L.Rangarajan, Chennai

The first and foremost is a simplified,compliant oriented and indiscriminatory taxation measures. Deductions and exemptions should go. All income earners should be taxed at a single flat rate of say 10%.It is based on a simple principle that every one should contribute to Government' s kitty in proportion to his income. It should be deducted at source by every employer. F.16 issued by the disbursing authority should be treated as a proof of compliance.This measure will enlarge the tax payer base and tax collections will be steady and improve.
Tax deductions on interest on bank deposits should go as the deposits made is out of income net of tax.This will ensure that hard earned money is not invested in apparently high yielding but beset with high risks.

Interest rates on SB should be increased to atleast 4 % p.a .With the new method of computation of interest on SB from 1st April,2010( on monthly average) this will ensure flow of funds from short term deposits to SB as SB offers more liquidity and thereby reduce cost of funds.

L.Rangarajan,
Chief Manager,
Bank Of Baroda,
153, Luz Church Road,
Mylapore, Chennai-600004.
ph:24350922/9940281679
ranga351@gmail.com