M A I L B A G

Budget may lead to growth at slow pace

The reduction in income-tax rates for individuals and rationale of savings by deleting Section 80C and 80L is welcome. It will generate maximum profits through books and there will be increase in white money resulting in the availability of funds, easy investment and chances of reduction in interest rates.

Income-tax on companies has been cut by 5 per cent but depreciation has been reduced, dividend tax increased, fringe benefit tax imposed. Ultimately, the tax burden will increase on companies. Reduction in custom duty and peak rate from 20 to 15 per cent is a positive step. For service tax, minimum turnover limit of Rs 4 lakh will help small entrepreneurs. As for central excise, hiking the SSI limit to Rs 4 crore but deletion of confessional rate incentive is a setback to SSIs.

What about labour reforms and the abolition of Inspector Raj which are so vital for industrial growth? Discretionary scrutiny of returns under income-tax must be withdrawn as it would lead to manipulation and corruption. Overall, it is a mixed Budget with prospects of growth at slow pace.

DEEPAK SARAF, Multimelt Steel, Rampura Phul

K. GOPAKUMAR MENON, Thrissur (Kerala)

III

The Budget has come as a rude shock to senior citizens, notwithstanding the Union Finance Minister’s assurance that he has given a slew of concessions to them and that every taxpayer will benefit from his proposals. Justice and fair play demand that the threshold exemption limit for senior citizens should be raised from Rs 1.50 lakh to Rs 2.25 lakh so that they can continue to have the same benefit of Rs 20,000 as was being enjoyed by them before.

D.P. PIPLANI, Senior Citizens’ Council (Haryana), Panchkula

IV

The Finance Minister has proposed tax exemption of Rs 1.5 lakh for senior citizens. He has withdrawn the tax rebate of Rs 20, 000, deduction of Rs 12,000 under Section 80 L. Standard deduction on pension income has also been withdrawn.

If we take into account the tax rebate of Rs 20,000 and deduction under Section 80 L, Rs 12,000, the income of Rs 1, 65,000 was tax free. This has now been reduced to Rs 1.50 lakh. The limit may please be increased to Rs 2 lakh to help senior citizens.

A.P. GUPTA, Dadabari, Kota (Rajasthan)

Yoga exercise

The Tribune report infers that Rajvinder is incurable. It may be true but the child could be put on yogic exercises free of cost presently being practised through Astha TV channel by Bhai Ramdev of Haridwar along with some Ayurvedic medicines as per his advice besides the treatment, if any, given by PGI, Chandigarh.

BABU RAM DHIMAN, Pinjore

Neglected road

The Ladowali-Gurunanak Pura-Ladhewali road continues to be neglected since 1996 when I retired and travelled to my new plot by this road. In the past nine years, this road has seen both the Congress and the SAD rule in Punjab and the Pradhanmantri Sadak Yojna countrywide.

I have stopped bothering about the wheel alignments. Clearly, the Municipal Council authorities and engineers can afford to sleep over the matter because the policeman on duty does not make them a party whenever a two-wheeler bumps into a pothole and collides against a vehicle that slides off the sewer lid jutting beyond the road level. Will any NGO take note of this and seek legal remedy?

Dr L.R. SHARMA, Jalandhar