1. Marginal Relief is required for those whose income marginally exceeds Rs. 5 Lakhs, wherein the tax payable exceeds the income that exceeds Rs. 5 Lakhs. Upto income of Rs. 5,15,630/- the tax is to be restricted to the income that exceeds the limit of Rs. 5,00,000/-.
2. Proposed increase in levy of surcharge of 15% to 18% for income between Rs. 2 Crores and Rs. 5 Crores from 15% to 22% for income above Rs. 5 Crores is to be withdrawn since it has been proved in the past that while the rates are reduced the tax collections had increased due to more compliance and tax collections dipped whenever rates are increased due to evasion/avoidance. Our country is following the system of ‘Progressive Taxation’e. the rate of tax increases while the income increases, whereas in the system of ‘Uniform Taxation’can be followed in the long run, wherein the rate remains the same for all and naturally who earns more will pay more tax. But in the system of ‘Progressive Taxation’ the citizen who earns more is penalised for his ability to earn more. The high rates of tax are deterrent for the growth of business in the sense that the taxpayer will not be interested in earning more since he has to shell out a sizeable amount of his earnings in the system of ‘Progressive Taxation’ coupled with additional surcharge.
3. The increase in levy for Petrol and Diesel would add fuel to the inflation. It should be withdrawn.
4. The increase in import duty for gold would result in more smuggling of gold from foreign countries and we read almost daily in Newspapers the seizure of gold in Airports. Only very negligible smugglers are caught.
5. The proposed ‘One women per SHG to be eligible for a loan up to Rs. 1 Lakh under MUDRA Scheme’ should be put on hold and a survey is to be conducted to ascertain the present status of all MUDRA loans including loans to SHGs sanctioned by Banks, as to the recoveries made so far and the percentage of NPAs among them. If the results are encouraging the government can proceed with the same.
6. Now Bank are giving agri. gold loans for which interest subvention is given by the Government, whereas majority of such loans are given by almost all Banks to non-agri purposes to non-agriculturists since the Banks are not required to get document to prove that the borrower is an agriculturist. This practice is to be stopped because in the name of promoting agriculture public money, in the name of subvention, is diverted to other no-agri. purposes
– By CA. M. Lakshmanan.