CR Venkata Ramani

The undersigned visuvalize the following budget speech by finance minister but without any statistical data.

In order to create stimuli for consumptions at lower level and control on higher level:
Allow rebate for income tax upto 2 lakhs –Nil; from 2 lakhs to 5 lakhs- 10%; Above 5 lakhs -30%- for individuals, HUF etc.
For elders above 60, tax exemption is 3 lakhs and from 3 lakhs to 5 lakhs- 10%.
Tax incentives under sec.80( c ) is increased from 1 lakhs to 2 lakhs. This extra one lakhs can be invested in old age pension fund of parents for which concerned income tax assessee will be nominee. This fund will start giving pension to parents of the income tax assessee. This will stop growth of old age homes in the country. In India, parents are still in the old traditional thinking and spending all money to their children and in the old age, they are suffering. To remove this, this additional saving option.

For companies, firms, business concerns:

Upto 10 lakhs- 10%. From 10 lakhs to 50 lakhs -20%. Above 50 lakhs-30%.

No cess for education, road etc. which will be adjusted from the collections. Thus complications in calculation are avoided.
For companies getting profit more than 50% of their equity capital, additional tax will be levied @10% on the excess profit for infrastructure and Progress India fund. These companies will be given special income tax tokens which will get them priority in all processes of Govt of India. They will be given special status in getting appointment with higher ups in all depts. and will be treated as VIP. In case of any problem, they can represent to a specified number in Public Relation office which will be directly under Prime Minister Secretariat. Their grievance will be sorted out on top priority with some defined period of time. This will be extended to individual paying tax more than 2 lakhs in the next financial year.

Stimulus for big software firms, autos will be withdrawn. But it will be kept for SME sector of software firms. STPI will continue for SME for next 5 years. No more SEZ benefit as STPI will take care of it thus removing duplicate one.
Big manpower provider textile mills, diamond firms will have stimulus package as it is without any time limit.
Orphan aged ones above 60 years will be given monthly pension of Rs.1000 and medical insurance up to 2 lakhs . Free medical advice will be provided using l hospitals near the vicinity of residents. Specified time will be allotted by doctors for this purpose.
Old age homes need not to pay any taxes and old age homes will be under the supervision of a panel of VIPs in the near vicinity consisting of doctors, lawyers, auditors, politicians etc. Sudden visit will be conducted by them to know the fate of residents and the treatment they receive. If found guilty, the benefit will be stopped. Residents in old age homes will be selected at random and secret opinions will be taken and action will be taken based on the same; if necessary, some residents may be shifted to another old age home in order to avoid victimization.
In order to create stimuli for stock market, STT on securities will be abolished. Long term capital gain tax exemption on shares is removed. Revenues and losses will be compensated among these two.
Funds for companies can be arranged by energetic stock market by way of rights and bonus.
Since base rate will be in operation from April 1,2010, banks will be in problem to lend funds due to excess liquidity as there will be less takers and big corporate may move for External commercial borrowings as interest rates may be high as compared to BPLR regime. Govt will discourage such ECB in order to safeguard our banking system.
Renewable energy sectors like wind, solar, nuclear will get tax concessions in order to reduce consumption of oil and gas thus reducing pollution and cost of import thus improving our rupee value.
Raw material like iron ore export will be discouraged so that India can get benefit from value added products like steel etc. Replenishment of ores will be dangerous for future generation. Solar and wind equipments for residential and commercial establishments will receive complete tax waivers in all taxes. The commercial establishments and residential houses will get carbon credits for installing the same and cash will be given against carbon credit. A separate committee will work on this and submit the report within 6 months.
In order to take care of food shortages in the long run and to avoid any bottlenecks, this will be reviewed in advance once in a quarter by a committee of cabinet ministers and the power of agriculture minister in this respect will be withdrawn. The committee will decide about import and export. Last minute efforts will not be taken hereafter thus avoiding heavy cash out to international bodies and to face inflation in India.
Agriculture income over 1 crore will be taxed and this will be used to subsidize fertilizers etc. given to farmers. Fertilizer subsidy will be given to farmers directly by way of token bearing the photo of the farmer based on land records and certificate by local panchayat etc. These tokens can be exchanged with fertilizer companies for purchase of fertilizer. Fertilizer companies should take the digital photo of the farmer and kept in the records for verification by revenue officers. For these, land records in India will be computerized in full.
All govt commercially run departments will be checked for cost efficiency by using ICWA – cost vs benefits. If the Govt depts. are draining cash , then there will be rethinking on restructuring. Even public depts. will be analysed and in some cases, depts. are run without any output. These depts. will be closed.
States will be encouraged to computerize roads plans, house plans etc. . All payments to Govt can be online payments thus removing excess manpower and reducing the waiting time. Only limited counters can be there for low and middle cadre of public. States will be given some special amount for the achievement based on % of target.
Cigarettes and liquor will be costlier. Entertainment will be cheaper for low class people.
Individuals, TV channels, Private detective firms etc. can give information to vigilance about corruptive practice and will be awarded10% of bounty recovered from the guilty. The identification of informer will be kept secret. Vigilance team will be ready 24 hours like commandos and will attend all complaints immediately. Though there will be 70% misguidance but 30% reality may make big thing for India and India will be proud to be in the forefront of corruption free country in the days to come. Politicians involved in these cases will not be allowed to contest the elections till their names are cleared.

CR Venkata Ramani
Sr.Cost/Finance consultant
Free lance writer