An excerpt from
The Road To Happiness
by Mac Anderson and BJ Gallagher
A thankful spirit is a healthy spirit. As the twists and turns of life lead to feelings of being out of control, sometimes our attitude is all that we have control over...the following reflection may help you develop a thankful attitude. Sometimes life is all about how we look at it!
I am thankful for...
• the mess to clean after a party because it means I have been surrounded by friends.
• the taxes I pay because it means that I am employed.
• a lawn that needs mowing, windows that need cleaning and gutters that need fixing because it means I have a home.
• my shadow who watches me work because it means I am out in the sunshine.
• the spot I find at the far end of the parking lot because it means I am capable of walking.
• all of the complaining I hear about our government because it means we have freedom of speech.
• my huge heating bill because it means I am warm.
• the lady behind me in church who sings off key because it means that I can hear.
• the alarm that goes off early in the morning hours because it means that I am alive.
• the piles of laundry and ironing because it means my loved ones are nearby.
• weariness and aching muscles at the end of the day because it means I have been productive.
Saturday, January 21, 2012
Vodafone not liable to pay Rs 11,297-cr tax: Apex court
by Arun S.
source;Hindubusinessline
Transaction between two overseas firms falls outside tax jurisdiction
New Delhi, Jan 20:
In a huge relief to Vodafone and a major boost to foreign investor confidence in India, the Supreme Court on Friday held in a landmark verdict that the telecom giant is not liable to be taxed on its $11.2-billion acquisition of Hutchison’s Indian telecom assets.
The Income Tax (I-T) Department had raised a demand of $2.6 billion (Rs 11,297 crore) on the 2007 Vodafone-Hutch deal.
The apex court directed the I-T Department to return to Vodafone Rs 2,500 crore (which was deposited by the company as directed by the apex court) with 4 per cent interest within two months from Friday. The Bench headed by the Chief Justice of India, Mr S H Kapadia, also asked the Supreme Court Registry to give back to Vodafone the bank guarantee of Rs 8,500 crore within four weeks.
The “Offshore Transaction herein is a bona fide structured Foreign Direct Investment into India which fell outside India’s territorial tax jurisdiction, hence not taxable,” the court said.
by Arun S.
source;Hindubusinessline
Transaction between two overseas firms falls outside tax jurisdiction
New Delhi, Jan 20:
In a huge relief to Vodafone and a major boost to foreign investor confidence in India, the Supreme Court on Friday held in a landmark verdict that the telecom giant is not liable to be taxed on its $11.2-billion acquisition of Hutchison’s Indian telecom assets.
The Income Tax (I-T) Department had raised a demand of $2.6 billion (Rs 11,297 crore) on the 2007 Vodafone-Hutch deal.
The apex court directed the I-T Department to return to Vodafone Rs 2,500 crore (which was deposited by the company as directed by the apex court) with 4 per cent interest within two months from Friday. The Bench headed by the Chief Justice of India, Mr S H Kapadia, also asked the Supreme Court Registry to give back to Vodafone the bank guarantee of Rs 8,500 crore within four weeks.
The “Offshore Transaction herein is a bona fide structured Foreign Direct Investment into India which fell outside India’s territorial tax jurisdiction, hence not taxable,” the court said.
China's White Papers on Space: An Analysis
by Ajey Lele and Gunjan Singh
IDSA
January 20, 2012
The three White Papers provide overall, basic information about the Chinese Space agenda. They highlight the fact that China has achieved important breakthroughs in a relatively short time and can be viewed as a rapidly rising Space power. The emphasis in the White Papers is on the civilian aspects of the Chinese Space programme. This could, in a sense, be regarded as the tip of the iceberg, focusing on the civilian aspects of the Space agenda while hiding deeper strategic intentions. China's international alignments and cooperation in the Space arena indicates that it views Space technology as an instrument to boost its soft power status.
It is important not to view the Chinese Space programme in a limited sense as an attempt to demonstrate technological or military superiority. It is as much about showing visionary leadership as an attempt to achieve great power status by putting a Chinese on the Moon, the first country envisaged to do so in the 21st century.
by Ajey Lele and Gunjan Singh
IDSA
January 20, 2012
The three White Papers provide overall, basic information about the Chinese Space agenda. They highlight the fact that China has achieved important breakthroughs in a relatively short time and can be viewed as a rapidly rising Space power. The emphasis in the White Papers is on the civilian aspects of the Chinese Space programme. This could, in a sense, be regarded as the tip of the iceberg, focusing on the civilian aspects of the Space agenda while hiding deeper strategic intentions. China's international alignments and cooperation in the Space arena indicates that it views Space technology as an instrument to boost its soft power status.
It is important not to view the Chinese Space programme in a limited sense as an attempt to demonstrate technological or military superiority. It is as much about showing visionary leadership as an attempt to achieve great power status by putting a Chinese on the Moon, the first country envisaged to do so in the 21st century.
China rail: RS panel raises concern
Pioneer News Service
A Rajya Sabha panel has expressed concern over China bringing railway line to almost Indian borders and has suggested the Defence Ministry to immediately bring to the notice of the Prime Minister the urgency to build a corpus for laying railway network in bordering areas.
It also urged upon the Government to draw up a time-bound plan to execute and implement the strategically important projects in coordination with stakeholders in a “time-bound manner”.
The panel headed by former Uttarakhand Chief Minister Bhagat Singh Koshiyari felt India had to cut a sorry figure in the 1962 war with China for want of adequate infrastructure in border areas.
China has completed its 3,900 km Beijing Lhasa rail link and is pushing ahead with several other rail road projects adjoining the Indian border. China proposes to build 5,000 km of rail link with emphasis on establishing connectivity to Tibetan Autonomous Region.
China is also considering an extension of the Golmu-Lhasa line up to Xigaze, south of Lhasa and from there to Yatung, a trading centre barely a few kilometres from Nathula, a mountain pass that connects Tibet with Sikkim.
Also there is a proposal to extend the line to Nyingchi, an important trading town north of Arunachal Pradesh at the trijunction with Myanmar. These rail lines will bring Chinese trains up to Sikkim and Arunachal Pradesh — two Indian States that figure prominently on the radar of Sino-Indian dispute. It has also proposed to build rail network in Nepal.
“It is a matter of great concern that China has almost encircled Indian border areas through railway and road network. The issues is of great significance in view of the fact that China has grown exponentially in both the economic and the defence areas and (Indian) Government needs to be extremely cautious on both these counts,” a report by the panel has said.
India’s rail network is World’s most extensive but it does not penetrate the border states of J&K, Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh.
In their petition to the committee in 2010, two MPs and five MLAs from Uttarakhand said, “The British left behind a track lane of 55,596 km, in 62 years since Independence the total railway track stands at 63,940 km. This work around addition of 130km in a year which is very pathetic. The situation in Himalayan States is even worse as not even a single kilometre has been added there since Independence.”
The Bhanupalli-Bilaspur-Beri; Ghanauli-Baddi; Nangal-Talwara and Bilaspur-Manali-Leh rail line in Himachal Pradesh, Rishikesh- Karnaprayag; Tanakpur-Ghat-Bageshwar; Dehradun-Kalsi; Ram Nagar-Chaukhutiya; Haridwar-Kotdwar-Ramnagar-Kathgodam; and Rishikesh-Dehradun in Uttarakhand, Hirumati-Itanagar; and Rupai-Parasuramkund in Arunachal Pradesh, Jammu-Rajauri-Poonch in J&K, Mirik-Gangtok and extension of Sevoke-Rangpu line up to Gangtok in Sikkim are in different phases. Paucity of fund, problem with land acquisition and bureaucratic hurdles have led to delays in their execution.
The Committee deliberated at length on the issue of funding by the State Government and the resultant cost escalation due to delays in allocation of resources by the State Government. The Committee felt that the only way out is to declare these projects as ‘National Projects’ or ‘strategically important projects’ with dedicated financial linkage.
The committee has also suggested the Government that instead of concentrating on all these railway lines, only those which are strategically important should be taken on priority basis.
It also suggested that problem of resource allocation could be addressed in the manner that instead of asking for one time allocation, if it was done in a phased manner then budgetary allocation could be done.
Pioneer News Service
A Rajya Sabha panel has expressed concern over China bringing railway line to almost Indian borders and has suggested the Defence Ministry to immediately bring to the notice of the Prime Minister the urgency to build a corpus for laying railway network in bordering areas.
It also urged upon the Government to draw up a time-bound plan to execute and implement the strategically important projects in coordination with stakeholders in a “time-bound manner”.
The panel headed by former Uttarakhand Chief Minister Bhagat Singh Koshiyari felt India had to cut a sorry figure in the 1962 war with China for want of adequate infrastructure in border areas.
China has completed its 3,900 km Beijing Lhasa rail link and is pushing ahead with several other rail road projects adjoining the Indian border. China proposes to build 5,000 km of rail link with emphasis on establishing connectivity to Tibetan Autonomous Region.
China is also considering an extension of the Golmu-Lhasa line up to Xigaze, south of Lhasa and from there to Yatung, a trading centre barely a few kilometres from Nathula, a mountain pass that connects Tibet with Sikkim.
Also there is a proposal to extend the line to Nyingchi, an important trading town north of Arunachal Pradesh at the trijunction with Myanmar. These rail lines will bring Chinese trains up to Sikkim and Arunachal Pradesh — two Indian States that figure prominently on the radar of Sino-Indian dispute. It has also proposed to build rail network in Nepal.
“It is a matter of great concern that China has almost encircled Indian border areas through railway and road network. The issues is of great significance in view of the fact that China has grown exponentially in both the economic and the defence areas and (Indian) Government needs to be extremely cautious on both these counts,” a report by the panel has said.
India’s rail network is World’s most extensive but it does not penetrate the border states of J&K, Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh.
In their petition to the committee in 2010, two MPs and five MLAs from Uttarakhand said, “The British left behind a track lane of 55,596 km, in 62 years since Independence the total railway track stands at 63,940 km. This work around addition of 130km in a year which is very pathetic. The situation in Himalayan States is even worse as not even a single kilometre has been added there since Independence.”
The Bhanupalli-Bilaspur-Beri; Ghanauli-Baddi; Nangal-Talwara and Bilaspur-Manali-Leh rail line in Himachal Pradesh, Rishikesh- Karnaprayag; Tanakpur-Ghat-Bageshwar; Dehradun-Kalsi; Ram Nagar-Chaukhutiya; Haridwar-Kotdwar-Ramnagar-Kathgodam; and Rishikesh-Dehradun in Uttarakhand, Hirumati-Itanagar; and Rupai-Parasuramkund in Arunachal Pradesh, Jammu-Rajauri-Poonch in J&K, Mirik-Gangtok and extension of Sevoke-Rangpu line up to Gangtok in Sikkim are in different phases. Paucity of fund, problem with land acquisition and bureaucratic hurdles have led to delays in their execution.
The Committee deliberated at length on the issue of funding by the State Government and the resultant cost escalation due to delays in allocation of resources by the State Government. The Committee felt that the only way out is to declare these projects as ‘National Projects’ or ‘strategically important projects’ with dedicated financial linkage.
The committee has also suggested the Government that instead of concentrating on all these railway lines, only those which are strategically important should be taken on priority basis.
It also suggested that problem of resource allocation could be addressed in the manner that instead of asking for one time allocation, if it was done in a phased manner then budgetary allocation could be done.
Friday, January 20, 2012
Government sets up inter-ministerial coordination committee for Tourism Sector
Government has set up an inter-ministerial coordination committee for Tourism Sector under the chairmanship of the Principal Secretary to the Prime Minister to resolve inter-ministerial and industry issues and promote tourism. Shri Pulok Chatterji presided over the first meeting of the committee in PMO on 19.1.2012. Secretaries to Government of India of important ministries were present. Sh Chatterji said tourism should be seen as development: it should be pro-poor and focus on employment creation. He emphasized the need to give tourism a major fillip during the 12th Plan so as to more than double the number of foreign tourists arriving in India and further encourage domestic tourism.
Some of the important decisions taken in the meeting were:
· A sub-committee under consisting of Member Secretary, Planning Commission, Culture Secretary, Secretary (Environment and Forests), Secretary (Rural Development) and Secretary(Tourism) will identify the potential of tourism in rural, eco and cultural sectors in the country and submit its report within four weeks.
· MOEF should finalise its eco-tourism policy at the earliest possible duly analysing the feedback it has received from different quarters.
· It is imperative that all local stakeholders are involved in promoting eco-tourism.
· Ministry of Culture should adopt a pro-active tourism policy which should promote Museums, cultural and heritage sites, besides monuments. There should be close inter-face between MOC and MOT.
· MHA to take steps to facilitate extension of Tourist Visa on Arrival to GOA, Hyderabad, Kochi and Bengaluru airports within next one year.
· A coordination Committee consisting of Joint Secretaries of MHA, MEA and MoT constituted to resolve day to day visa related complaints.
· In order to promote vocational courses related to tourism it was decided that MHRD will accord High Priority in including maximum schools under the scheme.
· The initiative taken by Ministry of Tourism through Hunar se Rozgar scheme was appreciated by the Committee. It was noted that tourism related activities should become an integral part of relevant poverty alleviation programme of the Ministry of Rural Development including NREGA.
· Ministry of Road Transport and Highways will utilise the funds available under Central Road Fund (CRF) in consultation with concerned State Governments in 13 States in February, 2012 where the roads have already been identified.
· Ministry of Road Transport & Highways will undertake development of essential road infrastructure in the tourism circuits either from its own fund or Central Road Fund.
· Ministry of Defence (Border Road Organisation) will expedite ongoing work at Gangtok and Leh roads which are tentatively scheduled to be completed by 2014 and 2015 respectively.
***
SC/SKS
(Release ID :79770)
Government has set up an inter-ministerial coordination committee for Tourism Sector under the chairmanship of the Principal Secretary to the Prime Minister to resolve inter-ministerial and industry issues and promote tourism. Shri Pulok Chatterji presided over the first meeting of the committee in PMO on 19.1.2012. Secretaries to Government of India of important ministries were present. Sh Chatterji said tourism should be seen as development: it should be pro-poor and focus on employment creation. He emphasized the need to give tourism a major fillip during the 12th Plan so as to more than double the number of foreign tourists arriving in India and further encourage domestic tourism.
Some of the important decisions taken in the meeting were:
· A sub-committee under consisting of Member Secretary, Planning Commission, Culture Secretary, Secretary (Environment and Forests), Secretary (Rural Development) and Secretary(Tourism) will identify the potential of tourism in rural, eco and cultural sectors in the country and submit its report within four weeks.
· MOEF should finalise its eco-tourism policy at the earliest possible duly analysing the feedback it has received from different quarters.
· It is imperative that all local stakeholders are involved in promoting eco-tourism.
· Ministry of Culture should adopt a pro-active tourism policy which should promote Museums, cultural and heritage sites, besides monuments. There should be close inter-face between MOC and MOT.
· MHA to take steps to facilitate extension of Tourist Visa on Arrival to GOA, Hyderabad, Kochi and Bengaluru airports within next one year.
· A coordination Committee consisting of Joint Secretaries of MHA, MEA and MoT constituted to resolve day to day visa related complaints.
· In order to promote vocational courses related to tourism it was decided that MHRD will accord High Priority in including maximum schools under the scheme.
· The initiative taken by Ministry of Tourism through Hunar se Rozgar scheme was appreciated by the Committee. It was noted that tourism related activities should become an integral part of relevant poverty alleviation programme of the Ministry of Rural Development including NREGA.
· Ministry of Road Transport and Highways will utilise the funds available under Central Road Fund (CRF) in consultation with concerned State Governments in 13 States in February, 2012 where the roads have already been identified.
· Ministry of Road Transport & Highways will undertake development of essential road infrastructure in the tourism circuits either from its own fund or Central Road Fund.
· Ministry of Defence (Border Road Organisation) will expedite ongoing work at Gangtok and Leh roads which are tentatively scheduled to be completed by 2014 and 2015 respectively.
***
SC/SKS
(Release ID :79770)
Sikkim not controversial: Gautam
India Blooms News Service\The DVD of the documentary created to portray its namesake, produced by the Royal family of a sovereign Sikkim in 1971 and banned by the Indian Government till 2010, was finally launched by Angel Digital in Kolkata on Thursday.
While occupying the podium during the event Ghosh said, “The documentary was about the sovereign state of Sikkim before India annexed it, so perhaps there were political reasons but I still cannot justify the banning of this film as it contains no infuriating or controversial footage.”
“People had a great curiosity about this film as it was made by the legendary director Satyajit Ray and it is great that they will finally get to see it,” he remarked.
Fellow filmmaker and Satyajit Ray’s son Sandip Ray shared a few anecdotes from his experiences during a shooting trip to Sikkim with his father while affirming to the notion that “Sikkim portrays only the flora and fauna of the land. It only shows the beautiful landscape and I assure you that there are no controversial footages.”
Ray revealed that obtaining a decent print had been a hassle as the owner of the original negative Hope Cooke, the wife of the then Chogyal (King) of Sikkim, could not be contacted.
“It is really lucky that a print of this film was found with one of my father’s old friend and distributor in London because the original negative is no longer available,” Ray remarked.
“Some parts of the movie have been restored and though the original quality of colour was really great, this print is viewable and at least people will get the opportunity to see this,” he said.
Ray urged the distributors to produce compilations of his father’s other short films as this is the high time for their release.
“It would be great if the short films of my father are released because I believe the people are ready to see them now and so I request the producers to do something about it,” Ray said.
(Reporting by Arnab Chakraborty)
Kolkata, Jan 20 (IBNS) Filmmaker Goutam Ghosh on Thursday claimed that Satyajit Ray’s documentary “Sikkim” had been unjustifiably banned since 1975.
FICCI deliberates concept of Third Industrial Revolution
source:thehindubusinessline
Mr Jeremy Rifkin, Founder President, Foundation of Economic Trends, USA. — V. Sudershan
India will add another 241 million in working age population between 2010-2030. In the above context of demographic dividend, FICCI Young Leaders (FYLs) came up with the idea of studying the global Mega Trends and the concept of Third Industrial Revolution (TIR) by Jeremy Rifkin, Founder President of Foundation of Economic Trends, USA.
Speaking at the ‘Conference Mega Trends 2020: Shaping India’s Future’ here, Jeremy Rifkin said that the internet technology and renewable energies would merge to create a powerful new infrastructure for a TIR that would change the world.
He envisaged that in the coming era, hundreds of millions of people will produce their own green energy in their homes, offices, and factories and share it with each other in an “energy Internet”. The democratisation of energy will bring with it a fundamental reordering of human relationships, impacting the way we conduct business, govern society, educate our children, and engage in civic life.
Delivering his inaugural address, Mr Jyotiraditya Scindia, Minister of State for Commerce and Industry, dwelt on the key paradigms likely to shape the next decades – the quest for energy and food security, and the rise of Chindia (China & India) as economic powerhouse.
A White Paper titled “Mega Trends of the Emerging Third Emerging Revolution in India” was released at the conference.
Satyajit Ray's rare documentary 'Sikkim' now in markets
Jan 19, 2012 at 19:33 | Source : PTI
After having dogged controversies ever since it was made four decades ago, Satyajit Ray's rare documentary 'Sikkim' has been released today in the CD format.
After having dogged controversies ever since it was made four decades ago, Satyajit Ray's rare documentary 'Sikkim' has been released today in the CD format.
The 52-minute documentary, commissioned in 1971 by the last Chogyal (king) of Sikkim - Palden Thondup Namgyal - was banned after a few scenes went against the liking of the rulers.
When the Himalayan kingdom merged with India in 1975, the Indian government also banned it.
Two years ago, the ministry of external affairs lifted the ban on the film. Since then, 'Sikkim' has been shown only to restricted audiences at film festivals, including the 2010 Kolkata Film Festival.
"We do not know why the film was banned for so long But it is not a political film and has no propaganda. It is about the flora, fauna, the natural beauty and diversity of the Himalayan kingdom," Ray's son Sandip said.
After releasing the DVD and VCD release of 'Sikkim', he said that the original negative of the film is lost.
A damaged print of the film was restored by the Gangtok-based Art and Culture Trust (ACT) of Sikkim in 2002 with support of The Academy of Motion Pictures, Art and Science in California.
"I remember that the original film had excellent colours. But unfortunately now it is lost. However, the present CD version is viewable," Sandip Ray said.
Jan 19, 2012 at 19:33 | Source : PTI
After having dogged controversies ever since it was made four decades ago, Satyajit Ray's rare documentary 'Sikkim' has been released today in the CD format.
After having dogged controversies ever since it was made four decades ago, Satyajit Ray's rare documentary 'Sikkim' has been released today in the CD format.
The 52-minute documentary, commissioned in 1971 by the last Chogyal (king) of Sikkim - Palden Thondup Namgyal - was banned after a few scenes went against the liking of the rulers.
When the Himalayan kingdom merged with India in 1975, the Indian government also banned it.
Two years ago, the ministry of external affairs lifted the ban on the film. Since then, 'Sikkim' has been shown only to restricted audiences at film festivals, including the 2010 Kolkata Film Festival.
"We do not know why the film was banned for so long But it is not a political film and has no propaganda. It is about the flora, fauna, the natural beauty and diversity of the Himalayan kingdom," Ray's son Sandip said.
After releasing the DVD and VCD release of 'Sikkim', he said that the original negative of the film is lost.
A damaged print of the film was restored by the Gangtok-based Art and Culture Trust (ACT) of Sikkim in 2002 with support of The Academy of Motion Pictures, Art and Science in California.
"I remember that the original film had excellent colours. But unfortunately now it is lost. However, the present CD version is viewable," Sandip Ray said.
Thursday, January 19, 2012
Two-month drive against tax evasion from tomorrow
In a concerted drive against tax evasion in the wake of a shortfall in revenue and a burgeoning fiscal deficit, the Centre has directed the Income Tax Department to launch a two-month special initiative, starting January 20, to trail and verify high value transactions by persons not assessed to tax or those who have not furnished their Permanent Account Number (PAN) cards during such deals.
“The Central Board of Direct Taxes [CBDT] has directed the Income Tax Department to launch a special drive, from 20th January to 20th March 2012, for verifying high value transactions [investments / deposits / expenditure] from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions,” the Finance Ministry said in a statement here on Wednesday.
According to the statement, high-value transactions under the tax scanner will include purchase of property, vehicles, shares and bonds, fixed deposits in banks and post offices. For this purpose, “the CBDT has issued pro forma for query letters and responses to be issued to the high-value investors/depositors/spenders,” it said.
As part of the drive to nab tax evaders, while addressees will be required to furnish their PAN if they already have one — or apply immediately for it if they do not — they will also be required to explain the source of the high-value investments/deposits/expenditure, and whether these are properly accounted for and explained in the income tax return filed by them. For furnishing the information required by the Department, a visit to the tax office is not essential as it can be sent by speed/registered post.
“Persons who have not properly accounted for the high-value transactions, are required to pay due taxes and file the income tax return within this financial year, i.e. by 31st March, 2012,” the statement said. It also noted that while there are penal consequences for not obtaining a PAN or not reporting such high-value transactions, a penalty of up to 300 per cent of the unpaid tax can be imposed for not paying proper taxes along with prosecution in some cases.
In some cases, the statement said, the tax officials may also visit the premises of high-value investors/depositors/ spenders. “In such cases, the taxpayer should verify the identity of the tax official before furnishing information in the prescribed pro forma,” it said.
Since July 1 last year, it has been made mandatory for individuals to reveal their PAN for purchase of any jewellery worth Rs. 5 lakh or more. For one, as high-value jewellery purchase is said to be one of the simpler routes for black money circulation, PAN identification is aimed at helping taxmen in tracking such transactions.
Likewise, transactions such as payment of Rs. 50,000 or more as life insurance premium annually, high-value deals such as sale or purchase of any immoveable property worth Rs. 5 lakh or more, sale or purchase of motor vehicles (other than two-wheelers) and bank deposits in excess of Rs. 50,000 require PAN identification.
Ostensibly, apart from the crusade against black money, the special two-month drive this fiscal is aimed at mopping up additional revenue to help the government in bridging the yawning gap in fiscal deficit. As per current calculations, Finance Minister Pranab Mukherjee has already admitted that adhering to the budgeted fiscal deficit target of 4.6 per cent of the gross domestic product remains a big challenge as it is unlikely to be met.
In a concerted drive against tax evasion in the wake of a shortfall in revenue and a burgeoning fiscal deficit, the Centre has directed the Income Tax Department to launch a two-month special initiative, starting January 20, to trail and verify high value transactions by persons not assessed to tax or those who have not furnished their Permanent Account Number (PAN) cards during such deals.
“The Central Board of Direct Taxes [CBDT] has directed the Income Tax Department to launch a special drive, from 20th January to 20th March 2012, for verifying high value transactions [investments / deposits / expenditure] from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions,” the Finance Ministry said in a statement here on Wednesday.
According to the statement, high-value transactions under the tax scanner will include purchase of property, vehicles, shares and bonds, fixed deposits in banks and post offices. For this purpose, “the CBDT has issued pro forma for query letters and responses to be issued to the high-value investors/depositors/spenders,” it said.
As part of the drive to nab tax evaders, while addressees will be required to furnish their PAN if they already have one — or apply immediately for it if they do not — they will also be required to explain the source of the high-value investments/deposits/expenditure, and whether these are properly accounted for and explained in the income tax return filed by them. For furnishing the information required by the Department, a visit to the tax office is not essential as it can be sent by speed/registered post.
“Persons who have not properly accounted for the high-value transactions, are required to pay due taxes and file the income tax return within this financial year, i.e. by 31st March, 2012,” the statement said. It also noted that while there are penal consequences for not obtaining a PAN or not reporting such high-value transactions, a penalty of up to 300 per cent of the unpaid tax can be imposed for not paying proper taxes along with prosecution in some cases.
In some cases, the statement said, the tax officials may also visit the premises of high-value investors/depositors/ spenders. “In such cases, the taxpayer should verify the identity of the tax official before furnishing information in the prescribed pro forma,” it said.
Since July 1 last year, it has been made mandatory for individuals to reveal their PAN for purchase of any jewellery worth Rs. 5 lakh or more. For one, as high-value jewellery purchase is said to be one of the simpler routes for black money circulation, PAN identification is aimed at helping taxmen in tracking such transactions.
Likewise, transactions such as payment of Rs. 50,000 or more as life insurance premium annually, high-value deals such as sale or purchase of any immoveable property worth Rs. 5 lakh or more, sale or purchase of motor vehicles (other than two-wheelers) and bank deposits in excess of Rs. 50,000 require PAN identification.
Ostensibly, apart from the crusade against black money, the special two-month drive this fiscal is aimed at mopping up additional revenue to help the government in bridging the yawning gap in fiscal deficit. As per current calculations, Finance Minister Pranab Mukherjee has already admitted that adhering to the budgeted fiscal deficit target of 4.6 per cent of the gross domestic product remains a big challenge as it is unlikely to be met.
Tripura welcomes investment from Bangladesh: Sarkar
Agartala, Jan 19 (IANS): The Left Front government in Tripura will accept investment from Bangladesh, Chief Minister Manik Sarkar said, stressing India and Bangladesh are natural partners in development.
"We must welcome investment from Bangladesh," Sarkar told IANS in an interview, just days after Bangladesh Prime Minister Sheikh Hasina expressed her government's readiness to set up joint ventures in India's northeast during a visit to the state last week.
"India and Bangladesh are natural partners. Both nations are interlinked and co-dependent. The two neighbours must share their resources and advantages."
Hasina expressed her government's readiness to set up power plants in India's northeast and boost trade with India, Nepal and Bhutan.
She said Bangladesh would allow India to use Chittagong and Mongla sea ports as it wanted to improve all types of communication facilities with the adjoining countries to further improve the trade and commerce and people-to-people relations.
Ties between the two countries have shown steady improvement as political and economic engagements between New Delhi and Dhaka have gathered pace. Recent reports said imports, especially textiles and raw jute, from Bangladesh had gone up 85 percent to nearly $300 million during April-September last year.
Hasina said there was a huge potential of Indian investment in Bangladesh in IT, power and healthcare. "Political will is there to carry forward the bilateral ties and the business community of both sides must strive to catch the opportunities," she said during the visit.
Sarkar said India and Bangladesh should share their wealth and resources for the benefit of the people. "I already told Hasina that the Tripura government is ready to give 100 MW (from its share) from the upcoming 726-MW Palatana power project, being commissioned by the ONGC (Oil and Natural Gas Corporation) in southern Tripura."
The 63-year-old Communist leader also asked the Congress-led United Progressive Alliance (UPA) government to be more generous towards Bangladesh and its issues.
"Mountainous northeastern region needs transit route via Bangladesh for ferrying men, material and heavy machinery. The region has abundant natural resources like oil, gas and coal... these have to be exploited in the interest of the region and Bangladesh," Sarkar told IANS.
The northeastern states are surrounded by Bangladesh, Myanmar, Bhutan and China on three sides and the only land route access to these states from within India is through West Bengal-Assam. But this surface route passes through hilly terrain with steep roads and multiple hairpin bends that make transporting goods very difficult. "It would be better if there is no border fencing, erected by India along the 4,095-km border with Bangladesh. In view of terrorism and due to other compulsions, India has to put up the fencing to check trans-border movement of militants, prevent infiltration and check border crimes," Sarkar added.
Sarkar also urged the Indian government to simplify the visa procedures for Bangladesh citizens to visit India for medical treatment, education, business and travel.
"New Delhi and Dhaka must speed up implementation of those agreements already settled and resolve those pending issues with utmost priority," he said, adding that the situation is changing and people's aspirations are also shifting in view of globalisation.
Regarding sheltering of northeast India's militants in Bangladesh, he said, "Once Dhaka was not accepting India's claim. Now they (Bangladesh government) have realised and are taking action against the extremists taking refuge in that country. However, the issue is not yet a closed chapter."
Agartala, Jan 19 (IANS): The Left Front government in Tripura will accept investment from Bangladesh, Chief Minister Manik Sarkar said, stressing India and Bangladesh are natural partners in development.
"We must welcome investment from Bangladesh," Sarkar told IANS in an interview, just days after Bangladesh Prime Minister Sheikh Hasina expressed her government's readiness to set up joint ventures in India's northeast during a visit to the state last week.
"India and Bangladesh are natural partners. Both nations are interlinked and co-dependent. The two neighbours must share their resources and advantages."
Hasina expressed her government's readiness to set up power plants in India's northeast and boost trade with India, Nepal and Bhutan.
She said Bangladesh would allow India to use Chittagong and Mongla sea ports as it wanted to improve all types of communication facilities with the adjoining countries to further improve the trade and commerce and people-to-people relations.
Ties between the two countries have shown steady improvement as political and economic engagements between New Delhi and Dhaka have gathered pace. Recent reports said imports, especially textiles and raw jute, from Bangladesh had gone up 85 percent to nearly $300 million during April-September last year.
Hasina said there was a huge potential of Indian investment in Bangladesh in IT, power and healthcare. "Political will is there to carry forward the bilateral ties and the business community of both sides must strive to catch the opportunities," she said during the visit.
Sarkar said India and Bangladesh should share their wealth and resources for the benefit of the people. "I already told Hasina that the Tripura government is ready to give 100 MW (from its share) from the upcoming 726-MW Palatana power project, being commissioned by the ONGC (Oil and Natural Gas Corporation) in southern Tripura."
The 63-year-old Communist leader also asked the Congress-led United Progressive Alliance (UPA) government to be more generous towards Bangladesh and its issues.
"Mountainous northeastern region needs transit route via Bangladesh for ferrying men, material and heavy machinery. The region has abundant natural resources like oil, gas and coal... these have to be exploited in the interest of the region and Bangladesh," Sarkar told IANS.
The northeastern states are surrounded by Bangladesh, Myanmar, Bhutan and China on three sides and the only land route access to these states from within India is through West Bengal-Assam. But this surface route passes through hilly terrain with steep roads and multiple hairpin bends that make transporting goods very difficult. "It would be better if there is no border fencing, erected by India along the 4,095-km border with Bangladesh. In view of terrorism and due to other compulsions, India has to put up the fencing to check trans-border movement of militants, prevent infiltration and check border crimes," Sarkar added.
Sarkar also urged the Indian government to simplify the visa procedures for Bangladesh citizens to visit India for medical treatment, education, business and travel.
"New Delhi and Dhaka must speed up implementation of those agreements already settled and resolve those pending issues with utmost priority," he said, adding that the situation is changing and people's aspirations are also shifting in view of globalisation.
Regarding sheltering of northeast India's militants in Bangladesh, he said, "Once Dhaka was not accepting India's claim. Now they (Bangladesh government) have realised and are taking action against the extremists taking refuge in that country. However, the issue is not yet a closed chapter."
China's rail network to touch India's border
source;The Hindu
China has announced it will accelerate plans to expand a railway network in Tibet to reach two towns near the border with India and will also consider building a railway line to Nepal, officials said this week.
New railway lines from Lhasa to Xigaze (Shigatse in Tibetan) and the town of Nyingchi, which lies in a prefecture bordering Arunachal Pradesh, will be built as key projects under a five-year development plan (2011-15) for the Tibet Autonomous Region (TAR), which was announced on Wednesday.
Separately, the State-run Xinhua news agency carried a report indicating that the construction of a railway line from Tibet to Nepal was discussed during Premier Wen Jiabao's visit last week to Kathmandu.
“The railway which will join Nepal and the Tibet Autonomous Region of China will further strengthen ties between the two countries,” Xinhua quoted Nepal President Ram Baran Yadav as saying.
The projects will widen the asymmetry in infrastructure across the Himalayas. Jin Shixun, chief of the TAR development and reform commission, said in a statement the railway projects would “pay a vital role in boosting tourism and accelerating the transport of natural resources”.
Chinese officials say the projects are aimed at boosting connectivity to bring development to Tibet's frontier regions. Indian defence officials have, however, voiced concern over the strategic implications of infrastructure projects located near the border.
The statement said the extension of the Qinghai-Tibet railway line, which currently ends in Lhasa, to Xigaze would be completed by 2015. Construction of another line from Lhasa to Nyingchi will also begin under the five-year plan.
By the end of last year, $538 million — or a quarter of the budget — had already been spent since construction on the Xigaze line began in September 2010.
Xinhua said the 253-km line would pass through the 90-km-long Grand Canyon of the Yarlung Zangbo — as the Brahmaputra is known in Tibet.
The line would have a capacity to carry 8.3 million tonnes of freight annually
Wednesday, January 18, 2012
IDSA COMMENT- Chinese PM in Nepal: A short visit but a long trail?
by Nihar Nayak
January 18, 2012
Prime Minister Wen Jiabao of China paid a short visit to Nepal (lasting four and a half hours) on January 14, 2012, stopping over on his way to the Persian Gulf. During the visit China announced an RMB 750 million (US $ 120 million or Nepalese Rs 9.7 billion) grant to Nepal. The amount will be spent on mutually identified projects under a new bilateral Agreement on Economic and Technical Cooperation . China also announced a one-time grant of $20 million, to be spent on the rehabilitation of former Maoist combatants. It also increased its annual assistance to Nepal from RMB 150 million to RMB 200 million. An eight-point joint statement was also issued during the visit. The statement notes that the two countries agreed to “further promote Nepal-China friendly relations of comprehensive partnership of cooperation featuring everlasting friendship on the basis of the five principles of peaceful Coexistence”.
The visit came about at a time when China is concerned about the ongoing political instability in Nepal and is looking for new political partners after the fall of the monarchy. The last Chinese Premier to visit Nepal was Zhu Rongji in May 2001, while Nepal was witnessing an armed struggle by the Maoists and the King was ruling the state. China is apprehensive that the Tibetan refugees may take advantage of Nepal’s instability and strengthen their position within the country. Moreover, the Chinese are not comfortable with the multiparty system of Nepal, with the parties numbering around 32, and would like to have an abiding relationship with any force eager to work with them. India’s successful engagement with the latest Maoist-led government has added to Chinese concerns leading it to cultivate Nepal even more proactively.
This has also led China to realign its foreign policy towards Nepal. It has increased the number of its political, economic, military and academic delegations to Nepal since 2008, posted one of its better diplomats as Ambassador to Kathmandu, increased people-to-people contacts, opened more customs posts at the borders, increased annual grant assistance and, most importantly, strengthened its engagements at the institutional level leading to greater interaction with the Nepalese army, bureaucracy, police and armed police (mostly deployed along the borders). During Wen Jiabao’s visit, the Chinese side pledged RMB 10 million for strengthening the Nepal Police and RMB four million for an Armed Police Force college. According to Xinhua, in 2010, the number of bilateral personnel exchanges with Nepal reached 74,000.
Nepal occupies a special position in Chinese foreign policy, even if it is depicted as a country of ‘peripheral’ concern by Chinese sources. First, because, among the South Asian states, Nepal shares the longest border with China after India and a large part of this border is inadequately guarded due to the nature of the terrain (mountainous). Not surprisingly, the joint statement re-emphasizes strengthening ‘border area management’. Second, geographically, Nepal has remained the southern gateway for Tibet. Since time immemorial, Nepal has been maintaining closer economic and cultural linkages with Tibet than China. Third, India has maintained a strong historical, geographic, cultural and economic relationship with Nepal and both countries share an open and peaceful border.
Therefore, China’s policy towards Nepal has been different from its policies towards the rest of the South Asian countries. China also has three major strategic interests in Nepal: firstly, containing Tibetan refugees south of the Himalayas and stopping their anti-China activities; second, neutralising India’s influence in Nepal and setting up a pro-China regime in Kathmandu, for which China has scaled up its policy of engagement in recent years and adopted even soft diplomatic measures, i.e., people-to-people contacts, cultural relations, scholarships to students, economic aid and spreading of Chinese Buddhism in Nepal; and third, investing in strategically important infrastructure like airports and important highways. Chinese investments in Lumbini, and Pokhara airports are a point of reference in this regard. The Chinese must be happy that they have finally got the Government of Nepal to agree to Chinese investment in the Pokhara airport during Wen Jiabao’s visit.
Strangely, the visit by the Chinese Prime Minster was shrouded in secrecy. The visit was not mentioned by China’s Ministry of Foreign Affairs till the evening of January 15, 2012, while his five-day visit to three Gulf countries – Qatar, Saudi Arabia and United Arab Emirates – was announced earlier. The Foreign Ministry did not also mention the eight-point joint statement even two days after the agreement was signed. The Embassy of China in Kathmandu also chose not to post anything about the visit or this agreement on its website even 48 hours after the visit: it only cited a news report by Xinhua.
Perhaps, the Chinese establishment was apprehensive of protests/demonstrations by Tibetan refuges in Nepal during the Premier’s visit. An earlier scheduled visit, which was to take place on December 20, 2011, was reportedly cancelled because China was not impressed with the security arrangements in Nepal. Chinese intelligence reportedly came up with information that there could be some demonstrations with black flags and attempts at self-immolation by some Tibetan refugees.
Following the cancellation of the earlier visit, the Deputy Prime Minister and Home Minister of Nepal, Bijaya Gachhadar, had visited China to reassure the Chinese establishment that there would be no disturbance by Tibetan refugees during the Chinese Premier’s visit. Special instructions were given by China to the Prime Minister’s Office and the Foreign Ministry of Nepal not to disclose news of the intended visit. China also asked Nepal to allow only a limited numbers of journalists to cover the visit once the visit was announced.
Surprisingly, no media house in Nepal reacted to the decision. There were instructions from the Chinese embassy not to discuss the visit in the media in advance. There was no mention even about the financial and development aid that China was going to give to Nepal. Since the Nepalese government had sent in a request for a credit line of $5 billion (over Rs. 400 billion) from China prior to the scheduled visit in December, China did not perhaps want much discussion on this subject, lest it aroused public expectations and forced China to commit more than it decided to offer. This, in a way, indicates the indifferent and condescending manner in which China wants to behave with its small neighbours like Nepal. All the arrangements for the visit were dictated by China.
Historically, China has behaved as a bully in its dealings with its neighbours, especially when it felt that it cannot actively control developments in its periphery and that this could lead to an eventual reduction of its sphere of influence in the neighbourhood. At present, apart from the election of a pro-China leader in Taiwan, China is not quite comfortable with the developments in its immediate periphery. It is not very happy about political developments in Myanmar. Its assertive policy vis-Ã -vis India has also not been effective. Moreover, Tibet remains China’s soft underbelly, and of late, it has been feeling insecure due to the absence of a credible political partner in Nepal. To add to the Chinese worries, the Tibetan refugees have taken advantage of the situation in Nepal and have undertaken several protests against China in recent years. If the Nepalese political instability prolongs, Chinese micromanagement and intervention in Nepal will increase in future.
Source:Institue of Defence Studies & Analysis
by Nihar Nayak
January 18, 2012
Prime Minister Wen Jiabao of China paid a short visit to Nepal (lasting four and a half hours) on January 14, 2012, stopping over on his way to the Persian Gulf. During the visit China announced an RMB 750 million (US $ 120 million or Nepalese Rs 9.7 billion) grant to Nepal. The amount will be spent on mutually identified projects under a new bilateral Agreement on Economic and Technical Cooperation . China also announced a one-time grant of $20 million, to be spent on the rehabilitation of former Maoist combatants. It also increased its annual assistance to Nepal from RMB 150 million to RMB 200 million. An eight-point joint statement was also issued during the visit. The statement notes that the two countries agreed to “further promote Nepal-China friendly relations of comprehensive partnership of cooperation featuring everlasting friendship on the basis of the five principles of peaceful Coexistence”.
The visit came about at a time when China is concerned about the ongoing political instability in Nepal and is looking for new political partners after the fall of the monarchy. The last Chinese Premier to visit Nepal was Zhu Rongji in May 2001, while Nepal was witnessing an armed struggle by the Maoists and the King was ruling the state. China is apprehensive that the Tibetan refugees may take advantage of Nepal’s instability and strengthen their position within the country. Moreover, the Chinese are not comfortable with the multiparty system of Nepal, with the parties numbering around 32, and would like to have an abiding relationship with any force eager to work with them. India’s successful engagement with the latest Maoist-led government has added to Chinese concerns leading it to cultivate Nepal even more proactively.
This has also led China to realign its foreign policy towards Nepal. It has increased the number of its political, economic, military and academic delegations to Nepal since 2008, posted one of its better diplomats as Ambassador to Kathmandu, increased people-to-people contacts, opened more customs posts at the borders, increased annual grant assistance and, most importantly, strengthened its engagements at the institutional level leading to greater interaction with the Nepalese army, bureaucracy, police and armed police (mostly deployed along the borders). During Wen Jiabao’s visit, the Chinese side pledged RMB 10 million for strengthening the Nepal Police and RMB four million for an Armed Police Force college. According to Xinhua, in 2010, the number of bilateral personnel exchanges with Nepal reached 74,000.
Nepal occupies a special position in Chinese foreign policy, even if it is depicted as a country of ‘peripheral’ concern by Chinese sources. First, because, among the South Asian states, Nepal shares the longest border with China after India and a large part of this border is inadequately guarded due to the nature of the terrain (mountainous). Not surprisingly, the joint statement re-emphasizes strengthening ‘border area management’. Second, geographically, Nepal has remained the southern gateway for Tibet. Since time immemorial, Nepal has been maintaining closer economic and cultural linkages with Tibet than China. Third, India has maintained a strong historical, geographic, cultural and economic relationship with Nepal and both countries share an open and peaceful border.
Therefore, China’s policy towards Nepal has been different from its policies towards the rest of the South Asian countries. China also has three major strategic interests in Nepal: firstly, containing Tibetan refugees south of the Himalayas and stopping their anti-China activities; second, neutralising India’s influence in Nepal and setting up a pro-China regime in Kathmandu, for which China has scaled up its policy of engagement in recent years and adopted even soft diplomatic measures, i.e., people-to-people contacts, cultural relations, scholarships to students, economic aid and spreading of Chinese Buddhism in Nepal; and third, investing in strategically important infrastructure like airports and important highways. Chinese investments in Lumbini, and Pokhara airports are a point of reference in this regard. The Chinese must be happy that they have finally got the Government of Nepal to agree to Chinese investment in the Pokhara airport during Wen Jiabao’s visit.
Strangely, the visit by the Chinese Prime Minster was shrouded in secrecy. The visit was not mentioned by China’s Ministry of Foreign Affairs till the evening of January 15, 2012, while his five-day visit to three Gulf countries – Qatar, Saudi Arabia and United Arab Emirates – was announced earlier. The Foreign Ministry did not also mention the eight-point joint statement even two days after the agreement was signed. The Embassy of China in Kathmandu also chose not to post anything about the visit or this agreement on its website even 48 hours after the visit: it only cited a news report by Xinhua.
Perhaps, the Chinese establishment was apprehensive of protests/demonstrations by Tibetan refuges in Nepal during the Premier’s visit. An earlier scheduled visit, which was to take place on December 20, 2011, was reportedly cancelled because China was not impressed with the security arrangements in Nepal. Chinese intelligence reportedly came up with information that there could be some demonstrations with black flags and attempts at self-immolation by some Tibetan refugees.
Following the cancellation of the earlier visit, the Deputy Prime Minister and Home Minister of Nepal, Bijaya Gachhadar, had visited China to reassure the Chinese establishment that there would be no disturbance by Tibetan refugees during the Chinese Premier’s visit. Special instructions were given by China to the Prime Minister’s Office and the Foreign Ministry of Nepal not to disclose news of the intended visit. China also asked Nepal to allow only a limited numbers of journalists to cover the visit once the visit was announced.
Surprisingly, no media house in Nepal reacted to the decision. There were instructions from the Chinese embassy not to discuss the visit in the media in advance. There was no mention even about the financial and development aid that China was going to give to Nepal. Since the Nepalese government had sent in a request for a credit line of $5 billion (over Rs. 400 billion) from China prior to the scheduled visit in December, China did not perhaps want much discussion on this subject, lest it aroused public expectations and forced China to commit more than it decided to offer. This, in a way, indicates the indifferent and condescending manner in which China wants to behave with its small neighbours like Nepal. All the arrangements for the visit were dictated by China.
Historically, China has behaved as a bully in its dealings with its neighbours, especially when it felt that it cannot actively control developments in its periphery and that this could lead to an eventual reduction of its sphere of influence in the neighbourhood. At present, apart from the election of a pro-China leader in Taiwan, China is not quite comfortable with the developments in its immediate periphery. It is not very happy about political developments in Myanmar. Its assertive policy vis-Ã -vis India has also not been effective. Moreover, Tibet remains China’s soft underbelly, and of late, it has been feeling insecure due to the absence of a credible political partner in Nepal. To add to the Chinese worries, the Tibetan refugees have taken advantage of the situation in Nepal and have undertaken several protests against China in recent years. If the Nepalese political instability prolongs, Chinese micromanagement and intervention in Nepal will increase in future.
Source:Institue of Defence Studies & Analysis
Rlys makes ID proof mandatory for AC class
Press Trust of India
New Delhi, Jan. 18: Faced with increasing incidents of misuse of tickets, Railways have made it mandatory for all passengers travelling in AC classes to carry an identity proof with them.
So far, ID proof was required only for passengers travelling with e-tickets or with tatkal tickets.
The decision will come into effect from February 15 in all trains across the country, said a Railway Ministry official.
The official said any one passenger in a group will be required to carry the ID proof.
The ID proof could be a voter ID, PAN card, passport, driving licence issued by RTO, nationalised bank passbook with photo, credit card issued by banks with laminated photos, student ID card with photo or Aadhaar, the official said.
The decision comes in the backdrop of increasing cases of misuse of tickets like transfer of tickets, black marketing of tickets and growing involvement of touts.
Centre for Railway Information Systems (CRIS) has been asked to make necessary changes in the software so as to incorporate the message in the rail tickets for the benefit of the passengers.
Press Trust of India
New Delhi, Jan. 18: Faced with increasing incidents of misuse of tickets, Railways have made it mandatory for all passengers travelling in AC classes to carry an identity proof with them.
So far, ID proof was required only for passengers travelling with e-tickets or with tatkal tickets.
The decision will come into effect from February 15 in all trains across the country, said a Railway Ministry official.
The official said any one passenger in a group will be required to carry the ID proof.
The ID proof could be a voter ID, PAN card, passport, driving licence issued by RTO, nationalised bank passbook with photo, credit card issued by banks with laminated photos, student ID card with photo or Aadhaar, the official said.
The decision comes in the backdrop of increasing cases of misuse of tickets like transfer of tickets, black marketing of tickets and growing involvement of touts.
Centre for Railway Information Systems (CRIS) has been asked to make necessary changes in the software so as to incorporate the message in the rail tickets for the benefit of the passengers.
Mild Earthquake at Gangtok and around at 7.44PM
Gangtok 18 Jan 2011
Gangtok and around sufferred a mild earthquake at 7.44.PM tonight. Details are awaited.
Gangtok and around sufferred a mild earthquake at 7.44.PM tonight. Details are awaited.
CBDT panel for amnesty scheme to bring back black money
December 28, 2011 08:37 AM |
Moneylife Digital Team
The committee on black money, headed by the CBDT chairman, which met last week, considered among other suggestions, an Offshore Voluntary Compliance scheme on the lines of the one operated by the Internal Revenue Service in the United States
New Delhi: The government may announce an amnesty scheme for citizens having unaccounted wealth abroad and also permit taxmen to dig into income tax filings of past 16 years of suspected assesses, based on the suggestions made by a high-powered panel, reports PTI.
The committee on black money, headed by the CBDT chairman, which met last week, considered among other suggestions, an Offshore Voluntary Compliance scheme on the lines of the one operated by the Internal Revenue Service in the United States.
“We have suggested that an Offshore Voluntary Compliance scheme be brought in like in the US, whereby a person declares money kept in foreign accounts and pays the penalty on it, after which the money can be brought back into the country,” a top finance ministry official told PTI.
“We have also recommended increasing the review period of re-opening tax assessments to 16 years from six years now, but that may be only for money stashed abroad,” the official said.
Besides, the committee, which is slated to submit its report to the finance minister by 31January 2012, could also recommend changes in current laws to curb generation of black money within the country.
“A lot of black money is generated out of activities under the state’s control, like illegal mining, land deals, building construction, and in awarding contracts. We will suggest some changes in current law to tackle this menace,” the official said.
Under the Offshore Voluntary Compliance scheme, eligible taxpayers in the US who step forward do not face civil fraud and information return penalties. However, they still have to pay back taxes, interest and certain accuracy or delinquency penalties.
They can also escape criminal prosecution based on application of the revised voluntary disclosure practice.
Under the scheme in the US, eligible taxpayers have to file or amend their returns and pay interest and certain civil penalties, as well as the tax.
The interest and penalties depend on the amount of the unpaid tax liability, the years involved, whether a return was inaccurate or if a return should have been filed and was not.
Apart from the US, countries including the UK, Germany, France, Greece, Italy and Portugal also have similar voluntary disclosure schemes.
December 28, 2011 08:37 AM |
Moneylife Digital Team
The committee on black money, headed by the CBDT chairman, which met last week, considered among other suggestions, an Offshore Voluntary Compliance scheme on the lines of the one operated by the Internal Revenue Service in the United States
New Delhi: The government may announce an amnesty scheme for citizens having unaccounted wealth abroad and also permit taxmen to dig into income tax filings of past 16 years of suspected assesses, based on the suggestions made by a high-powered panel, reports PTI.
The committee on black money, headed by the CBDT chairman, which met last week, considered among other suggestions, an Offshore Voluntary Compliance scheme on the lines of the one operated by the Internal Revenue Service in the United States.
“We have suggested that an Offshore Voluntary Compliance scheme be brought in like in the US, whereby a person declares money kept in foreign accounts and pays the penalty on it, after which the money can be brought back into the country,” a top finance ministry official told PTI.
“We have also recommended increasing the review period of re-opening tax assessments to 16 years from six years now, but that may be only for money stashed abroad,” the official said.
Besides, the committee, which is slated to submit its report to the finance minister by 31January 2012, could also recommend changes in current laws to curb generation of black money within the country.
“A lot of black money is generated out of activities under the state’s control, like illegal mining, land deals, building construction, and in awarding contracts. We will suggest some changes in current law to tackle this menace,” the official said.
Under the Offshore Voluntary Compliance scheme, eligible taxpayers in the US who step forward do not face civil fraud and information return penalties. However, they still have to pay back taxes, interest and certain accuracy or delinquency penalties.
They can also escape criminal prosecution based on application of the revised voluntary disclosure practice.
Under the scheme in the US, eligible taxpayers have to file or amend their returns and pay interest and certain civil penalties, as well as the tax.
The interest and penalties depend on the amount of the unpaid tax liability, the years involved, whether a return was inaccurate or if a return should have been filed and was not.
Apart from the US, countries including the UK, Germany, France, Greece, Italy and Portugal also have similar voluntary disclosure schemes.
Income Tax Department Directed to Launch Special Drive for Verifying High Value Transactions
The Central Board of Direct Taxes has directed the Income Tax department to launch a special drive, from 20th January to 20th March 2012, for verifying high value transactions (investments / deposits / expenditure) from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions.
In an instruction issued today, the CBDT issued proforma for query letters and responses to be issued to the high value investors / depositors / spenders.
Addressees will be required to furnish their PAN if they already have one, or apply immediately for PAN to NSDL / UTIISL if they do not have one. They will also be required to explain the source of the high value investments / deposits / expenditure, and whether these are properly accounted for / explained in the income tax return filed by them.
Persons who have not properly accounted for the high value transactions, are required to pay due taxes and file the income tax return within this financial year, i.e. by 31st March, 2012.
For furnishing the information called for, visit to the tax office is not necessary. Information can be sent by speed / registered post.
In some cases, the tax officials may also visit the premises of the high value investors / depositors / spenders. In such cases, the taxpayer should verify the identity of the tax official before furnishing information in the prescribed proforma. In case of any grievance or complaint, taxpayer may contact the assessing officer or the additional / joint commissioner or the commissioner concerned. The visiting tax official is required to furnish the telephone numbers of his supervisory officers.
There are penal consequences of not obtaining PAN or reporting it. For not paying proper taxes, there can be penalty up to 300% of the unpaid tax, and also prosecution in some cases.
DSM/SS/GN
(Release ID :79684)
The Central Board of Direct Taxes has directed the Income Tax department to launch a special drive, from 20th January to 20th March 2012, for verifying high value transactions (investments / deposits / expenditure) from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions.
In an instruction issued today, the CBDT issued proforma for query letters and responses to be issued to the high value investors / depositors / spenders.
Addressees will be required to furnish their PAN if they already have one, or apply immediately for PAN to NSDL / UTIISL if they do not have one. They will also be required to explain the source of the high value investments / deposits / expenditure, and whether these are properly accounted for / explained in the income tax return filed by them.
Persons who have not properly accounted for the high value transactions, are required to pay due taxes and file the income tax return within this financial year, i.e. by 31st March, 2012.
For furnishing the information called for, visit to the tax office is not necessary. Information can be sent by speed / registered post.
In some cases, the tax officials may also visit the premises of the high value investors / depositors / spenders. In such cases, the taxpayer should verify the identity of the tax official before furnishing information in the prescribed proforma. In case of any grievance or complaint, taxpayer may contact the assessing officer or the additional / joint commissioner or the commissioner concerned. The visiting tax official is required to furnish the telephone numbers of his supervisory officers.
There are penal consequences of not obtaining PAN or reporting it. For not paying proper taxes, there can be penalty up to 300% of the unpaid tax, and also prosecution in some cases.
DSM/SS/GN
(Release ID :79684)
Subscribe to:
Posts (Atom)