Hon’ble Finance Minister, Smt. Nirmala Sitha Raman has presented a lengthiest Wonderful budget, made navel and result oriented allocations, Proposed Sixteen point formulae for doubling the farmers income is Welcomed by all the citizen of India with praise.
The reforms brought for corporate sector also applauded and may also instigate more foreign funds, generate more production and employment.
But the modification and proposals made in taxation are very negative effect and devoid of tax payers welfare and may not stimulate the tax base widening. Of course, The New Regime proposed would be certainly beneficial to the tax payers who are not able to afford for any tax savings.
The tax payers are contributing more than 20% of GDP and to the National Financial Exchequer. But their aspirations are simply over thrown and set aside in their beloved Prime Minister Modi Regime. All the tax professionals and tax payers were anxiously awaiting for enhancement of tax exemption threshold and exemptions under Chapter VI A and so on.
India is a democrat country, The Govt is in fiduciary capacity for the citizen as well for the tax payers also. Undoubtedly, it should stream line tax collection procedures to optimize tax collection from all possible ways. But at the same time, the Govt. is also duty bound to stimulate savings and pave welfare measures for their tax payer facilities.
Those who insure for their life, doing not only for risk coverage, but also to avail tax benefits under chapter VI A. In fact for every life insurance agent and Small savings agent, stimulate the potential investors, narrating about reduction of tax and other benefits that follow. In turn all such savings are being utilized by the State for the developmental activities.
Enhancement of basic exemption threshold will enable the tax payers to have more money on their hands for their family necessities and comfortable living, thereby enhancing their purchase power and as well to create good demand for the products available in the market. It will contribute a lot to combat the present recession.
It is the prime culture of Bharath to save income for future. The Indians never spend all the amounts they earn, but save for future commitments.
The Govt taxation policy should aim at not only tax collection but also stimulate the tax payers to save more in tax exemption avenues. So that they can accumulate savings for future investment, to further enhance their incomes in future and to have economic stability. This core aspect is totally kept aside by the budget in Modi Regime disappointing not only tax payers but also Public institutions like Life Insurance corporations, Banks, Postal Savings etc., but also private corporates in this arena .
As such there is necessity of budget proposals to review in these lines and revise so as to provide the gaps in the interest of tax payers welfare and to gear up the financial exchequer of the nation.
Author Bio
Welfare of the taxpayers is not taken care of only thru additional exemptions and deductions. The budget is in the right direction. The IT law should be made simple by removing all the exemptions and deductions and rate rationalization. What people are not able to focus is the outlay on the infrastructure for the future. don’t see the budget only from the personal angle see it thru the nation building perspective.