Special tax provision for retail business
The limit for special tax provision for computing profits and gains of retail business should in lieu of inflation be raised to Rs 1 crore. It will provide incentive to small retailers to declare more income which presently such retailers are not doing mainly because of limit of Rs 40 lakh contained in the Income Tax Act. Similar provision should also be introduced in the Income Tax law whereby the limit of tax audit for professional persons should be increased. Some special type of tax system should be formulated even for small manufacturing units and small industrial and small scale industrial undertakings whereby such undertakings should also be permitted to make payment of tax based on a particular percentage of their total turnover.

Easy to understand tax forms
The tax provision should be made really very simple and easy to understand that there should be frequent tax amendments in the law. The Income Tax return form should be very simple. The present Income Tax return form is really very complicated and very difficult to fill up.

Government can come out with vistas of providing more tax deductions to organizations providing higher employment in the country. This type of tax amendment will surely bring recession into control. Likewise the reduction in tax as also the lowering and realignment of tax rates would bringing more money available in the hands of the tax payers which ultimately would go on to check recession in the country.

Fringe Benefit Tax (FBT)
It is one of the very complicated pieces of legislation. It is also not correct to charge FBT in respect of such items which actually have no rationale at all on the fringe benefit being provided by the company to the employees. Hence in all fairness it is time now that the Government says a good bye to FBT. The revenue loss to the government on account of abolishing FBT can easily be recovered by increasing half or 1 per cent corporate tax.
Goods and Services Tax (GST): The clear-cut thinking of the GST should be spelt out in the budget. The provisions regarding GST as it is proposed to be implemented from 1st of April, 2010 should see the light right now. Hence, it is recommended that the government should start in the right direction to achieve that objective for which the budget should contain very clear views of the government.

Central Sales Tax (CST)
The CST should be immediately 1% and it has to ultimately be taken over by the GST. Hence, government should come with clear cut guidelines at this right point of time.

Disinvestment
The disinvestment would bring in large amount of funds available with the government which can be utilized for the infrastructure development of the country. There is no problem at all for implementing the route of disinvestment for realization of the funds to spend in productive channels.
The previous year was a complicated year more particularly last 5 years were really troublesome for the tax paying public of India. New taxes were introduced which was a great burden and which was responsible fore more outgo of the tax paying public and was equally responsible for creation and accumulation of black money in the country. Budget is one such occasion when the government can easily bring out positive efforts. Some solid tax proposal should be introduced to bring the black money in productive use.

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e-mail: Subhash Lakhotia

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