The latest mini or third budget implemented through the backdoor Ordinance method is nothing but an eye wash just to divert the attention from the failures of governance from all corners. Similar is the case of Hindi agenda all of a sudden surfaced recently. The purpose is to fool the public who are ignorant about the ups and downs of the Share Market but more concerned about the ups and downs of the Commodity Market.
In reality, these astronomical financial sops are just like the bogus astronomical Audit Objections of the CAG which I elaborated in my book.
Now let us analyse the effect of these astronomical sops announced by the Finance Minister:-
First take the case of sops to the tax reduction to those companies which do not seek any deduction. Many of the companies are already availing 100% or more than 100% deduction for research etc. So what could be the tax effect? Very negligible or nil.
Secondly take the case of the mega sops to the newly formed manufacturing companies. In normal case there will not be much profit to these companies at the initial stage of production. Most of the companies would be in loss due to heavy interest liability, heavy depreciation, starting problems in marketing etc. So most of them may not be having taxable income, except carry forward of loss.
In reality, these astronomical financial sops are just like the bogus astronomical Audit Objections of the CAG which I elaborated in my book.
Now let us analyse the effect of these astronomical sops announced by the Finance Minister:-
First take the case of sops to the tax reduction to those companies which do not seek any deduction. Many of the companies are already availing 100% or more than 100% deduction for research etc. So what could be the tax effect? Very negligible or nil.
Secondly take the case of the mega sops to the newly formed manufacturing companies. In normal case there will not be much profit to these companies at the initial stage of production. Most of the companies would be in loss due to heavy interest liability, heavy depreciation, starting problems in marketing etc. So most of them may not be having taxable income, except carry forward of loss.
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This being the reality, now, it is for the Finance Minister to explain to the Nation, what is the real purpose of these gimmick of showing a mirage of economic growth through IT sops other than diverting the attention of the public from price rise, employment loss, maladministration, decline in groth rate, etc.? It may also be clarified the method of calculation to arrive at 1.45 lakh crore annual effect or whether the figure is adopted from the 2G and Coalmine Audit Report of the Comptroller and Auditor General of India?
