Do not tinker with interest rates Mr. Jaitely
The whole world has vent its spleen on Jet lee I hope more sense will prevail soon. Yes interest rates are linked to inflation, so there is justification in reducing interest rates. Oil prices have gone down in the world, but we want to reduce our Fiscal deficit, so oil prices cannot go down. Sure, that is justified too.
When will the government reduce its expenses? when will we get less government? When will we get better governance?
Look at the amazing luxuries given to the urban poor – compare him to the rural poor. In a city the poor can hope to get free medical in Municipal hospitals. So the village guy migrates for medical treatment – and then has no incentive to go back.
No this is not about what Na Mo should or should not do.
I just want PPF, SCSS, NSS,…and all government schemes to have a formula of how the interest rate is fixed, with an yearly reset. So it could be :
10 year Gsec + 2% for PPF and say 10 year Gsec + 3.5% for scss….
at least we are not surprised, angry or wild. Only objection to this is of course there is no talk about inflation. The other formula could be CPI + 2% – use the inflation index which is used for computing the capital gain indexation.
He should make the following changes:
Income tax slabs should be indexed
all the absolute values should have a one time correction and have indexation. So the capital gains which i can invest in bonds should be revised to say Rs. 1.5 crores + indexation. So if a 75 year old man sells his house in a city and wishes to go to an old age home, he could sell his house in say Mumbai for Rs. 1.5 crores, but a new house in a smaller town for Rs. 50L and put the Rs. 1 crore in such bonds.
Creating a rule helps the common man understand how the whole thing works. Sure the government can say since PPF is getting a tax rebate it will be priced at the inflation rate, fair enough. Just come out with the formula and raise the limit in PPF to say Rs. 10 million keeping the tax benefit to Rs. 1.5L
This will bring transparency…but who is listening?
lakshminarasimman
செவிடன் காதில் சங்கு
நிர்வாண நாட்டில் உடை உடுத்தியவன் முட்டாள்
siddhant
jetlee is going to be the vibihishan in modi government, he is going to make current government loose who needs rahul gandhi when you have jetlee in your own party
lakshminarasimman
siddhant nice name
but dont compare and insult vibheeshana with a low level politician
vibheeshana didn’t desert his brother. he sided with dharma.
contrast with what karna did. he sided with friendship
both were right. the problem they faced of choosing which side to go is rightly called “dharma sankatam” . any choice they made were one angle right and another angle wrong from rules of dharma at that time.
Krishnan
All this talk of demographic dividend is going to be a fallacy and we will find that we cannot maintain social security benefits nor our improved (!) infrastructure after just one generation.
Because the mid class is so taxed multiple times pre and post his salary, low rates on savings, monstrous school fees, transport and accident costs, social expenditure, that he will give up begetting and rearing children for the society. Jaitley will never know the 24 hr burden of mid class men and women, and only focus on some number-fisc deficit, gdp, inflation, avg tax rate, tax base etc- which is a clerical thing and not that of a national minister.
umang
Krishnan you look really pissed off. I 100% agree this government is doing all what it can do to harm middle class (I have voted for BJP 100% of times in my life). They are wooing poor but in process they are loosing their core supporters (like me). Thing is that everyone wants to squezze the middle class totally reason:
1. We are tax compliant
2. We dont have free time to revolt (look at Jats of Haryana and others)
3. We are not vote – en bloc (like Muslims, dalits) to make or fall government
So I belive this or past government dont care they want more and more money to dish out freebies and fund crony capitalism and their only source is middle class.
cashCowOfNation
Krishna/Umang – could not agree more.
We the middle class are the cash cows of the nation – we will be squeezed to penury until we die.
I am pretty sure the next set of taxation will be based on “Secularism” – if you are a middle class, General caste Hindu – well fuck you, pay more tax.
param
couldn’t agree more with the concept of automatic indexation as default.
i recall that in usa, no one knew when the annual budget was read out, but it is such a big tamasha in india, just because we want to know if the babu & neta will be kind enough to increase the tax slab.
should this not be a basic fundamental right that we don’t want to rely on the ‘pity’ of the FM to hear that the tax slabs have been modified to let us live the same life as we did last year?
LuckyOye
Doesn’t the GST have a provision to allow citizens to set off tax paid as GST against income tax?
MPSingh
Who listens to sane advice in this land of ours?