Showing posts with label home ministry. Show all posts
Showing posts with label home ministry. Show all posts

Wednesday, March 14, 2012

15 Ways Union Budget 2012 CAN Change Our Life for Better

First and Foremost accept all industry association and professional bodies demand in toto , specially procedural simplification.   

Personal Impacts

- No Personal Taxation till Rs.10 Lacs. Thereafter 20% Flat (irrespective of type of income incl Agri Income) . Lots of time and effort saved - in the dept and at personal level.

- Every constructed property deal above Rs.100.00 Lacs to be put on public e-auction for acquisition at 20% extra premium for 3 days. This can be avoided if the buyer agrees to pay 5% Property Tax on the deal value. Black Money is mostly consumed in property deals so to deter or earn out of it.

- No Deduction from Income Tax. Entire Section 80 should be abolished. No wastage of time in useless planning.

- All donation and investment to be left to personal discretion not guided by Tax Benefits. Rational thinking.

- Return Filing Voluntary for below taxable income individuals. May be used as continuity and loan purpose.

- Refund in 15 days of filing return. Why do they need more time?

- No scrutiny for income below Rs. 50.00 Lacs, Let the common men remain away from the dept.

- Black Money Scheme of Tax at 50%. Deposit tax and credit equal amount in capital a/c. Anytime ongoing provision.

Business Impacts

- No Business Taxation till Rs. 50 Lacs turnover. Thereafter profit flat at 8% of the Gross Turnover and taxed at 25% or else audit and stringent scrutiny.

- For thrust & weaker industries flat profit @ 6% and tax rate of 15%. No other capital or interest subsidy.

- Tax Audit for Turnover above Rs. 200.00 Lacs. It will be a Turnover Audit so form 3CD will be reduced to one   page

- Entrepreneurs below 35 years , no business taxation till turnover of Rs.200.00 Lacs. (Majority partner or directors should be below 35 years)

- Entire section 36 and 37 to be abolished

- Similarly Standard GST rates as per Industry Association Demands

- Compulsory Single Window Clearance in all states for new ventiures

Credit Policy (These are extra thoughts

- Education Loan simplification and promotion for next 5 years. Make the target 100 times.

- Strong CIBIL Data Sharing

- Business Loan Procedures Simplification & Business Banking Separate from Personal Banking

- State between Not Good to NPA to be monitored and mentored more closely. More data analysis than mere 
collection without action.

- Banks to become knowledge centres

- R & D Funding Institutes in line with Infra Funding Inys

- Start Up Funding Institution/Banks to promote entrepreneurship

We need complete overhaul of budget making & thinking process. Let the economists step back and management consultants and seasoned entrepreneurs take the front seat. Its a CEO's call and not Economist's shot. 

Certainly Budget can bring mental peace & happiness to the society if the time taken for approvals come down, if the tax laws are simple and rates are affordable, procedures are simple, govt interference is lesser, sector need encouragement gets adequate push and support. All these efforts and initiatives can bring Happiness in the society. Finance Ministry's actions directly impact with HRD & Home Ministry's burden.