BUDGETWISHLIST-2009

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BudgetWishlist2009

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Sub:Budget Wish List 2009

 

 

The main focus of this years budget should be to reduce fiscal deficit and the government should take some hard decisions to improve the revenue and widen the tax base.We should aim at implementing the FRBM ACT, in its true letter and spirit to avoid sovereign downgrading by  international credit rating agencies.

 

1.All the exemptions given in the personal and corporate income taxes must be withdrawn and income tax slabs should be widened to give relief to middle income groups and tax at higher rates to higher income groups as was done in both US & UK

 

The slabs are as follows:

 

Basic exemption up to Rs.3 lakhs-----Nil

Above Rs.3 lakhs to Rs.10 lakhs------10%

Above Rs.10 lakhs to Rs 20 lkhs------20%

Above Rs.20 lakhs to Rs 100 lakhs---30%

Above Rs.100 lakhs to Rs.400 lkhs---40%

Above Rs.400 lakhs ........................50%

 

2.All tax concessions of all kinds is to be restricted to SMEs only as suggested by eminent industrilist Mr.NR Narayan Murthy.

 

3.The dividend income should be brought at par with interest earned on deposits and bonds or else a basic exemption up to Rs.3 lakhs to be brought in for all kinds of income and above Rs.3 lakhs of income TDS may be made compulsory and taxable.This is to avoid the discrimination between the interest income and dividend income.While dividend income without any limit is tax free poor bank depositor is penalised by TDS of income above Rs.10000.

 

4.All rich agriculture income above Rs.10 lakhs may be taxed at the uniform rate of 5%.This will be only for the rich agriculturists who flaunt their riches by having farm houses and to encourage simple life style

 

5.As part of the G-20 decision a cap on  Executive salaries to be imposed particularly to the financial institutions and to all corporates who are running under loss and on companies in which Domestic public sector financial institutions have made investments

 

6.Bonus Act 1965 to be amended to remove all the ceilings imposed in 1975.This is to bring in par with the corporate executive salary and dividend restricions imposed in 1974 removed after the liberalisation in 1991.

 

7.CPI should be the inflation index for RBI to fix rates and WPI is to be secondary.Banks should not lend below PLR to ensure transparency

 

8.Disinvestment to be done in a very fair value.Government has lost heavily by selling its stake at a very low price earlier in units like Maruti and VSNL.If all the Public sector undertaking including Public sector Banks are run professionally and make higher  profits, the dividend earned itself will be sufficient to bridge the budget deficit in the coming years.

 

9. Banks in general and public sector banks/undertakings in particular  were the highest advance tax payers and it is the duty of the government that these undertakings run in a profitable manner and bank interest should be market determined and should not be administered anymore.The private sector and Indian Inc. is getting all the concessions and neither gives back to the exchequer by way of taxes or in reducing the prices to the consumers.It inclusive growth is to be meaningful the the benefits must be shared with all instead of finding place in FORBES RICH LIST.

 

10.Interest on government savings schemes should not be allowed to be reduced to less than 9% to help the industrialists.Ours is the only country which is having nearly 35% saving rate and it is the main source of income for many senior citizens and other sections of the "savers".This is due to lack of social security system and free health care for the majority of the people

 

 

K.VITTAL SHETTY

BANGALORE

21 January,2009

 

1.Encl:digital photograph-jpgfile

 

2.My Brief Profile

 

K.VITTAL SHETTY, B.A., CAIIB,DBM(IIB),MBM

(Retd Chief General Manager & CEO of Urban Co-operative Bank),

05,KANMANI ILLAM, I MAIN I CROSS

SRI RAGHAVENDRA LAYOUT

BANNERGHATTA ROAD IIMB POST

BANGALORE-560076

cell:9845699904

Ph:080-26483615

 

1.Started the banking career at Vijaya Bank in 1972 as a Clerical Trainee.

2.Passed professinal courses like CAIIB,DBM and MBM

3.Moved up to a position of Senior Branch Manager and served in various capacities like rural banking & Foreign Exchange in different parts of the country in places like Bangalore, Kolkata, Nagaland, Mizoram, Kerala and Delhi.

4.Active Trade union leader for both clerical and Officer Staff and fought for the rights of workers and Officers.

5.Joined as Chief General Manager and CEO of Sindhanur Urban Souharda Co-operative Bank Ltd in 2003 and retired in January 2009.

6.Now working as Self employed as Financial Advisor