Dear Mr Finance Minister,
I appreciate your relentless effort in finalizing the Budget for 2015-16. You have surely have many complicated thing introduced in the budget rather than simplifying the matters for the state and for the tax-payers. Any way whatever is before me tempts me to ask some questions if you would be kind enough to reply directly or through generally addressing issues as and when these come up in public space. The following are the questions:
1) How are you going to address problem of money going out through ‘havala’ and being parked in accounts of foreign nationals by just asking the NRIs to file returns compulsorily?
2) Why haven’t you asked all resident nationals and NRIs to furnish copies of Foreign Bank Accounts for past say 5 years enabling the govt agencies ask explanations of entries that look suspicious.
3) You should have made distinction in black money earned through legitimate business and black money earned through foul and unlawful activities, why is there no such distinction.
4) 300% penalty is absurd because it will only invite endless effort at the hands of govt while a simple provision that all the black money assets are to be considered belonging to govt of India right from the time it is generated would have been more appropriate making any further effort to move it etc punishable as being criminal activity of dealing with assets of another without his permission, what is your opinion regarding this?
5) I don’t mind the various allocations for this scheme or that by you which are meant for welfare of masses as ultimate view is to generally to benefit people, but want to ask why you haven’t made any tax effort that burdens not those who have a very limited income and your raising service tax does affect the persons with the lowest income much more than it hurt the moneyed?
6) You could have allowed people in ways they wish to save or to have a house of their own or have health, pension and life risk covers as per need by fixing a limit of sum of Rs 250,000/- within which to do it to avail tax exemption, why you didn’t do it?
7) You could have allowed the corporate exemptions and rebates to be limited to 5% of net income for the year right in this budget itself which would have raised revenue for you right now letting you have time to selectively drop the exemptions later on, you should not have let your liberty regarding the taxing the corporates clipped by advance announcement, what is your view regarding this?
(Your intention of keeping parity in corporate taxes with neighboring economies of south east Asia is misplaced because we have a far larger domestic market to attract capital from outside.)
8) The part payment of premium for life insurance etc by govt for the account holders is good, it will keep them operating the accounts more willingly and more regularly but cash transfer of subsidy is bad policy because it may be splurged by the recipient without benefiting the family in the intended way, would you recheck this?
9) When there are so many homeless why do you give tax concession to those who purchase a second house, do you not think it fit to have higher revenue and use for giving shelter to homeless?
Rest of things would matter only when the asset creation is seen on ground without any pilferage.
Thanking you once again and asking for your pardon for being loud mouthed!