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In the forthcoming Budget, at least two provisions under the I-T Act merit being scrapped.

First is permission under Section 37-I for selling land and building, if the value exceeds Rs 25 lakh, introduced ostensibly to curb the use of black money. The appropriate authority may refuse permission if it feels the sale value stated is less and buy the property at the stated price.

The second is Capital Gains tax. All countries other than India and Malaysia have abolished it. Value appreciation or depreciation is something only the market decides. The Government has no role in any surplus earned or deficit suffered by the seller of an asset. Innumerable industrialists and businessmen desperately wanting to exit in view of the non-viability of their ventures are unable to do so because of these provisions. It would be a step in the right direction if these were dropped immediately.

Swati Ranganathan

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