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IDS 2016 is a pack of lies; 99 % black money rests

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New Delhi, October 13: To bring black money and send it to the pocket of a common man was the pre-electoral promise of the present government and it seems the whole of IDS 2016 was planted to fill the dig and attain the desired political mileage.

The fair and lovely scheme that simply converted black money into white, did not serve any purpose for the community, whatsoever.

While Finance Minister Arun Jaitely have been overwhelmed with the response of IDS 2016 that fetched Rs 65,250 crore from 64275 black money declarations, the income declaration scheme of 2016 is a big failure.

Government saw black money!
arun jaitelyAfter both the budgets FM Jaitley brought in Amnesty Scheme to collect black money. This year it was the Income Declaration Scheme and last year it was the Black Money Undisclosed Foreign Income and Assets and Imposition of Tax Act 2015.

It is enough to prove that Jaitely is a fan of amnesty schemes and smelling the fish, government wished to collect incessant tax funds. The last such scheme was introduced by P Chidambaram in 1997, VDIS.

Even in 2014, when the government came to power it set up a SIT, followed by NIPFP, NIFM and NCAER on Black Money.

More than 99% of black money is still there!
The estimated black money is pegged at 60 to 70 percent of the GDP.

Almost twenty years back VDIS 1997 unearthed black money to the tune 0.77% of the GDP. While the current Income Declaration Scheme of 2016 has unearthed black money to the tune of 0.47%. In a span of almost twenty years the percentage of black money unearthed has gone down, which is certainly a false claim.

Are there only 64,275 Black Money holders in the country?
There are about 22 crore and 30 lakh PAN card holders in India. According to the last financial year figures about 4 crore 33 lakh people filed annual return with the Income Tax Department. Out of all these only about 64000 turned up to disclose black money.

Twenty years back, the number of declarations under VDIS 1997 was over 4 lakh. The number 65,000 under IDS 2016 is surprisingly short as data mining techniques are very precise now.

The total declarations under the VDIS were about Rs 33,000 crore, yielding a tax of some Rs. 10,000 crore.  In real terms, adjusted for inflation, the IDS 2016 is lower than the 1997 VDIS mop up.

Though government could not cap enough declarations but the course of unleashing black money is questionable at the same time.

Why tax terrorism was spread by IT officials?

For the first time ever small shop keepers including eatery joints were targeted!

MoneyIn Mumbai alone, about 50, including a well-known vada pav center in Thane, a dosa center in Ghatkopar, a sandwich center in Andheri and a jalebiwallah in south Mumbai were at the receiving end of the taxman. Also, about 100 surveys were conducted in Ahmedabad and eateries and well-known shops in New Delhi and Kolkata.

In the last fifteen days of the scheme it was mayhem on the streets. About 200 surveys were conducted by the Income Tax Department. 7 lakh enquiry letters were sent. People were coerced into coming out and declaring so how can this be disclosure? It is simple tax evasion where normal penalties should apply.

The Income Tax Department had identified about 1 lakh individuals who could be tax evaders. Now if the Income tax department was convinced that these individuals are tax defaulters why action was not taken? Why were they allowed to come under the IDS? This was done because they wanted to make IDS have a better success rate rather than punish black money hoarders. There were only 15% voluntary compliance, rest is all coercion.

Well this means that the figures of IDS 2016 are very well rigged.

IDS

Why government shied away from calling IDS 2016 an Amnesty scheme?

Tax amnesty can be defined as a limited-time opportunity for a specified group of taxpayers to pay a defined amount, in exchange for forgiveness of a tax liability relating to a previous tax period or periods and without fear of criminal prosecution.

IDS 2016 is true to all components of Tax Amnesty Scheme.

Section 271(1)(c) of the Income Tax Act, 1961, provides for a penalty of up to 300% of the tax sought to be evaded.  Section 276C provides that in a case where there is willful tax evasion of an amount exceeding Rs. 100,000 the tax evader is faced with rigorous imprisonment for a term up to seven years and a fine.  As long as these provisions are suspended under IDS, there is certainly an amnesty.

The government permitted paying tax in three installments. While 25 per cent of the tax is to be paid by November 2016 and March 2017 each, the remaining 50 per cent is to be paid by September 2017.

What do we expect now?
A study of the 12 black money disclosure schemes floated by the government since 1950 shows the additional revenue garnered has not compensated for this aggregate drop in growth rate. The mop- up window for the latest of those — Income Disclosure Scheme, 2016 — closed on September 30. It will be interesting to see when the tax receipts for the year are tabulated in the North Block, if history repeats itself.

For each of the scheme years, the income- tax ( I- T) department found that the actual pace of tax collections trailed the rate of growth for the previous years. The trend is the same, except for one of those 12 anti- black money schemes.

Almost 99% of the black money is still out there and the Income Tax Department would do well to go an unearth it rather than waste its time on making “Political Schemes” of the government work.

Wefornews Bureau

India

Sonia Gandhi, Son Rahul Return From US After Her Medical Check-Up: Reports

Sources had said her medical check-up was overdue and was delayed due to the coronavirus pandemic.

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Sonia Gandhi and Rahul

New Delhi: Congress President Sonia Gandhi and her son Rahul Gandhi returned from abroad early today, sources said.

Mrs Gandhi, 73, had gone to the United States for her routine medical check-up on September 12, two days ahead of the Monsoon session of Parliament. Rahul Gandhi had accompanied her during the visit.

Sources had said her medical check-up was overdue and was delayed due to the coronavirus pandemic.

Sonia Gandhi had cleared the Congress’ organisational restructuring before leaving for the US.

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After military talks, India and China announce slew of decisions to bring down tensions in eastern Ladakh

The decisions were mentioned in a joint statement issued by the two armies late Tuesday, a day after the sixth round of Sino-India Corps commander-level talks that lasted for 14-hours.

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New Delhi: Announcing a slew of decisions to bring down tensions in eastern Ladakh, the Indian and Chinese army have decided to stop sending more troops to the frontline, refrain from unilaterally changing the situation on the ground, and avoid taking any actions that may further complicate the environment.

The decisions were mentioned in a joint statement issued by the two armies late Tuesday, a day after the sixth round of Sino-India Corps commander-level talks that lasted for 14-hours.

The two armies also agreed to strengthen communication on the ground, avoid misunderstandings and misjudgments and earnestly implement the important consensus reached by the leaders of the two countries.

“The two sides had candid and in-depth exchange of views on stabilising the situation along the Line of Actual Control (LAC) in the India-China border areas,” said the statement released by the Indian Army.

It said the two sides also agreed to take practical measures to properly solve problems on the ground, and jointly safeguard peace and tranquillity in the border areas.

It said both sides also resolved to hold the 7th round of military commander talks as soon as possible.

“They agreed to earnestly implement the important consensus reached by the leaders of the two countries, strengthen communication on the ground, avoid misunderstandings and misjudgments, stop sending more troops to the frontline, refrain from unilaterally changing the situation on the ground, and avoid taking any actions that may complicate the situation,” the statement said.

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Lok Sabha passes Jammu and Kashmir Official Languages Bill, 2020

As per the Bill, Kashmiri will be the official language along with four other languages — Dogri, Hindi, Urdu and English.

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New Delhi: The Lok Sabha on Tuesday passed the Jammu and Kashmir Official Languages Bill, 2020 with voice vote, allowing Kashmiri, Dogri and Hindi, apart from the existing Urdu and English, to be official languages in the Union Territory of Jammu and Kashmir.

Speaking on the Bill, Union Minister of State for Home G. Kishan Reddy said that it was a demand of the people of Jammu and Kashmir that the languages they speak should be official languages of the UT.

Since 53.26 per cent of people in Jammu and Kashmir speak Kashmiri, there was a need to include it as the official language of the state, he said.

The minister added that people in Jammu and Kashmir speak as well as write Kashmiri, so there is no problem in including it as an official language.

As per the Bill, Kashmiri will be the official language along with four other languages — Dogri, Hindi, Urdu and English.

Reddy said that 26.64 per cent of the people in the UT speak Dogri, while Urdu, which is currently an official language, is spoken only by 0.16 per cent the population.

The minister said while the government is not against any regional language, the Bill gives importance to those 70 per cent people who speak Kashmiri and Dogri in the UT.

For the last 70 years, Urdu has been the official language of Jammu and Kashmir, he said, adding that 2.36 per cent of the population in the UT speaks Hindi.

Opposing the Bill, Hasnain Masoodi of National Conference said the Central government did not have the legislative competence to frame a Bill in this regard.

He said it is not a fact that only 0.16 per cent of the population in J&K speaks Urdu which is a link language between the Jammu region and the Kashmir Valley.

Masoodi asked that if only 0.16 per cent people in the UT speak Urdu, why would the government include it as an official language. No other state has five official languages, he added.

Participating in the discussion, Union minister Jitendra Singh said that he was surprised as the National Conference is opposing the inclusion of Kashmiri as an official language because his party ruled in the region for almost 60 years on the name of “Kashmiriat”.

“You have exposed yourself in front of Kashmiris by going against the language,” he said.

The Bill was later passed by a voice vote with Masoodi as the only Opposition member who objected to the draft legislation.

Union Home Minister Amit Shah later said in a tweet that it was a momentous day for the people of Jammu and Kashmir. “With this historic Bill…Long-awaited dream of the people of J&K comes true! Kahmiri, Dogri, Urdu, Hindi and English will now be the official languages of J&K.”

Under the Bill, Shah said that special efforts will be made for the development of major regional languages like Gojri, Pahari and Punjabi.

Along with this, the Bill will also strengthen the existing institutional structure for the promotion and development of regional languages.

Lauding the efforts of Prime Minister Narendra Modi for his commitment towards restoring the culture of Jammu and Kashmir through this Bill, Shah said that he wants to assure his sisters and brothers in Jammu and Kashmir that the Modi government will leave no stone unturned to bring back the glory of the erstwhile state.

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