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The Rediff Budget Jury/Sunil Ramani

'Overall, the Budget is good for rural India'

BUDGET 2000

The Budget has remained silent on allowing in foreign law firms. It has only stated that venture capital will be encouraged.

There is no increase in the income tax rates, only surcharge has been raised by five per cent for taxable income exceeding Rs 150,000, which will push up the effective tax rate from 33 per cent to 34.5 per cent.

In the last year's Budget, there was a sizeable thrust on housing. I don't think that the FM might continue the same year after year.

There are no special provisions affecting Non Resident Indians in this Budget.

The major thing that has been achieved in the excise front is that the laws and the administration are going to be simplified. For example, excise can be paid on a fortnightly basis instead of a daily basis.

Secondly, the records of the manufacturer will be relied on and the excise department will maintain no parallel records.

The FM has stated that the income arising out of maintaining a farmhouse not being used for agricultural purposes will be taxed. This was because of heavy misuse of this provision.

Overall, the Budget is good for rural India. However, care must be taken that the entire money set aside for development of rural India is utilised for the purpose that it is meant. In the public distribution system, he has increased the quota of essential commodities per person and removed this facility for tax-payers.

In terms of venture capital, in the software industry in particular, one can expect NRIs to repatriate funds.

There are too many restraints on the FM while laying down the Budget. It is difficult to give relief to all segments.

The ability to pay taxes in the nationalised banks will start the minute the Reserve Bank of India sets up the necessary machinery and administration.

Sunil Ramani is director, Ramani Legal Services Private Limited, Bombay

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