TAX RELIEF ON VEHICLE LOANS & CFLs & LEDs : My wishes for the forth-coming Budget 2009-10

 

 

Pradeep Srivastava

Phones: ' Mo: (0)- 9884119936

 

TAX RELIEF ON VEHICLE LOANS & CFLs : My wishes for the forth-coming Budget 2009-10

 

1.      By way of subsidy / tax holiday or so, CFL & LED based home & industrial lighting systems should be made available to public at a price that is even cheaper than that of equivalent Chinese products coming all the way from across Himalayas via a costly sea-route. Use of such environment-friendly systems will not only help in containing problem of Global warming but also, by way of sale of the power saved through them, help in getting back, perhaps, even more money than spent on subsidy/tax holiday for the same.

 

2.      Today, a vehicle has become more of a necessity rather than a luxury because people have to travel far more distances than ever for their work/business. People, who buy a vehicle in the name of their business firm, get full benefit of depreciation and feel comfortable in replacing it with a new vehicle in time at regular intervals. It is because of depreciation benefit that they are able to afford the best brand and fuel-efficient vehicles. On the other hand, salaried class people get no such benefit as they shell out few lakhs out of their hard-earned money or take loan to some-how acquire a vehicle and, thereafter, keep struggling to pay back the loan. As a result they are constrained to keep using very old and second hand vehicles which contribute to wasteful consumption of fuel & pollution in a big way. They should be given some incentive on the theme of depreciation or some good subsidy-equivalent as an incentive to replace older vehicles in time to go for advanced, new-generation and fuel efficient vehicles. This will also give a much needed boost to Automobile industry while saving gallons of fossil fuel.

 

3.      Common man is being taken for a ride by Banks / financial institutions when it comes to interest on Home-loans, calculation of EMI, Penalty on pre-closure etc. It should be made transparent by making it mandatory for them to publish their interest rates & corresponding EMI per lakh & penaty etc. on the first of every month or in the Realty-supplements of all prominent news papers.

 

4.      Some mechanism be developed to ensure that benefit of drop in inflation rate reaches consumers, at least, for all food items (including food-grains, fruits, milk etc.) and related essential commodities.

 

5.      Limit for tax-rebate on the amount invested be enhanced to Rs.10 Lakh or be simply removed to encourage more & more investment and to mobilze money idling in SB accounts for developmental activities..

 

6.      Income tax on the interest on savings bank balance is not worth looking at it for IT calculations> Similarly on FDs be simply removed.The interest rate itself can take care of it in a simple and reasonable way rather than adding up & incorporating in IT return.

 

7.      Post-office should be empowered to give better return/interest than banks, as hitherto, on the deposits & investments and more Senior citizen-friendly schemes be rolled out from Post offices as well as banks.

 

8.      Income tax calculation for salaried people needs to be further simplified and, if possible, personal income tax should be abolished for at least next 10 years and IT machinery should focus on corporate tax.

 

Sender ……………….

                         Pradeep Srivastava

                         Post Graduate in Chem. with Doctoral Research exp fro IIT-Kanpur

                         MBA (Mktg.)

                         Middle management cadre in Indian Petroleum Industry –

                         Public Sector – 29 yrs. experience.

                         Based at Chennai.

 

 

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