Directions (1-10): In the following passage, there are blanks, each of which has been numbered. These numbers are printed below the passage and against each, five words are suggested, one of which fits the blank appropriately. Find out the appropriate word in each case.
Will the Budget bring down taxes? This is probably the most-asked ____1_____ in the weeks before the Finance Bill is tabled in Parliament. But though we are a nation obsessed with tax, the ____2____ fact is that only 3% (4.1 crore Indians) of the total population filed income tax returns in 2014-15. Only 1.6% actually paid income tax. One out of two Indians who __3____ a return declared zero taxable income.
Even so, the budget proposals relating to tax slabs, deductions and exemptions are very closely watched by Indians, almost as if the Budget is only about personal taxation. In the previous Budget, nearly __4_____ had expected that the finance minister will offer significant tax ____5_____ to the middle class to act as a balm after the searing pain of demonetisation. However, though the Budget did reduce the average taxpayer’s tax burden, it also took away some benefits. The cap on the deduction of home loan interest was a ____6_____ shock for those with houses put out on rent.
This year, the expectations of a taxpayer friendly budget are even higher, given that five states have assembly elections in 2018 and another three in 2019. Many ___7____ fear that the government will roll out a populist Budget.
Admittedly, some of these measures, like a longer tenure for education loan deduction, a separate deduction limit for pure protection term plans or making NPS investments tax free, will have an impact on revenue collections. The government, already under pressure to rein in the fiscal deficit, may not be able to ____8_____ all such measures. But most of the other steps will not have any ____9______ impact on revenue collections. They will only make life easier for common taxpayers, investors and consumers.
Facilitate donation and gifting of investments :
The tax laws need to be changed to allow donation and gifting of securities, such as listed stocks and mutual funds, without tax implications. The value of the gift or donation could be calculated as the fair market value of the securities on the date of actual transfer. This would give the donor or gift giver two benefits: exemption from capital gains tax on the securities; and tax-deduction on the amount from their income Right now, the process of gifting or donating an amount invested in securities ____10____ liquidating them and transferring the cash amount. The process leads to the investor incurring capital gains tax. Changing this would not only promote the practice of gifting investments, but also allow people to donate to worthy charities without worrying about taxability.
(b)much of the