For real estate and infrastructure developers the Union Budget brought in much needed clarity: Real estate investment trusts (REITs) and Infrastructure Investment Trusts (InvITs) will now be allowed to pass on tax liability to investors.
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CREATE SELF - EMPLOYMENT Dear Shri Jaitleyji : I know that the Central Budget is already under printing and it is too late for you to make any changes at this stage But , nothing stops you from making \" STRATEGY \" announcements in your budget speech , such as : \" This government will adopt a strategy of generating Self Employment , to provide meaningful work - and respectable income , to more than ONE MILLION jobseekers every month To 50 MILLION jobseekers in the next 50 months By getting banks to advance , small , low-interest loans to those 125 million poor persons , who have opened bank accounts under Jan Dhan Yojana And , by abolishing Personal Income Tax altogether , for such Self Employed persons , for all deposits made into these accounts for next 5 years \" ( Unintended side effect : Within one year , these 125 million persons would rise above the Poverty Line ! ) Reason is obvious : It needs a fraction of the CAPITAL ( fixed working capital ) to create a Self Employed job as compared to creating a job in Organized Sector ( Public or Private ) As you drive to the Parliament House on 28th morning , you will get to see on the road - or in those shops lining the road - , a lot of Self Employed persons . What kind of CAPITAL ( in tools / machinery / Office - Factory space ) would be needed create each of those \" Jobs \" ? Here are my guesses for investment and space requirement : ( What for ? / Office -Factory - home Space required ) : * Domestic Servants / Maids / Cooks........................ Rs ... NIL ( Nothing / Nil ) * Unskilled Workers............................................... Rs ... 5,000 ( Simple Tools / Construction Site / Road-side ) * Milk Vendors / Delivery Boys.................. Rs... 5,000 ( Bycycle / operate from home ) * Pan-Bidi Gulla Owners.......................................... Rs.... 5,000 ( Stock in Dukaan / 25 Sq Ft footpath ) * Roadside Vegetable Vendors.................................. Rs... 2,000 ( Daily purchase 25 sq ft of footpath ) * Carpenters / Electricians / Plumbers etc................... Rs ..... 2,000 ( Tools of trade / Operate from home ) * Tailors / Watch Repairers...................................... Rs ......5,000 ( Sewing Machine - Tools / Home or 100 sq ft of footpath ) * Hairdressers........................................................ Rs...... 10,000 ( Tools / 100 Sq ft of shop rental ) * Rickshaw Drivers...................................................Rs...... 50,000 ( Rickshaw / Operate from footpath ) I am sure your Ministry has better figures for 200 similar \" Self Employed \" categories . Or you may want to ask NCAER / NITI Ayog / HRD Ministry etc Now , how much CAPITAL will be required to create one \" EMPLOYED \" job ? Once again , here are my guesses : * In MSME businesses / companies......................... . Rs ... 2 Lakh * In large Organized Sector companies...................... Rs... 25 - 100 Lakhs Do you see the logic ? For ONE job in large / organized sector , you can create 5,000 Self - Employed jobs ! One more thing : How long does it take to create such jobs ? > In large organized companies..................................... 3 / 4 years > In MSME companies................................................. 1 / 2 years > Self Employed jobs ( Skilling / Training Period )........... 3 / 6 months Self Employment is the ONLY answer to avoid the fate of PIGS ( Portugal / Italy / Greece / Spain ) and a host of other , \" Advanced Economies \" - which borrowed BILLIONS of dollars from IMF / World Bank / Others ! And now cannot pay back those loans ! Dear Shri Jaitleyji : We have neither time , nor the money to create ONE MILLION jobs every month in the organized sector And we have promises to keep ! I will be keenly listening to your Budget speech with regards , hemen parekh / Mumbai / 22 Feb , 2015
on Feb 23, 2015