MLAG; Initial  response   to  Budget  2016  

1) Doctors and  other  professionals  have  been  included  in  Section  44AD;  Section  44AD  gives  exemption  to  the  individual  from  maintaining  books  of  account , audit  and any  such  record keeping if  he  pays  tax  on  presumed  profit  of  8 %  of  gross  receipts. According  to  Budget 2016 "Extend the presumptive taxation scheme with profit deemed to be 50%, to professionals with gross receipts up to `50 lakh"

This  could have  given  relief to  lacs  of  small  and  medium  healthcare  establishments  specially  clinics  and  nursing  homes. However it  has  been presumed  that  profit which  for  any  small  or  medium  business is  8 % of  gross  receipts  of  upto Rs   2  Crore  but in  case  of  professionals  it  is   50 %  of  gross  receipts  of  upto  Rs 50 lacs.

Does  this  50 %  presumed  profit  occur  in  real  life. I  have  a  nursing  home  in  Chandigarh  and  my  gross receipts  per  year  are just less  than  1  cr. As  per  presumptive  tax  scheme  it  will  be  assumed  I  have  an income  of  50 lacs  whereas  in  actual  practice  running  a  nursing  home  in  Chandigarh does  not  give  more than  10 %  profit  on  gross  receipts. Even  for  those  who  are  running  a  clinic given  the  high  rental, commercial  electricity water , staff  to  fulfill  requirements  under  CEA  50% profit  on  gross  receipts  is  a utopian  dream  for  doctors. Honourable  finance  minister  has  kept  only  advocates  in  mind  when  extending the  presumptive  Tax  scheme  to  professionals  by  assuming  a  50 %  presumed  profit  for  them. This however  shows  the  mentality  and  the  thinking  of  those  in  power  that  doctors  earn  lot  of  money.

2) Rs   6000  crore  booster  towards  healthcare  is  meager  and  not  sufficient to  boost  confidence  among  the healthcare  providers.

3) 3000  Jan  Aushadhi  stores  for  the  entire  country  where  even  the  sparse  Primary  Health  Centres  number  is 27000  is  a  cosmetic  gesture. Also  opening  the  stores  and  stocking  them  with  neccessary  drugs  will  remain  to  be  seen.

4) The  insurance  cover  upto  Rs  1 lac  per  family  and  1,30,000  for  those  over  60  yrs  age  is  welcome  but  the  devil  will  be  in  its  details  and   implementation. It  is  not  clear  whether  this  benefit  is  for  those  below  the  poverty  line (BPL)  or  for  entire  population. Also not  clear  is  whether  hospitals  which  will  provide  the  care  will  be  Government  or  Private  and  what  will  be  rates  of  procedures. These are  all  issues  which  will  bear  close  scrutiny  from  medical  community.  

5) Nephrology  and  problem  of  chronic  renal  failure  patients  has  got  the  attention   and  help  in  this  budget  through  National  Dialysis  Service  Programme, which  is  good. However  this  kind  of  focus  is  needed  on  so many  other  diseases  and  specialities  which  is  not  feasible  in  the  meagre  amount  budgeted  for  health again.

6) Trying  to  bring  black  money  into  mainstream  by  giving  a  window  to  those  with  undisclosed  income  to declare  and  pay  45%  tax  to  convert  it  into  white has  been  announced  by  the  Finance  Minister  in  this  budget. Overall  this  is  a  good  initiative  not  because  doctors  have  excess  black  money  but  because doctors form  the  segment  of  society  which  universally  pays  its  taxes. Bringing  revenue  into  mainstream from sources  other  than  traditional will ease  pressure  on  genuine the tax paying  communities  like qualified doctors from being  squeezed  to cough  up  more  and  more  towards  "nation  building"

Overall  I am  disappointed  with  the  lack  of  focus  on  health  in  Budget  2016. Of  the  total  19.5  lac  crores only  38000  odd  crores  is  budgeted  for  health. Doctors  and  their  associations  had  wanted  some tax  benefits  from  the  honourable  Finance  minister  specially  to  new  hospitals  being  established. Atleast  I  have  not  found  any  mention  of  this  in  the  budget.

Dr  Neeraj  Nagpal 

Convenor,Medicos  Legal  Action  Group,   Managing Director MLAG  Indemnity,    

Ex  President  IMA  Chandigarh 

09316517176  

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For  Contributions; "Medicos  Legal  Action Group"  Ac  No 499601010036479  IFSC  code UBIN0549967 Union  Bank Sector  35 C Chandigarh; 

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