CA Sandeep Kanoi
I will just explain the Finance Bill, the approach of the Government towards taxation.
Amongst the major proposals, there is a proposal for clean energy cess on coal to be increased from Rs.100 to Rs.200.
There are 14 items in which customs duties are being reduced and rationalized.
Excise duties in eight items are being reduced and rationalized in two others. This is a part of the proposal to make Indian manufacturing more competitive.
As far as direct taxes are concerned, the corporate tax is to be brought down over the period of next four years from 30 per cent to 25 per cent so that along with other competing economies our taxation structures are in comparison.
Wealth tax has been abolished and replaced with a two per cent additional surcharge on the super rich so that the quantum which we are going to get is many times more.
There are some proposals with regard to the Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts.
I have deferred the proposals of GAAR for two years.
As far as the middle classes are concerned, there are several exemption with regard to health insurance. The limits have been enhanced so that those enhanced limits of Rs.10,000 each in each case can get an additional tax advantage. Investment made upto Rs.50,000 will also be exempted from tax and it is provided in the Finance Bill itself.
To encourage people investing in favour of the girl child, the Sukanya Samridhi Yojana will be exempted under Section 80C. I have doubled the exemptions on the transport allowance which is available to the citizens.
With regard to squeezing the domestic quantum of black money, I have announced several steps as far as the Finance Bill is concerned.
There are six different provisions which we are omitting.
As the Members of the august House are perhaps aware, the proposal of a separate management of Government debt from RBI was first mooted by the RBI itself in its Annual Report 2000-2001. Various reports have argued for separating the debt management function from the RBI. Since the RBI has been handling public debt management, the Government in consultation with the RBI will prepare a detailed roadmap separating the debt management function and the market infrastructure from the RBI and having a unified financial market. It has therefore been decided to delete the PDMA provisions from the Finance Bill for this financial year.
Besides this, there are some changes in tax proposals, not very significant but significant to some extent.
The motion for consideration of the Bill was adopted and clause-byclause consideration of the Bill was taken up.
Clause 2 was adopted.
Clause 3 was adopted as amended.
Clause 4 was adopted, as amended.
Clause 5 was adopted.
Clause 6 was adopted, as amended.
Clause 7 was adopted, as amended.
Clauses 8 and 9 were adopted.
Clause 10 was adopted, as amended.
Clause 11 was adopted, as amended.
Clause 12 was adopted.
An amendment for insertion of new clause 12A was adopted.
New Clause 12A was also adopted.
Clause 13 was adopted.
Clause 14 was adopted, as amended.
Clauses 15 and 16 were adopted.
Clause 17 was adopted, as amended.
Clause 18 was adopted, as amended.
Clauses 19 to 28 were adopted.
Clause 29 was adopted, as amended.
Clauses 30 to 33 were adopted.
Clause 34 was adopted, as amended.
Clauses 35 to 55 were adopted.
Clause 56 was adopted, as amended.
Clauses 57 to 61 were adopted.
An amendment for insertion of new clause 61A was adopted. New Clause 61A was also adopted.
Clauses 62 to 104 were adopted.
Clause 105 was adopted.
Clauses 105 to 108 were adopted.
Clauses 109 and 110 were adopted.
Clause 111 was adopted, as amended.
Clause 112 was adopted, as amended.
Clause 113 was adopted, as amended.
Clauses 114 to 117 were adopted.
Clauses 118 to 142 were negatived and dropped.
Clauses 143 to 153 were adopted.
Clauses 154 to 157 were negatived and dropped.
Clause 158 was adopted, as amended.
Clause 159 was adopted.
Clause 160 was adopted. as amended.
Clause 161 was adopted, as amended.
Clauses 162 to 166 were adopted.
An amendment for insertion of new clause 166A was adopted. New Clause 166A was also adopted.
Clause 167 was adopted.
Clause 168 was adopted, as amended.
Clauses 169 to 184 were adopted.
Clauses 185 and 186 were negatived and dropped.
Clauses 187 and 188 were adopted.
The First to Fifth Schedules were also adopted.
Clause 1, the Enacting Formula and the Long Title were also adopted. The motion that the Bill, as amended, be passed was moved by Shri Arun Jaitley.
The motion was adopted and the Bill, as amended, was passed.