Budget Trivia (Part III): Which budget taxed rewards earned from solving puzzles?
Encompassing over 70 years of history of independent India, in our Budget Trivia series, we present to some of the lesser-known facts about the Budget process
1967-68 | This budget was first of its kind in one particular respect. What was unique about it? Ans: For the first the time, the budget was presented by the Deputy Prime Minister (Morarji Desai), who was also the Finance Minister. (Image source: US embassy, New Delhi/File)
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1968-69 | This budget abolished an unusual instrument that was found to be misused by people. What is it? Ans: It abolished the “spouse allowance” –a tax saving tool—for both husband and wife if both had taxable incomes (Reuters)
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1969-70 | The price of a class of products saw a sharp jump after this budget because it raised taxes due to being seen as a 'status symbol'. What products are we talking about? Ans: Imported cars whose duty was now raised from 60 to 100 percent, bringing it at par with other luxury items that were seen as status symbols. (Pexels)
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1970-71 | What was unique about the 1970-71 budget? Ans: It remains India’s only budget to be presented by a woman—Prime Minister Indira Gandhi, who was also the Finance Minister (Wikimedia Commons)
1971-72 | This budget introduced a new instrument to clamp down on cash deals that had a bearing on travellers. What was it? Ans: A tax was levied on foreign travel at the rate of 20 percent on all tickets purchased in rupees; tickets paid for in foreign exchange was exempt. (Wikimedia Commons)
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1972-73 | A proposal in this budget drew widespread criticism from those who loved words and literature. What measure are we talking about? Ans: It proposed a tax of 34.5 percent on rewards earned by solving crossword puzzles (Reuters)
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1973-74 | For this time, a budget proposal was made to tax rich villagers. What was the proposal? Ans: It proposed looking at non- agricultural components of person’s income for purposes of determining the rates of income tax that will apply where the taxpayer has non- agricultural income exceeding the exemption limit. (Reuters)
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1974-75 | This budget contained a measure that set the tone for reforming India’s income tax structure. What was it? Ans: It slashed the maximum marginal rate of income-tax, including surcharge, from 97.75 percent to 75 percent. (Pexels)
1975-76 | This budget contained a special measure to incentivize people to not dip into their savings pool. What was it? Ans: It introduced an incentive bonus scheme encourage government employees to not frequently withdraw money from their provident fund accounts. (Reuters)
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1976-77 | This budget mentioned a policy plan that became a defining programme for later Congress governments. What plan are we talking about? Ans: The 20-point Programme (Wikimedia Commons)
