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Rediff.com columnist M R Venkatesh is a qualified chartered accountant.
He is an expert on business concerns relating to economic policies, international trade and business strategies.
M R Venkatesh answered our readers' questions on all aspects of the Union Budget.
Here is the transcript:
M R Venkatesh says, I am ready to take your questions
rajiv asked, dear sir interst on house loan limit extended by one lac for old loan earlier taken or for loan taken only in 2013-2014
M R Venkatesh answers, at 2013-03-01 12:01:10Yes that is what I understand
anupam asked, all womens bank is noting but political gimmick and against the article 14 of constitution of india
M R Venkatesh answers, My not be exactly violative of A -14 but is in my considered opinion a Gimmick
anupam asked, what step are proposed to stop corruption in excise and customs a major cause of loss of revenue
M R Venkatesh answers, Nothing - and nothing will of can be done except to move to GST
RaviBangalore asked, now service tax in addition to stamp Duty, is it?
M R Venkatesh answers, Yes
manoja asked, Is this budget improving indian economy or moving towards still any more deficit sir.
M R Venkatesh answers, Trust deficit remains sir and that seems to be the biggest worry
vijay asked, is the fiscal deficit target achievable ?\
M R Venkatesh answers, Very much achievable - provided the FM has a political will for the next 365 days of the year
ssiva asked, Sir, Why there is no raise in 80C limit
M R Venkatesh answers, The FM is fiscally constrained
admin asked, Dear Sir M R Venkatesh Can you tell us your expertise in finance?
M R Venkatesh answers, I am a Chartered Accountant - and my website www.mrv.net.in has more details about me
Sivaraman asked, I think it is an budget present by an outgoing government with no confidence of coming back. What is your take.
M R Venkatesh answers, Yes and it is a budget by a person who is completely lost - better it would hv been done without !
rao asked, for flat sales of value above 50L there is TDS. who pays it and how? How can it be claimed in the return?
M R Venkatesh answers, The TDS is to be remitted by the buyer - a legal nightmare
Vinod asked, Because of the current budget do we see fall in the market or any improvements?
M R Venkatesh answers, The proposed amendment to S 90 of IT act may pull stock markets down !
Lokesh asked, I have purchased and taken joint home loan of 48.12 lakhs. will i be applicable for additional 1 lakh interest deduction as declared in budget. Normally it is 1.5 lakhs interest rate dedcution?
M R Venkatesh answers, No the purchase should be in 2013-14 not earlier
Gaurav asked, Why in this coutry we are paying tax for Educaton and Food.
M R Venkatesh answers, But the moot point is do we get even when we pay ?
raja asked, Hello Venkatesh- Are you happy with the infrastructure allocation?
M R Venkatesh answers, No I am not - in fact the Babglore -Chennai industrial corridor and Tuticorim port are all announcement without allocations !
Hari asked, On seeing current economic scenario do we Food Security Bill. Are there any chances for the bill to get passed in parliament as many are saying it insufficient.
M R Venkatesh answers, If it get passed we may have the money - but do we hv the food to distribute?
Ashfaq asked, Hi sir do u happy with this year budget
M R Venkatesh answers, No I am not impressed
Nithya asked, It can be easily consulded that the MNREGA has not been anywhere near to be called success. Provisions of INR 33000 CROREs has been made for the MNREGA scheme (Which is same as the last year). What are the assets MNREGA has produced in last few years after consuming close to 1 LAKH crore rupees? Though the government is now planning to credit the amoung in bank accouts, will it help to reduce the corruption and fraud this scheme has become? What will be the impact on the overall economy due to this. (
M R Venkatesh answers, I agree with you fuly - no asset creation of MNREGA and this causes inflation
Ramesh asked, Good afternoon MRV. Your economic analysis of the budget in a nutshell please
M R Venkatesh answers, It is economical about economics!
KRISHNA asked, Sir, Does the budget took any actions towards reducing the fiscal deficit?
M R Venkatesh answers, Yes it has taken lots by cutting planned expenditure - but we must wait & see if there are any supplementary expenses
RMK asked, MRV, considering the revenue challenge, was there really anyting that PC could have done on personal income tax (leaving out any populist step for which he would have been criticized anyway)..
M R Venkatesh answers, Yet he cld have raised exemption limits
Amit asked, dear sir interst on house loan limit extended by one lac for old loan earlier taken or for loan taken only in 2013-2014. can you please clarify, whether new loan or old loans please?
M R Venkatesh answers, New Loans on in 2013-14
ankush asked, I belong to middle class family so what this budget has for us ?
M R Venkatesh answers, Loads of talk, talk and more talk
raja asked, hello venkatesh- in a recessionary environment is it good to focus on the fiscal deficit so much?
M R Venkatesh answers, There is no choice - and this again is a brilliant question
Rohan asked, Hello Sir Can this budget proposed , achieve the growth target of India ?
M R Venkatesh answers, One budget cannot do - the govt needs to work 365 days a year for this
FM asked, what is this rajiv gandhi schema and the new change ?
M R Venkatesh answers, Marginal and nothing big -
raja asked, some people say we are close to 1991 situation where we might have to mortgage the family jewels what is ur view?
M R Venkatesh answers, We are in a worse position and may have to do something bigger
BSS asked, do you feel MNREGA is inflationary ?
M R Venkatesh answers, yes .
BSS asked, what do you feel abt the womens' bank ? is it workable stuff ? what operational challenges do you see ?
M R Venkatesh answers, not a smart idea at all
jitumoni asked, I dont understand why the FM targets SUV range of vehicle in this budget?
M R Venkatesh answers, He has explained it in his speech
Bhabesh asked, From this budget do you think that the foreign investors ig going to attract for investment in India and what will be the effect in ruppes against dollar
M R Venkatesh answers, No on the contrary I expect Rupee at 62 to an USD by 2014 Jan
hi asked, good noon sir wht do u think about commodity market.
M R Venkatesh answers, That needs to be closed as they are rigged
Subrahmaniyam asked, The FM had promised that he will encourage foreign direct investment in this budget in order to fight the fiscal deficit which is already close to red alert. We already have opened the doors to Aviation and retail and still the reposnse is lukewarm. Again the keeping mum for a couple of years on retrospective tax regime seems just another worry for the foreign investers. How the foreign investment can be ensured after this budget, I dint see any major step in this direction after yesterdays budget.
M R Venkatesh answers, Exactly. He says we need 75 Bn in Para 11 and them keeps quite on the way going about it
weqw asked, TDS of 1% will be applicable to new purchase (2013-2014) or to all under-construed properties.
M R Venkatesh answers, Not from builder I guess - but need to relook at fine prints
ray asked, Sir, is there any chance of not imposing Commodity Transaction tax?
M R Venkatesh answers, Why not - this MUST be taxed
BSS asked, help women thru women bank may not be a smart idea , but donot u think is necessary especially when the poor women struggle
M R Venkatesh answers, HOw will a women bank help
sumit asked, Mr Venkatesh Tax Credit gas been given income 2-5lakhs for Rs 2000.How do we calculate? Do we compute total taxable income and from the total tax liability deduct Rs 2000.?
M R Venkatesh answers, Yes provided yr taxable income is less than Rs 5 L
Harsha asked, How is Fiscal Deficit and Growth(GDP) are related?
M R Venkatesh answers, More growth means more income and lower FD
ankush asked, Is it 2014 election driven budget ?
M R Venkatesh answers, No but I guess even that is acceptable not one which is directionless
Harsha asked, What does Fiscal Deficit means
M R Venkatesh answers, Total borrowings of Govt to match its total expenditure
child asked, hi venkatesh, good morning. what the are the components of fiscal deficit. govt is for the people, by the people concept is no longer valid. the pricing of petrolecum products produced indigineously within the country is linked to international rupee dollar fluctuation. why?
M R Venkatesh answers, If Intn crude prices goes up, petrol prices in Rupee has to go up
BSS asked, if MNREGA is inflationary, how do guarnatee jobs for the poor working class ? alternatives ?
M R Venkatesh answers, Improve manufacturing growth
Chandrasekhar asked, wat does the amnesty scheme for service tax mean??
M R Venkatesh answers, It is a good idea to bring all those who have failed to pay ST to come on board
rdk asked, What is the basic purpose of a government budget? It is only an income expenditure statement like our corporate ones or to have a vision and take the necessary steps to achieve it
M R Venkatesh answers, It is constitutionally mandated. Moreover it has several facets
kjram asked, Why do the corporate heads always praise every budget of every FM. Why can't they call a spade a spade?
M R Venkatesh answers, Every one wants to play cheerleader
BSS asked, present banks are not attuned to funding women at all & mfis fleece women ...what is the alternative
M R Venkatesh answers, Making existing bank lend
TMS asked, Dear MRV Do you think that this budget is focused really towards development of our country in specific to fiscal area?
M R Venkatesh answers, Sort off - but not fully
Harsha asked, Why are the Indian big investor/retailor going away from the Stock market. Are we not too much dependent on FII and FDI? Please provide ur views.
M R Venkatesh answers, yes FII hv taken over our markets and they are ruling roost
kjram asked, Forget FDI, even local industrialists are not willing to invest in India. What has the government to improve credibility?
M R Venkatesh answers, Nothing
udaymallya asked, Sir, My question is if the government brings the black money stashed in the SWISS accounts, will it not be possible to erase the entire Fiscal deficit or if not entire at least partially
M R Venkatesh answers, Can it? If it can - yes it should be able to do so.
srinivasan asked, why Investment allowance for 100 cr and why not for 5 cr and above as small companies generate employment and business and big firms are riding on them
M R Venkatesh answers, Good question - probably he may lower limits later on demand
kjram asked, What about amnesty scheme for black money holders. As PC is good in such schemes, I thought there would be one in this budget as a last chance to many.
M R Venkatesh answers, The 1997 came with a promise that it would be the last one - we cannot give one more every few years
bala asked, will this new budget boost FII investment in India?
M R Venkatesh answers, No on the contrary it may drive them out because of amendment to S 90 of the IT act
shafool asked, When UPA took over, the economy was growing at a healthy 8-9%.. SONIA GOT THE IDEA TO PLAY ROBIN HOOD AND GIVE MONEY TO THE POOR AS SHE WANTED "INCLUSIVE GROWTH" Money was doled out to the poor in schemes like NREGA , Direct cash transfers and Farm loan waivers this led to them spending that money on food etc which led to high inflation . RBI Saw high inflation as a risk and started inreasing interst rates . The Interest rates were increased so fast and so high that it destroyed the growth in the econmomy . So now we are left with low growth and high inflation and a huge rural population NOT willing TO WORK AND LOOKING FOR FREEBEES FROM THE SYSTEM Last qarter the economy has just grown by 4.5 %
M R Venkatesh answers, yes the rot is systemic = worrying in fact.
THULASIDARAN asked, Hi MRV, VDIS in Service Tax is a retrograde step. Don't you agree with me. Is a similar VDIS for Income Tax round the corner?
M R Venkatesh answers, No a welcome step in ST. Not reqd in IT
huui asked, In one hand we are saying India is growing, poverty is going down and at the same time why we give somuch subsidy on food. can't we use thsoe ,oney for better infrastructure amenities.
M R Venkatesh answers, I agree
cheekee_garg asked, what will be the impact of TDS 1% at property transaction deals
M R Venkatesh answers, Nothing expect that black component will grow
dhandu asked, farm income above 1 cr will be taxed
M R Venkatesh answers, No
RRamanujam asked, Sir, Does this budget plan plug any avenues that exist today to increase financial corruption? or does it make it worser?
M R Venkatesh answers, No it does not
yogi asked, Hello sir i just want to know tht ctt levied sell side or both buy & sell side ?
M R Venkatesh answers, The Budget is very clear -
BSS asked, most of the approaches are individual focused, somebody will have to speak for the poor ...perhaps an women's bank will highlight this aspect ?
M R Venkatesh answers, Does a Bank speak?
udaymallya asked, Only 49800 super rich seems to be ridiculous. And the surcharge of 10% on them only for one year is even more ridiculous. These people create black money and stash in SWISS accounts, and hence this surcharge is justified only thing it should be extended for next 5 to 10 years
M R Venkatesh answers, I agree the rest are tax evaders - we need to catch them
ravindran asked, i could not understand benfit of interest for homeloan. if somebody has taken loan of 27 lacs in 2009 for his first house . does he has any new. benefit
M R Venkatesh answers, NO
AMITESH asked, Govt’s incomplete views on issues like PNote, GAAR and now DTAA from time to time followed by market crash are hurtin more to Domestic investors rather than FIIs. Don’t u think govt shud hav clarity in all such issues at a time?
M R Venkatesh answers, Absolutely - well said
pup asked, the govt applied excise duty on branded garments in pervious budget and in this they removed it...similarly duty on silk iports was reduced from 30% to 5% in 2011-12 and this year it brought back to 15%....what is the rational for this..why does the govt not think clearly and long term rather than these policy flip flops
M R Venkatesh answers, Lobby pressures that is all
SM asked, Hi Mr. Venkatesh, Have read your articles and it has always been negative. May i ask "Is it not easy to criticize sitting in a chair and commenting on other's activities?
M R Venkatesh answers, But I am a critique! I am doing my job abut tell the truth! Hv I not told the facts?
angshu asked, Is tax credit of 2000 for slab between 2-5 lakh a welcome move
M R Venkatesh answers, Yes why not albeit a small one
seshadri asked, can we get details of last 8 years of budgeted and actual including fiscal deficit and growth pls
M R Venkatesh answers, yes it is available in Budget papers
kjram asked, Why bring gender discrimination on baggage allowance? Whom are they trying to please after failing to protect women?
M R Venkatesh answers, hahaha well said
Venkatreddy asked, Sir India is worried about fuel products daily going up but in order to take down why can't government more importance to the solar system in the country i think government could have taken certain steps as to decrease the fuel consumption do you really agree for this
M R Venkatesh answers, it is doing something marginal - In India everything is marginal
TMS asked, FM told that he will be giving some announcement in the discussion. Is there any change with regard to Income tax concession to middle income or upper middle income people?
M R Venkatesh answers, possible
pup asked, thanks buddy...are u supporting chidambaram for next pm
M R Venkatesh answers, I can - but AMMA may be cross with me !
Leo asked, Rs. 2000 credit for the 2-5lac people. This works out to Rs166 per month which is a very negligible amount for someone in this bracket. So what is the intention of this credit?
M R Venkatesh answers, It is a token - read it that way
rajeshjena asked, form this budget 2013-14 how odisha state more benefited
M R Venkatesh answers, This is a Union Budget cannot look into each state sir
tc asked, Don't you think that the salaried people who are bound to pay tax exactly as per tax rule is deprived in this budget ? Mr Finance Minister ignored this class.
M R Venkatesh answers, Yes
RRamanujam asked, It was suggested that this budget would be a populist budget focussed on getting the middle class vote? On the contrary, the taxes continue to remain the same or have increased? Am i reading the signals wrong? Have UPA decided that it is time for them to go?
M R Venkatesh answers, Possibly yes
JALAN asked, Sir,what you think about yesterday Budget 2013. Day by day increasing of Price but our income is not increasing it is reducing day by day.
M R Venkatesh answers, yes a badly drafted Budget
Venkatreddy asked, do the government bring any steps to curve the scams in the country which held in recent days?
M R Venkatesh answers, Nothing that the budget can do on this
kjram asked, Is this government still under crony capitalism bear hug?
M R Venkatesh answers, Very difficult to answer this question
shaffol asked, when the GST comes in at 15-17 % dont you think it will make every thing more expensive ?
M R Venkatesh answers, May not as it will replace all ED, ST and VAT
SM asked, Hi Mr. Venkatesh, stating that i am a critique, does not help. You are an expert and if you keep highlighting only negative things, it tends to leave a impression on your readers. Should you not be worrying about it? Life is not plain black and white. Politicians and decision makers have to take the gray line. Don't we do that in our life?
M R Venkatesh answers, Now you are crticizing me and possibly telling he truth!
shaffol asked, when the GST comes in at 15-17 % dont you think it will make every thing more expensive ? Is it not good for the state and bad for the consumers ?
M R Venkatesh answers, No it may not
Deka asked, Dear Sir, I don't see any purpose getting served by the women's bank. Rather, FM could have announced some beneficiary measures for women (say easier loans or more inteerset on FDs etc.) accessible from any bank. What is the point in setting up an entire new bank and spend money in its infrastructure et al. What do you say?
M R Venkatesh answers, AGreed
Bipin asked, No mention of Black Money
M R Venkatesh answers, Absolutely
sital asked, why agricultural income beyond certain limit is not taxed
M R Venkatesh answers, Because Agri taxes can be levied only by states under our constitution
adi asked, Dear Sir, the FM seems to have turned a blind eye towards personal income tax items like the 15000 per year of medical deduction, Rs 800 p.m of transport exemption etc. These all seem too minuscule now.
M R Venkatesh answers, Yes - but no FM seems to be giving enuf to middle salaried class
padmanabhan asked, Sir, paper money losing value day by day. will gold standard will come true in india
M R Venkatesh answers, Buy gold - and see yr investment grow - invest 30% of yr savings in gold
n suresh asked, how this budget will impact stock market
M R Venkatesh answers, It is be negatively viewed
ygparthas asked, Why this FM did not give any concessions to the salaried class. If given what would have been the impact on the GDP
M R Venkatesh answers, relief to the salaried class could have made positive impact
SM asked, Hi Mr. Venkatesh, I do not mean to criticize you. Your articles are to the point and educative. Thanks for the same. But it pains. It is not as if all our politicians are corrupt. They may be selfish and short sighted at some times but not all times. However, please keep writing and wish you a great future.
M R Venkatesh answers, thanks sir
AKS asked, IS CURRENT BUDGET IS IN SYNC WITH 12TH 5 YEAR PLAN.
M R Venkatesh answers, No Plan has been thrown into the dust bin
kjram asked, The rich don't care, the middle class does not matter and the aam aadmi does not know. Isnt the government having a joy ride?
M R Venkatesh answers, A deaf Government and a Dumb electorate do not make a great democracy
cs asked, Has anything changed in the past out of such chats, debates and your critical statements made by critics like you? if so can you name a few. if not arent you and the whole bandwagon of people wasting time on some exercise which isnt meaningful.
M R Venkatesh answers, The idea is to create the debate - so essential for democracy
kjram asked, Advice on investing gold against national interest. Already the government is wasting precious foreign exchange on import of gold and this does not promote wealth creation.
M R Venkatesh answers, Investing in gold is not against national interest sir
chas asked, sir , you are saying to invest in gold,but in what form , gold etf or ornamental or some other? which is the best
M R Venkatesh answers, Physical gold
AKS asked, IF BUDGET IS NOT IN SYNC WITH 5 YEAR PLAN, THEN WHAT IS OUR TARGET
M R Venkatesh answers, How does hat matter - we have always slipped on the plan
slave asked, Will people stop spending after the budget? What kind of budget will give the confidence to spend?
M R Venkatesh answers, Agreed. But life is not limited to Govt and budgets Life has to go on
aamaadmi asked, Sir, i have always had this question, but did not find the right person to ask. Can you tell me why does Govt of India needs so many ministries. Will not cutting down on the ministries to a few will drastically reduce Govt expenditure which can be used on some necessary subsidies? Successive Govt have been running the money printing press in overtime. Why no-one is stopping this excessive spending by Govt
M R Venkatesh answers, Hhaaahahah No answers to this question
aamaadmi asked, Sir, i have always had this question, but did not find the right person to ask. Can you tell me why does Govt of India needs so many ministries. Will not cutting down on the ministries to a few will drastically reduce Govt expenditure which can be used on some necessary subsidies? Successive Govt have been running the money printing press in overtime. Why no-one is stopping this excessive spending by Govt
M R Venkatesh answers, Hhaaahahah No answers to this question
sudhir asked, Sir if gross income is more than 5L and taxable Income is less than 5L is 2000 tax benifit till applicable?
M R Venkatesh answers, Yes I guess so need to go thru fine prints once again
aamaadmi asked, As a follow up to my question. Reducing spending will also strengthen the Rupee and reduce inflation. Is that so difficult to understand by a Government that has an economist as PM?
M R Venkatesh answers, That is the billion dollar puzzle
kjram asked, Have you published your comprehensive analysis on the budget?
M R Venkatesh answers, Will be writing in Rediff - hopefully on Monday
cs asked, Is growth of country under a democratic set up ever possible, with order of the day being a coalition government which is one stumbling block for progress? YOu have any alternates to suggest to this.
M R Venkatesh answers, No there is no stumbling path of growth because of democracy
Deepraj asked, Dear sir 2000 credit mean what?
M R Venkatesh answers, Deduction from your tax bill
M R Venkatesh says, Ok bye - My time is Up