Problem of plenty for FM

Finance minister P Chidambaram has received over a thousand Budget wish-lists this year and most of them have the same requests "" lower tax rates and give more exemptions.

In fact, when one such delegation met Chidambaram, the finance minister, after hearing them out, asked them to get their customary pictures clicked with him and leave. The delegation of three was completely taken aback as the minister told them that if he had acted on the various memoranda, he might as well open the treasury and dole out money.

Some of the suggestions, however, were innovative. "Start a property information network," suggested a former member of the Central Board of Direct Taxes (CBDT).

The move will help the government and even buyers to track the purchase history of every property just like every car owner has a registration copy and authorities can easily track the purchase history. The proposal goes on to suggest that each transaction will have to be disclosed on the registration certificate.

The memorandum says such a move will improve transparency and authorities will be able to track black money. It can be done on the lines of the tax information network (TIN). Tax authorities have so far not been able to check black money but this move can make a difference in some years, the CBDT member says.

Or, take this. "Tax educational institutions and hospitals running on a commercial basis, which do not pay taxes since they are registered as trusts for charitable purpose," advised the Institute of Chartered Accountants of India.

The tax head of a leading IT company, however, did not go far from the beaten track. "Tax rich farmers," he said. With the kind of money they make, no social purpose is met by exempting them from taxes.

Another tax expert says, "Impose a Rs 100 tax on the return filing fee. With 40 million assessees, this means Rs 400 crore in revenues in one stroke."

Yet another wish list said, "People earning good money are hopping jobs like never before. As a precursor to allowing 'anywhere return filing', make it possible for high networth individuals to file their returns anywhere in India. This will improve compliance."

In his report on fiscal responsibility management, economist Vijay Kelkar had said the government could either take tough measures some years later or could take them now.