Flawed fiscal abatements – by ankit bhatia

Bonjour readers !!
Greetings  ..  yet again .. !!
Well  ..  being sporadic blogger is not the way to go for me :) ..  blog frequency apparently aggravated !! Is It ??  LoL :)
No conjectures for enhanced frequency  ..  Budget season is in the vicinity ! Well  ..  for fiscal strategy enthusiasts  .. that in itself triggers inducement for aggravated frequency  :)
Perks via jolts & intellectual stimulation to my followers !! Be jolted guys ..
February on the verge  ..  strategic delegation, consulting NASSCOM, FICCI, PHDCCI have already commenced ! As usual, capitalists, along their forums, steering the predominant fiscal policies framework direction – seems to be the norm  ..  yet again !!
Was in the midst of perusal of their fiscal recommendations for upcoming february  .. this time grabbed upon Fin-Exp article  ..
Well  ..  ideal scenarios are sporadic in real worlds !!
Oblivious to other usual recommendation pointers, one fallacious recommendation I am gravely skeptical of ! This one is certainly not in congruence with fiscal economic rationale or Indian scenario!
To my utter fiscal disbelief, or from point of view of fiscal law jurisprudence, or possessing congruence to economy / fiscal scenario of India, NASSCOM has urged Ministry of Finance to exempt Capital Gains Tax – attributable to consideration from divestment of equity attributable to a start-up venture – alike of venture capital undertakings – undertaken by venture capital financers etc!!
Perplexing ! Absolute flawed or biased to one strata !!
In a vulnerable developing jurisdiction alike India, witnessing perpetual dearth of resources, fiscal deficit critics perpetually on the verge of criticism, urge to render push via public spending on infrastructure or investments, persistent news on shortfall of resources – does that seem rational from fiscal jurisprudence either ??
For instance, jolt your intellect with this latest arrival:
Official figures demonstrate a shortfall of 40k crores in fiscal budgetary allocations. Also, refer my earlier blog on fiscal deficit scenario !
Putting in context of aforesaid scenario, there is absolutely not even remote fiscal economic rationale to grant such relinquishment!
Visualize this  ..  a locale embarks upon an innovation, develops under Special Economic Zone, patents under Indian intellectual property laws, & embarks on a commercial venture involving the same, subsequently, if a global corporation GE opts for a controlling stake in the said corporation – consequently granting strategic control to the offshore corporation, what, even remotely conceivable, is the economic advantage or rationale – attributing – fiscal abatement to the said buy-out ?? Neither the fiscal economic consequence of this transaction is fruitful for local jurisdiction, rather, the local jurisdiction is forfeited even of the fiscal levy, further, the same transaction would be conducive to the foreign corporation – to acquire cheap competitive edge vs local economy players!
Rather, such fiscal abatement would induce local talent to offload the locally developed technology or patented intellectual rights – to offshore corporations – which, consequently, would impede – what, else, would have been local monopoly venture – strengthening local competitive edge!
Too much food for thought  ..  skeptic of NASSCOM  .. why foster off-shore corporations & be conducive to impeding local competitive edge ??
Be intellectually jolted  ..  always  !!
Adios !!