Page:Indian Journal of Economics Volume 2.djvu/342

 8 $. M. PA GAR This was due partly to the improvement in assess- ing incomes and partly to the experience gained in the past. More than half of the tax payers were, however, from the income class of Es. 500-1,000. The total tax payers, on the other hand, were not more than half as many as those in 1860. x The charges of collection were also moderate, of which we shall speak at length, when we discuss the present tax. Now coming to the income tax experience in India thus far, it is fair to conclude that: (1) though the varying income tax proved a failure, of the income tax principle to Indian fairly better legitimate; (2) it results if assessed would work by the help of non-official boards would be more suited to their government interest. As Indians are the government of their local or committees; well and authorities to a people who by a strong tie accorded more own country, the application conditions was give with (S) i are united of national voice in this tax (4) this was professional would become more popular than ever; the best method of xing the trading and classes alo.ng. with the highly paid government officials; (5) the mmmum of exemption from the income tax should not be fixed below Rs. 500, if not above Rs. 1000, and the 2 to 8 per cent rate would be preferable, at the same time constant tinkering with the rates being fraught with danger; (6) the employ- ment of ill-paid public servants on a large scale to assess and collect a tax of this sort is uneconomical in the long run; (7) the income tax based upon the principle of self-assessment, without the means of verification, is unsuited; and that (8) the x, as far as possible, sho.uld be collected at the source. Appendix I. (To be vontinued)