• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

The Budget presented by the Finance Minister is totally disappointing, especially to the salaried class. The proposed move to introduce 10 per cent rebate under Section 88 for assessees whose annual income exceeds Rs 1,50,000 is illogical.

Those who are investing to avail themselves of the benefit under Section 88 get only 7-9 per cent from the investment. But it should be seen that the money invested thus directly comes to the Government funds or to the institutions that are liable to invest 75 per cent of the mopped-up savings in Government-owned funds.

Money flow to the Section 88 schemes will reduce considerably, and the Government will be compelled to borrow more money from the open market with higher rate of interest.

The Finance Ministry should take immediate steps to implement the existing rules more effectively to bring more industrialists and businessmen under the tax umbrella instead of imposing additional tax surcharges on the salaried class.

N. Shine Kumar

e-mail

Send this article to Friends by E-Mail

Stories in this Section
No collect call for basic operators

Copyright © 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line