My Corporate TAX policy

I am not a commerce guy to comment on the Direct Tax code recommendations released 2 months back,may be my sister( CA Final Student) suggestions might be of value.. Still i do wonder why they make tax policies so convoluted for common man to comprehend!! Not to mention hundreds of Acts which makes me fumble to even listen to. So much to read and understand to pay the Income Tax which our leaders siphon to Swiss bank abroad.. As a responsible citizen, i filed my returns this year (credit goes to my sister who submitted online) and so do many corporates along with tax breaks..

Looking at this scenario, i came up with a proposal in the corporate tax policy which can help the govt in their services. Now the major source of income for State & Central governments is through tax paid by citizens & corporate sector. And the funds garnered are indeed used for social services in the form of subsidies, NREGS,health care and other development projects which reaches the common man. Its always not wise to put all the eggs in one basket.So instead of promoting these programs through various channels fostering rural growth, why not let the corporate sector adopt villages & tier III towns instead of offering them tax waivers and breaks. This would not only see the private sector leap into mainstream but also be part of their CSR activities. This way the funds are directed to the needy and effectively monitored rather than the govt machinery. For example, for the existing 15yr tax sops for SEZ and Software IT parks, let the companies adopt nearby localities and provide basic infrastructure(establish schools, support Self Help Groups,health care centers) which would prove fruitful in the long run. For this I would propose a 70-30 share would show results wherein 70% of the tax bills be used in spending on the infrastructure in harnessing the growth of Rural Sector. With raising fiscal deficit (currently at 5.5% of GDP) since 2008, any reduction in income sources would have large scale ramifications,but still instead of boasting crores of rupees in annual budgets this policy may provide credibility to finance ministry outputs. Ultimately all we do is just to use the funds to improve the common man way of life ( Includes subsidy amidst price rise in kerosene, high food prices, on contrary spending almost $2 billion on CW Games).Only when the country reverts back to our ancients days spurring the green revolution turning villages into money machines, India shall be one among the developed nations. 

I am sure, the progress can be measured when the buck is passed to the private sector rather than with the govt corrupt system. Accountability is more important in our vision and the beneficiaries wouldn't be more happier when such an amendment was made.Lets see how the FM convinces the states to follow the much awaited GST next year before he can give a thought to my policy in his Budget 2011!!!!!