Tags:
Journalism of Courage
The Lok Sabha today cleared two important legislations that include the Reserve Bank of India (Amendment) Bill 2005 as well as the Taxation Laws (Amendment) Bill 2005 where the former legislation brings about changes in the definitions of repo and reverse repo rates while the latter seeks to streamline as well as tighten some of the provisions under the Income Tax Act.
Both the bills were passed by voice vote without any opposition either from the Left as well the BJP and its allies.
In fact, while tabling the Reserve Bank amendments, Finance Minister P Chidambaram said that these were based on the recommendations of the Standing Committee on Finance that submitted its report back in December 2005.
While these amendments would be brought about in the Reserve Bank of India Act, 1934, the Finance Minister after tabling the bill said that the amendments would let the central bank decide on the reverse repo and repo rates and would give the bank greater autonomy and authority to deal with subjects under the Act. He said that the amendment was necessary due to the changing role of financial sectors and the increasing role of India’s economy in the global market.
On the taxation amendments, several changes were made in various sections that would allow assesses continue to be entitled for tax deduction of any sum paid to any educational institution like college or university, national laboratory, local authority, association or institution for specific eligible project, and to an association or institution for rural development programme even after approvals granted to these were withdrawn.
Terming all the amendments as those that do not increase any tax rates, the Finance Minister said the amendments address the lacunae and bottlenecks in the existing provisions.
