The Hindu : Opinion / Letters to the Editor : Budget 2005-06

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Wednesday, Mar 02, 2005

Opinion

Opinion - Letters to the Editor

Budget 2005-06

Sir, — The Union budget has to be viewed with all the seriousness it deserves. Off-hand criticisms on political lines should be avoided. To describe it as a lacklustre exercise or uninspiring smacks of blatant political bitterness.

Genuine critics should go into the whole budgetary framework and then come out with their assessment.

C. John Rose,
Arumanai, T.N.

* * *

Sir, — The proposal to levy a tax of Rs. 10 on a withdrawal of Rs. 10,000 from a bank in a single day is laughable in that it assumes it will make a dent in black economy and curb tax evasion.

N.S. Sankararaman,
Chennai

* * *

Sir, — The proposed levy has rightly evoked howls of protest countrywide. It will mainly affect corporate transactions and create unnecessary paper work.

K. Asha,
Bhadravathi, Karnataka

* * *

Sir, — The Finance Minister's argument that the move will check the proliferation of black money and lead to the practice of "cheque economy" does not sound plausible. At a time when the interest rate on savings accounts has been reduced, the proposed tax will impose an additional burden on the people, particularly the middle class.

S. Srinivasan,
Chennai

* * *

Sir, — To check tax evasion and prevent the hoarding of black money, many penal provisions already exist in the Income-Tax Act. Also, it is common knowledge that such unaccounted money does not flow into any bank account.

S. Sivasankar,
Chennai

* * *

Sir, — There are several occasions such as a sudden illness, an accident or a wedding when one is compelled to withdraw a large amount from one's savings. Besides, in the present inflationary times, even routine monthly expenses require withdrawals of more than Rs. 10,000 on a day. How can these be taxed?

S. Janaki,
Chidambaram, T.N.

* * *

Sir, — Is it not outrageous that to withdraw my own hard earned money I will now have to pay tax?

Ramani P. Easwaran,
Bangalore

* * *

Sir, — With standard deduction on salary income gone, the middle classes cannot afford to save Rs. 1 lakh to claim the full tax rebate. Added to this is the tax for cash withdrawal, which the salaried class will have to pay before withdrawing money.

G. Ramdas,
Chennai

* * *

Sir, — I am reminded of Stephen Leacock's essay on banks; how, after an encounter, he decided to keep small change in socks and dollar bills in his pant pockets!

N. Dharmeshwaran,
Bangalore

* * *

Sir, — It is not known if the tax will help curb black money. But it will affect the middle and the lower income groups. The Finance Minister should either withdraw the tax or increase the withdrawal limit to Rs. 1 lakh in a day.

S. Jayachandran,
Chennai

* * *

Sir, — Tax evaders do not keep their money underground or in their homes. They have various savings accounts in different banks which they never disclose while filing their returns. The proposed tax will certainly make a defaulter think twice before he deals in large cash transactions. Middle class salaried employees will be least affected as they rarely withdraw Rs. 10,000 or more in a day. Even if they do, the levy is negligible.

Mohan Kartha,
Chennai

* * *

Sir, — The move is one of most innovative ways of bringing the elusive big fish into the tax net.

S. Pushpavanam,
Tiruchi, T.N.

* * *

Sir, — The proposal will affect only those who draw lakhs in one go. A pensioner or a salaried person is not going to lose much by paying Rs. 15 on Rs. 15,000.

R. Janakiraman,
Cheyyar, T.N.

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