The Recommendations for the Budget 2018 (India)! Published on January 23, 2018 on LinkedIn)

CHAPTER 10 of my above book:

The Recommendations for the Budget 2018 (India)! (Published on January 23, 2018 on LinkedIn)

A. For Direct Tax 1. The agriculture Income up to Rs. 12 Lakhs PA for the farmers those are having a land maximum up to 06 acres on his or her name or they might have taken it on lease also should be exempted from the Income Tax completely. In addition if he or she does have an income of Rs.06 lakh PA also from other than the Agriculture Income should also be exempted so a total income of such farmers up to 18 Lakhs PA from both the sources should be exempted. The Agriculture Income of a class of farmers those have inherited family land from his or her father to a 202 India: A $20 Trillion Economy by 2035-2040? limit of 15 Acres only as maximum land holding as their parents also inherited it from their parents with a total income from it plus income from pension or pay or any other should not exceed Rs.24.0 lakhs PA & that be exempted completely from Income Tax. It shall go a long way to restore the confidence of the Traditional Farmers, Middle Income Farmers & the Senior Citizens those are having agriculture and boost demand in a big way. If this class has only agriculture income from the land as defined in these two categories with no other income should also be exempted to the same limit. It is pertinent to mention that 90 % farmers have a land holding less than 06 acres only. 2. The people having more than 10 acres of agriculture lands or an income more than Rs.18 Lakhs PA from their land holdings which is not parental should come under other exemption limits of IT Act for IT Returns for higher income group as existing could be the same or whatever is being now decided in the budget 2018. So, point is that anyone who has an agriculture income more than Rs.18 lakhs PA should come under Income Tax as the Corporate, businesses and people have bought more land than 10 acres on their name and they are showing a very high income from the agriculture, hence manipulating it and getting their income though earned through other routes & channels but The Recommendations for the Budget 2018 (India)! 203 getting exempted under the Garb of Agriculture Income. So, Income Tax must be laid on such Agriculture Income at the earliest. If it is done the GoI may earn about Rs.36, 000 to 40,000 crores as additional direct income tax. It could be spent on farmer’s welfare only. 3. It is pertinent to bring it to the kind notice of Hon’ble PM and respected FM that the large number of politicians, Government/Private/Retired & serving employees, especially those have earned money through corruption & has black money and Doctors/Layers/CAs/Consultants and the Business Man / retailers / any other class or Business House/Corporate should not be allowed to park their Black Money under the Garb of Agriculture Income and exempted from the Income Tax on their Agriculture Income more than 18 lakh PA as equal to a farmer as mentioned above at para2 though they might have any amount of Land Ownership on their name. The exemption limits for higher income could be the same as existing or whatever is being decided now in the budget under Income Tax Returns. 4. Levy 100% tax on income on those whose deposits are now being caught under Income Tax Scrutiny on the money deposited (black money) through illegal means or subversion during Demonetization period with a will or intention to convert it in to 204 India: A $20 Trillion Economy by 2035-2040? white and no exemption windows was availed by them earlier as GoI announced time to time during DeMo duration and also if they purchased any Benami property during the same period or on the name of their children or relatives as a gift by showing huge advance payments made in cash or cheque to the Real Estate Promoters or Developers or Real Estate Company or to the Owner of that property. Such deposits made by any one during Demonetization in Sahkari (Cooperative) Banks or in PSB’s or in Private Banks by the individuals or groups, Family Trusts or NGOs or Temple Trusts or Religious Organisations or a Political Party or its wing or its associate outfits or branch or any other in any category i.e. an NRI account In India or abroad should also be confiscated and merged in to GOI income by laying 100% IT penalty. It is estimated that such class of people is also showing exorbitant income per acre out of agriculture income every year to save huge Income Tax. 5. There is another class which deposited huge amount of money in their NRI relations multiple accounts held in India or abroad during Demonetization or who used that window first time to transfer $2.5 lakh to buy properties & assets outside India. This window has been exploited by many without any info to GoI hence saving taxes. They must be taxed 100% now and no window to them further. The Recommendations for the Budget 2018 (India)! 205 Message The message should go through dedicated advertisements on TV & Social Media and in News papers by the GoI that Farmers are not taxed but those have been taxed who had been claiming huge Income Tax Exemptions under the garb of Farmer’s or Agriculture Income. Time has come to expose these people. Hon’ble PM address to the nation and during Maan Ki Baat shall take care that farmers do not get wrong message, I am sure they will not as it has been done to protect them by exposing who were claiming their share of benefits & exemptions. The matter must not be postponed considering that Agriculture Land is a State Issue as Income Tax is a responsibility of GoI and not of state government. So, It could be implemented in the form of an Ordinance also but must be done at the earliest. B. For Indirect Direct Tax As there were some changes being brought in, in the GST % slab structure on different items even after its implementation and initial exemption limit extended for a certain period in filling of returns for the retailers , restaurants, manufacturers in FMCG, Auto Parts, Drugs and?especially the Pan Masala & Gutka( chewing Tobacco pouches etc) Makers?have taken the GoI & its excise department for a big ride during the period from the month of Jul to Nov 2017 as they kept on producing their products marking it for the month of Jun 17 only 206 India: A $20 Trillion Economy by 2035-2040? in huge quantity in this entire duration in maximum share and showing bare minimum accounting for these months (Per Month), hence no Excise, no tax, no GST was paid by them. The Corrupt GoI & State Governments Excise Department & IT Staff helped them in a big way. Hence, the biggest Gutaka / Pan Masala manufacturers in Noida (NCR) itself as per media news could have saved thousands of crore as they were hiding returns by such wrong practices. It could be brought to the book by raiding such facilities and their accounts & lockers with surprise visits to the manufacturing facilities & and their production capacities per month. Many of them have been producing Pan Masala & Gutka pouches in duplicates themselves in order to save taxes / GST. If they are caught in such practices the Income Tax, Excise or GST saved should be taxed @ 200% on them from last 05 years at least as they had been saving on Income Tax & Excise Duty since then and their transactions had been purely in the cash before GST. Such players by saving cash in hand as Black Money but able to convert in to white in many ways have been increasing their land owning or holdings in a big way to claim huge Income Tax Exemption under the garb of Agriculture Income on one side and claiming GoI or States subsidies on the other hands by doing some Value Agriculture or Hydroponics etc or on the name of Organic Farming or growing any other Value Trees such as Bamboo & Sandal Wood. It must be addressed in this budget as these people are to be taxed as recommended above as they did hide. As such GoI is also loosing huge The Recommendations for the Budget 2018 (India)! 207 taxes of the order of about 30 % as there is a huge Fake or Duplicates in FMCG, Auto, Drugs & Pan Masala and Gutkas. Actually, Pan Masala & Gutka makers themselves induce duplicate as a cheap alternate to maximise their profits. So, such tobacco products manufacturers who have deceived GoI in Demonetization Period and before in last 05 years must be taxed @ 200%. I am sure by this alone the GoI shall be richer by at least Rs. 30,000 to 40,000 Crores. All the Gutka makers must be banned at the earliest as they are causing a certain number of deaths in certainty of the people those are using such Tobacco Products or Gutkas. Such people those are making Tobacco pouches ( Gutkas) have become rich by walking over the dead body of innocent poor of this country so how they could be spared. The total amount lost this way Pan India as explained above may go in to a loss of huge taxes in last 10 years and that may be running in to lakhs of crore. So, it may be addressed as it may bring about 01 lakh crore worth of income to GoI for these years. The people of such huge land owning should not be exempted from the applicable taxes under “the Garb of Agriculture Income”. I am sure it shall be a big reform and must be implemented by the GoI at the earliest. Other Suggestions for Farmers 1. GST on Agriculture Implements such as Tractors, Trolley, Thrashers, Ploughing Tools, or any other 208 India: A $20 Trillion Economy by 2035-2040? should be reduced at a uniform @5% only with immediate effect. But to the farmers those are having a land up to 06 acres only. 2. The Farmers who holds lands less than 06 acres should be given bank loans @3% PA, those have between 05 to 06 acres @4% and those are having between 07 to 10 acres @5% PA up to an Agriculture Income of Rs.18 Lakhs PA only as a limit. Those are having more land holdings or more Agriculture Income than they should be taxed a GST at a rate existing on agriculture implements and the bank interest rate as applicable. These reduced loans in 03 categories must also be provided for the existing farming, value farming, hydroponics and also for setting up of a Food Processing Industry by such income groups in their villages. 3. The farmer who holds agriculture land less that 06 Acre and has no other sources of income as neither he nor his dependent son or a daughter is working any where than the agriculture or any land less who are not beneficiary of any DBT under MGNREGA and all these people who not have more than Rs.99, 000/- in their bank accounts must be paid @5,000/- PM to each family for one member as “ Pradhan Mantri Sahayta Yojna (PMSY)”. It shall be announced for 01 year initially and be reviewed after that. The thrust of such a scheme is to boost the income of this group to bring them in to main The Recommendations for the Budget 2018 (India)! 209 stream and the children of such group must be made educated in recommended GoI Schools & skilled for an employment or setting up of some small business under Mudra. It may be considered as a Universal Pay equivalent so that children of poor farmers & the workers do not drop out from the schools. I am sure it shall go a long way to enhance growth at least by 2% within a year. If given to 10 crores families it shall be Rs. 50 K crores in a month and Rs. 06 lakh crores in a year. I am sure it shall go a long way for improving the income of BPL, poor & farmers up to a land holding 06 acres only. 4. Though recommended & sent earlier to the GoI but again forwarded to make provisions in the budget that about 1000 Model National Schools up to 10+2 & 1000 Model Hospitals (50 bedded) must be brought in Rural Areas with an investments of about Rs.1.0 lakh crores and this money is available as surplus with PSU’s could be earmarked for this purpose. It shall cover each district and bigger one with 02 of such facility in each. It shall be only for catering to the rural population first. If such a scheme with Quality parameters in mind is implemented can change the Rural Development Dynamics forever. I have a plan to implement the same .Even PPP model could be explored as part of this initiative. 210 India: A $20 Trillion Economy by 2035-2040? 5. GOI should announce in Budget MSP of 23 crops = as Cost to Crop Cultivation +50% of it=MSP and Sugar Cane FRP also must be =as Cost to Crop Cultivation+50%---So, for example -say for UP the Sugar Cane Price at present is Rs.325 per quintel (1000 kg) for Ageti (Advanced)Crop and Rs.315 per quintal(1000 kg) for Pacheti (Late)Crop so it must be made for this season itself as Rs.350 per quintal for Ageti(Forward Sowing Crop) and Rs.340 per quintal for Pacheti(Late Sowing Crop). I am sure this announcement shall make a big difference taking care of farmers’ distress immediately. 6. MHNREGA allocation must not be increased as it has not been able to create Quality Assets as lot of leakages at village levels are there. So, some of this amount could be channelized the above 05 recommendations to improve farmers income. It is a fact that our farmers productivity as per global standards is in the low bracket only. Hence, it needs to be improved by creating soil labs in adequate numbers with adequate staff plus funds at least 02 in one district, may be 03 in big ones so that they are able to suggest best techniques to the farmer after soil testing. The farmers must be encouraged to undertake Value Farming or Hydroponics or better yield products. The farmers those are having less land holdings than 05 acres should be encouraged to go for Co-operative Farming where The Recommendations for the Budget 2018 (India)! 211 04 to 10 farmers can come together. The alternate crop growing models or pilots must be prepared so that income could be raised as farmers shall be inspired to adapt to them. 7. The farmers must be trained under Skill Development to go for Value Crops, Hydroponics or use of seeds for better Yields, and in setting up of Food Processing Units. 8. Kisan Mandis must be made effective so that middle man is removed or at least some channels are removed. At present in UP the farmers were compelled to sell Potato @Rs.2.00 per Kg in Hatras, Agra at adjoining areas of NCR but the conman man is buying it @Rs.20/- a kg. So, this gap needs to be filled with a provision so that benefit goes to the farmers.??