Introduce Transaction tax, reform Individual Income Tax and remove tax returns for fixed income group and bring in all evaders under tax net

Simplify tax further and make tax compliance  hassle free. The best way is to introduce transaction tax at source. 

Taxes are plenty but not good enough to bring in equity and equality in the generation and distribution of national wealth. Now we have GST,CGST, ST , Direct Tax, indirect Tax,Tax on oil and liquified gas apart from property tax, stamp duty, Registration Charges and other surcharges etc. The charm of  living in the presence of all kinds of levies right from from cradle to grave literally and in the absence of ease of living due to all possible irritants from the authorities at all levels of life stages from Childhood to old age is obviously  absent is a fact and definitely not an exaggeration.     

These are all the days of digital transactions and paper less work. However, life is made miserable by all sorts of hurdles and irritants. This is what is the experience and ground reality not only to the so called common man but for all human beings except perhaps to those in power. But for some octogenarians perhaps, people by and large dislike any type of paperwork  and even any hard meticulous calculations involving lots of rules and mind boggling arithmatical jugglery.This sort of tax assessment, collection, and overseeing the accuracy therein always gives room for doubt on the very integrity of data, amount of collections, the vast scope for escape routes and tax compliance and generation of corrupt practices of all kinds upsetting and distorting the figures making the decision making process not only a difficult process but also a less satisfying one in terms of results. Covering 140 crores of people and making them comply with tax laws individually is a herculean task.The best and easiest way to augment tax and cover majority of the population is to levy tax at source of transactions and monitoring the collection of taxes without pilferage  of tax collection. The people will welcome any tax at source and will be relieved of filing of tax returns. If inevitable, returns can be there for those who have really very high levels of income from multiple sources and are above a cut off limit of say Rs 50 lakhs or one crore and above. Filing of returns for those just above a cut off limit of Rs 2.50 lakhs is ridiculous in these days of high inflationary conditions and a very large segment of the population earn this amount even in villages. Poverty seems to have been  eliminated to a great extent but poverty of data is not taken care of causing all sorts of inconveniences, inconsistencies and inaccuracies in the enunciation of policies leading to unsatisfactory results and avoidable criticisms.The benefits of noble thoughts do not get translated into actions and this needs to be sorted out early to enjoy the Ramarajya by the masses.        

The present generation of people seem to be techno savvy and they prefer technology oriented approach to reading and writing unlike the old generation. In such a background, the compliance to the tax system by submission of returns involving myriad calculations after understanding and complying with varied provisions, rules and regulations seem to be unacceptable and people having no knowledge of technology  have a tendency to evade / avoid submission of returns as a matter of convenience and definitely not with intentions to violate the compliance requirements. Tax at source is the best source of instant revenue and the majority of taxpayers can have a sigh of relief from filing of returns. Even the categories of individuals left out of tax payments can be covered comfortably.        

The Government needs revenue and people can have no choice to avoid any levies . Compliance to law though desirable but is not always practicable due to the presence of all kinds of hassles and evasive tendencies for the heck of it. Out of 140 crores people Income tax assessees are only less than only 10 crores is something ridiculous and by any reckoning of living standards of people witnessed all around, this number is unacceptable to any average intelligent common man. Time has therefore come to relook into the ways of earnings people have and capture the accurate data of all to the satisfaction of the statisticians  first,  the tax authorities , tax payers, tax  evaders and all people who care for the welfare of all.   

Since the majority of Income tax payers come from the category of Salaried class, pensioners and their composition of income is generally limited to a very few  highly standardised items, it should be possible to ensure tax levies at source and exempt this category from submission of returns. Even for individuals other than the salaried and pensioners, the best approach would be to tax them at source  with the aid of Artificial Intelligence  and if found very necessary then only make them file a return. It would be possible for  authorities to monitor at macro level and tax at source to avoid suspicion of evasion and follow up individually. With proper education, adherence of laws, and fixing accumulation of money by using all available means and keeping track of monetary transactions digitally and otherwise if any by chance and discouraging all possible corrupt practices through monitoring using AI  and tracking exceptional transactions reporting by all kinds of financial and other institutions, the very concept of Individual income tax can be reviewed and drastically altered if not eliminated altogether. All said it is time to augment tax collections by avoiding income tax returns and maintaining a huge army of people behind the supervision. It is high time to have a holistic view of the entire tax system and introduce innovative methods to levy taxes at source and keep monitoring accumulation of wealth at all levels through other means. When the  Country is rich, human resources are highly intelligent and resourceful and there is abundant potential in terms of culture, heritage, civilisation, high tech capabilites and multitasking talents, it is not understood as to why the economy cannot and should not deliver to reduce the widening inequality, persisting inflation, unemployment and unhappiness for no valid ground with the backing of all capabilities. The immediate solution may be to have a revisit of taxation policies, identifying and removal of  laxity in providing clean administration without any design and plans for corrupt practices and spreading the practices of value addition by adhering to the best of values and ethics in letter and spirit in whatever we do for public good in the upliftment of the society and community living. Time to have a fresh approach and  bring in qualitative improvement of all aspects of Politics, economic , social and technology associated  life. 

Making money at any cost by all including the Government has its own adverse consequences of negative impact in the society affecting the happiness index, emotional life and overall well being of the people. It is time for every segment of the society particularly Academicians,Administrators,Professionals of all categories, Social reformers,Policy makers,Politicians,Religious leaders, Sages and Saints to introspect seriously and introduce suitable changes / measures to make living a happy and  wonderful experience devoid of running only after material pursuits. Money is not everything and money can cause all evils in the Society is also a known truth. 

The importance of data relating to wealth generation, wealth distribution, and wealth accumulation and wealth utilisation / mis utilisation cannot be ignored from the angle of equitable and expeditious development of the economy and reaching the pinnacle of economic growth and achieving  welfare for all in the universe.   

 

Loka Samastha Sukhino Bhavanthu is possible not by money alone but also needs to be understood and realised by all .    

T V G Krishnan

Senior Citizen 

(Personal views). 

Why freebies are wrong in a Democracy

  Why Freebies are wrong in a democracy.

A very healthy democracy is sine qua non for fast and equitable development of the economy. Rule of the people, rule for the people and rule by the people with a commitment to serve the people for their welfare using the resources of the nation to the optimum level without any wastage in a democracy can  happen only if there are open discussions, transparent actions and accountability for lapses and failures and visible welfare, peace, prosperity  happiness and general acceptance of the administration for its efficiency, effectiveness and deliverance of products and services in a fair and equitable manner. Honesty and Integrity of the administration can be visible and assessable directly on the basis  behaviour of the people, progress of literacy rates, their educational standards,  electoral related details consisting of free and fair election, (selection of candidates for Legislative bodies inter-alia should have well proven leadership qualities and absolutely no criminal background whatsoever),happiness, welfare, political stability, economic achievements, wealth generation and its distribution, etc. While politicians need to take the initiative and provide the direction of the Country's progress, the bureaucrats, economists, educationists, social reformers, religious pandits and well wishers of the nation and people can take the country to achieve all good and intended benefits like peace, health, wealth and welfare for nation and the entire universe as well.     

Freebies offered to the electorate in different states and the Country  affect not only  the morale of democracy but also kill the democratic process by bringing in political instability, economic imbalance, social concerns and unhealthy and undesirable practices. What the Country requires to achieve the Developed Economic Status aimed at by the Visionary and Honourable PM by the year 2047 is enlightened public capable of appreciating the Country’s scarce but otherwise Very Rich Resources to develop the economy and contributing their might to achieve the economic growth and make the cake GDP as big as Possible so that the economic development is equitable bringing in  all round progress particularly to farmers  and ensuring welfare for all. Expansion of all round Infrastructure , agricultural, industrial growth and benefits of  whole sale economies  with sound and  benign  business models and logistics using optimally the factors of production which include even the time management are all within our reach provided the ease of doing business is made really easy , comfortable and  adequately regulated and monitored with integrity of  supporting data. Land,  Labour and Legal reforms if expedited and implemented early and earnestly can be a very great relief to make the ease of doing business a reality. Readiness to think and act is all that matters.    

The generation of black money through corrupt practices designed by a few policy makers and administrators, protected by weak legal system and encouraged by a few bad elements in the society with selfish interests ignoring the enviable image of the culture, heritage, beautiful civilisation and well aimed wealth creation for equitable distribution and enjoyment of the humanity as a whole taking advantage of nature and its magnanimous benevolence needs to be nipped in the bud itself  with the aid of technology, moral suasion and persuasion and this is possible and easily achievable as majority of the people are for established good values, known  ethics and always working and praying for the well being of all everywhere in all ways and more than always. Freebies add to the financial burden to the public particularly the tax payers and also compels the Government to resort to fiscal adjustments to make up the revenue losses because of freebies and lose control on the financial discipline envisaged for management of public Finance. This sort of enticement of public needs to be avoided at any cost as part of build up of healthy democracy. Public also needs to be made to think and act in the interest of State's development with very prudent management of public finance. An enlightened public having knowledge of state finances cannot expect freebies in the normal course and that too during election time in particular as there is nothing called free lunch from the General Administration involving public Finance.

Let there be noble thoughts, actions from all and everywhere to bring in universal welfare for all living beings.

TVG Krishnan

(views are Personal)

Some economic and Social Issues to be taken care of to improve the quality of Life for all

 Some economic and social Issues to be dealt with to enhance the image of the Country and the quality of life of the masses. 

  

     “He  who sees Action in Inaction and Inaction in Action, he is intelligent among men.”

                                                                                          Bhagavat Geetha

This seems to be very apt and has come true in every sense of the word  in the Administration of the Country and management of the economy under the intelligent  leadership, imaginative policies and very dynamic and bold approach which cannot be ignored or undone by any force any time in future. Great achievement indeed by any Government by any standard. The Political stability seen of late has been bringing in unprecedented Trust in the capacity and potential of the Country to dream big and achieve the unachievable to be on top of the world as performer and provider of  all boons  to  the entire  humanity as a whole.  

  The country is  very vast  and  has  all sorts of resources adequate enough to take care of its economy and  its huge population . Fortunately, the democratic system of governance and the political set up has also enabled the Country to harness the resources and shape the economy in tune with the national and international dynamics of social, political and economic scenario and is in a strong position to influence economic growth fast and reach higher and enviable levels. But unfortunately the utilisation of resources  and the achievements thereof do not seem to be fully justifiable as some of the macro economic indicators fall far short of expectations and do not go with the aspirations of the majority of the  people to lead a happy , comfortable and tension free life. 

Inflation though has been brought under control and is said to be well within the band 4% and 6% set by the Monetary Policy Committee of the Reserve Bank of India, the fact remains that Inflation continues at the ground level and literally kills the poor, irritates the lower middle class, inconveniences the middle class in different ways , initiates intellectual discussions among the upper middle class on the pros and cons of inflation on savings, investments etc, makes the Rich totally unconcerned of inflation in their day to day life and compels policy makers, administrators and the Government to act swiftly to think of measures to ensure price stability and  smooth economic growth.The high cost of living and ever increasing prices of all services and commodities without exception Viz travel, education, insurance, medical and other living expenses not only adds to financial worries but also increases emotional and psychological pressures and tensions affecting day to day life and relationships among the vast majority of the people eroding the very credibility in the system of administration and Governance policies in vogue. The so called common Man a VIP so to say during election time in particular, in whose name Legislation, judiciary and Execution, policies get propagated, evolved, formulated, practiced and checks and balances are kept in place, unfortunately gets ignored and suffers the worst because of persistent inflation not knowing as to how to survive in life with some dignity, decency, honesty and some minimum quality of life. The Class and mass system not only prevail in the society but knowingly or unknowingly the power of money is allowed to show off with the power of POWER , MONEY and WEALTH. No doubt, with some monetary and fiscal policy measures, the inflation is somewhat technically and perhaps theoretically contained and  the  economy is allowed not only to grow fast but also is all set to achieve the target set to supersede all the advanced economies. But who benefits, how one benefits and how and where the branded common Man fits in the scheme of things is a matter to be seriously or rather introspectively analysed and remedial measures introduced without further loss of time and erosion of TRUST in Democracy and Democratic way of functioning. Some of the areas which perhaps call for review and special attention may be:

Simultaneous Existence of Varieties of Taxes over and above GST on almost all items need a revisit in public Interest and  greater public good. Reduce the complexities of taxes and see that the tax is simple, equitable, non inflationary and sufficient enough to take care of the economic growth and the country is free from debt burden. The present tax system  affecting the people literally from cradle to grave and beyond even definitely calls for a review and  new ways and means should be thought of raising revenues to meet the developmental goals and ensuring voluntary compliance of taxes by the people. It is time to think afresh and introduce tax reforms early. With 140 crores of people coupled with large resources of wealth accumulated in different forms, this should not be a difficult process .   

Per Capita Income continues to be low and far behind compared to even some of the poorer economies and not in tune with the growth of GDP needs a relook and calls for policy initiatives to correct the imbalance.The fast widening inequality seen among the people is definitely a cause for worry as it adversely affects the envisaged economic growth and living conditions of the vast majority of the population. An average man just wants to make both ends meet with some clothes to wear and a shelter to sleep. Once this is assured, then comes the quality of life with Social and Psychological needs to satisfy which may or may not happen. The inflation for such an average man needs to be factored into economic policies and their implementation. Misery for majority everywhere and happiness for a few here and there cannot go well among the people and this happiness is no happiness at all.    

The Financial System though seems to be sound and very dynamic, carries risks of very high order in the form of camouflaged and potential NPAs through connected lending, favored lending and creative accounting practices. The method of subsiding loans and losses through depositors and other stakeholders of institutions cannot  go on forever to keep the Financial system stable and steady.Time has come to remind the management of institutions that the Customers are the base and Customers cannot be an ignored lot for the very survival of the business.This awareness should be the very theme of Governance and this should be understood, digested and kept in mind at all levels of management including accounting, auditing and regulation.Technology is good but technology ignoring and condemning human resources for their intelligence, emotions, sentiments and positive thoughts, capabilities can only do more harm than good. There should be a judicious mix of Technology and Human resources to enjoy the optimum benefits of both. 

Prevalence of black money and Corruption affect the society and the economy  very badly and unfortunately getting legalised and institutionalised with the increase of freebies and mushroom growth of service providers for all  sorts of services like issue of Aadhar Cards, Passports, Pan Cards,Driving Licenses, Power Of Attorney  and  services related to Real Estate Registrar  etc. 

Since the fruits of development do not get adequately and evenly distributed for some policy or other, Is it not time yet  for all  directly or indirectly associated with Economic development  to  strive constantly to serve for the welfare of all by devotion to selfless work. To quote Bhagavad Gita “one attains the supreme Goal of Life through selfless service and pursuit of the greater good”. The action and inaction of all involved in public service can only be evaluated based on the welfare of the masses. The nation needs drastic cultural change through a well planned and well directed educational system devoid of greed, corruption and corrupt practices in the generation of wealth, distribution of wealth and utilisation of wealth ensuring welfare of all everywhere. A very few people involved in administration cannot and should not spoil the Culture and bring in undesirable and non appreciable actions and inactions spoiling the healthy, happy and peaceful life of the masses. Their aspirations for a simple quality life are by any means achievable and justifiable by any reckoning. Good Governance can definitely  make Life both beautiful and interesting for all.    

 Loka Samastha Sukhino Bhavanthu

T V G Krishnan

A Senior Citizen.

(personal Views). 

Monetary Policy well Balanced

 RBI’s Monetary Policy 2023-2024.

Kudos to RBI for maintaining the status quo in keeping all the monetary policy rates VIZ REPO, SDF and MSF unchanged at 6.5%,MSF at 6.25% and 6.75% respectively well in tune with the fiscal policy  as per the interim budget and projecting the GDP growth at 7% for the financial year 2024-25 and inflation under manageable level well with in the band 4 and 6% . No doubt this nimble  policy announcement in the midst of continuing global uncertainties  in political and economic scenarios is not only encouraging but also reflecting on the strength of the domestic  political stability and economic resilience demonstrated along with social and technological advancements despite some issues cropping up on regulatory compliance here and there. The rationalisation of interest rates policy expected to cover various charges and introduction of measures to bring in a level playing field among various financial institutions including fin techs will definitely bring in the much needed financial stability and sustenance of credibility in the compliance system. The transmission of the monetary policy if done effectively as per RBI's expectations, the liquidity issue will definitely be taken care of. Overall the monetary is well balanced and very promising to support the  economic growth plan envisaged by the Government. 

T V G Krishnan        

Right and very appreciable approach to Disinvestment of PSUs

  Right and Very appreciable approach to Disinvestment of PSUs

Apropos your editorial On PSUs, GOI Has taken The Right Call (ET dated 5/2/24),the approach of the Government in not going for disinvestment of  PSUs to find resources is very apt and highly appreciable as the PSUs have shown their mettle and are able to deliver,  of late, the much needed returns on investments to the Government and other investors and  provide the competitive spirit to make the private sector to perform and excel. The PSUs presence is very essential not only to take the economy forward very fast but also to show the private sector that they can deliver better governance and professionalism as the hallmarks for any institution to survive and perform. Nothing wrong if the public sector coexists with the private sector and helps the Government financially to achieve the target of being a developed economy by 2047 or even before. It also helps to make  the capital market very strong and vibrant. This is only a reflection of political stability and good economics. Good going indeed.  

T V G Krishnan

Bengaluru 560076.

  Meaningful  Interim Budget 2024-25

This refers to Low Key Interim Budget but drab is fab, FM (ATM, Feb 4). The FM's interim budget is politically stimulating, economically encouraging, socially acceptable and desirable and technologically sensible to put it in a nutshell. The FM deserves all kudos for making the budget a meaningful exercise to take the economy forward with all ingredients devoid of any popular attractions particularly freebies. This is something unique in all her budgets highly appreciable and worth commendable as budgets are not intended to offer freebies to canvass votes but are official documents to guide the policy makers and people to plan the economic growth, perform to the best of abilities and share the fruits of development equitably and enjoy the wealth for the welfare of all. The culture of offering freebies, incentives etc are nothing but corrupt practices spoiling the culture of healthy democracy and ruining the initiatives and skill of the people to excel and display their potential to perform to the optimum. From this angle , the FM's budgets deserve all appreciation , support and encouragement. It makes the democratic system more mature and enlightened.   

T V G Krishnan

Bengaluru.   

   Jai Sri Ram  

The budget 2024-25 Some Random Thoughts. 

The ensuing budget 2024- 25 is important not only from the point of view of augmenting the much needed resources for economic growth but also equally important in the equitable distribution of the wealth, keeping inflation both domestic and imported under control, by containing the fiscal deficit and managing the dynamics of international socio- economic -political scenario and the resultant economic consequences in the prices of oil, exchange rate  movements etc. No doubt the economic growth momentum witnessed in the country thanks to political stability , dynamic economic policies in the midst of the unprecedented pandemic covid19 , fluctuating weather conditions, revolutionary  social and technological changes being experienced  day in and day out, has given a moral boost and kickstarted the performance of institutions and individuals aiming at 7% average growth per annum for a few years more. It is indeed a pleasure to read from the Goldman Sachs report ‘Rise of Affluent India’ recently published that Affluent Indians may number 100 million in four years earning an income of over $10000 per annum.  Hence, in this favourable background, I would like to present  some random thoughts and suggestions to consider perhaps in the coming budget for giving a further boost to the economy. 

Ensure effective Governance everywhere 

Governance deficit seen in Manufacturing and Service Organisations needs to be closely monitored and wiped out by incentivising through budgetary measures. Public Sector Undertakings have to account for their commitments and fulfilment of optimum utilisation of resources avoiding delays in the execution of projects and wastages of resources. To cite an example, the Gail has installed gas pipelines years back investing huge resources in several places but the intended connections have not been given for no known reasons. The pipelines get rusted and perhaps need replacement before actual gas supply is made available. Such idle investments are nothing but a national waste of resources without any known accountability to the public and their tax money. The need to incentivise PSUs through budgetary provisons to recognise their contribution to boost the economy without wastage of resources is paramount and this itself will help to give a boost to the economy in multiple ways. Public have also apart from undergoing inconveniences, some negative assessment of the overall administrative mechanism in such uncalled for delays for unknown reasons.   

Introduce Monetary Rewards and Monetary Punishments through budget Provisions 

Technology has been doing wonders for the nation but at the same time technology adoption has taken away the accountability for service deficits. Banks , Insurance Companies and other service providers do not provide their phone numbers , email contacts and widely  advertise the grievance mechanism unlike in the past  if any available for deficiency of Service and complaints . The Complaints portals introduced need a revisit  and the authorities have to ensure that the Complaints redressal has really happened by cross checking if required with the complainant . Once in a while, the authorities or the Regulators should take an opinion /  survey to assess whether the Service providers are really providing the intended service and the customers are really happy. Ecstasy of Customers definitely not expected in any case though. The grievance mechanism should serve the purpose and the concerned authorities should be sensitised enough to ensure that the service providers really satisfy their customers and Customers grievances are really taken care of in the interests of the Customers and more in the Interests of the Service providers themselves. The deficiency in service not only  affects the mobilisation and  optimum utilization of resources but also damages the build up of image  and reputation nationally and internationally when the whole world is expecting the country to outsmart the advanced and other fast emerging economies. The Grievance mechanism needs to be incentivised through budgetary process and the service providers should be rewarded or penalised for their performance  based on transparent assessment. Incentivising the regulatory compliance through budget provisions can be a workable solution to satisfy the Customer service. Such an approach can definitely add to the efficiency of the Institutions reflecting on their enhanced productivity and all round progress augmenting the  economic growth through improved quality, enhanced quantity and satisfied service all around bringing in positive change all around. Nothing wrong in giving a trial through budgetary provisions.  

Containment of Inflation.

Monetary policy  measures alone cannot contain the inflation particularly retail inflation which needs to be administratively tackled . Corruption, corrupt practices, wrong doings,  black money, and cash transactions seen in and around the economy at the time of innumerable elections , land deals, offering freebies,  miscellaneous services involving grant of driving licenses, issue of Aadhar cards, leave and license agreements , and services like obtention of certificates of all kinds like Birth, death , notary signatures, power of attorney, etc  from Governments and Government agencies, marketing and distribution outlets , garbage collection, garbage removals from wholesale and retail market yards, etc involve lots of money and they reflect on prices of commodities and services  and cost of living ultimately making the life miserable particularly for low income groups and others as well. It is time to think of introducing some solution through budgetary provision through incentives / disincentives and Artificial Intelligence to prevent wrong practices and undesirable and antisocial activities. It is an area requiring lots of education , canvassing and motivating people to enlighten them to keep away from practices having an impact on quality of life and cost of living. It is time to think of having some budgetary measures to deter people from encouraging wrong practices affecting the quality of life and environment cleanliness in all respects. This is an area requiring action from all politicians, administrators, educationists, professionals from all fields, social activists, welfare associations, Various Cultural Forums, etc .The budget can think of incentivising and disincentivizing by  disciplining the politicians / bureaucrats for introduction of best practices worth emulating and educating the public administrators.    

Identifying  and delinking taxes from inflationary impact.

Since inflation affects the poorest of the poor very badly and treating the poor and the rich alike for tax purposes particularly the  salaried and fixed income earners without going by the number of dependents to be taken care of by them  seem to be unjust and unreasonable in a society where the living standards and cost of living, and income levels and wealth creations differ vastly and no comparison whatsoever. A Person earning 2.5 Lakhs and less with many dependents to be taken care of  and a person earning in multiple lakhs and crores with or without dependents to be taken care of are treated prima facie equally except for different rates for different  slabs of income. Exemptions by way of Savings and Insurance are at a very high cost for the lowest slab having dependents.  There is  absolutely no comparison whatsoever on the quality of Living between the Poor and The Rich although the poor struggle to make both ends meet. This needs to be reviewed and corrected to provide a level playing field for all kinds of income earners and wealth creators.      

Like Security Transaction Tax which is non inflationary in Character, there are several taxes which are non inflationary  to be identified and considered for levy from  different classes of people who can definitely afford such levies  and are unaffected  for their living standards by any reckoning. For Instance the professionals like Doctors , Advocates, Chartered Accountants,  Film Stars , Brokers, Real Estate Dealers, Middlemen engaged in all sorts of Services earning above a cut off limit needs to be brought under a special category of income earners and not to be mixed with salaried class. Inequality in income levels and wealth Accumulation capacity need to be well factored into arriving at the tax rates notwithstanding the fact that the inflation kills the poor and at the same time protects the rich. It involves a tough exercise but such an  exercise is inevitable in a society where the majority struggle to survive and a few enjoy the best of luxuries. Broader shoulders should carry heavier weights is one of the canons of taxation and this needs to be convincingly implemented and adhered to benefiting the society, the economy, the rich and the poor justifiably.

Assets and Liabilities Of Affluent People 

It is high time to make a revisit to Income Tax returns and there should be enough data on the Assets and Liabilities of Individuals and families. The linkage of Aadhar Card and Pan Card would be an ideal objective in the long run to fix many of the problems in the, Country. The tax returns should be simplified and they should attract people to volunteer and submit the returns. For instance fixed income earners like salaried class and only interest income earning less than say Rs 10 lakhs should have only a single page return and those having earnings from multiple sources can have returns running into a maximum of two or three pages. Professionals , business class people and those having income from real estate , capital markets , and other sources can have detailed returns and can be certified or non certified depending on the levels of income. Those who earn above Rs 25 lakhs should submit only certified returns . Of course an expert committee can decide the type of returns. However , in general, the approach should be that All are honest and very loyal taxpayers unless and until proved to be otherwise.

Time has come to have information on the wealth of Affluent People and how the wealth gets employed for the benefit and growth of the economy. This may have to be separately compiled by the Income Tax Department and should be readily available for policy decisions. The income tax return of affluent Individuals should be different from base level Income tax payees. This may be of immense help to keep track of movement of funds and change of asset prices .   The steep increase envisaged in financial and physical assets including equities gold and property as and when the economy expands and prospers, needs to be closely captured and factored into arriving at the tax rates without getting them into black money and wrong doings.     

Digitalisation of transactions and widespread settlement of transactions through UPI 

This is a remarkable achievement the country can be really proud of. However, the circulation of cash and generation of black money simultaneously along with the digitalisation of payments do not augur well to the overall governance system and this needs to be seriously introspected. The generation of data becomes easy in respect to digitisation and there should be some ways and means to capture cash transactions and reduce / eliminate them over a period.Since agricultural Income is exempted from tax, at least some returns from the angle of knowing the income generations from agriculture and related activities need to be introduced or collected indirectly .This may prove to be a boon to initiate many a policies to strengthen democracy,  Governance standards, bring in Structural reforms and meaningful financial planning,   Adoption of Artificial Intelligence can be considered to generate data in respect of  agricultural income and black money generated through various ways in the system. Technology can be well utilised to fix frauds, corrupt practices and evasion of taxes by various means, resorting to taking advantage of regulatory  and compliance gaps seen in the Governance system. 

The setting up of a Gold Bank to find resources for the economic development and saving of foreign exchange by minimising / avoiding import of Gold can be seriously thought of through this budget.  This measure may also facilitate the internationalisation of rupee and saving of foreign exchange for international trade. 

 Annual budgeting and Accounting information can be a good source of resources for planning and execution of all developmental policies and overseeing the fruits of development and spread of welfare among the people provided they are supported adequately by various tools and support systems to detect evasions and related headaches. The budget can think of rewarding some Universities for bringing out Research papers on Public Finance and helping the Government to come out with policy measures in the area of inflation, containment of black money, bringing in efficiency in the management of funds of institutions particularly Public Sector Undertakings etc. Let this year's budget exercise be a landmark for fulfilling the aspirations of all segments of the society alike and turn out to be a  Ramarajya in letter and spirit.  May the people anywhere and everywhere enjoy the economic growth and welfare measures and have an improved and enviable quality of life.                     

                                Loka Samastha Sukhino Bhavanthu. 

T V G Krishnan 

(views are personal)