Tuesday, 30 April 2013

Steps to improve economy

Several steps have been taken as part of reforms for improving the economy. Today, the ‘Finance bill’ has been passed in the Lok Sabha. Firstly wealth tax on agricultural land was abolished. This a very good step. Historically, the peasant was unfairly overburdened with tax during the rules of various Islamic rulers and the British. Now he is unburdened. Even urban land which is used for agriculture will not be requiring tax. And this would apply retrospectively (from April 1993 onwards)
Another positive step was that the tax residency certificate issued by a foreign government would be accepted as proof of residency and investors can invest with ease. This has diffused much confusion for persons living outside India to invest in India. No tax in purchase of gold with cheque is another step taken.This the people would like as there is greater tendency to buy gold out of future uncertainties and general insecurity.More tax benefits like no TAN will be required for TDS(tax deducted at source) for buying or selling immovable assets. Railways will be exempted from service tax and so on.These steps will simplify business deals and give a boost to trading in the Indian economy. There is great hope for the future when these reforms come into practise.

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