On S B interest and Usage of cheques instead of D.D.s

1.Cheque Transactions
. In the present setup of anytime anywhere Banking A T M s Credit and debit cards etc it is nothing but governmental red tapism that most government institutions demand either cash or D.D. or Bankers cheque for payments to be made to such institutions instead of cheques.
Acceptance of cheques must be mandatory for all transactions with government by the public, and also for institutions - educational etc. etc. and at par – any where in India
D.D s against cheques must be done away with and restricted to cash exchange only
All cheques must be at par.In place of D.D s, at par cheques may be drawn on the payee (and if required endorsed by the bank for reserving the amount on the back of the cheque and free of any charge)

2.Interest on Savings Bank accounts
Interest on savings bank accounts must be free of tax. Most or major part of the savings bank accounts are held by government employees, pensioners and family pensioners, and of those with monthly payment of interest by annuity funds, insurance, M.I.S. of post offices etc. etc., other monthly paid employees, by small institutions, other senior citizens - i.e. by the upper middle class, middle class and lower middle class persons in general. Moreover the present trend is to pay salaries and other payments to their employees by companies and now of late by government also through S .B. accounts in banks by E C S. The small amount of interest paid to S.B. Account holders is from out of the profits made by the banks by utilizing the amounts in such accounts. The government and the banks are benefited with deposits at low interest when compared to the interest they have to pay for other deposit as fixed deposits, recurring deposits or loan amounts. The present gesture of the Hon.ble Finance Minister to exempt interest on deposits of five years and above (but within the allowed deduction limit) should be extended to savings bank account interest also in total and not included in the allowed deductions as for fixed deposits interests i. e it should be over and above the limit of the deduction allowed.
3. Income tax.
With the introduction and collection of service tax starting with 5% raised to 10% and now 12% and with additional surcharge of 2% which started with a few items at first and gradually expanded to more that 50 items and with good amount that is and is likely to be collected and realized, it is to be thought of whether a reduction in income tax could be granted and in three slabs - 10% on incomes upto 5 lakhs and 15% for income from 5 lakhs to 15 lakhs and at 20% for income over 15 lakhs for individual incomes. Companies and business incomes may be charged income tax as at present

K.S.Narayanaswamy