bugetwishlist 2009

Sir/madam, Views may please be put on the blog.  Budget  July 2009 – Three Pronged Strategy The present day India requires a three pronged strategy while levying taxes  namely to -1) look into reliefs for reqular income taxpayer with TDS  2) arresting leakage of revenues from the variable income assessesses but protecting them for rainy days and 3) dissuading new developements on the political scene of distributing free by States on populist measures and sqandering hard earned revenues,.    While the salaried class of this country gets taxed on TDS for the real income, it is not so in the case of the vast majority of individuals, who are self employed and having variable income like Doctors, Advocates, chartered Accountants,  personalities in the film world, a lot of traders and vendors etc.,  leading to leakage of revenues.   Bringing more people into tax net relieves the burden to tax higher rates a few and also give relief to needy sections of society.  The State Governments  free distributions  are meant for people prone to their ideologies and there are no standards set for such distribution.     The Government would do well thus to plug the loopholes in collection of taxes by way of identifying the real income of variable income groups and exercise control and totally dissuade State Governments carrying out populist measures at the cost of exchequer.   With the above in mind, I feel 1) the budget shall raise limits to Rs.3.6 lakhs per annum to spare the Group D employees and part of Group C employees of Government and those in private companies earning less than Rs.30000 per month but levy 15% for 3.5 to 5 lakhs and 25% uniformly for above this level   2) In the variable income sector, when the income level comes down there is no way to fall back and thus the Government should announce schemes through Governmental agencies for  compulsory savings of 20% of their income which should have an interest rate of 12%.   The above will help to augment the income tax revenues as a whole on one hand, and also clear the misgivings in the minds of tax payers of all sections that their tax payments are misused and  bolster confidence and  security for the irregular income levels. V. Ramachandran.   B11, "Gokul", 40 th Main, J P Nagar I Phase, Bangalore-560 078.  Profile;  Retired as Dy Chief Mechanical Engineer from Railways.    With qualifications of A.M.I.E., and MBA, I have served as Motive power consultant in the World Bank's  productivity study for Zambian Railways in 1984 and participated in programme of UNIDO in management of rehabilitation of rolling stock at British Rail Engineering Limited, U.K. in 1991.   Served as RITES consultant to Myanmar Railways, Yangoon  in 2000 and 2001 and  Implemented Quality Systems as MR at Goldenrock Workshop in 1997 and Environmental Quality System as Senior Divisional Mechanical Engineer at Erode Diesel loco shed.  Budget officer for railway workshop, Goldenrock in 2004 and also for the Diesel Locomotive wing of Southern Railway in Chennai in 2002 and 2003.                V. Ramachandran, No. B11, "Gokul", 40th Main, SBI colony, JP Nagar I phase,   Bangalore-560078. Ph.080-22448905.