The Congress led UPA government swept into power for the second term last year on its promise to solve the problems "Aam Aadmi" and make their day to day life comfortable.However contrary to the promise is happening.In stead of solving the problems of the common man,the present government is being bullied by the powerful industrial groups and extracting maximum benefits at the cost of the common man.In the name of global financial crisis both the government and RBI made available lot of money to the industry in the name of growth by ignoring inflation.The electronic media is dictating terms to the government and FIIs.While industry and FII requests bending of certain rules, government & RBI crawling to please them without realising the damage done to the lives of common man.Instead of asking for tax concessions, my suggestions is the way in which Finance Minister to raise taxes without hurting the common man.
Hence the main objective of the Finance Minister in the forthcoming budget should be to limit the budget deficit by raising resources without resorting to heavy borrowing and limit the deficit as prescribed in the FRBM Act.
1.All income from all sources like,dividend,interest,capital gains above the first slab of income tax limit is to be taxed
It is not correct to give unlimited tax concessions to dividend income whereas persons who has to manage their family from only salary are unduly burdened without any justification.
2.DDT to be withdrawn and to be taxed at the hands of the dividend receiver to enable the small investors the benefit and bring equity
3.Uniform TDS limit to the first slab of income tax limit in force (Now Rs.1.60 lakhs) to enable disparity between income earned by dividend and interest
4.The age limit of senior citizens to be lowered to 60 years to bring uniformity among various departments extending various facilities.
5.The New Post office Savings scheme to be introduced with index based interest scheme to enable common man to tide over the inflationary pressure and interest to be monthly.(Interest rate to be revised every year at the beginning of the financial year and to be declared in the annual budget)
6.To draw up a road map to make Financial Inclusion to be implemented in a time frame.All the scheduled commercial and co-operative banks(including Foreign Banks) be permitted to open bank branches in all the unbanked villages to cover all the villages in the country.This will also help provide employment opportunities to the rural educated.
7.In order to make credit available to the industry banks should not allowed to invest in Mutual Funds and other investments and their investments must be restricted to SLR & CRR only and the rest should be in the form of lending only
8.If the government is able to bring down the deficit to 3% as stipulated in the FRBM Act,the borrowings will come down drastically and RBI will be able to bring down the SLR/CRR limits which will help to tide over inflation and also the rate of interest will also come down drastically