Encourage debt-free companies and levy corporation tax @ 25% where interest paid or payable is zero without netting and discourage companies which dont use their funds including borrowed for their own business and hence levy corporation tax @ 30% on funds (including self generated) diverted by a company into others by way of equity, loans etc. if it shows borrowed funds from banks, FIIs etc. Amend the Income-Tax Act so that in such cases the interest claimed as expe nses can also be treated as income. This idea if implemented by the Finance Minister will result into direct tax collection of Rs 5 lakh crore by March 31, 2009. This will be a financial reform also.
