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Doubling of Farmers' Income

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Formalization of rural & semi urban economy While cash transactions have now been done away with in most cases, it is still allowed for payment to farmers for their agro-produce. When payment to farmers for almost all the Govt schemes, subsidies etc is done to bank account directly (DBT), why this practice of payment for farm produce by cash? Well, I may not have proper understanding of perishable agro-produce market, where there may be some compulsion/conditions which might necessitate the payment by cash. But, at least in case of non-perishable agro-produce, there is not a single valid reason for necessary cash payment. Well here is a brief about what am I suggesting: Existing provision in the Income Tax Act u/s 40A (3): any expenditure in cash above Rs.10,000/- is not allowed as expenditure. So to that extent, taxable income of the business increases. Impact of this provision is that, no business normally makes any payment above Rs.10,000/- in cash. But there are ...
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     There  are individuals/HUFs deriving tax free income of more than Rs.1,00,00,000/- (One Crore) p.a. by smart tax planning. There is nothing wrong with that as far as it is within the legal framework. When we talk of legal framework, there are various provisions which give an edge in terms of tax planning to certain section of society (or say certain section of tax payers). A few of the provisions are: a.        Agricultural Income b.       Dividend Income c.        Tax free bonds d.       Long term capital gains from listed securities A simple provision of taxing the tax free income where total tax free income claimed is above say Rs.1,00,00,000/- (One Crore) or any other threshold at a rate of say 10% would help changing that in a big way. I know it would require a huge political will, but if implemented the effects would be...
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A simple thing in terms of improving business environment in India could be to stop officers from asking for the same documents again and again from citizens under different names like scrutiny, survey etc by same Government Dept.  Let me give a couple of examples to explain my point:  1. An ITO asks for submitting Audit report of a certain Assessment Year in the scrutiny when the same has been already available with the IT Dept. (as it has already been submitted). 2. An ITO asks for a co py of IT Challan paid to issue refund of a previous year whereas the payment of same is already reflected in Form 26AS. Here what the ITO is doing is harassing the poor Income Tax payer under different names, asking him to visit IT office again and again under the guise of scrutiny or something else. This not only increases cost of the Govt but also of the Income Tax payer of compliance. This is applicable to all the Government Departments. A simple suggestion of stopping these officers fro...
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Recently I have come across a surprising thing. (Well surprising for me because I used to consider this company is having highest standard of ethics in Indian scenario). A very well-known and big financial power house in India which is also in to share broking has come out with two research reports with two different recommendations for same stock/company at almost same Market price at same time, one being sell and other being buy on dips. What is more surprising is the fact that the target price in sell report is lower than the price at which it is recommended to buy on dips in other report. Both recommendations are based on fundamental analysis. Well to give benefit of doubt to the said company, analysts for the said reports are different and so one can say that they may have different views. But how ethical is it to recommend your institutional clients (read big players in the equity market) to sell and at the same time say buy to retail investors (read mango people )?...
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I'll be back soon with my first post. Stay tuned

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I'll be back soon with my first post........ Stay tuned!!!!!
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