organisations are also companies and their payments are like dividend payments after tax. The current situation leads to a position of double taxation.
Winners of lotteries, races and casinos receive their money after tax has been paid by their respective organisations. Why should the beneficiaries be taxed again This anomaly should be set right.
K Venkataraman


Mole in PMO
Apart from why Jaswant Singh did not report the mole in the PM’s office sooner, what causes concern is that such things can happen here and are tolerated. Equally disturbing allegations that navy secrets have been leaked only indicates the extent to which corruption has taken deep roots. It is the politicians and bureaucrats who are primarily responsible, as they haven’t been able to check such situations despite the powers and responsibility vested in them.
NS Venkataraman