New Delhi, January 20
The Rajnath Singh Committee on Kelkar recommendations on direct and indirect taxes has favoured raising the personal income tax exemption limit without removing the standard deduction for salaried class.
The committee, which today submitted its report to the BJP President, Mr M. Venkaiah Naidu, in the presence of the Deputy Prime Minister, Mr L.K. Advani, opposed any Income Tax on the agriculture sector.
“It is an eight-page report and after perusal, the party President would give it to the Finance Minister, Mr Jaswant Singh, to be suitably incorporated in the General Budget 2003-2004,” Mr Rajnath Singh told reporters.
Former Uttar Pradesh Chief Minister, who headed a seven-member committee, strongly favoured retention of tax benefits for housing loans and pensioners. It, however, favoured most of the proposals on indirect taxes.
Asked whether the committee favoured the tax proposals pertaining to housing loans, he declined to comment saying “The report will be made public after it is gone through by the party President.”
On the issue of taxing agricultural income, he said the committee was not in favour of it as agriculture formed the backbone of the country’s economy and it was not fair to tax them.
Meanwhile, party sources felt that as the government wanted to encourage the housing sector and had for the purpose disbursed Rs 17,000 crore last year and Rs 37,000 crore for 2002-2003, it was not proper to implement the recommendations of the Kelkar panel. The party decided to keep its report a ‘secret’ till January 23.
Agencies
