Respecting the Host Country : A Rational Perspective
By Anil Jain, Ahimsa Foundation India
In today’s interconnected world, people travel to foreign countries for various reasons-education, employment, business, or personal growth. While it is natural to have personal expectations based on the country of origin, it is important to remember that every nation has its own laws, governance, and societal norms.
If someone has lawfully entered a country after obtaining the necessary visa and permissions, it implies an agreement to abide by the rules, customs, and systems of that country. If, however, the host country does not function as per the expectations of one’s homeland, the most reasonable and dignified course of action is to return to one's own country rather than engage in conflicts, protests, or disruptive activities. ...........................click here to read further
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Humble Appeal-Three Years Of The Russia - Ukraine War
As we mark three years of the devastating conflict between Russia and Ukraine, it is time to reflect on the immense loss of life, destruction of property, and the deep scars left on both nations. War brings nothing but pain, division, and suffering-where there was once unity, now lies bitterness; where there was once prosperity, now lies ruin.
To the leaders and people of Russia and Ukraine, history will not remember who won the battles, but rather who had the courage to stop the war. True victory lies not in conquest but in peace, in rebuilding what has been lost, and in ensuring that future generations inherit a land of hope rather than hostility. It is time to seek reconciliation, to replace weapons with words, and to move forward as nations that coexist rather than collide.
To the international community, political leaders, and religious figures-your voices hold power. The world must not be a silent spectator to destruction. It is your responsibility to mediate, facilitate dialogue, and support every sincere effort toward peace. War anywhere is a tragedy for humanity everywhere. The resources spent on war should be redirected toward healing, reconstruction, and securing a future where no child has to wake up to the sound of bombs.
Let this be a call to conscience: Enough blood has
been shed, enough homes have been destroyed, enough families have been torn
apart. Let wisdom prevail over pride, and let peace be the only path forward.
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Trump Tariff Policy Against India
The recent policy shift by the U.S. administration under President Donald Trump to increase import tariffs on goods and services from India is poised to have significant implications for the Indian economy, both in the short and long term.
Short-Term Impacts
1. Export Competitiveness : Higher U.S. tariffs will likely make Indian
products more expensive in the American market, reducing their competitiveness.
Key sectors such as textiles, pharmaceuticals, and information technology
services, which constitute a substantial portion of India's exports to the U.S.,
may experience immediate declines in demand.
2. Trade Balance : The U.S. is India's largest trading partner, with bilateral trade exceeding $118 billion in the fiscal year 2023-24, and India maintaining a trade surplus of about $32 billion. Increased tariffs could diminish this surplus by curbing export volumes.
3. Currency Volatility : The announcement of new tariffs has already led to market instability, with the Indian rupee reaching a historic low against the U.S. dollar, closing at 87.1850 after touching 87.28. Such currency depreciation can increase the cost of imports, contributing to inflationary pressures domestically. ...........................click here to read further
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USA Dollar's Governance Is Over ?
Two events in the past few weeks point to a change in the global balance of power. The first was the peace deal in Beijing between once sworn enemies Iran and Saudi Arabia, where China played peacemaker. Considering that Iran and Saudi Arabia have been at each other's throats for decades, this was quite a diplomatic achievement for Xi Jinping.
The second event was the recent meeting between Xi and Putin in Moscow. These two leaders have met one-on-one 40 times in the last ten years, which is a record for both. Putin says that Xi is the only world leader he has celebrated his birthday with, and calls him “his best and bosom friend”. ...........................click here to read further
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Budget 2023 Overview
The Budget 2023 presented on 1st February 2023, indicates an extremely cautious approach of the Finance Minister, Ms. Nirmala Sitharaman’s towards balancing this critical phase of Indian economy.
Indian economy is facing multifaceted challenges due to soaring inflation and interest rates, post covid unemployment, rising debt burden &interest payments, international oil prices, growing borrowings, border tensions, falling rupee value, ethnic disturbances, frequent elections, deficit on current and capital account, corruption, banking frauds, black money, international uncertainties, internal law and order disturbances and high growth {GDP} expectations from fiscal governance. Further, the issues have become more complex due to lack of adaptiveness of contemporary and unconventional fiscal tools available within the country for additional non- tax resource mobilisation. In these circumstances, our finance minister can definitely be excused for playing safe in her position...........................click here to read further
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Are Income Tax Raids Truly Treacherous & Terrifying?
Through this article, I intend to share my professional experience with regards
to one of the most draconian and terrifying subject, commonly mentioned as
income tax raids. In legislation, this word is referred as search and seizure. I
am sure many of you have passed through this traumatic experience and some of
you may be expecting this due to your appreciative business success and
admirable financial acquisitions and achievements. If you think it is inevitable
at some time in future, please do organise yourself so that, it’s not a surprise
and you sail through smoothly. Although this can be discussed in details but for
the sake of general over view, I will just share a few tips to familiarise you
with the subject.. .................click
here to read further
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Case Laws - Benami Property
Dy. Commissioner of Income Tax vs M/s. Manpreet Estates LLP 26th March, 2019 Appellate Tribunal Smt. P. Leelavathi (D) by LRS Vs V. Shankarnarayana Rao (D) on 09 April, 2019 Supreme Court ...............click here to read further
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FAQ's on Filing of MCA Form DPT-3
With Companies (Acceptance of Deposits), Amendment Rules, 2019, MCA introduced Form DPT-3 which mandates Filing of Details of Loan with ROC. Language of Companies (Acceptance of Deposits) Amendment Rules, 2019: Sub Rule 3 of Rule 16A : Every company other than Government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to the date of publication of this notification in the Official Gazette, as specified in Form DPT-3 within ninety days from the date of said publication of this notification along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014.”.................click here to read further
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Protect Your Software Rights
(Trademark / Patent / Copyright)
Software Patent Registration
Creators and inventors of software products have always strived to
protect their intellectual property rights and obtain patent
registration for software products. The rapid growth of the
internet and fast increasing competition has further increased the
demand for software patents in India. However, patenting of
software was not allowed for a long time in India, due to
restrictions in the patent laws of India. But to cope up with the
demand, boost innovation and safeguard the rights of inventors,
the Indian Patent Office has evolved detailed guidelines for
patenting Computer Related Inventions (CRIs). In this article, we
look at patentability of software and Computer Related Inventions in
detail.............click
here to read further
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Buying A Property In Bank Auction
The traditional channels of searching real estate listings and
working with real estate agents aren't the only ways to acquire a
property. Experienced real estate investors often purchase
properties at auctions. But auctions aren't limited to
professionals; novices have purchased their homes at auctions, too
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Double
Taxation Avoidance Pact With Hong Kong
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Salary To
Non Resident Director
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Place of effective Management
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Future Currency : Digitalised Bitcoin
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Asset Disposal - Government E-Commerce Platform Can Save Billions
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Review And Highlights - Budget 2016
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Indian Govt. Can Collect Rs. 80,000 Crores Lying Inside New Delhi Railway
Station
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India Desperately Needs New Fiscal System To Accomplish Modi Dream
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General Election Your Election Manifesto Will Be Road To Success
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Gift Received From Huf Is Not Taxable
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Don't Panic, If Income Tax Department Raids You
The term “Raid in Indian Income Tax Law” is
incredulous and any unexpected encounter with IT
sleuths generally leads to chaos and vacuity. If you
are likely to experience such action it is better to familiarise with the subject, so that, the situation
can be faced with confidence and serenity. Income Tax
Raid is conducted with the sole objective to unearth
tax avoidance. It is the process which authorizes IT
department to search any residential / business
premises, vehicles and bank lockers etc. and seize the
accounts, stocks and valuables.
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Survey Under Income Tax Act, 1961
How Do Properties End Up at Auction?
The two main types of property auctions are foreclosure auctions
and tax lien auctions. Before a property reaches this stage,
several things have to happen.
First, the homeowner has to have not paid the mortgage for several
months. Then, the bank files a notice of default with the county
recorder. If the homeowner doesn't pay the balance owed or
renegotiate the mortgage with the lender, the home can be put up
for auction. The amount of time it takes from when the homeowner
stops paying the mortgage to when the home ends up at auction
varies, but can be anywhere from a few months to a year or more........click
here to read further
AGREEMENT BETWEEN THE GOVERNMENT OF THE HONG KONG SPECIAL ADMINISTRATIVE
REGION OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE
REPUBLIC OF INDIA
FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
The Government of the Hong Kong Special Administrative Region of the
People’s Republic of China and the Government of the Republic of India,
desiring to conclude an Agreement for the avoidance of double taxation and
the prevention of fiscal evasion with respect to taxes on income, have
agreed as follows.........click
here to read further
TAXABILITY
OF SALARY PAID TO NON RESIDENT
Scope of Total Income - Section 5(2) of Income Tax Act
Subject to the provisions of this Act, the total income of any previous
year of a person who is a non-resident includes all income from whatever
source derived which—
(a) is received or is deemed to be received in India in such year by or on
behalf of such person ; or
(b) accrues or arises or is deemed to accrue or arise to him in India
during such year.
Explanation 1.— Income accruing or arising outside India shall not be
deemed to be received in India within the meaning of this section by
reason only of the fact that it is taken into account in a balance sheet
prepared in India..........click
here to read further
Audit Under CGST
Act, 2017
According to Section 2(13) of the CGST Act, 2017 “Audit” means the
examination of records, returns and other documents maintained or furnished
by the registered person under the GST Acts or the rules made there under or
under any other law for the time being in force to verify the correctness of
turnover declared, taxes paid, refund claimed and input tax credit availed,
and to assess his compliance with the provisions of the GST Acts or the
rules made there under.
............click
here to read further
Settlement
Commission
Income Tax Settlement Commission is a premier Alternative Dispute Resolution
(ADR) body in India. Its mandate is to resolve tax disputes in respect of
Indian Income Tax & Wealth Tax Laws between the two disputing parties,
Income Tax Department on one side and litigating tax payer on the other.
This institution was set up in 1976 by the Central Government on the
recommendations of the Direct Taxes Enquiry Committee (1971) set up under
the Chairmanship of Justice K. N. Wanchoo, the retired Chief Justice of the
Supreme Court of India. The Wanchoo Committee had conceived of the
Settlement Commission as a mechanism to allow a one-time tax evader or an
unintending defaulter to make clean breast of his affairs. At present, there
are Seven benches of the Commission located at New Delhi, Mumbai, Kolkata
and Chennai..............click
here to read further
Pakistan PM
Announces Tax Amnesty Scheme
Prime Minister Shahid Khaqan Abbasi, after a meeting of the Economic Advisory
Council, announced tax reforms aimed at clamping down on tax evaders. Building
his case for the government's new package, the prime minister noted that only
1.2 million Pakistanis file income tax returns. He further noted that of the
1.2m filers, only 700,000 actually paid tax, while others filed returns but
paid no income tax. Presenting his package as an incentive for more people to
enter the tax net, PM Abbasi stressed that he felt this to be the most optimum
way to maximise the government's revenues keeping in mind the significant
challenges it faces..........click
here to read further
Samosa is Cooked
Food
Judgment ( 09-03-2018 ) by Uttarakhand High Court
The Uttarakhand High Court has ruled that samosa is considered to be cooked
food, hence it would attract higher tax rate. In the instant case Assessee is
running shop and engaged in the activity of selling sweets, namkeen, samosa,
milk and curd etc. and he has filed his return of income for the relevant
assessment year and declared his taxable income at Rs.50,720 on the basis of
the total turnover of Rs.11,55,900. During the course of assessment
proceedings, the Assessing Officer (AO) recomputed the income of the Assessee
and declared his total income at Rs.13,66,400 while completing the assessment..........click
here to read further
Hon’ble F. M. Arun Jaitley – Budget 2018
CA Anil Kumar Jain
Once again the Finance Minister of India has gone through the
ritualistic Annual Budget exercise on 1st of February, 2018. As,
this is the last functional financial budget in the present tenure
of this BJP Government, Economic and Financial wizards around the
world were holding their breath in the expectation of some
far-fetched fiscal announcements on this day.
There was also a feeling that, the budget documents will be
election driven. So far, international investors and Indian
industry has shown its stout confidence, conviction and admiration
in the leadership of this regime. Pragmatic decisiveness on
demonetarization and tax reforms also raised optimism for
incredible proclamations through budget documents 2018.
Although, it will be hasty and unreasonable to judge and conclude
the far reaching implications and affects of this presentation,
but apparently it appears that, a lot is missing …………….. an
opportunity is lost……… fiscal issues are inadequately
balanced………common person is somewhat confused on his choice of
…………!!!
In the juggleries of financial politics and democratic
limitations, we as a nation are the worst victim of appeasement
practices and policies. It is distressing to say that, “the
illiterate farming community and allied classes of Indian
Diaspora, which supersede in electoral numbers have restrained our
finest leadership from dynamic fiscal decisions in the interest of
nation as a whole”.
If India has to stand in the frontline, we have to compulsorily
grow consistently at least 12% plus rate for next three to five
years. Revenue from direct and indirect taxes can by no means
fulfill the necessities of the nation. Steel, Power, Transport,
Industries are the backbone of growth cycle. Massive capital
investment is required in Infrastructure, education and health
sector. There is no answer for all this in budget documents.
On multiple occasions it is governmentally acknowledged that,
abundant financial resources are held / parked by our own fellow
Indians outside India. In the interest of the Nation, the Hon’ble
Finance Minster should not be shy in acknowledging this reality of
the economics. The issue is, “why can’t, we find a respectable
mutually acceptable solution so that, these staggering funds can
voluntarily flow back to country and contribute in our economic
growth”. I once again accentuate that, tax revenue can, on no
account meet the resource needs of India.
Besides, it is also noteworthy that, good intent, announcements
and allocations of Finance Minster are not getting to the last
point. The administrative machinery is extremely enervated and
inefficient. Historically, there appears to be lack of
synchronisation and harmonisation amongst Ministry of Finance,
Commerce, Law, Reserve bank of India, Judiciary etc. The Hon’ble
Prime Minister must find a way out so that, there is conceptual
understanding of action from conceivement to execution.
In his budget documents, additional tax collection provisions
through increase in direct taxes may not be purposeful. Capital
gain tax may negatively impact the sentiments of capital market.
In nutshell, economic sentiments can be better managed through
greater dependence on indirect taxes rather than direct taxes.
Some of the penal provisions introduced in Direct Taxes appear to
be too harsh and impractical. Being our representative on national
mission, we expect our Finance Minister to be a friend and a
philosopher in his approach while drafting his budget proposals.
We are sure he will have a relook at some of the penal provisions
in Budget Documents. Besides, it is worth mentioning that, the
present rates of individual and corporate taxes are still very
high as compared to other progressive nations. Higher rates can
definitely be justified only in the circumstances where social
security scheme and other welfare programmes are effectively
serving every citizen of the country.........click
here to read further
Shell, Dormant & Defunct
Companies
SHELL COMPANIES
What are shell companies?
The Companies Act, 2013 has not defined what a ‘shell company’ is and as
to what kind of activities would lead to a company being termed a ‘shell’.
Shell companies are typically corporate entities which do not have any
active business operations or significant assets in their possession. The
government views them with suspicion as some of them could be used for
money laundering, tax evasion and other illegal activities.
Is there a law governing shell companies?
In India, there is no specific law relating to “shell companies.” However,
some laws help, to an extent, in curbing illegal activities such as money
laundering and can indirectly be used to target shell companies - Benami
Transaction (Prohibition) Amendment Act 2016; The Prevention of Money
Laundering Act 2002 and The Companies Act, 2013........click
here to read further
Key Features of Budget 2017 - 18
INTRODUCTION
1. In the last two and half years administration has moved from
discretionary, favouritism based to system and transparency based.
2. Inflation brought under control. CPI-based inflation declined from 6% in
July 2016 to 3.4% in December, 2016.
3. Economy has moved on a high growth path. India’s Current Account Deficit
declined from about 1% of GDP last year to 0.3% of GDP in the first half of
2016-17. FDI grew 36% in H1 2016-17 over H1 2015-16, despite 5% reduction in
global FDI inflows. Foreign exchange reserves have reached 361 billion US
Dollars as on 20th January, 2017.
4. War against black money launched.
5. Government continued on path of fiscal consolidation, without
compromising on........click
here to read further
CLARIFICATORY CIRCULAR BY GOVERNMENT OF INDIA
Circular No. 06 of 2017 / F. No. 142/11/2015-TPL / Government of India /
Ministry of Finance / Department of Revenue / Central Board of Direct Taxes /
Dated: 24th January, 2017
Section 6(3) of the Income-tax Act, 1961 (the Act), prior to its amendment
by the Finance Act, 2015, provided that a company is said to be resident in
India in any previous year, if it is an Indian company or if during that
year, the control and management of its affairs is situated wholly in India.
This allowed tax avoidance opportunities for companies to artificially
escape the residential status under these provisions by shifting
insignificant or isolated events related with control and management outside
India. To address these concerns, the existing provisions of section 6(3) of
the Act were amended vide Finance Act, 2015, with effect from 1st April,2016
to provide that........click
here to read further
Bitcoin is a form of digital currency, created and held
electronically. No one controls it. Bitcoins aren’t printed, like
dollars or euros they’re produced by running computers using
software. It is a crypto-currency. Bitcoin is designed around the
idea of using cryptography to control the creation and transfer of
money, rather than relying on central authorities. The first Bitcoin
concept was published in 2009 by Satoshi Nakamoto. However, Satoshi
left the project in late 2010 without revealing much about himself.
The community has since grown manifolds........click
here to read further
NEED FOR E- COMMERCE PLATFORM
General lack of transparency and inefficiencies in the handling and
disposal of the seized, confiscated, obsolete, surplus, unused assets
has time and again created embarrassing situation for the government’s
functionaries. Non - standardized assets disposal policies have also
resulted into enormous financial losses, bribery, bungling, corruption
and crime in this sector.
1. GENERATION OF DISPOSABLE ASSETS
High value disposable assets in considerable quantum are regularly
generated by all Government departments, financial institution, banks,
public sector organization, local bodies etc. Besides, revenue
departments like Income Tax, Customs, VAT, Excise regularly seize /
confiscate valuable assets in course of raids or at the time of
recovering their dues. NPA accounts are also generating disposal assets
in the hands of government ........click
here to read further
ANALYSIS: The 2016 Budget of the Narendra Modi Government, which was
delivered on 29th February, was eagerly awaited. With increasing
criticism of the perceived gap between promises made and action taken on
the ground, this Budget was the key opportunity to regain lost ground
and accelerate the process of converting the ‘Make in India’ dream into
a reality. Indeed, there was little in the run-up to the Budget that
generated cheer or optimism. The data from the manufacturing, banking,
and real estate sectors were depressing. The ill-timed notice from the
Indian tax department of over Rs. 14,000 crore to Vodafone two weeks ago
seriously cast doubts on whether the Prime Minister’s Office and the
Finance Ministry were pursuing a common agenda of making India an
investment-friendly destination. The only large silver lining on the
dark economic cloud was the drastic fall in oil prices.............click
here to read further
"STARTUP INDIA" A Step Forward in Right Direction
STARTUP INDIA is a flagship initiative of the Government of India,
intended to build a strong eco-system for nurturing innovation and
Startups in the country that will drive sustainable economic growth and
generate large scale employment opportunities. The Government through
this initiative aims to empower Startups to grow through innovation and
design. In order to meet the objectives of the initiative, Government of
India is announcing this Action Plan that addresses all aspects of the
Startup ecosystem.........click
here to read further
INDIAN GOVERNMENT OPENS COMPLIANCE WINDOW FOR BLACK MONEY DISCLOSURE
SCHEME OPEN UPTO SEPT. 30, 2015
Those assessee with any undeclared overseas income or assets will have a 3 month
window to come clean beginning on July 1, 2015 and a further 3 months to deposit
the appropriate tax and penalty till Dec 31, 2015. Ministry of Finance,
Government of India has announced details of a compliance window to curb black
money. Central government has notified on 30th September, 2015, as the date on
or before which a person can make a declaration in respect of an undisclosed
asset located outside India. The last date for depositing tax is December 31,
2015.........click
here to read further
HIGHLIGHTS UNDISCLOSED FOREIGN INCOME & ASSETS BILL, 2015 INTRODUCED
IN LOK SABHA ON 20TH, MARCH 2015
The Finance Minister, in his budget speech, while acknowledging the
limitations under the existing law, had conveyed the considered
decision of the Government to enact a comprehensive new law on black
money to specifically deal with black money stashed away abroad. He
also promised to introduce the new Bill in the current Session of
the Parliament.
In order to fulfil the commitment made by the Government to the
people of India through the Parliament, the Undisclosed Foreign
Income and Assets (Imposition of Tax) Bill, 2015 has been introduced
in the Parliament on 20.03.2015. The Bill provides for separate
taxation of any undisclosed income in relation to foreign income and
assets. Such income will henceforth not be taxed under the
Income-tax Act but under the stringent provisions of the proposed........click
here to read further
PM Narendra Modi Needs New Fiscal System To Govern
A few years back, when the world was looking at us with high expectation
of growth and stability, the apathetic fiscal management severely dented
the Indian economic system. The erstwhile Indian Government failed to
appreciate the ground rules and requirements of a growing Indian
economy. When Indian corporate was looking at world map for their next
destination, some over-enthusiastic Economists did everything possible
to rattle the aspiration, ambition and dignity of the entrepreneurs and
their enterprise. Why did they do it? This is a question for everyone.
Anyway, that is past. India has to come back and cover the losses of
sixty seven years. In 1947, one rupee was giving us one dollar and today
we have to pay almost sixty rupees for a dollar. As a person of basic
virtues, I am more than confident that, an emotional connect to country
and little financial sensibilities in economic policy framing can
progressively take us back to 1917. I am sure, our new PM will show us
again, those respectable days.
Although, Mr. Modi has the best of the technology and talent around him
to coordinate his plans and proposal, with all the humbleness, I would
like to mention some suggestive ideas for the desired upgradation of
Indian Fiscal System.
www.youtube.com/watch?v=v-jQnv8rL2w
It is foremost important that the fiscal system should not be draconian,
excruciating and compelling. It should be appeasable and amenable. Present
Indian fiscal system is not only perplexing but also mystifying for a
common person. In existing format, Government is collecting revenue
through multiple and multilevel tax legislation. The basic concept of
Indian tax laws is centuries old and had its origin somewhere in Egypt. It
is written in thousands of pages and most seasoned tax professional are
often found totally befuddled in their interpretation and application.
That is why the end result is recent cases of Nokia and Vodaphone. These
two cases have disgraced and embarrassed the country around the world. We
need to have fundamentally something very different from the present........click
here to read further
INTRODUCTION
Railway Minister Shri D. V. Sadananda Gowda, in his 2014 Budget Speech
has mentioned, “in the last 10 years, 99 New Line projects worth` 60,000
crore were sanctioned out of which only one project is complete till
date. In fact, there are 4 projects that are as old as 30 years, but are
still not complete.” The principal reason attributed by the Hon’ble
Minister for the dismal performance is lack of availability of adequate
financial resources. The Hon’ble Minister has further announced some new
projects. But the big question is how the Railways will fund these
schemes.
Traditional funding sources have already been exploited to their optimum
level. Now the Railway Board has to look for some unconventional sources
to fund the operational and developmental projects.….. including Prime
Minister, Narendra Modi’s Bullet Train. If, the authorities involved in
the process look beyond their centuries old rule book…….solutions are not
far from reach. To be more precise, the freely available Railway Real
Estate assets have the required potential to generate enormous surplus to
meet its financial needs and also to strengthen the Railways Balance Sheet
to the envy of any successful corporate in the world. India has at least
500 - 700 major Railway Stations Real Estates assets, which can be
developed for augmenting Railway revenue. Each of the Railway Station
occupies sizable land. This station land over the platforms and adjoining
Railway lines can be easily monetized. A multi-story multipurpose complex
can be constructed without disturbing the regular functioning and
movement, over the Railway platforms. This real estate can be easily
marketed to generate capital and revenue profits. The monetary valuations
of these properties can run into astronomical figures. Keeping in view the
size of the city, a multistory complex can be erected over any railway
stations. The construction can be done on BOT basis or contract basis etc.
depending on various factors. The research data suggests, the space
available can be easily marketed as the railway stations are always city
centers and enjoy tremendous locational advantages.........click
here to read further
Budget 2014-2015 By Finance Minister Arun Jaitley
The final Budget for the year is on the floor and will be shortly enacted
to rule the country. This time, the expectations from Budget were
extremely high but for the reasons best known to the Budget Makers, much
has been left to be addressed in future. Whatever may be the reasons for
going cautious, if India has to progress and survive in this competitive
world and amongst aggressively progressing neighbouring countries, then
some out of the box thinking, dynamic decision making and fearless actions
are the only choices. We hope to look forward an aggressive Indian regime
determined to put India on self sustaining growth course of over 10%. May
be by 15th August our Hon’ble Prime Minister Mr. Narendra Modi will chalk
out his new economic and development programme and unfurl the same with
the flag of the nation.
Various Budget provisions have been comprehensively summarized herein
below. We note from the detailed budget document that, with regards to
Income Tax budget proposals several changes have been proposed which will
have far reaching impact on the economy and business. These subtle changes
although very important have not become the headlines of any media.
Particularly changes about advance against assets, survey / search rules,
charitable institutions, long term capital gains, dividend distribution
tax, debt based mutual funds, investment allowance, institutions governed
by section 35, overseas borrowing and divided, transfer pricing, FII
income clarifications, MAT, TDS, anonymous donation, presumptive taxation
u/s 44AE, commodity transaction tax, compulsory acquisitions, speculative
gains, asset valuations, loan transactions u/s 269SS, attachment of
property etc. must be studied meticulously.
The Current Economic Situation And The Challenges
Decisive vote for change represents the desire of the people to grow,
free themselves from the curse of poverty and use the opportunity
provided by the society. Country in no mood to suffer unemployment,
inadequate basic amenities, lack of infrastructure and apathetic
governance .........click
here to read further
A few years back, when the world was looking at us with high
expectation of growth and stability, the apathetic fiscal
management severely dented the Indian economic system. Anyway,
that is past. Let’s look forward to a brighter future in the
hands of indomitable team of Governors. In 1947, one rupee used
to fetch one dollar and let’s hope the time returns. I am
confident that, an emotional connects to nation and financial
sensibilities in economic policy framing can show us again those
respectable days.
Present Indian fiscal system is perplexing to all concerned.
Government is collecting revenue through multiple tax
legislations. The basic tax concept is centuries old and had its
origin somewhere in Egypt and travelled through Greece U. K. to
India with British. Revenue laws are written in thousands of
pages and most seasoned tax professional are often found totally
befuddled in their interpretation and application. That is why
the end result is recent cases of Nokia and Vodaphone. These two
cases have disgraced the country around the world. We need to
have fundamentally something very different from the present and
aptitude to accept out of box thinking.
With complete new mindset, the entire revenue collection law can
be framed in less than hundred pages. A suggestive scheme which
will be manageable without the fleet of tax collecting agencies
can be drafted on following lines. The simplicity itself will
boost revenue collection by manifolds. The scheme may be referred
as “Consolidated Revenue Act of India.”.........click
here to read further
Double Taxation Avoidance Agreements
To finance the welfare and the administrative expenditure, governments
around the world impose certain taxes on their subjects. The taxation
system helps in collecting revenue besides it also provides direction to
the economic growth and also brings economic equilibrium amongst various
classes. In any taxation system, the residential status of the taxpayer is
of crucial significance. Residential status confirms the jurisdiction and
the application of taxation account abilities.
However, in cases, where cross country economic activity is carried out,
it is a tricky affair to identify and justify the appropriate jurisdiction
of tax authorities. In order to mitigate the hardships of multiple
jurisdictions, the Governments enter into bilateral arrangements, which
are commonly denoted as “Double Taxation Avoidance Agreements” (DTAA).
DTAA refers to an accord between two countries, aiming at elimination of
double taxation. These are bilateral economic agreements wherein the
countries concerned assess the sacrifices and advantages which the treaty
brings for each contracting nation. It would promote exchange of goods,
persons, services and investment of capital among such countries.
Indian Government is actively pushing DTAA negotiations with several
countries to help its residents in understanding their tax jurisdictions
and accountability towards the appropriate authorities. So far India has
signed DTAA with 81 countries and discussion is on with many others. The
natures of DTAA’s entered by India are greatly diverse in their nature and
contents.
OECD and DTAAs
The first international initiative regarding DTAA was taken by the
Organization for Economic Co-operation and Development. OECD presented the
first draft of DTAA in ‘Model Tax Convention on Income and on Capital’.
DTAA was proposed as a tool of standardization and common solutions for
cases of double taxation to the taxpayers who are engaged in industrial,
financial or other activities in other countries. The double tax treaties
are negotiated under international law and governed by the principles laid
down under the Vienna Convention on the Law of Treaties.........click
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The next General Elections are due in 2014. All political aspirants
have already started working out policies and strategies to approach
public for support and vote. However, it is no longer an easy
mission to convince Indian voters to vote for any party or
individual. Television programmes and print media have turned
Indians into a conscious and informed class. Now, people are looking
forward towards strong programmes and policies rather than
traditional individuals and parties. It will be now be very tricky
to play sentimental issues for electoral success.
In this note, we are providing a evocative programme for
effectively setting forth election strategy to the aspiring
national players. We are confident, if an organization adopts
policies and programme on the lines suggested herein below and
delivers on promises, nothing can restrain them from winning
and ruling this country for next several decades.
The suggestive programme is outlined herein below.........click
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Rajkot Bench of ITAT in the case of Vineetkumar Raghavjibhai
Bhalodia v. Income tax Officer, Rajkot has discussed the
controversial issue of tax ability of gifts from HUF to its
members. The issues taken up were.
1. Whether a gift received from 'relative', irrespective of
whether it is from an individual relative or from a group of
relatives is exempt from tax under provisions of section
56(2)(vi)?
Answer: Held, yes.
2. Whether HUF is a group of relatives and therefore, gift
received from HUF would be exempt from tax under section
56(2)(vi)?
Answer: Held, yes
3. Whether for getting exemption under section 10(2) two
conditions are to be satisfied, firstly, a person must be a
member of HUF and secondly he should receive sum out of income
of such HUF, may it be income of earlier year? Answer:
Held, yes.........click
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An Overview - Copyright Law
INTRODUCTION
Copyright is a legal term refers to protecting a creator’s work.
It is a type of intellectual property that provides exclusive
publication, distribution, and usage rights for the creator.
This means whatever content is created cannot be used or
published by anyone else without the consent of the creator. The
length of copyright protection may differ from country to
country, but it usually lasts for the life of the author plus 50
to 100 years.
Copyright is generally given by the law to creators of
literary, dramatic, musical and artistic works and producers
of cinematograph films and sound recordings. It is a pack of
rights including, inter alia, rights of reproduction,
communication to the public, adaptation and translation of
the work. In modern times, copyright protection has been
extended to websites and other online content. This is
important in the digital age, since large amounts of content
can be easily copied..........click
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Information Technology Panacea For Police Problems
With the development of Net Based Technologies along
with availability of advanced software and hardware
systems, it has become feasible to systematize and
present the most complex data system in simple
formats. This facilitates the quality of data storage
system and also improves the retrieval of the
information efficiently and accurately. Through the
application of software based technologies it has
become possible to design and maintain large database
structures and provide user friendly application.
These databases can be used for criteria based queries
and also can be supplemented with other technologies
like Biometric Solution etc.
Delhi Police is handling extremely complex and multi
dimensional activities. The operations of Delhi Police
are spread over very large area which needs to be
constantly monitored and controlled. In fact, the
operation of Delhi Police is as complex and multifaceted
as any top corporate house. The operations just do not
end with crime recording / investigation but also
involve the application of finest management techniques,
personal management skills, financial management acumen,
deep knowledge of engineering and medicine sciences. The
application of Information Technology can make many complex
and strenuous tasks of Delhi Police Executives effortless
and error free.........click
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To face the situation efficiently, it is extremely
important to understand some nitty-gritty of I.T. law on
the subject. Lack of knowledge leads to panic and all
the discomfort. The knowledge of your legal rights and
responsibilities always protects you.........click
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Survey has not been defined in the Income
Tax Act. According to Concise Oxford Dictionary, The expression "survey" means
general view, casting of eyes or mind over somethings, inspection or
investigation of the condition, amount, etc. of something, account given of
result of this etc.
According to Chambers 20th Century Dictionary, the meaning of the word 'survey'
is to view comprehensively and extensively, to examine in detail, to examine the
structure of a building, to obtain by measurements data for mapping, to
perceive, collection of data, an organisation or body of men for that purpose.
In short the term 'survey' in context of the Income Tax Act means collection of
data or information for the purposes of the Act.
Objects of Survey.
Survey is an important weapon in the armoury of the Income Tax Department to
call for information of various kinds as may be found necessary for making
proper assessments. Survey is mainly conducted with the object of broadening the
tax base by discovering new assessees,to gather information about possible tax
evasions by assessees, spot checking of available cash and stock and to verify
in a surprise and systematic manner, whether or not accounts are maintained
properly and on day to day basis etc..........click
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