There is considerable talk in the middle and lower classes as to why profit on shares sold after one year are free from any kind of tax. The usual answer is that it helps boost the economy.

Imagine a situation if companies get 30 per cent of their turnover as interest-free unsecured loan — this would boost economic growth way beyond 10 per cent. This can be achieved if something similar is done taking a cue from this: all employees taking salary after one year will get tax exemption.

Salary usually forms at least 30 per cent of the turnover and if staff agree to take salaries one year later, it is like giving the entire industry additional funds equal to 30 per cent of turnover, interest-free and unsecured. The whole concept of industrial finance and RBI interest rate will be dramatically changed. Initially the exemption can be limited to some amount and not made totally free.

There are five things you can be sure of after Budget day. 1. The Sensex will rise and the richest 1,000 who own about 98 per cent of shares will gain several lakh crores. 2. When they sell the shares to make handsome profit, they will not pay a rupee as tax, no income tax, no capital gains tax. 3. The common man may get about ₹10,000 tax relief by making the basic limit say, 3 lakh instead of the present 2.5 lakh. 4. Landlord maharajas will continue to get 30 per cent relief on rent earned, (irrespective of maintenance charges they charge over and above the rent). 5. Subsidies to the poor will be cut by at least 20 per cent.

George King

Email

Why freebies?

Lok Satta chief Jayaprakash Narayan was right in saying that India cannot afford a freebie culture. Most freebies are bribes in disguise to secure or retain the votes of a gullible public, and they slow down development in a cash-starved economy.

Creating jobs and bringing earnings to the people so they may pay for and buy their needs, and also retain their pride as individuals, is a harder thing to do. That is not seriously attempted on a large scale for another reason: the result would make things uneasy for our politicians, when voters become more aware and think before voting.

R Veera Raghavan

Chennai

Farmers and industrialisation

This refers to the report, ‘Land Act ‘suitably refined’ to minimise difficulties in acquisition’ (February 24). In the context of boosting development, the starting of new industrial ventures across the country will become necessary; hence the requirement of land.

Since the extent of land required will be large the likelihood of fertile agricultural land being selected is a possibility. Though a fair amount of compensation may be paid, the permanent loss of livelihood would lead to severe problems for farmers. And if the land is taken on lease, compensation would go to the legal owners and farmers would be left in the lurch. Therefore the government must select barren and uncultivable land and make them suitable for industrial purposes; it must leave out agricultural land to the extent possible.

TR Anandan

Coimbatore

Both the controversial provisions should be removed from the Land Acquisition Act, which are against farmers’ interests. But it is not correct to say the Modi government is favouring industrialists. How can any sensible person or party expect a huge number of job opportunities in the absence of industries? Those supporting Anna Hazare’s stir are nothing more than opportunists.

Hansraj Bhat

Mumbai

Welcome decision

The decision to declare second and fourth Satudays holidays for banks coming under the IBA wage settlement is most welcome. This will not only improve efficiency but reduce strain on infrastructure such as transport and power.

Gradually banks should work only five days; if required the two weekly holidays may be adjusted amongst various banks in the same locality between Saturday and Monday so that customers are not affected.

M Raghuraman

Mumbai

Pluses, more minuses

There are a few positives and more negatives in the recent wage revision agreement (10th bipartite settlement) between the IBA and bank staff unions. The IBA has been able to peg the rise to 15 per cent as against the union’s demand of 19.5 per cent.

However, the protracted delay results in pay arrears liability for the period November 2012 to June 2015 (since it will take another 90 days to firm up details and implement the settlement). The present settlement will lapse in October 2017, although on paper the settlement is valid for five years. A large chunk of the banks’ segment (read SBI and its associates) has not been covered in the settlement. Given the bargaining power of the SBI group staff union, it will not settle for less than 15 per cent. In fact, the SBI group management may be forced to offer a higher percentage setting another negative benchmark for future negotiations.

With banks remaining closed on two Saturdays, will any customer call it creative give and take? What does the bank customer get in this settlement? Absolutely nothing, apart from his expense account providing for increasing staff costs.

KV Rao

Bengaluru

The salaried class like anybody else also needs pay hikes and bank employees are no exception. With the government agreeing in principle for a 15 per cent wage hike with two additional holidays a month, the proposed strike has been called off. The wage settlement against the demand for a 25 per cent increase and 5-day week on par with central government staff and the IT industry shows the government is by and large considerate. Stability in the prices of essential commodities is the need of the hour.

HP Murali

Bengaluru

Periodical revision of wages is a common demand in every organisation; it is inevitable. The bank employees’ union must be thanked for accepting the hike without being adamant about their earlier demand for 19 per cent. But the two Saturdays off will inconvenience customers and affect the mobilisation of deposits. Saturdays being half-day was helpful for uninterrupted banking transactions.

The unions are right to oppose outsourcing services. Bank managements are worried about the rise in bad and doubtful loans. Banks should not loan without adequate collateral securities.

KV Seetharamaiah

Hassan, Karnataka

Congratulations to the finance ministry for hiking the salaries of bank employees, and providing other facilities. It will definitely give a boost to bank employees.

But it is also essential that bank employees are more polite with their valued customers and help their respective banks do the normal banking transactions without going on strike frequently. It is also essential that banks install more ATMs even in rural areas and install instant pass book update machines in all the branches, as also deposit and withdrawal options. ATMs often go out of cash; it is the duty of bank officials to check this and refill regularly.

The management of banks should switch over to the latest technology. The banking industry is our asset and it should keep up with the latest developments for the satisfaction of customers.

Jayant Mukherjee

Kolkata

What’s the hoohaa about?

Why is everyone taken aback by Rahul Gandhi’s taking a break? Is it not routine to go on vacation or take time off when one is stressed, depressed or just wanting to hang out with friends or family? Hopefully the break will do Rahul a world of good and he comes back with all batteries recharged.

NJ Ravi Chander

Bengaluru

It is unacceptable for Rahul to go on a sabbatical. Does he expects the people to elect him as Prime Minister right away.? Why should he exercise extra-constitutional powers? Refusing to hold any governmental post when his party was in power, he now avoids the Budget session, by going on leave during a crucial time. It is a shame that some veteran Congress leaders are compelled to accept him as their leader.

RS Raghavan

Email

Serving the unserved

The comment by Mohan Bhagwat about Mother Teresa that she did everything she did to convert people to Christianity will be rejected by all sane thinking people. Can Bhagwat ever think of doing the kind of service what Mother Teresa did for the poor, the sick and the deserted, particularly the lepers and the mentally retarded?

Anna Mary Yvonne

Chennai

comment COMMENT NOW