Complex calculations

This refers to ‘Why not tax stock market gains?’ by Aarati Krishnan (January 6). an informative discussion on the working of the sector and the possibility of substantial revenue. The performance of the share market is an extremely rapid process and the likelihood of gains and losses and net gains, mostly instantaneous. One day’s gains could possibly be washed out in next day’s losses and vice versa. Therefore, taxing gains will have to be done on a day-to-day basis; it is a complex process. Therefore, annual taxing on the basis of net yearly income out of the trading is fair and easy.

TR Anandan

Coimbatore

It is logical that tax should be only on income earned and not on transactions; hence STT should be dispensed with and tax on capital gains put in its place. Why should we pay by way of STT while incurring a loss after a holding period? Moreover STT is paid while buying as well as selling. However, administering STT is easy; there cannot be any evasion whereas the capital gains regime may have leakages. That is why STT was preferred. But why the preferential treatment for day-traders and participants of derivative markets when most of them are speculators and not investors?

Dividend distribution tax should also be dispensed with. When a corporate has already paid tax on earnings, there cannot be any tax when the profits are distributed.

S Kalyanasundaram

Email

Bank staff deserve a raise

Banks Board Bureau chairman Vinod Rai’s statement that pay for bank employees will be more attractive is noteworthy in the wake of hardships faced by them during the demonetisation exercise. The pay structure for bank staff compares unfavourably with peers at other Central and State levels. Bank employees have big workloads, high responsibilities and heavy accountability. Raising variable components such as bonus, stock options, performance linked packages and other non-monetary incentives will motivate better performance. The fixed component should be increased in the next bipartite talks.

TSN Rao

Bheemavaram, Andhra Pradesh

It is strange that the BBB is unable to identify people for top posts in PSBs. It cannot be lack of talent. The BBB is only a recomending body; government has the final say. It is not a talent crunch that is affecting PSBs, it’s the various mandatory guidelines and priority given to financial inclusion and implementation of government programmes. There price paid for implementing social programmes is not reflected in the performance of PSBs.

What is required is a level playing field, sound HR policies, transparent systems and the absence of the invisible hand of majority stakeholders in the everyday functioning of PSBs. Outsourced talent will only sink in the existing system. It will be prudent to identify talent from the level of general mangers with a long tenure of service.

S Veeraraghavan

Coimbatore

Political stunts

It is disgusting that the opposition parties, after ensuring the washout of the winter session, are now disrupting the process of Budget presentation by seeking its postponement because of Assembly elections. The Union Budget is a central activity, and any sops announced in it is for the citizens of the country including those in the poll-bound States. Hence, the activities of the opposition parties are purely political and not in the interests of the development of the country.

TRN Sharma

Bengaluru

Heed the farmers’ plight

The callous attitude of the State administration to the pathetic plight of farmers is intriguing. Droughts and floods have become commonplace owing to global warming and climate change. Hence, policymakers and authorities must evolve and implement strategies to mitigate their impact on agriculture. Farmer suicides are a blot on society. Addressing their legitimate concerns is the need of the hour.

M Jeyaram

Sholavandam, Tamil Nadu

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