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Process of Increasing the Revenue and Administration

I am presenting my personal views for the consideration of the govt. in the process of increasing the revenue and administration of the same.

The administration which results into:-

“Transforms the dishonest as honest – is Best”
“Remains the honest as honest – is honest – is Good”
“Transforms the honest as dishonest – is Bad”

Therefore, the honest tax payers should not be doubted on the particulars provided unless evidence is available contrary.

  1. Less has to be collected from more instead of collecting more from less i.e., widening the tax base covering all tax payers of similar nature. There by reducing the tax rates.
  2. Forex Reserves:- High forex reserves results into:-
    1. Face unforcing demand for inforce.
    2. May be utilized for repayment of foreign loans and advancing fresh loans. Thereby, changing the character as loan accepting into loan advancing nation.
    3. Conolidates the rupee value gradually .Thereby, increasing exports and reducing the imports in the value of rupee. High process of exports leads to payment of high prices towards raw-material purchased, employees and others…
  3. SERVICE TAX: The rate of service tax may be reduced to 2% from 8% and collection process should be covered from all of similar nature but not on selective basis.
    1. Rates of taxes:-The minimum payment can be started from Rs.120000/- without considering the savings, rebates, exemptions etc., which results into no savings in govt. securities. Thereby, reducing the burden of interest.
    2. Less has to be collected fro more instead of collecting more from less i.e., widening the tax base covering all tax payers of similar nature. There by reducing the tax rates.
    3. More concentration on TDS.
    4. More areas to be covered for widening the taxpayers like Insurance payments, bank deposits, house properties, business organizations, investment in shares and bonds.
  4. GIFT TAX,ESTATE DUTY & DONATIONS:- All these transactions may be taxed in the hands of beneficiaries at maximum marginal rate to avoid change in the nature of transactions. Since organizations are running purely for commercial purpose and there is a benefit to the beneficiary.
    1. These used to be deficiency in oil pool a/c before the oil prices are brought to the effect of market conditions.The difference was used to be the burden on annual budgets. At present, the burden (or) benefit is passed on to the customer.
    2. The prices has increased due to increase in dollar rate when compared to the previous years.
  6. DIS-INVESTMENT:-The govt. has taken several steps for dis-investment in public sector undertakings since the organizations were facing problems of ;-
    1. Accumulate in losses
    2. Unable to compete with the open market.
    3. Unable to take immediate decisions and no accountability.
    4. Burden on annual budgets due to losses and interest to be paid on savings of the public for investment.
    5. The govt. cannot carry on the commercial activities there by taking risk with public money.
    6. With regarding disinvestments in profit making units, the govt. may not get the same price after some time, due to emerging similar private organizations. Thereby, reducing the existing profits. Since the monopoly enjoyed by the public sector undertakings does not exist.
  7. INFRA-STRUCTURE:- The govt. should concentrate on long term projects like national highways, interlinking of water resources for future benefit Infra-structure facilities for industrial commercial organizations like export zones, ports, commercial trade parks which are social in nature which are useful for commercial organizations.
  8. SAVING AND MUTUAL FUNDS:- The govt. has reduced interest rates for reducing its burden and to discourage savings and transform as the investment habit directly by the individuals. Thereby, making the people to feel the risk of investment.
  9. WELFARE:- There should be more allocation towards welfare of the individuals like providing land, houses, sources of earning income on permanent basis.
  10. ROLE OF BANKS:-In my opinion the banks has to grant only personal loans depending upon the investments, income, assets of the individuals. Since all the organizations are maintained by individuals only. The persons who manage the affairs of the organization will feel the pinch of loss and make the organization successful.
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