National Budget : Common Man’s “ LIFELINE ” or a “ SLIT THROAT ”

National Budget : Common Man’s “ LIFELINE ” or a    “ SLIT THROAT ” 

And so there it is — there again the time has arrived there would be the declaration of the national budget with all the new form of taxing the country would be at its fore and there again would be the howl and cry of the nationalist’s stating that this budget has nothing to offer for the common man and can do nothing for the country.

We have seen it all before, and we would see it once again the only difference is there would be a new Finance Minister and for the first time in the history of the nation we would have a lady Finance Minister describing it all and speaking it all for the budget Anyway what should and where should the Government target at, where ought it to be friendly for the common man and what should the budget be like for the people in general.

The Government of the day ought to consider these initial steps, and that would be more of a social and a general common man friendly budget.

Let us discuss those in detail:-

A.   Income Tax benefit

Pic - :: Income Tax

Last time around the Government had raised the limit of the income tax to Rs 3.00 Lakhs that is a reasonable limit and that should be raised to the limit of Rs 5 lakhs It means that until the amount of Rs 5.00 lacs earned there would be no income tax and it’s deduction this ought to be kept intact.

B. Provident Fund

The interest of the Provident Fund from the Government ought to be raised at 9 per cent this will help the common man Say after retiring a common man gets about Rs 20 Lakhs as the Gratuity and Rs say 75 lakhs as the PF after say serving for 35 years that makes about one crore of rupees in toto this entire amount if he keeps in the bank intact it will fetch him an annual returns of Rs 7.00lakhs per annum if it is a Bank of the stature of ICICI.

Budget 2019 will help generate greater savings for individuals, says  former Finance Minister Arun Jaitley. To boost your personal finances, here's help to save more.

Joint home loans

If you have bought a new flat jointly with your spouse and are also paying the home loan together then each of you is entitled to a deduction of Rs 2 lakh to Rs 2.5 lakh. If you have a working son or daughter and the bank is willing to split the loan three ways, all three can avail deduction.

Leave Travel Concession (LTC) exemption is allowed to you as a salaried employee for 2 domestic journeys taken in a block of 4 calendar years. The current block of four years commenced on January 1, 2014. So if you haven't taken that much-needed break last year (2016), do so now. Keep proper tabs, retain relevant travel bills and claim your LTC.

Transport

For claiming transport allowance exemption, you don't need to submit expense proof. But if you are incurring expenses on official travel, your employer can reimburse the expense on the basis of the claim submitted (backed by bills) and this is not taxable.

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The IT on it for Rs 2.000 lakhs would be for the ceiling of Rs 2.00 Lakhs However the interest on the PF that the government pays ought to be raised to 9 per cent per annum When the bank is paying an annual interest of 7% on the fixed deposit to the Senior citizen, the Government ought to have taken some cognizance on the matter much before Anyway better late than never.

Let me make one point very clear to the Government especially this Government Even after getting Rs One Crore in the hand now-a-days the situation is not safe and better for the ones who retire from the Government job After all the retirement if they have said two daughters to get married and if they receive this Rs one crore as the amount this disappears when they set their feet to get their two daughters married that is the fate and that is the reality the Government especially this Government ought to realize it.

This Government from the last year has come out with a decision that there would be no income tax levied on the amount of Gratuity for the time they receive first, at their hand after receiving that is a right decision taken, and the Government should stick to that stand.

C. House Tax or the EMI on the house to the Bank

this ought to be looked from the national viewpoint I do not know whether the Government had given a food of thought on it but now the time has come Say suppose a common man pays Rs 44,000=00 per month on the EMI for the flat or the house that he has constructed, and he gives to the Bank that kind of EMI per month the Government ought to consider to give it a full benefit in terms of the IT for this money that he is paying to the bank per month.

If this kind of leverage is being thought of then definitely the people will be inspired to put more money in the business of the real estate for constructing their house this money will come to the Government courtesy the Bank.

D. Education and some leverage towards it

Education has become very expensive nowadays Nowhere and never would be the amount less than anything between Rs 2.00: Lakhs per annum to educate a child and over it, there is another expense of shelling it through their wallet for them to make their children stay at the hostel for their education All these are very expensive.

Though the income tax limit that myself on an individual basis advise it to be fixed at Rs 5.00Lacs per annum by the Government which works around Rs 42,000=00 per month, and this is not at all a very high amount the amount is not really enough for anybody to shell it in the manner one can forgetting his or her child educated in a grand manner in a reputed college or at school Some kind of a leverage ought to be thought by the Government in this case for and of a family where there are two or more than two children going for the education at the same time this ought to be the prime concern.

Some strategical steps that can make a difference and some leverages that can give a complete fillip to our national budget What are those and how can the Government make the national budget more friendly for the ordinary human being surviving this article describes it all And so there it is. There again the time has arrived there would be the declaration of the national budget with all the new form of taxing the country would be at its fore and there again would be the howl and cry of the nationalist’s stating that this budget has nothing to offer for the common man and can do nothing for the country. We have seen it all before, and we would see it once again the only difference is there would be a new Finance Minister and for the first time in the history of the nation we would have a lady Finance Minister describing it all and speaking it all for the budget Anyway what should and where should the Government target at, where ought it to be friendly for the common man and what should the budget be like for the people, in general, the Government of the day ought to take these initial steps into consideration, and that would be more of a social and a general common man friendly budget.

Let us discuss those in detail:-

A. Income Tax benefit

Last time around the Government had raised the limit of the income tax to Rs 3.00 Lakhs that is a reasonable limit and that should be maintained by raising the amount to about Rs 5.00 lakhs It means that until the amount of Rs 5.00 lacs earned there would be no income tax and its deduction this ought to be kept intact.

B. Provident Fund

The interest of the Provident Fund from the Government ought to be raised at 9 per cent per annum. That means it would be 0.75% per month this will help the common man Say after retiring a common man gets about Rs 20 Lakhs as the Gratuity and about Rs say 75 lakhs as the PF after say serving for 35 years that makes about one crore of rupees in toto this entire amount if he keeps in the bank intact it will fetch him an annual returns of Rs 7.00lakhs per annum if it is a Bank of the stature of ICICI.

The IT on it for Rs 2.000 lakhs would be for the ceiling of Rs 2.00 Lakhs However the interest on the PF that the government pays ought to be raised to 9 per cent per annum When the bank is paying an annual interest of 7% on the fixed deposit to the Senior citizen, the Government ought to have taken some cognizance on the matter much before Anyway better late than never.

Let me make one point very clear to the Government especially this Government Even after getting Rs One Crore in the hand now-a-days the situation is not safe and better for the ones who retire from the Government job After all the retirement if they have said two daughters to get married and if they receive this Rs one crore as the amount this disappears when they set their feet to get their two daughters married that is the fate and that is the reality the Government especially this Government ought to realize it.

This Government from the last year has come out with a decision that there would be no income tax levied on the amount of Gratuity for the time they receive first, at their hand after receiving that is a right decision taken, and the Government should stick to that stand

B.   House Tax or the EMI on the house to the Bank

          This is one of the most important point for discussion and I have depicted the picture on the top for this point However this could be explained once again

This ought to be looked from the national viewpoint I do not know whether the Government had given a food of thought on it but now the time has Say suppose a common man pays Rs 44,000=00 per month on the EMI for the flat or the house that he has constructed, and he gives to the Bank that kind of EMI per month the Government ought to consider to give it a full benefit in terms of the IT for this money that he is paying to the bank per month/
If this kind of leverage is being thought of then definitely the people will be inspired to put more money in the business of the real estate for constructing their house this money will come to the Government courtesy the Bank.

D. Education and some leverage toward’s it

Education has become very expensive nowadays Nowhere and never would be the amount less than anything between Rs 2.00: Lakhs per annum to educate a child and over it, there is another expense of shelling it through their wallet for them to make their children stay at the hostel for their education All these are very expensive.
Though the income tax limit is fixed at Rs 5.00Lacs per annum by the Government which works around Rs 42, 000 =00 per month the amount is not really enough for anybody to shell it in the manner one can forgetting his or her child educated in a grand manner in a reputed college or at school Some kind of a leverage ought to be thought by the Government in this case for and of a family where there are two or more than two children going for the education at the same time this ought to be the prime concern.
In these days to educate a child in an engineering college in a world-class educational institution will never be less than Rs 30 to Rs 40 thousand per month besides the annual education fee at the college where he or she is studying this is something that the Government ought to think and rethink twice.

E. Taxes on the Industries

The Government has two types of taxes that it levies to and on the industries and the people working in the industries the first is the IT on the low income this is on the ordinary people the next is the Income Tax on the industries which the industrial houses run to run their business.
This amount or the limit ought to be raised First of all the limit to bracket the Small Scale industries, the medium scale industries and the large scale industries ought to be given a thought of and the limit of their Turn-over ought to be lowered It is because the business world over is receding and the turnover limit is falling day by day the Government of the day ought to rethink on these lines and take the step to lower the annual income limit in terms of the turn-over for these every organization.
Based on it the limit for the IT on these organization ought to be fixed the IT ought to be fixed on the NET PROFIT of the organization and not on the overall profit this needs to be worked out by the Government It is that only 5% of the working class and less than 5% of the existing industries are paying the taxes in terms of the IT to the Government this is simply an attempt to throw the slur on the eye of the Government and save the taxes by hook and the crook the Government machinery ought to be “ creased – and filed “ for all these and it ought to be looked into the matter that every industry pays the taxes accordingly to the Government.

F. Taxes on entertainment etc

the taxes on entertainment come from the film industry, the hotels and the places where the amusements are carried out the taxes on these industries ought to be taken into consideration and fixed accordingly A very heavy tax may mar the industry but a tax which could be termed as the middle path tax could be thought of and a food of thought is raised on the matter of taxes on these industries A liberal tax may be too heavy for the Government to bear but extremity can be disaster It is a thought that ought to be given on this industry the taxes should be as good as friendly and a generous – friendly tax which should motivate the people to spend their money on entertainment and amusement ought to be levied this will bring more revenue to the Government.

G. Taxes on Petrol

Time had come both for the Government and the people to rethink on this the rates of petrol from 2004 when it was Rs 43=00/litre now has gone to Rs 88=00/litre this has to be freeze.
Petrol for that matter constitutes the Government spends the heavy and a bulk income for the Government the money collected as the tax from petroleum and the petroleum product on many national issues It is a fact that we have to but so many a kind of different arms to bolster the strength of our defence forces We have to buy and provide our Police force the kind of trainings and the arms needed by them to reinforce the Police force to take on the Naxalites and the anti-social elements the Government needs the money for the same However the Government also needs to think about the maximum that a common man could pay for a litre of petrol Increment on the rate has crippled the common man in terms of his movement but that has not brought about a complete end to the movement and all of his problems A time has come for the Government to either think of RATIONING the use of petrol which the people will never agree or to RATIONING the rates of petrol freezing it to one and some point where the rates of petrol could be termed as freeze for that rate.
It is a herculean task for the Government At one hand the subsidies that the people are enjoying the gas cylinder also is adding the Government to shed it’s perspiration and on the other the Government has to also control the loss-making Petroleum companies and take the necessary care also of it’s employee inducted into that on their rolls the time has come for the Government to think in terms of rationing the industries and the product which relates to petrol the common man will find too hard to bear the expense of shelling Rupees 100/litre on petrol this the Government ought to think and think it on a very analytical lines.
Contrary the people also will have to think that India needs an additional force of about 43,000 armed and trained personnel in the Army beside a full-fledged Commandant force in terms of BLITZKRIEG COMMANDO’S to take over the social elements who take on the country for granted We need a lot of modern, sophisticated arms to deal with our enemy which includes the likes of Rafael fighter planes, the S-400 the other fighter planes and helicopters both for fighting the enemies and carrying the arms-load this also ought to be a matter of rethinking and thinking from both the side.

H. ECONOMETRICS OF THE BUDGET

This budged ought to think and explore all the possibilities in terms of the ECONOMETRICS Econometrics involves with the mathematics and calculus of the economy Nowhere and never has the econometry been the main focal point of our national budget.
The first thing that the budget needs to think is to create more and more jobs the second is the revival of the sick units and the public sectors units the third is the creating a chance for the Small Scale industries taking a quantum leap forward of course to become either the subsidiaries or the ancillaries of the Heavy and the Large Scale industries.
The budget should open the avenues for the existing Public Sector to invite the Small scale industries to move forward to the Public sector Industries for them to become the supplying line or the feeders for some of the most essential spare parts this will create many a job for the specialized, semi-skilled and the unskilled labours Some of our industries like the Coal industry, the railways especially the places where the wagons and the engines are made, the automobile industries to name a few are so very strong that time has come to encourage these heavy industries to attract the ancillaries and the subsidiaries to help them make the spare parts for them keeping the quality and the method of manufacturing as per the requires ISI and it’s standard this will bring about a magical change in the scenario.
This budget should focus on the sectors like FOREST which is the most needed and essential of the sector that needs to not only raise the GDP by about 1% to 1.50%, but it is needed to raise the jobs as well as the source to produce the rainfall and the water.
This budget automatically should raise the efforts to strengthen the farming and the agriculture, the animal husbandries and the exports as well that relates to agricultural products, the forest produce and the heavy industrial products this is the need of the hour.
the greatest econometry would be CAN THIS BUDGET FOR THE FIRST TIME OPEN UP THE AVENUES OF PRODUCING THE ARMS AND thE RAILWAY COACHES AS WELL AS THE WAGONS FOR EXPORT.
For if India opens up the avenues in this year itself for exports on these lines believe me Mr Narendra Modi would become the GREATEST ever Prime Minister that the Asian country ever had produced


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