B.N.Bharath, Chief Manager, Specialised Mid Corporate Branch, SBI, Bengaluru

1. Food inflation is rising unabated. Though the Dearness Allowance payable to the salaried class keeps revised from time to time, it offsets the price rise to a limited extent only. Moreover, the commodities and various food items are already taxed by way of VAT, excise, slaes tax etc. The dearness allowance is taxed at the hands of the individual tax payers treating it as income, which in reality is not. Therefore it is nothing but double taxation. Hence, it is suggested that this element of DA, is to be made tax free. 2. Banks provide impetus to the overall economic development of the nation. It is imperative to encourage bank deposits. Interest income upto say, Rs.1 lac p.a., can be made tax free, so that people channelise their savings to this legal route rather than falling prey blade companies, uncertain stock market etc. 3. During the last 2-3 years financial meltdown took place in US, Europe etc. But India, was relatively, less affected, thanks to the high savings rate. It is time the finance minister encourages savings by individual tax payers. Investment in infrastructure and development related savings instruments is to be encouraged. 4. Salaried class are the prompt tax payers and most of the times end up paying over 30% of their monthly income as tax. To provide solace to them, Standard Deduction should be brought back just as the benefit of depreciation is available to business segment. 5. Government should encourage corporate, institutions to plant saplings in a big way going for something like corporate forests, to check global warming thereby protecting the environment. The encouragement can be in the form of sort of tax concession as in case of wind energy etc.