What is the motive?

At first the union budget presented last Friday looked like the usual fraud that the Congress has been perpetrating on the country since independence, that is increase taxes wherever possible to fund social schemes for the aam aadmi which can then be looted by politicians and civil servants. However, this time something sinister seems to be afoot. In an effort to boost the share market the budget has reduced the Securities Transaction Tax from 0.125% to 0.100%. A new scheme called the Rajiv Gandhi Equity Saving Scheme will allow a 25% tax reduction for anyone with an income of less than Rs 1 million/year, which is almost everyone in India, on an investment of up to Rs 50,000 directly in equities. It is not explained whether the government will set up a fund for such investment or retail investors will just have to show a receipt for the shares bought. If even half the population of India availed of the scheme it would amount to Rs 25 trillion which is such a humongous amount of money that it will send the Sensex to heights not seen anywhere in the world. Why does the government want to stimulate the stock market directly which no other country ever does? Is it afraid that a credit rating downgrade will result in a sell-off by FIIs and a collapse in the rupee? Or is it a trap to catch tax evaders because you cannot buy shares without a demat account for which you need a Permanent Account Number, PAN from the tax department? The second proposal is that a buyer of any property with a value in excess of Rs 5 million in cities and Rs 2 million in other areas will have to deduct 1% tax at source and the buyer will be able to register the property only after showing proof of having deposited the tax with authorities. This tax is in addition to stamp duty and registration fees charged by state governments which often amount to 12% of the value of the property. It is for this reason that no one shows the true value of any sale, at least half the amount being paid in cash or black money. To submit TDS the buyer will need to have a PAN number as well as a TAN or Tax Deduction and Collection Account number. The harassment level of anyone buying a property will be increased infinitely because the tax fellows will delay allotting a number until a bribe has been paid and since even a one bedroom flat in metro cities costs in excess of Rs 10 million the earnings will be huge. Most people will be forced to use brokers to facilitate paper work. As opposed to other countries where brokers charge 1% of the price of property brokers in India charge 2% from both buyer and seller. All this money is paid in cash and no receipt is ever given. Thus the potential of black money creation will be enhanced by this proposal. With the World Famous Economist leading the government are we to depend on black money and hot money to finance growth? The future looks scary?