If you plan to move your savings to a bank account out of the UK, think again. The UK's Labour government may be mulling to impose an exit tax on Wealthy investors who decide to move their funds out of the country.

UK: Moving money out of UK to incur high taxation

Reports suggest the ultra-rich are fleeing to tax havens while the middle and lower classes are left shouldering the burden of soaring taxes and inflation fueled by reckless government policies. Are governments preoccupied with conflicts and pandering to the wealthy and abandoning the people they should protect?

Rich flee high taxes, middle class foots the bill

Former United States president and presumptive Republican nominee&nbsp;Donald Trump, while addressing a Las Vegas campaign rally amid sweltering heat on Sunday (June 9), said to the crowd that he will end taxation of income from tips.

This vow of ending taxation seemed to be a direct appeal to the service workers in the state of Nevada which apparently, seems to already be leaning in favour of the Republican leader.&nbsp;

With this announcement, Trump added another point to his vague tax plan which has so far included tax relief to small businesses and middle-income workers. As per the current law, the tipped employees needed to report those tips as income.

Also Read:&nbsp;<a href="https://www.wionews.com/world/trump-begins-digging-deeper-to-choose-his-possible-2024-vp-729308">Trump begins digging deeper to choose his possible 2024 running mate. Who are in fray?</a>

“So this is the first time I’ve said this, and for those hotel workers and people that get tips, you’re going to be very happy because when I get to office, we are going to not charge taxes on tips people [are] making,” said the former president, while addressing thousands of those who had gathered in&nbsp;Nevada.

Trump added that he would “do that right away, first thing in office”, and emphasised in prepared remarks that he will seek legislation in Congress for making the change.

“You do a great job of service, you take care of people and I think it’s going to be something that really is deserved," he added.

<h2>Trump&nbsp;appears irritated at teleprompters not working, says 'sweating like a dog'&nbsp;</h2>

During the rally, Trump appeared irritated as he complained that the teleprompters were not working.

In the campaign rally, extra medics were hired, fans and water bottles were loaded and supporters were allowed to carry umbrellas during the outdoor rally as temperatures soared above 100 degrees Fahrenheit (37.8 degrees Celsius).&nbsp;

Watch:&nbsp;US Elections: Presidential candidate Donald Trump back on campaign trail

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/us-elections-presidential-candidate-donald-trump-back-on-campaign-trail-729732/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

“I don’t want anybody going on me. We need every voter. I don’t care about you. I just want your vote,” Trump said, and later added that he was joking. &nbsp;

“They never mentioned me. I’m up here sweating like a dog. This is hard work," the former president said.

Trump came back to&nbsp;Nevada, which is one of the top battleground states in the November election, days after he was found guilty&nbsp;in a hush-money scandal.

(With inputs from agencies)&nbsp;

Former United States president and presumptive Republican nominee Donald Trump, while addressing a Las Vegas campaign rally amid sweltering heat on Sunday (June 9), said to the crowd that he will end taxation of income from tips.

Former United States president and presumptive Republican nominee Donald Trump, while addressing a Las Vegas campaign rally amid sweltering heat on Sunday (June 9), said to the crowd that he will end taxation of income from tips. This vow of ending taxation seemed to be a direct appeal to the service workers in the state of Nevada which apparently, seems to already be leaning in favour of the Republican leader. With this announcement, Trump added another point to his vague tax plan which has so far included tax relief to small businesses and middle-income workers. As per the current law, the tipped employees needed to report those tips as income. Also Read: Trump begins digging deeper to choose his possible 2024 running mate. Who are in fray? “So this is the first time I’ve said this, and for those hotel workers and people that get tips, you’re going to be very happy because when I get to office, we are going to not charge taxes on tips people [are] making,” said the former president, while addressing thousands of those who had gathered in Nevada. Trump added that he would “do that right away, first thing in office”, and emphasised in prepared remarks that he will seek legislation in Congress for making the change. “You do a great job of service, you take care of people and I think it’s going to be something that really is deserved," he added. Trump appears irritated at teleprompters not working, says 'sweating like a dog' During the rally, Trump appeared irritated as he complained that the teleprompters were not working. In the campaign rally, extra medics were hired, fans and water bottles were loaded and supporters were allowed to carry umbrellas during the outdoor rally as temperatures soared above 100 degrees Fahrenheit (37.8 degrees Celsius). Watch: US Elections: Presidential candidate Donald Trump back on campaign trail “I don’t want anybody going on me. We need every voter. I don’t care about you. I just want your vote,” Trump said, and later added that he was joking. “They never mentioned me. I’m up here sweating like a dog. This is hard work," the former president said. Trump came back to Nevada, which is one of the top battleground states in the November election, days after he was found guilty in a hush-money scandal. (With inputs from agencies)

'I don't care about you,' Trump 'jokes' as he promises to axe taxation on tips in Vegas

India&nbsp;will not impose a countervailing duty (CVD) on select steel products imported from China despite a recommendation from trade officials and lobbying from local steel manufacturers, a government source told Reuters.

In a rare move, the ministry is to&nbsp;reject&nbsp;the recommendation by the Directorate General of Trade Remedies (DGTR) to impose 18.95% CVD on certain flat-rolled steel products imported from China for five years, the finance ministry official directly involved in the matter, told Reuters.

The decision by the finance ministry aims to protect steel-consuming firms from higher prices even though it could hurt local steel manufacturers, the source said.

"Imposing CVD protects manufacturers, but users end up paying a higher cost," said the official, who did not want to be named because a final decision has not been made public. "So you have to balance the interest between users and manufacturers."

CVDs are additional taxes imposed on imported goods or products that are subsidised in their home country thus hurting the industries in the country importing them.

As per World Trade Organisation rules, a member country is allowed to impose an&nbsp;anti-subsidy&nbsp;duty if a product is subsidised by the government of its trading partner.

CVD by&nbsp;India&nbsp;on such Chinese products was removed on February last year and over 170&nbsp;Indian steel companies including Jindal Stainless Ltd and Steel Authority of&nbsp;India&nbsp;have backed a petition to re-impose CVD for another five years, as per the DGTR report.

In April DGTR - which is&nbsp;India's trade ministry's arm that investigates unfair trade practices - recommended CVD on some stainless steel flat products.

The finance ministry has&nbsp;rejected the recommendation despite steel purchases from China touching a six-year high in the April-May period, with imports rising 62%.

The official said that imposing CVD would have hurt small and medium-consuming companies while benefiting a few large conglomerates at a time when the economic recovery in&nbsp;India&nbsp;was rapid but uneven.

The decision will further help Chinese shipments at a time when Asia's largest economy is poised to export the most steel this year since 2016, as it was already benefiting from a weakening yuan and competitive prices, amid weak demand at home.

India's finance and trade ministry did not immediately reply to emails sent after office hours.

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" loading="”lazy”" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

India will not impose a countervailing duty (CVD) on select steel products imported from China despite a recommendation from trade officials and lobbying from local steel manufacturers, a government source told Reuters.

India will not impose a countervailing duty (CVD) on select steel products imported from China despite a recommendation from trade officials and lobbying from local steel manufacturers, a government source told Reuters. In a rare move, the ministry is to reject the recommendation by the Directorate General of Trade Remedies (DGTR) to impose 18.95% CVD on certain flat-rolled steel products imported from China for five years, the finance ministry official directly involved in the matter, told Reuters. The decision by the finance ministry aims to protect steel-consuming firms from higher prices even though it could hurt local steel manufacturers, the source said. "Imposing CVD protects manufacturers, but users end up paying a higher cost," said the official, who did not want to be named because a final decision has not been made public. "So you have to balance the interest between users and manufacturers." CVDs are additional taxes imposed on imported goods or products that are subsidised in their home country thus hurting the industries in the country importing them. As per World Trade Organisation rules, a member country is allowed to impose an anti-subsidy duty if a product is subsidised by the government of its trading partner. CVD by India on such Chinese products was removed on February last year and over 170 Indian steel companies including Jindal Stainless Ltd and Steel Authority of India have backed a petition to re-impose CVD for another five years, as per the DGTR report. In April DGTR - which is India's trade ministry's arm that investigates unfair trade practices - recommended CVD on some stainless steel flat products. The finance ministry has rejected the recommendation despite steel purchases from China touching a six-year high in the April-May period, with imports rising 62%. The official said that imposing CVD would have hurt small and medium-consuming companies while benefiting a few large conglomerates at a time when the economic recovery in India was rapid but uneven. The decision will further help Chinese shipments at a time when Asia's largest economy is poised to export the most steel this year since 2016, as it was already benefiting from a weakening yuan and competitive prices, amid weak demand at home. India's finance and trade ministry did not immediately reply to emails sent after office hours. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India to reject call for anti-subsidy tax on certain Chinese steel products

An internal inquiry has been launched into how the tax affairs of Akshata Murty, daughter of Infosys co-founder Narayana Murthy, were leaked to a newspaper, according to UK media reports on Sunday.

The Whitehall investigation within UK government quarters will look into how the information about the non-domicile status of the wife of Chancellor Rishi Sunak was passed on to 'The Independent' newspaper, which first published the story earlier this week.

According to The Sunday Times', Sunak's team believes an Opposition Labour Party supporting government official dubbed "red throat" is responsible for the leak.

Also read |&nbsp;<a href="https://www.wionews.com/world/top-members-of-conservative-party-dash-rishi-sunaks-hopes-of-becoming-british-prime-minister-469883">Top members of Conservative Party dash Rishi Sunak's hopes of becoming British prime minister: Report</a>

There's going to be a full Cabinet Office and HM Treasury investigation into who had that information and if anyone has requested that information. Divulging the tax status of a private individual is a criminal offence,? the paper quoted an unnamed senior government official as saying.

The revelation that the Chancellor's wife, who is an Indian national, was "non-domiciled" in the UK for tax purposes meant she was not legally bound to pay taxes on her overseas earnings.

This led to allegations of hypocrisy from the Opposition benches, pointing to recent tax rises imposed by the Indian-origin finance minister. The Labour Party accused his family of potentially saving millions as a result of Murty's tax arrangement.

On Friday, Akshata announced that she would pay tax in the UK on all her income in order to avoid the issue being a continued distraction&nbsp;for her husband.

Watch |&nbsp;Rishi Sunak's wife Akshata Murty claims non-domicile status

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/rishi-sunaks-wife-akshata-murty-claims-non-domicile-status-469158/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

My decision to pay UK tax on all my worldwide income will not change the fact that India remains the country of my birth, citizenship, parents' home and place of domicile. But I love the UK too, Murty said in a Twitter statement on Saturday.

It comes as a new opinion poll by Opinium shows Sunak's approval rating dropped by three points to 28 per cent since late March and his disapproval rating has risen by eight points to 43 per cent.

This reflects the damage to his prospects as a future leader of the Conservative Party and a key candidate tipped to succeed Boris Johnson as Prime Minister.

Meanwhile,The Sun' reports that Johnson gave his finance minister and neighbour at 11 Downing Street a pep talk over the weekend and convinced him against resigning over the tax storm.

Also read |&nbsp;<a href="https://www.wionews.com/world/uk-finance-minister-under-new-attack-despite-wifes-tax-u-turn-469704">UK finance minister under new attack despite wife's tax U-turn</a>

Sunak's team told the newspaper that the prime minister has been super supportive of the Cabinet minister.

He was considering whether he could withstand his family taking this any more, one of them was quoted as saying.

Within his own Tory party, many are now questioning Sunak's judgment and a Cabinet minister who admires him was quoted as saying: This might well make him walk away.

An internal inquiry has been launched into how the tax affairs of Akshata Murty, daughter of Infosys co-founder Narayana Murthy, were leaked to a newspaper, according to UK media reports on Sunday.

An internal inquiry has been launched into how the tax affairs of Akshata Murty, daughter of Infosys co-founder Narayana Murthy, were leaked to a newspaper, according to UK media reports on Sunday. The Whitehall investigation within UK government quarters will look into how the information about the non-domicile status of the wife of Chancellor Rishi Sunak was passed on to 'The Independent' newspaper, which first published the story earlier this week. According to The Sunday Times', Sunak's team believes an Opposition Labour Party supporting government official dubbed "red throat" is responsible for the leak. Also read | Top members of Conservative Party dash Rishi Sunak's hopes of becoming British prime minister: Report There's going to be a full Cabinet Office and HM Treasury investigation into who had that information and if anyone has requested that information. Divulging the tax status of a private individual is a criminal offence,? the paper quoted an unnamed senior government official as saying. The revelation that the Chancellor's wife, who is an Indian national, was "non-domiciled" in the UK for tax purposes meant she was not legally bound to pay taxes on her overseas earnings. This led to allegations of hypocrisy from the Opposition benches, pointing to recent tax rises imposed by the Indian-origin finance minister. The Labour Party accused his family of potentially saving millions as a result of Murty's tax arrangement. On Friday, Akshata announced that she would pay tax in the UK on all her income in order to avoid the issue being a continued distraction for her husband. Watch | Rishi Sunak's wife Akshata Murty claims non-domicile status My decision to pay UK tax on all my worldwide income will not change the fact that India remains the country of my birth, citizenship, parents' home and place of domicile. But I love the UK too, Murty said in a Twitter statement on Saturday. It comes as a new opinion poll by Opinium shows Sunak's approval rating dropped by three points to 28 per cent since late March and his disapproval rating has risen by eight points to 43 per cent. This reflects the damage to his prospects as a future leader of the Conservative Party and a key candidate tipped to succeed Boris Johnson as Prime Minister. Meanwhile,The Sun' reports that Johnson gave his finance minister and neighbour at 11 Downing Street a pep talk over the weekend and convinced him against resigning over the tax storm. Also read | UK finance minister under new attack despite wife's tax U-turn Sunak's team told the newspaper that the prime minister has been super supportive of the Cabinet minister. He was considering whether he could withstand his family taking this any more, one of them was quoted as saying. Within his own Tory party, many are now questioning Sunak's judgment and a Cabinet minister who admires him was quoted as saying: This might well make him walk away.

UK inquiry launched into Akshata Murty's tax affairs leak

Britain's embattled&nbsp;finance&nbsp;minister&nbsp;Rishi Sunak stood accused Saturday of political hypocrisy as&nbsp;new&nbsp;questions emerged over offshore&nbsp;tax&nbsp;havens reportedly held by his Indian&nbsp;wife.

Sunak was also criticised for a lack of transparency, after he admitted to holding a "Green Card" for US permanent residents until last year.

Sunak's wealthy&nbsp;wife&nbsp;Akshata Murty said she would start paying&nbsp;UK&nbsp;tax&nbsp;on "all worldwide income", in a bid to defuse a controversy that has further imperilled his waning political fortunes.

Also read |&nbsp;<a href="https://www.wionews.com/world/british-finance-minister-rishi-sunaks-wife-agrees-to-pay-more-tax-on-foreign-income-469592">British finance minister Rishi Sunak's wife agrees to pay more tax on foreign income</a>

But Labour frontbench MP Louise Haigh told BBC radio that Sunak had "come out on a number of occasions to try and muddy the waters" around his family's&nbsp;tax&nbsp;affairs.

She conceded that the "non-domicile" status enjoyed by Murty -- shielding the overseas income from her family's company Infosys against&nbsp;UK&nbsp;taxes -- was legal.&nbsp;

But Haigh queried "whether it was right that the chancellor of the exchequer, whilst piling on 15 separate&nbsp;tax&nbsp;rises to the British public, was benefiting from a&nbsp;tax&nbsp;scheme that allowed his household to pay significantly less to the tune of potentially tens of millions of pounds."

The Independent newspaper reported that Sunak was listed as the beneficiary of trusts set up in the British Virgin Islands and Cayman Islands to help manage his&nbsp;wife's&nbsp;tax&nbsp;and business affairs.

Sunak was listed in 2020, after he became chancellor and after a prior stint as chief secretary to the Treasury, the newspaper said.

"No-one in Akshata's family is aware of this alleged trust," a spokeswoman close to the Sunak family said in response.

Watch |&nbsp;Gravitas: Rishi Sunak grilled over alleged Russia link

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-rishi-sunak-grilled-over-alleged-russia-link-465573/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

As chancellor, Sunak oversaw a huge programme of government spending during the coronavirus pandemic, but is now tightening the belt just as Britons face the worst cost-of-living crisis in generations.

Once a leading contender to succeed Prime&nbsp;Minister&nbsp;Boris Johnson, Sunak has seen his popularity plummet in recent weeks as a result, and has accused critics of mounting a "smear" campaign against his&nbsp;wife.

Allies of the&nbsp;finance&nbsp;minister&nbsp;have told newspapers that Johnson's office is waging a political hit job.

They said the prime&nbsp;minister&nbsp;believed Sunak had not backed him strongly enough during an ongoing scandal into Downing Street lockdown parties.

Johnson on Friday denied knowledge of any briefing operation against Sunak, and told reporters that his chancellor was doing an "absolutely outstanding job".

The White House meanwhile declined to comment about Sunak's Green Card, which the&nbsp;minister&nbsp;said he only gave up ahead of his first visit to the United States as chancellor in October last year.

Also read |&nbsp;<a href="https://www.wionews.com/world/uk-finance-minister-rishi-sunak-faces-fire-over-wife-akshata-murthys-non-domicile-tax-status-469148">UK Finance Minister Rishi Sunak faces fire over wife Akshata Murthy's non-domicile tax status</a>

Under&nbsp;US law, possession of the card meant that Sunak intended to live in America and pay US taxes,&nbsp;despite&nbsp;serving as Britain's second-most powerful politician.

Sunak and Murty met as students in the United States and they married in 2009. She is the daughter of Indian billionaire N. R. Narayana Murthy, co-founder of the IT giant Infosys.

Britain's embattled finance minister Rishi Sunak stood accused Saturday of political hypocrisy as new questions emerged over offshore tax havens reportedly held by his Indian wife.

Britain's embattled finance minister Rishi Sunak stood accused Saturday of political hypocrisy as new questions emerged over offshore tax havens reportedly held by his Indian wife. Sunak was also criticised for a lack of transparency, after he admitted to holding a "Green Card" for US permanent residents until last year. Sunak's wealthy wife Akshata Murty said she would start paying UK tax on "all worldwide income", in a bid to defuse a controversy that has further imperilled his waning political fortunes. Also read | British finance minister Rishi Sunak's wife agrees to pay more tax on foreign income But Labour frontbench MP Louise Haigh told BBC radio that Sunak had "come out on a number of occasions to try and muddy the waters" around his family's tax affairs. She conceded that the "non-domicile" status enjoyed by Murty -- shielding the overseas income from her family's company Infosys against UK taxes -- was legal. But Haigh queried "whether it was right that the chancellor of the exchequer, whilst piling on 15 separate tax rises to the British public, was benefiting from a tax scheme that allowed his household to pay significantly less to the tune of potentially tens of millions of pounds." The Independent newspaper reported that Sunak was listed as the beneficiary of trusts set up in the British Virgin Islands and Cayman Islands to help manage his wife's tax and business affairs. Sunak was listed in 2020, after he became chancellor and after a prior stint as chief secretary to the Treasury, the newspaper said. "No-one in Akshata's family is aware of this alleged trust," a spokeswoman close to the Sunak family said in response. Watch | Gravitas: Rishi Sunak grilled over alleged Russia link As chancellor, Sunak oversaw a huge programme of government spending during the coronavirus pandemic, but is now tightening the belt just as Britons face the worst cost-of-living crisis in generations. Once a leading contender to succeed Prime Minister Boris Johnson, Sunak has seen his popularity plummet in recent weeks as a result, and has accused critics of mounting a "smear" campaign against his wife. Allies of the finance minister have told newspapers that Johnson's office is waging a political hit job. They said the prime minister believed Sunak had not backed him strongly enough during an ongoing scandal into Downing Street lockdown parties. Johnson on Friday denied knowledge of any briefing operation against Sunak, and told reporters that his chancellor was doing an "absolutely outstanding job". The White House meanwhile declined to comment about Sunak's Green Card, which the minister said he only gave up ahead of his first visit to the United States as chancellor in October last year. Also read | UK Finance Minister Rishi Sunak faces fire over wife Akshata Murthy's non-domicile tax status Under US law, possession of the card meant that Sunak intended to live in America and pay US taxes, despite serving as Britain's second-most powerful politician. Sunak and Murty met as students in the United States and they married in 2009. She is the daughter of Indian billionaire N. R. Narayana Murthy, co-founder of the IT giant Infosys.

UK finance minister under new attack despite wife's tax U-turn

The bull run continued in the Indian stock markets for most of the last year. Stock options and IPOs were a dominant theme in 2021. Today we are going to discuss what the markets are expected to do in 2022, Will the market investors be taxed more in the upcoming budget or will they be given relief.

India's Budget 2022 with Gautam Chikermane: Taxation, investments and stock markets

Prime Minister Narendra Modi will launch the platform for "Transparent Taxation - Honoring the Honest" via video conferencing on August 13, 2020. 
 
The Central Board of Direct Taxes (CBDT) has carried out several major tax reforms in direct taxes in recent years. Last year, the Corporate Tax rates were reduced from 30 per cent to 22 per cent and for new manufacturing units, the rates were reduced to 15 per cent. 
 
Dividend distribution tax was also abolished.The focus of the tax reforms has been on reduction in tax rates and on simplification of direct tax laws.Several initiatives have been taken by the CBDT for bringing in efficiency and transparency in the functioning of the IT Department.

Also read:&nbsp;<a href="/india-news/all-those-who-came-in-contact-with-infected-person-should-be-traced-and-tested-within-72-hours-pm-modi-319756" hreflang="en">All those who came in contact with infected person should be traced and tested within 72 hours: PM Modi</a> 
 
This includes bringing more transparency in official communication through the newly introduced Document Identification Number (DIN) wherein every communication of the Department would carry a computer generated unique document identification number.Similarly, to increase the ease of compliance for taxpayers, IT Department has moved forward with prefilling of income tax returns to make compliance more convenient for individual taxpayers. 
 
Compliance norms for startups have also been simplified.With a view to provide for resolution of pending tax disputes the IT Department also brought out the Direct Tax "Vivad se Vishwas Act, 2020" under which declarations for settling disputes are being filed currently. 
 
To effectively reduce taxpayer grievances / litigation, the monetary thresholds for filing of departmental appeals in various appellate Courts have been raised.Several measures have been taken to promote digital transactions and electronic modes of payment. 
 
The IT department is committed to take the initiatives forward and has also made efforts to ease compliances for taxpayers during the Covid times by extending statutory timeliness for filing returns as also releasing refunds expeditiously to increase liquidity in the hands of taxpayers.

Also read:&nbsp;<a href="/india-news/covid-19-situation-in-india-pm-modi-holds-meet-with-chief-ministers-of-10-states-319681" hreflang="en">COVID-19 situation in India: PM Modi holds meet with chief ministers of 10 states</a> 
 
The upcoming launch of the platform for " Transparent Taxation - Honoring the Honest " by the Prime Minister will further carry forward the journey of direct tax reforms. 
 
The event will be witnessed by various Chambers of Commerce, Trade Associations, Chartered Accountants` associations and also eminent taxpayers, apart from the officers and officials of Income Tax Department. 
 
Union Minister of Finance and Corporate Affairs Nirmala Sitharaman and Minister of State for Finance and Corporate Affairs Anurag Singh Thakur will also present on the occasion.&nbsp;

Prime Minister Narendra Modi will launch the platform for "Transparent Taxation - Honoring the Honest" via video conferencing on August 13, 2020. The Central Board of Direct Taxes (CBDT) has carried out several major tax reforms in direct taxes in recent years.

Prime Minister Narendra Modi will launch the platform for "Transparent Taxation - Honoring the Honest" via video conferencing on August 13, 2020. The Central Board of Direct Taxes (CBDT) has carried out several major tax reforms in direct taxes in recent years. Last year, the Corporate Tax rates were reduced from 30 per cent to 22 per cent and for new manufacturing units, the rates were reduced to 15 per cent. Dividend distribution tax was also abolished.The focus of the tax reforms has been on reduction in tax rates and on simplification of direct tax laws.Several initiatives have been taken by the CBDT for bringing in efficiency and transparency in the functioning of the IT Department. Also read: All those who came in contact with infected person should be traced and tested within 72 hours: PM Modi This includes bringing more transparency in official communication through the newly introduced Document Identification Number (DIN) wherein every communication of the Department would carry a computer generated unique document identification number.Similarly, to increase the ease of compliance for taxpayers, IT Department has moved forward with prefilling of income tax returns to make compliance more convenient for individual taxpayers. Compliance norms for startups have also been simplified.With a view to provide for resolution of pending tax disputes the IT Department also brought out the Direct Tax "Vivad se Vishwas Act, 2020" under which declarations for settling disputes are being filed currently. To effectively reduce taxpayer grievances / litigation, the monetary thresholds for filing of departmental appeals in various appellate Courts have been raised.Several measures have been taken to promote digital transactions and electronic modes of payment. The IT department is committed to take the initiatives forward and has also made efforts to ease compliances for taxpayers during the Covid times by extending statutory timeliness for filing returns as also releasing refunds expeditiously to increase liquidity in the hands of taxpayers. Also read: COVID-19 situation in India: PM Modi holds meet with chief ministers of 10 states The upcoming launch of the platform for " Transparent Taxation - Honoring the Honest " by the Prime Minister will further carry forward the journey of direct tax reforms. The event will be witnessed by various Chambers of Commerce, Trade Associations, Chartered Accountants` associations and also eminent taxpayers, apart from the officers and officials of Income Tax Department. Union Minister of Finance and Corporate Affairs Nirmala Sitharaman and Minister of State for Finance and Corporate Affairs Anurag Singh Thakur will also present on the occasion.

PM Modi to launch platform for 'Transparent Taxation' on August 13

The Union Finance Minister Nirmala Sitharaman on Tuesday (March 24) said that last date for the income tax return for the financial year 18-19 has been extended to June 30, 2020. The finance minister also extended Aadhar-PAN linking date.

Indian Finance Minister extends deadlines to provide relief

Traders and shopkeepers across the illegally-occupied regions in Pakistan occupied Kashmir (PoK) and Gilgit-Baltistan continue to hold a shutter-down strike against unfair taxation policies of the Pakistani government. 
 
They said that they reject the taxation policies introduced in the federal budget by the Pakistan government which negatively impacts businesses in PoK. 
 
Another major irritant for them is the cumbersome procedure requiring anyone buying items worth 50,000 Pakistani rupees or more to produce identity papers. 
 
Shaukat Nawaz Mir, Secretary of Traders Association in Muzaffarabad city, said: "This shutter down strike is being observed here against the Federal Board of Revenue (FBR), Pakistan income tax policy 2019. We do not accept these unjust policies. Currently, FBR and income tax officials are blackmailing traders, misguiding them and taking bribes from them". 
 
Pakistan had secured a provisional 6-billion-dollar IMF loan in April. It was followed by a sharp hike in tax revenues amid spiralling inflation. 
 
The ongoing economic crisis has badly affected people in the region, who lack access to water, electricity and even the most basic requirements. 
 
"The department (Pakistan administration) is suppressing us. They are depriving our children from their own waters (Neelum and Jhelum rivers), shouldn't we protest? Why should we sacrifice our resources? We are getting electricity at a much higher price (compared to Pakistan); we have to face load-shedding all the time. It is enough. We have to first look at our rights and our children's rights," Nawaz Mir further said. 
 
The new taxation policies imposed by Islamabad are causing resentment in Gilgit-Baltistan as well. 
 
The business community is on strike and demands the abolition of the CNIC (Computerized National Identity Card). The other demands include the restoration of the 1.2 million rupees income limit for income tax, the announcement of fixed tax scheme for traders, and problems created by Pakistan Telecommunication Authority for registration of mobile phones. 
 
"Today we are observing a shutter down strike all across Gilgit-Baltistan. We are protesting against the new tax policies implemented by the FBR. The unjust taxes have put the businessmen in a difficult situation. Taxes on business directly affect the public and the small traders," said a local trader in Gilgit. 
 
Another trader said,&nbsp;"There can be no implementation of taxes in Gilgit-Baltistan, they have already been abolished. We condemn this and will continue to protest against it. Gilgit is an illegally occupied territory (by Pakistan); in Jammu and Kashmir, many subsidies are given to the people. If they continue to impose taxes, we will hold even bigger protests". 
 
People in Gilgit-Baltistan and PoK are finding it hard to make ends meet as unfair taxation by Pakistan administration has badly affected their small businesses. 
Under these circumstances, the disgruntled local traders and the people could launch a massive protest against Islamabad in the coming days.

Traders and shopkeepers across the illegally-occupied regions in Pakistan occupied Kashmir (PoK) and Gilgit-Baltistan continue to hold a shutter-down strike against unfair taxation policies of the Pakistani government.

Traders and shopkeepers across the illegally-occupied regions in Pakistan occupied Kashmir (PoK) and Gilgit-Baltistan continue to hold a shutter-down strike against unfair taxation policies of the Pakistani government. They said that they reject the taxation policies introduced in the federal budget by the Pakistan government which negatively impacts businesses in PoK. Another major irritant for them is the cumbersome procedure requiring anyone buying items worth 50,000 Pakistani rupees or more to produce identity papers. Shaukat Nawaz Mir, Secretary of Traders Association in Muzaffarabad city, said: "This shutter down strike is being observed here against the Federal Board of Revenue (FBR), Pakistan income tax policy 2019. We do not accept these unjust policies. Currently, FBR and income tax officials are blackmailing traders, misguiding them and taking bribes from them". Pakistan had secured a provisional 6-billion-dollar IMF loan in April. It was followed by a sharp hike in tax revenues amid spiralling inflation. The ongoing economic crisis has badly affected people in the region, who lack access to water, electricity and even the most basic requirements. "The department (Pakistan administration) is suppressing us. They are depriving our children from their own waters (Neelum and Jhelum rivers), shouldn't we protest? Why should we sacrifice our resources? We are getting electricity at a much higher price (compared to Pakistan); we have to face load-shedding all the time. It is enough. We have to first look at our rights and our children's rights," Nawaz Mir further said. The new taxation policies imposed by Islamabad are causing resentment in Gilgit-Baltistan as well. The business community is on strike and demands the abolition of the CNIC (Computerized National Identity Card). The other demands include the restoration of the 1.2 million rupees income limit for income tax, the announcement of fixed tax scheme for traders, and problems created by Pakistan Telecommunication Authority for registration of mobile phones. "Today we are observing a shutter down strike all across Gilgit-Baltistan. We are protesting against the new tax policies implemented by the FBR. The unjust taxes have put the businessmen in a difficult situation. Taxes on business directly affect the public and the small traders," said a local trader in Gilgit. Another trader said, "There can be no implementation of taxes in Gilgit-Baltistan, they have already been abolished. We condemn this and will continue to protest against it. Gilgit is an illegally occupied territory (by Pakistan); in Jammu and Kashmir, many subsidies are given to the people. If they continue to impose taxes, we will hold even bigger protests". People in Gilgit-Baltistan and PoK are finding it hard to make ends meet as unfair taxation by Pakistan administration has badly affected their small businesses. Under these circumstances, the disgruntled local traders and the people could launch a massive protest against Islamabad in the coming days.

Traders in PoK, Gilgit-Baltistan conduct shutter-down protest against unfair taxation policies

Anti government protests sweep Lebanon amid economic emergency

From invoking the divinity to tinge of poetry, Finance Minister Nirmala Sitharaman's maiden Budget speech on Friday was interspersed with couplets and quotes.

Speaking in the Lok Sabha, Sitharaman quoted Urdu poet Manzoor Hashmi, Chankaya, Swami Vivekananda and Lord Basaveshwara`s couplets and teachings in the House.

Starting her maiden Budget speech, she recited a Hashmi`s couplet, "Yakeen ho toh koi rasta nikalta hai, hawa ki to kar bhi chiraag jalta hai" (You find ways somehow if you have faith. The lamp burns bright even in gushing wind).

Her speech was received with appreciation by lawmakers.

Affirming faith in the budget, Sitharaman also quoted Chanakya`s Neeti saying, "Kaarya purusha kare na lakshyam sampa dayate" (With determined human efforts, the task will surely be completed).

She made the reference while speaking of India`s target of becoming a $5 trillion economy in the next few years. She added that people wonder and doubt if the goal can be achieved.&nbsp;

Giving stress on the significance of women empowerment, the Minister quoted Swami Vivekananda, "There is no chance of the welfare of the world unless the condition of women is improved. It is not possible for a bird to fly on one wing."

She invoked 12th-century social reformer and thinker Lord Basaveshwara`s principles and said, "Our government recognizes and follows the teachings of Lord Basaveshwara who preached `Kayakave Kailasa" (work is worship).

Lord Basaveshwara was the one who first established the concept of `Kalyana Rajya` (welfare state).

While speaking of taxation, Sitharaman also quoted Sangam-era Tamil classic `Yaanai Pugundha Nilam` written by Pisirandhayar in Purananooru.

What the minister said in Tamil translates to, " An elephant will be happy to have two mounds of rice from a paddy field. But if it enters the land, it will have far less to eat than it will trample."

"This is the principle we will follow in taxation. We will be happy to collect only that much taxes that is necessary from the taxpayer. We will not trample on the taxpayer," she said.

(With inputs from ANI)

From invoking the divinity to tinge of poetry, Finance Minister Nirmala Sitharaman's maiden Budget speech on Friday was interspersed with couplets and quotes. Speaking in the Lok Sabha, Sitharaman quoted Urdu poet Manzoor Hashmi, Chankaya, Swami Vivekananda and Lord Basaveshwara`s couplets and teachings in the House.

From invoking the divinity to tinge of poetry, Finance Minister Nirmala Sitharaman's maiden Budget speech on Friday was interspersed with couplets and quotes. Speaking in the Lok Sabha, Sitharaman quoted Urdu poet Manzoor Hashmi, Chankaya, Swami Vivekananda and Lord Basaveshwara`s couplets and teachings in the House. Starting her maiden Budget speech, she recited a Hashmi`s couplet, "Yakeen ho toh koi rasta nikalta hai, hawa ki to kar bhi chiraag jalta hai" (You find ways somehow if you have faith. The lamp burns bright even in gushing wind). Her speech was received with appreciation by lawmakers. Affirming faith in the budget, Sitharaman also quoted Chanakya`s Neeti saying, "Kaarya purusha kare na lakshyam sampa dayate" (With determined human efforts, the task will surely be completed). She made the reference while speaking of India`s target of becoming a $5 trillion economy in the next few years. She added that people wonder and doubt if the goal can be achieved. Giving stress on the significance of women empowerment, the Minister quoted Swami Vivekananda, "There is no chance of the welfare of the world unless the condition of women is improved. It is not possible for a bird to fly on one wing." She invoked 12th-century social reformer and thinker Lord Basaveshwara`s principles and said, "Our government recognizes and follows the teachings of Lord Basaveshwara who preached `Kayakave Kailasa" (work is worship). Lord Basaveshwara was the one who first established the concept of `Kalyana Rajya` (welfare state). While speaking of taxation, Sitharaman also quoted Sangam-era Tamil classic `Yaanai Pugundha Nilam` written by Pisirandhayar in Purananooru. What the minister said in Tamil translates to, " An elephant will be happy to have two mounds of rice from a paddy field. But if it enters the land, it will have far less to eat than it will trample." "This is the principle we will follow in taxation. We will be happy to collect only that much taxes that is necessary from the taxpayer. We will not trample on the taxpayer," she said. (With inputs from ANI)

From invoking divinity to pure poetry, Sitharaman sprinkles Budget speech with couplets and quotes

During the Budget speech, finance minister<a href="https://www.wionews.com/business-economy/budget-2019-key-takeaways-announced-by-nirmala-sitharaman-in-parliament-233179"> Nirmala Sitharaman said India's</a> sovereign external debt to GDP was among the lowest globally at less than 5 per cent.

"The fiscal deficit this year is 3.3 per cent, brought down from 3.4 per cent,"&nbsp;Sitharaman said.

"More than 120 crore Indians now have Aadhar card, therefore for ease of taxpayers I propose to make PAN card and Aadhar card interchangeable and allow those who don't have PAN to file returns by simply quoting Aadhar number and use it wherever they require to use PAN," the finance minister said.&nbsp;

The finance minister informed that Parliament that tax collection had risen from Rs 6.38 lakh crore rupees in 2013-14 to Rs 11.37 lakh crore rupees in 2018.

"Tax proposal will spur growth," the finance minister said.

"The government will start raising a part of its gross borrowing program in external markets in external currencies," Sitharaman said during her maiden Budget speech.

"New series of coins of Rs 1, Rs 2, Rs 5, Rs 10, Rs 20 easily identifiable to the visually impaired released by the PM on 7th March 2019. The&nbsp;coins will be made available for public use shortly,' the finance minister said.

Highlights of Tax policy:

Direct tax revenue increased by 78 per cent.

Excise hike on Rs 1 litre on petrol, diesel

Customs duty on gold increased by 2 per cent

Cheaper home loans for houses upto 45 lakhs

Proposal to levy TDS of 2 per cent on cash withdrawal exceeding Rs 1 crore in a year from a bank account.

Tax benefits for buying electric vehicles.

Easing of Angel tax for startups.

Additional income tax deduction on loans taken on e-vehicles.

All companies with an annual turnover of Rs 400 crores to now come under the&nbsp; 25 per cent bracket. It will cover 99.3 per cent of all the companies.

Tax deduction for affordable housing.

Interchangeability&nbsp;of Pan, Aadhar.

Discourage making cash payments in business transactions.

&nbsp;

&nbsp;

&nbsp;

&nbsp;

During the Budget speech, finance minister Nirmala Sitharaman said India's sovereign external debt to GDP was among the lowest globally at less than 5 per cent. "The fiscal deficit this year is 3.

During the Budget speech, finance minister Nirmala Sitharaman said India's sovereign external debt to GDP was among the lowest globally at less than 5 per cent. "The fiscal deficit this year is 3.3 per cent, brought down from 3.4 per cent," Sitharaman said. "More than 120 crore Indians now have Aadhar card, therefore for ease of taxpayers I propose to make PAN card and Aadhar card interchangeable and allow those who don't have PAN to file returns by simply quoting Aadhar number and use it wherever they require to use PAN," the finance minister said. The finance minister informed that Parliament that tax collection had risen from Rs 6.38 lakh crore rupees in 2013-14 to Rs 11.37 lakh crore rupees in 2018. "Tax proposal will spur growth," the finance minister said. "The government will start raising a part of its gross borrowing program in external markets in external currencies," Sitharaman said during her maiden Budget speech. "New series of coins of Rs 1, Rs 2, Rs 5, Rs 10, Rs 20 easily identifiable to the visually impaired released by the PM on 7th March 2019. The coins will be made available for public use shortly,' the finance minister said. Highlights of Tax policy: Direct tax revenue increased by 78 per cent. Excise hike on Rs 1 litre on petrol, diesel Customs duty on gold increased by 2 per cent Cheaper home loans for houses upto 45 lakhs Proposal to levy TDS of 2 per cent on cash withdrawal exceeding Rs 1 crore in a year from a bank account. Tax benefits for buying electric vehicles. Easing of Angel tax for startups. Additional income tax deduction on loans taken on e-vehicles. All companies with an annual turnover of Rs 400 crores to now come under the 25 per cent bracket. It will cover 99.3 per cent of all the companies. Tax deduction for affordable housing. Interchangeability of Pan, Aadhar. Discourage making cash payments in business transactions.

Budget 2019: Highlights of taxation, revenue policy announced by finance minister Nirmala Sitharaman

The Indian middle class is very unhappy with Budget 2018 as they feel that the government has abandoned them by not providing any specific exemptions. Most believe that a reduction in taxes would have made them happier. Taxation is something that people definitely don&rsquo;t agree with, as most of us think that the government is a cumbersome, lethargic and inefficient beast. And, let&rsquo;s be honest, the government administration is the most responsible for this loss of trust. Their performance in the delivery of public goods to the citizens has been just horrible.&nbsp;

&nbsp;

Let us have a look at what all this mistrust has ended up creating in the society. Entirely new sectors were created because of this mistrust, and now we have started measuring our GDP based on how these sectors perform!! Shocking? No.

&nbsp;

Power sector: For the 70+ years since independence, we have always faced a shortfall in power supply. Investments made by public sector have always been deficient. Regulations for private investments in power generation, distribution and transmission were highly restrictive.&nbsp; The private firms still stepped in. By producing diesel generators (and then inverters). Hi-tech research and design in generators and inverters enabled the citizens of the country to avail of a reliable power supply using these measures. And as is the case for any public good, such private investments were sub-optimal and inefficient in their own way, but at least they achieved the end objective.

&nbsp;

Air Pollution: Over decades, governments have created and modified emission regulations aimed at controlling pollution. All those regulations have only ended up providing rent-seeking opportunities for greedy bureaucrats and have barely made a blip on the pollution scale. Private firms stepped in again. One set of them handled bureaucrats for errant firms (fixers), and another set of them launched air purifiers for the consumers.&nbsp;

&nbsp;

Water Supply: Jal boards were set up in all cities to provide potable drinking water to the citizens. Decades went by, but some bureaucrat thought it was more important to let the administration know how important potable drinking water for citizens (so that a higher budget could be asked for) by hiring more staff to print reports on effects of impure drinking water than investing in personnel and equipment that would actually do so. Private firms thrived by first supplying tankers for providing water and then by supplying water filters and purifiers that would actually address the real need of the citizens.&nbsp;

&nbsp;

Transportation: This actually gets interesting. Reliable, affordable public transport is a dream for Indians. Buses are in dilapidated conditions, never on time and in some cases, frequently on strike! Private firms step in to provide cars and bikes for transportation. Public spending in infrastructure still lags, resulting in traffic snarls and exhausting rides to work. Tech comes in and cab aggregators step in. Cab aggregators address supply-demand mismatch using price as a signal (surge pricing!). So, now government steps in saying surge pricing is unfair to customers! Why did this need ever rise?

&nbsp;

Education: Public firms came up with glorious ideas of IIT-JEE, NEET, CAT, UPSC and more for higher education and government services. Unfortunately, public firms forgot about primary and secondary education. Private firms have stepped up again. Private schools prospered and coaching classes were set up in every nook and corner of the country. The government now attempted to regulate the schools via RTE and further worsened the situation. How the lopsided RTE norms and entrance examination system has corrupted our education system is clearly evident all around us.&nbsp;

&nbsp;

Food grain distribution: Government set out with the noble intention of providing subsidised food grains to the society. The scheme took many shapes over decades. Rampant corruption in the system ensured that the scheme rarely benefited anyone. Its inadequacy in terms of quality, as well as quantity, forced citizens to turn to the private markets for their needs. The government still continues this and has an entire corporation dedicated to it employing 23000 people!

&nbsp;

Railway ticketing: A monopoly that is running in losses. Possibly the only one of its kind in the world. For decades, investments in railways have suffered restricting the overall supply of track capacity. In a vast country like India, trains remained the only way to reach far-off destinations. Limited seats were available. Variety of quotas existed. Private help, in terms of touts, arrived claiming access to seats. Seats were traded for exorbitant fares. Even now, quotas abound. How else would a bureaucrat show his importance to someone than by giving a friend/relative a seat on a train?&nbsp;

&nbsp;

RTO Licensing: A simple procedure was made complicated to deter people from applying for a license directly at the RTO for a driving license. Brokers mushroomed out of nowhere willing to provide a license at your doorstep, for a small fee. Purpose of licensing failed, as seen by the quality of driving on our roads.&nbsp;

&nbsp;

Waste Management: A public good essential for ensuring safe health for citizens, especially in times of epidemics. Public waste management organisations still meander along with ages-old mechanisms of disposing waste. Waste management technology in other countries advanced in leaps and bounds. Private firms have attempted to step in here. How long before the government regulates them into bankruptcy?

&nbsp;

There are countless such examples! Healthcare is an area that is better not ventured into. The judicial system is a big mess. Agriculture has been a bane for all governments. And all of this has influenced our economy and the country so much that we have now started defining our progress by how much profits these firms can make!&nbsp;

&nbsp;

Imagine a hypothetical scenario wherein, tomorrow, all tier-1 and tier-2 cities in India have an efficient, affordable and reliable public transportation system! Citizens would not have to use private transport. But how would that be reported? They would lament the losses that the automobile manufacturers and their ancillaries have to face, how the petrol pumps aren&rsquo;t finding retail customers, how the automotive repair industry has come to a near standstill and many more! But would it be good for the nation? Yes! Would our cities be cleaner and peaceful? Yes! That&rsquo;s exactly how badly successive governments have performed in India.

&nbsp;

Governments, over decades, have done a disservice to the nation in their delivery of services. And through absurd regulations has made it difficult (if not impossible) for private firms to function, without doling out substantial rent to the bureaucrats! If I, as a citizen, find my tax rupees being squandered away in such ways, would I be willing to pay more tax? NO.

&nbsp;

A natural outcome of all the above examples is a mistrust with the government and public administration.&nbsp; Surprisingly, this mistrust still doesn&rsquo;t stop the public from asking for government intervention in many spheres! We still want governments to intervene when schools charge fees, farmers commit suicide, hospitals overcharge patients and more! Do we really expect an entity that has failed to perform a decent job in nearly all aspects of its deliverables to magically transform overnight?&nbsp;

&nbsp;

Yes, our administration is overstaffed, but not where we actually need them to be. There are public servants doing jobs that ought not to exist. For law and order, we need more police on the ground. For swift justice, we need more judges in courts. All of these needs substantial funds. A part of it could be adjusted for by rationalization of current resources. But the rest would have to be funded via taxes. As a citizen, taxation is unavoidable. Asking for accountability from the government is possibly the only way out.&nbsp;

&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;&nbsp;

&nbsp;

Taxation is something that people definitely don’t agree with, as most of us think that the government is a cumbersome, lethargic and an inefficient beast.

The Indian middle class is very unhappy with Budget 2018 as they feel that the government has abandoned them by not providing any specific exemptions. Most believe that a reduction in taxes would have made them happier. Taxation is something that people definitely don’t agree with, as most of us think that the government is a cumbersome, lethargic and inefficient beast. And, let’s be honest, the government administration is the most responsible for this loss of trust. Their performance in the delivery of public goods to the citizens has been just horrible. Let us have a look at what all this mistrust has ended up creating in the society. Entirely new sectors were created because of this mistrust, and now we have started measuring our GDP based on how these sectors perform!! Shocking? No. Power sector: For the 70+ years since independence, we have always faced a shortfall in power supply. Investments made by public sector have always been deficient. Regulations for private investments in power generation, distribution and transmission were highly restrictive. The private firms still stepped in. By producing diesel generators (and then inverters). Hi-tech research and design in generators and inverters enabled the citizens of the country to avail of a reliable power supply using these measures. And as is the case for any public good, such private investments were sub-optimal and inefficient in their own way, but at least they achieved the end objective. Air Pollution: Over decades, governments have created and modified emission regulations aimed at controlling pollution. All those regulations have only ended up providing rent-seeking opportunities for greedy bureaucrats and have barely made a blip on the pollution scale. Private firms stepped in again. One set of them handled bureaucrats for errant firms (fixers), and another set of them launched air purifiers for the consumers. Water Supply: Jal boards were set up in all cities to provide potable drinking water to the citizens. Decades went by, but some bureaucrat thought it was more important to let the administration know how important potable drinking water for citizens (so that a higher budget could be asked for) by hiring more staff to print reports on effects of impure drinking water than investing in personnel and equipment that would actually do so. Private firms thrived by first supplying tankers for providing water and then by supplying water filters and purifiers that would actually address the real need of the citizens. Transportation: This actually gets interesting. Reliable, affordable public transport is a dream for Indians. Buses are in dilapidated conditions, never on time and in some cases, frequently on strike! Private firms step in to provide cars and bikes for transportation. Public spending in infrastructure still lags, resulting in traffic snarls and exhausting rides to work. Tech comes in and cab aggregators step in. Cab aggregators address supply-demand mismatch using price as a signal (surge pricing!). So, now government steps in saying surge pricing is unfair to customers! Why did this need ever rise? Education: Public firms came up with glorious ideas of IIT-JEE, NEET, CAT, UPSC and more for higher education and government services. Unfortunately, public firms forgot about primary and secondary education. Private firms have stepped up again. Private schools prospered and coaching classes were set up in every nook and corner of the country. The government now attempted to regulate the schools via RTE and further worsened the situation. How the lopsided RTE norms and entrance examination system has corrupted our education system is clearly evident all around us. Food grain distribution: Government set out with the noble intention of providing subsidised food grains to the society. The scheme took many shapes over decades. Rampant corruption in the system ensured that the scheme rarely benefited anyone. Its inadequacy in terms of quality, as well as quantity, forced citizens to turn to the private markets for their needs. The government still continues this and has an entire corporation dedicated to it employing 23000 people! Railway ticketing: A monopoly that is running in losses. Possibly the only one of its kind in the world. For decades, investments in railways have suffered restricting the overall supply of track capacity. In a vast country like India, trains remained the only way to reach far-off destinations. Limited seats were available. Variety of quotas existed. Private help, in terms of touts, arrived claiming access to seats. Seats were traded for exorbitant fares. Even now, quotas abound. How else would a bureaucrat show his importance to someone than by giving a friend/relative a seat on a train? RTO Licensing: A simple procedure was made complicated to deter people from applying for a license directly at the RTO for a driving license. Brokers mushroomed out of nowhere willing to provide a license at your doorstep, for a small fee. Purpose of licensing failed, as seen by the quality of driving on our roads. Waste Management: A public good essential for ensuring safe health for citizens, especially in times of epidemics. Public waste management organisations still meander along with ages-old mechanisms of disposing waste. Waste management technology in other countries advanced in leaps and bounds. Private firms have attempted to step in here. How long before the government regulates them into bankruptcy? There are countless such examples! Healthcare is an area that is better not ventured into. The judicial system is a big mess. Agriculture has been a bane for all governments. And all of this has influenced our economy and the country so much that we have now started defining our progress by how much profits these firms can make! Imagine a hypothetical scenario wherein, tomorrow, all tier-1 and tier-2 cities in India have an efficient, affordable and reliable public transportation system! Citizens would not have to use private transport. But how would that be reported? They would lament the losses that the automobile manufacturers and their ancillaries have to face, how the petrol pumps aren’t finding retail customers, how the automotive repair industry has come to a near standstill and many more! But would it be good for the nation? Yes! Would our cities be cleaner and peaceful? Yes! That’s exactly how badly successive governments have performed in India. Governments, over decades, have done a disservice to the nation in their delivery of services. And through absurd regulations has made it difficult (if not impossible) for private firms to function, without doling out substantial rent to the bureaucrats! If I, as a citizen, find my tax rupees being squandered away in such ways, would I be willing to pay more tax? NO. A natural outcome of all the above examples is a mistrust with the government and public administration. Surprisingly, this mistrust still doesn’t stop the public from asking for government intervention in many spheres! We still want governments to intervene when schools charge fees, farmers commit suicide, hospitals overcharge patients and more! Do we really expect an entity that has failed to perform a decent job in nearly all aspects of its deliverables to magically transform overnight? Yes, our administration is overstaffed, but not where we actually need them to be. There are public servants doing jobs that ought not to exist. For law and order, we need more police on the ground. For swift justice, we need more judges in courts. All of these needs substantial funds. A part of it could be adjusted for by rationalization of current resources. But the rest would have to be funded via taxes. As a citizen, taxation is unavoidable. Asking for accountability from the government is possibly the only way out. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: Why citizens dislike paying taxes

Massive anti-Pakistan protests broke out across Skardu in Gilgit Baltistan against illegal taxation&nbsp;on Saturday.&nbsp;

Economic activities in Gilgit Baltistan have come to a standstill after the entire region observed a &#39;&#39;shutter down&#39;&#39; protest against illegal taxation.

All small and big businesses on Saturday shut down indefinitely against unfair and unjust taxes imposed on them by Pakistan.

Several people in Skardu took to streets, shouted slogans against Pakistan, carried posters and banners.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
<a href="https://twitter.com/hashtag/WATCH?src=hash&amp;ref_src=twsrc%5Etfw">#WATCH</a>: Massive anti-Pakistan protests across Gilgit Baltistan against illegal taxation <a href="https://twitter.com/hashtag/Skardu?src=hash&amp;ref_src=twsrc%5Etfw">#Skardu</a> <a href="https://t.co/Zwei7MZaKO">pic.twitter.com/Zwei7MZaKO</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/931712030498734081?ref_src=twsrc%5Etfw">November 18, 2017</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

According to sources, businessmen in Gilgit Baltistan have claimed that the protests will continue with the same vigor and zeal until Pakistan takes back the notification of taxes.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-lang="en">
Skardu: Businessmen in Gilgit Baltistan against illegal taxation say, we will carry on with the protests with same force and zeal until Pakistan withdraws notification of taxes. <a href="https://t.co/eX1zCLJjAz">pic.twitter.com/eX1zCLJjAz</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/931728126496849921?ref_src=twsrc%5Etfw">November 18, 2017</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

The business community in Gilgit Baltistan believes Pakistan is imposing unfair and undue taxes on the impoverished people and poor traders of the occupied territory.

While addressing the crowd in Skardu, Gilgit Baltistan, a protestor said that people of Gilgit Baltistan living in Karachi, Quetta, Lahore and other parts of Pakistan must &#39;be prepared,&#39; and warned that they will take on Islamabad next.&nbsp;

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet" data-conversation="none" data-lang="en">
I urge people of Gilgit Baltistan living in Karachi , Quetta , Lahore and other parts of Pakistan, be prepared , we are going to take on Islamabad head on: Protester addressing a gathering in Skardu, Gilgit Baltistan <a href="https://t.co/TTTl3S9q0a">pic.twitter.com/TTTl3S9q0a</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/931728991387492352?ref_src=twsrc%5Etfw">November 18, 2017</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">&times;</a></div>

Addressing a gathering in Skardu city, an angry protester asked, &quot;Will you pay taxes to Pakistan on chickens kept in your households? Will you pay taxes on cow kept at your house for milk?&quot;

On the taxation system, he said, &quot;Taxes are imposed on additional family members, if you have more than five family members, an additional tax needs to be paid.&quot;

&quot;We will not pay taxes,&quot; the agitating traders declared.

Heavy taxes are being imposed on traders here time and again without providing basic fundamental rights, subsidy or constitutional status to the region. Taxes collected by the authorities were never spent on the development and welfare of Gilgit Baltistan, they alleged.

&quot;Pakistan government through an ordinance is imposing new taxes illegally,&quot; said a local businessman, adding, &quot;Until Pakistan withdraws notification of taxes we will carry on protests with same force and zeal.&quot;

&quot;There is a principle in Islam, no rights no taxes, we have no representation so why pay taxes,&quot; said another.

The business community had alleged that when Pakistan&#39;s Supreme Court has declared the region as disputed territory, then Islamabad has no right to impose taxes and any kind of imposition of taxes is termed illegal and unacceptable.

Massive non-cooperation movement has been launched across the length and breadth of Gilgit Baltistan.

Scores of people are on the streets venting out anger against illegal tax regime imposed by Islamabad

Local traders sitting on indefinite strike pledged not to give any taxes to Pakistan saying they won&#39;t pay &#39;over the roof taxes&#39; to be spend on maintaining lavish lifestyles and luxuries of Pakistani politicians.

Islamabad is baffled by the scale of protests and shutter down protest.

Pakistani media is largely blacking out the massive protests and a section of media claims that protests will be called off after November 23.

Protestors plan to take on Islamabad head on next.

Massive anti-Pakistan protests broke out across Skardu in Gilgit Baltistan against illegal taxation on Saturday. Economic activities in Gilgit Baltistan have come to a standstill after the entire region observed a ''shutter down'' protest against illegal taxation. All small and big businesses on Saturday shut down indefinitely against unfair and unjust taxes imposed on them by Pakistan. Several people in Skardu took to streets, shouted slogans against Pakistan, carried posters and banners. #WATCH: Massive anti-Pakistan protests across Gilgit Baltistan against illegal taxation #Skardu pic.twitter.com/Zwei7MZaKO — ANI (@ANI) November 18, 2017 × According to sources, businessmen in Gilgit Baltistan have claimed that the protests will continue with the same vigor and zeal until Pakistan takes back the notification of taxes. Skardu: Businessmen in Gilgit Baltistan against illegal taxation say, we will carry on with the protests with same force and zeal until Pakistan withdraws notification of taxes. pic.twitter.com/eX1zCLJjAz — ANI (@ANI) November 18, 2017 × The business community in Gilgit Baltistan believes Pakistan is imposing unfair and undue taxes on the impoverished people and poor traders of the occupied territory. While addressing the crowd in Skardu, Gilgit Baltistan, a protestor said that people of Gilgit Baltistan living in Karachi, Quetta, Lahore and other parts of Pakistan must 'be prepared,' and warned that they will take on Islamabad next. I urge people of Gilgit Baltistan living in Karachi , Quetta , Lahore and other parts of Pakistan, be prepared , we are going to take on Islamabad head on: Protester addressing a gathering in Skardu, Gilgit Baltistan pic.twitter.com/TTTl3S9q0a — ANI (@ANI) November 18, 2017 × Addressing a gathering in Skardu city, an angry protester asked, "Will you pay taxes to Pakistan on chickens kept in your households? Will you pay taxes on cow kept at your house for milk?" On the taxation system, he said, "Taxes are imposed on additional family members, if you have more than five family members, an additional tax needs to be paid." "We will not pay taxes," the agitating traders declared. Heavy taxes are being imposed on traders here time and again without providing basic fundamental rights, subsidy or constitutional status to the region. Taxes collected by the authorities were never spent on the development and welfare of Gilgit Baltistan, they alleged. "Pakistan government through an ordinance is imposing new taxes illegally," said a local businessman, adding, "Until Pakistan withdraws notification of taxes we will carry on protests with same force and zeal." "There is a principle in Islam, no rights no taxes, we have no representation so why pay taxes," said another. The business community had alleged that when Pakistan's Supreme Court has declared the region as disputed territory, then Islamabad has no right to impose taxes and any kind of imposition of taxes is termed illegal and unacceptable. Massive non-cooperation movement has been launched across the length and breadth of Gilgit Baltistan. Scores of people are on the streets venting out anger against illegal tax regime imposed by Islamabad Local traders sitting on indefinite strike pledged not to give any taxes to Pakistan saying they won't pay 'over the roof taxes' to be spend on maintaining lavish lifestyles and luxuries of Pakistani politicians. Islamabad is baffled by the scale of protests and shutter down protest. Pakistani media is largely blacking out the massive protests and a section of media claims that protests will be called off after November 23.

Massive anti-Pakistan protest across Gilgit Baltistan area against illegal taxation

The so-called Paradise Papers may sound familiar &ndash; leaked documents from a law firm that specialises in offshore services reveal how the global elite avoids paying taxes. Even the name has the same ring to it as last year&rsquo;s Panama Papers expose. But the Paradise Papers are different, reflecting the complexity of the global offshore tax system.

Panama is generally considered among tax haven experts as one of the least reformed corners of the offshore world. International rules regarding tax evasion and avoidance are intended to help national governments to pursue their own offenders, but the Panama Papers revealed that the country was being used primarily by the business and political elites of countries like Russia, China and many more in Latin America and Asia; countries where the governments are closely linked to business and which are less likely to use tools provided by new international rules to pursue offenders. Hence, relatively few Americans or Europeans were caught in the Panama story. And Mossack Fonseca, the law firm at the centre of the leak has since been discredited.

The Paradise Papers reveal the goings on of the elites of the offshore world &ndash; this time in the supposedly highly-regulated havens of the Cayman Islands, Bermuda, Singapore and the like. All places that received a fairly clean bill of health during the OECD peer review process only a few years ago. The law firm at the centre of this new leak, Appleby, insists there is &ldquo;no evidence of wrongdoing&rdquo; in any of the revelations.

Nonetheless, the Paradise Papers will tell us a lot about the activities of business and political elites of well-regulated countries like the US and UK &ndash; implicating big multinationals such as Nike and Apple, and individuals including the British Queen.

1. Tax avoidance is a booming industry

Clearly, jurisdictions such as the Caymans Islands and Bermuda that levy no income tax, capital gains tax, VAT, sales, wealth or corporate tax, still attract a lot of businesses. Why, for instance, has the Duchy of Lancaster, the Queen&rsquo;s private portfolio, invested in two offshore funds, in Cayman and Bermuda? After all, the Queen pays tax only voluntarily.

A more charitable interpretation is that any big investor who is seeking to diversify their portfolio would inevitably end up using offshore funds. The papers show that about &pound;10m (US$13m) of the Queen&rsquo;s private money was invested offshore &ndash; a very small percentage of her wealth. There is nothing illegal about this but the ethics of it have been questioned.

Practically, the entire wealth investment industry &ndash; the industry that invests for the rich and the wealth of our world &ndash; operates through the offshore world. And the reason why is simple. Each fund or transaction, or aeroplane or yacht, or whatever that one cares to register in the Caymans or Bermuda, is not subject to tax. And it&rsquo;s hidden from public view.

2. Secrecy prevails through trusts

Despite a spate of new regulations, the Paradise Papers show that anyone who wishes to conceal their affairs from competitors, allies, governments or the public can still do so with great ease. And they can do so through the facilities of a &ldquo;trust&rdquo;, an archaic Anglo-Saxon instrument that serves as a foolproof shield from scrutiny.

We have learned, for instance, that Wilbur Ross, the US secretary of commerce, had commercial links to Vladimir Putin&rsquo;s family, which operated through a system of linked trusts located in various offshore jurisdictions. I do not think that even the Mueller inquiry in the US into the Trump administration&rsquo;s links with Russia could have pierced the veil of secrecy offered by offshore trusts.

But the leaked documents from law firm Appleby reveal that any complex business deals that would involve concealment and subterfuge would work their way through trusts. It is high time we do something about these trusts.

3. Highly complex tools are used

The Paradise Papers show how complex financial innovations such as the use of derivatives and financial swaps arrangements, can be used for tax avoidance. This is an area of avoidance that is normally not well understood and scantily studied.

New research colleagues and I are conducting, however, has found that cross-currency interest rate swaps are used pervasively in tax minimisation mechanisms. It is difficult to detect and involves a parent and subsidiary companies swapping a loan in one currency to another. This swaps the risks and the interest rate of the original currency for the subsidiary&rsquo;s &ndash; a legitimate risk minimisation instrument. At the same time, this facilitates moving funds offshore to low tax jurisdictions.

4. The law needs to change

Many professional service firms operate through offshore jurisdictions. They all claim to be highly professional, following not only the letter but also the spirit of the law.

But if these firms are not directly liable for the activities of their clients, the offshore world will continue to thrive. These firms take advantage of regulatory loopholes to arbitrate between different rules and jurisdictions in order to minimise taxation. The question is for how long such practices are going to be considered legitimate.

The Paradise Papers reveal how little the world really knows about the level of tax avoidance that takes place. UK citizens, for instance, can legally invest in offshore funds and set up companies in those havens. But they must reveal these holdings to the tax man. We do not know whether those named in the papers did, and we do not know whether the tax authorities will do something about those who did not. We only know that a lot is going through offshore. The Paradise Papers show that, despite promises of the opposite, opacity is still pervasive in the offshore world.

This article was originally published on <a href="http://theconversation.com" rel="nofollow" target="blank">The Conversation</a>. Read the <a href="https://theconversation.com/four-things-the-paradise-papers-tell-us-about-global-business-and-political-elites-86946" rel="nofollow" target="blank">original article</a>.

Unlike the Panama Papers, the latest leak shines a light on the elites of the offshore world

The so-called Paradise Papers may sound familiar – leaked documents from a law firm that specialises in offshore services reveal how the global elite avoids paying taxes. Even the name has the same ring to it as last year’s Panama Papers expose. But the Paradise Papers are different, reflecting the complexity of the global offshore tax system. Panama is generally considered among tax haven experts as one of the least reformed corners of the offshore world. International rules regarding tax evasion and avoidance are intended to help national governments to pursue their own offenders, but the Panama Papers revealed that the country was being used primarily by the business and political elites of countries like Russia, China and many more in Latin America and Asia; countries where the governments are closely linked to business and which are less likely to use tools provided by new international rules to pursue offenders. Hence, relatively few Americans or Europeans were caught in the Panama story. And Mossack Fonseca, the law firm at the centre of the leak has since been discredited. The Paradise Papers reveal the goings on of the elites of the offshore world – this time in the supposedly highly-regulated havens of the Cayman Islands, Bermuda, Singapore and the like. All places that received a fairly clean bill of health during the OECD peer review process only a few years ago. The law firm at the centre of this new leak, Appleby, insists there is “no evidence of wrongdoing” in any of the revelations. Nonetheless, the Paradise Papers will tell us a lot about the activities of business and political elites of well-regulated countries like the US and UK – implicating big multinationals such as Nike and Apple, and individuals including the British Queen. 1. Tax avoidance is a booming industry Clearly, jurisdictions such as the Caymans Islands and Bermuda that levy no income tax, capital gains tax, VAT, sales, wealth or corporate tax, still attract a lot of businesses. Why, for instance, has the Duchy of Lancaster, the Queen’s private portfolio, invested in two offshore funds, in Cayman and Bermuda? After all, the Queen pays tax only voluntarily. A more charitable interpretation is that any big investor who is seeking to diversify their portfolio would inevitably end up using offshore funds. The papers show that about £10m (US$13m) of the Queen’s private money was invested offshore – a very small percentage of her wealth. There is nothing illegal about this but the ethics of it have been questioned. Practically, the entire wealth investment industry – the industry that invests for the rich and the wealth of our world – operates through the offshore world. And the reason why is simple. Each fund or transaction, or aeroplane or yacht, or whatever that one cares to register in the Caymans or Bermuda, is not subject to tax. And it’s hidden from public view. 2. Secrecy prevails through trusts Despite a spate of new regulations, the Paradise Papers show that anyone who wishes to conceal their affairs from competitors, allies, governments or the public can still do so with great ease. And they can do so through the facilities of a “trust”, an archaic Anglo-Saxon instrument that serves as a foolproof shield from scrutiny. We have learned, for instance, that Wilbur Ross, the US secretary of commerce, had commercial links to Vladimir Putin’s family, which operated through a system of linked trusts located in various offshore jurisdictions. I do not think that even the Mueller inquiry in the US into the Trump administration’s links with Russia could have pierced the veil of secrecy offered by offshore trusts. But the leaked documents from law firm Appleby reveal that any complex business deals that would involve concealment and subterfuge would work their way through trusts. It is high time we do something about these trusts. 3. Highly complex tools are used The Paradise Papers show how complex financial innovations such as the use of derivatives and financial swaps arrangements, can be used for tax avoidance. This is an area of avoidance that is normally not well understood and scantily studied. New research colleagues and I are conducting, however, has found that cross-currency interest rate swaps are used pervasively in tax minimisation mechanisms. It is difficult to detect and involves a parent and subsidiary companies swapping a loan in one currency to another. This swaps the risks and the interest rate of the original currency for the subsidiary’s – a legitimate risk minimisation instrument. At the same time, this facilitates moving funds offshore to low tax jurisdictions. 4. The law needs to change Many professional service firms operate through offshore jurisdictions. They all claim to be highly professional, following not only the letter but also the spirit of the law. But if these firms are not directly liable for the activities of their clients, the offshore world will continue to thrive. These firms take advantage of regulatory loopholes to arbitrate between different rules and jurisdictions in order to minimise taxation. The question is for how long such practices are going to be considered legitimate. The Paradise Papers reveal how little the world really knows about the level of tax avoidance that takes place. UK citizens, for instance, can legally invest in offshore funds and set up companies in those havens. But they must reveal these holdings to the tax man. We do not know whether those named in the papers did, and we do not know whether the tax authorities will do something about those who did not. We only know that a lot is going through offshore. The Paradise Papers show that, despite promises of the opposite, opacity is still pervasive in the offshore world. This article was originally published on The Conversation. Read the original article.

What ails global business and elites? Secrecy

The Government on Monday introduced a new Bill in Lok Sabha to tax newly deposited undeclared income as part of demonetisation drive.&nbsp;

&nbsp;

Under the scheme namely,&nbsp;&lsquo;Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana,&nbsp;2016&rsquo; (PMGKY) proposed in the Bill, it said, &quot;Concerns have been raised that some of the existing provisions of the Income-tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 (&lsquo;the Bill&rsquo;) has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision.&quot;

The Government said, &quot;In the wake of declaring specified bank notes &ldquo;as not legal tender&rdquo;, there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy.&quot;

<table border="1" cellpadding="1" cellspacing="1" summary="Changes to Income Tax Act">
	<caption>Overview of Amendments Proposed</caption>
	<tbody>
		<tr>
			<td>PARTICULARS</td>
			<td>EXISTING PROVISIONS</td>
			<td>PROPOSED PROVISIONS</td>
		</tr>
		<tr>
			<td>General provision for penalty&nbsp;</td>
			<td>
			PENALTY (Section 270A)&nbsp;

			Under-reporting - @50% of tax&nbsp;

			Misreporting - @200% of tax

			(Under-reporting/ Misreporting income is normally difference between returned income and assessed income)
			</td>
			<td>No changes proposed</td>
		</tr>
		<tr>
			<td>Provisions for taxation &amp; penalty of unexplained credit, investment, cash and other assets</td>
			<td>
			Penalty (271AAB)

			(i) 10% of income, if admitted, returned and taxes are paid

			(ii) 20% of income, if not admitted but returned&nbsp;and taxes are paid

			(iii) 60% of income in any other case
			</td>
			<td>
			Penalty (271AAB)

			(i) 30% of income, if&nbsp;admitted, returned and taxes are paid

			(ii) 60% of income in any other case
			</td>
		</tr>
		<tr>
			<td>Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016&rsquo; (PMGKY)</td>
			<td>New Taxation&nbsp;and Investment&nbsp;Regime</td>
			<td>
			Undisclosed income in the form of cash &amp; bank deposit can be declared:

			(A)&nbsp;Tax, Surcharge, Penalty payable

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@30% of income declared

			&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Surcharge &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@33% of tax

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Penalty&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@10% of income&nbsp;declared

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Total&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@50% of income (approx.)

			<a id="m_5906746394611854875__GoBack" name="m_5906746394611854875__GoBack"></a>(B) &nbsp;Deposit

			&nbsp;&nbsp;&nbsp;&nbsp; 25% of declared income to be deposited in interest &nbsp;&nbsp;&nbsp;

			&nbsp;&nbsp;&nbsp;&nbsp; free Deposit Scheme for four years.&nbsp;&nbsp;
			</td>
		</tr>
		<tr>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
		</tr>
	</tbody>
</table>

&nbsp;

The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called &lsquo;Pradhan Mantri Garib Kalyan Cess&rsquo; @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the &lsquo;Pradhan Mantri Garib Kalyan Deposit Scheme, 2016&rsquo;, it said.&nbsp;

&quot;This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality,&quot; it concluded. &nbsp;

The Taxation Law is expected to tax defaulting assessees at a higher rate and stringent penalty provision

The Government on Monday introduced a new Bill in Lok Sabha to tax newly deposited undeclared income as part of demonetisation drive. Under the scheme namely, ‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) proposed in the Bill, it said, "Concerns have been raised that some of the existing provisions of the Income-tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 (‘the Bill’) has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision." The Government said, "In the wake of declaring specified bank notes “as not legal tender”, there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy." Overview of Amendments Proposed PARTICULARS EXISTING PROVISIONS PROPOSED PROVISIONS General provision for penalty PENALTY (Section 270A) Under-reporting - @50% of tax Misreporting - @200% of tax (Under-reporting/ Misreporting income is normally difference between returned income and assessed income) No changes proposed Provisions for taxation & penalty of unexplained credit, investment, cash and other assets Penalty (271AAB) (i) 10% of income, if admitted, returned and taxes are paid (ii) 20% of income, if not admitted but returned and taxes are paid (iii) 60% of income in any other case Penalty (271AAB) (i) 30% of income, if admitted, returned and taxes are paid (ii) 60% of income in any other case Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) New Taxation and Investment Regime Undisclosed income in the form of cash & bank deposit can be declared: (A) Tax, Surcharge, Penalty payable Tax @30% of income declared Surcharge @33% of tax Penalty @10% of income declared Total @50% of income (approx.) (B) Deposit 25% of declared income to be deposited in interest free Deposit Scheme for four years. The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called ‘Pradhan Mantri Garib Kalyan Cess’ @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’, it said. "This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality," it concluded.

Income Tax Act: This is how the new amnesty scheme looks like

taxation

Taxation, News on Taxation, stories on Taxation, articles on Taxation, Taxation stories at Wion, Taxation news, Taxation latest news