Changes have been made in the assessment rules
In 1968, Morarji Desai changed the assessment rules for the Excise Department. Many complaints were received from manufacturers in this regard. He started a self-assessment system. Through this, confidence was expressed in the producers.
In the 1968 budget, Desai had projected an income of Rs 3,132 crore for the financial year. This has been calculated on the basis that excise duty may increase by Rs 86 crore. He expressed confidence that the government would achieve this target of revenue generation.
‘Spouse Allowance’ has been abolished
Then Desai withdrew the ‘spouse allowance’. He also said that it is not right for an outsider to decide who should be relied upon in the case of husband and wife being tax payers.
Desai was not in favor of budget deficit. However, he had estimated that there might be a revenue deficit of Rs 300 crores in the financial year 1968-69. He pointed out that the reason for this was the overdraft of 113 crores by the states.
The then finance minister had given relief to the people by classifying short-term capital gains as gains. Such gains on sale of a capital asset within 24 months of purchase are then called short-term capital gains.