Dr. Raja J. Chelliah Committee had given interim report on Tax-Reforms in December 1991 and the final report (was given, which) was reported in 197 Income Tax Reports page 172. The tax rate was reduced from 55% to 30% but number of deductions were to be deleted on reduction of tax-rate, but the said deductions were continued. For example, Section 80L allowing an assessee to deduct Rs.12,000, interest income (from his inter-income) continued. As a result of the Central Government has lost more than Rs.20,000/- crores in ten years as Section 80L continued on Statute-book. The number of other recommendations were not carried out, which has resulted in the debt trap for our nation. Within ten years, the interest payment liability which was Rs.21,000 crore in 1991 is estimated to 1,25,000 crore for year 2003-04. The debt has increased 3 lakh crores to about 17 lacs crore during the period thirteen years. Our National Character is to implement beneficial part of the report, and not to implement liability part of the report. Standard and poor rating has down-graded Rupee value to Junk.