Dear Sir,
Every economist is in search of new ideas to fight poverty. In myopinion, Finance Minister should use Income-tax Act to end poverty.He should introduce a new section in the Act through Finance Bill 2010so that "Any amount incurred by a company on the development ofvillages where directors were born will be allowed as revenueexpenditure while computing income liable to tax". Here the word"directors" may include Chairman, President, Managing Director, CFO,CEO and villages include ancestral villages if situated in India. Sofar as individuals are concerned, a deduction upto Rs. 20,000 shouldbe allowed if a person spends money to solve one or two problems ofhis or her (ancestral) village. Poverty Eradication is the biggestproblem and requires everybody's attention. Hence, if a company doesnot spend every year at least 2% of its net income on development ofvillages,the said company should be taxed at 35% instead of 30%. Sofar as PSUs are concerned amount can be spent to solve one problem ofone district.
S C Aggarwal,
Founder,
Poverty Trust,
K-101, Sarita Vihar,
New Delhi 110076
villagepoverty@gmail.com
(Author of the book "War on Poverty" Role of privileged people.Now a days, working for eradication of poverty & development ofvillages and always available for low cost CSR projects.)
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