New Delhi: Finance Minister Arun Jaitley has said that bulk of black money was still within the country and called for a change in the attitude of people so that plastic currency becomes the norm and transactions in cash an exception.
In an article ‘The NDA government’s campaign against black money’ posted on his Facebook page on Sunday, Jaitley said the government was at an advanced stage in considering the requirement of furnishing PAN (permanent account number) card details for cash transactions beyond a limit.
He said the NDA government’s strategy was to put more money in the pockets of middle and low income groups by raising exemption limits and incentivising savings which will encourage consumption and which, in turn, will increase volumes of indirect taxation.
The Bharatiya Janata Party leader said opening a large number of payment gateways, internet banking, payment banks and the emerging reality of e-commerce will prompt the use of banking transactions and plastic money significantly.
“The bulk of black money is still within India. We thus need a change in national attitude where plastic currency becomes the norm and cash an exception. Being seized of this problem, the government has been working with various authorities to incentivise this change,” Jaitley said.
He said those who had declared their undisclosed assets abroad in the compliance window offered by the government “can now sleep well” and those who have failed to file such a declaration will be subjected to penal provisions.
“They will be liable to pay 30 percent tax and a penalty of 90 percent, thus leading to confiscation of the assets plus more. This law will create a deterrent in future against the flight of capital from India,” he said.
He said the government has taken a series of steps for international cooperation in the matters of tax evasion.
Referring to Prime Minister Narendra Modi’s initiative at the G-20 meeting for international cooperation in tackling unlawful assets held by the residents of one country in foreign soil, Jaitley said it was intended to lift the veil of secrecy in banking transactions and in real time inform domestic taxation authorities about transactions of their citizens internationally.
He said the government has signed an understanding with the US under FATCA (Foreign Account Tax Compliance Act) wherein the US and India would disclose to each other any real time transaction in accounts with financial institutions by its citizens in foreign territories.
He said Switzerland had agreed to provide India proof relating to several HSBC accounts where India can give some evidence over and above the stolen data which was delivered to New Delhi through France.
“It is expected that over the next two years this international cooperation will be worked out. Thus those with illegal assets abroad, who have failed to make declarations, would now stand the risk of information relating to them eventually reaching the Indian taxation authorities,” Jaitley said.
The minister said that 638 people have declared their income amounting to Rs.3,770 crore under the 90-day compliance window offered by government to those wanting to disclose their unlawful assets abroad under the new law.
Jaitley said the government had also accelerated income tax assessments against people holding illegal money in Lichtenstein and in the HSBC bank at Geneva. Criminal prosecutions have been launched in cases where illegalities have been found.
He said a total peak balance of about Rs 6,500 crore has been assessed in these accounts.
“The assessed income of Rs 6,500 crore in HSBC and Rs 3,770 crore declared income during the compliance window should not be treated as income under any immunity scheme.
“The comparison of these amounts with amnesty schemes relating to domestic black money is ill conceived. The campaign against domestic black money has to be separately dealt with for which the government is independently taking steps,” Jaitley said.
New Delhi, November 8, 2017 : On November 8 2016, every Indian citizen sat glued to their TV screens as Narendra Modi was set to make a big announcement. Outcome? The Indian Prime Minster shocked the entire nation with the introduction of Demonetisation, a move that was to change the very foundation of the cash-dependent Indian economy.
The much-debated move by Modi garnered the attention of several well-versed economists from the country and abroad, alike. While some people willingly welcomed the move, there were others who stood in staunch criticism.
As the move completes its first year, the Bharatiya Janata Party (BJP) is set to observe November 8 as ‘anti-black money day’ to celebrate Demonetisation anniversary in the country.
On the eve of the Demonetisation anniversary, the BJP released a cheeky video claiming to depict how ‘corrupt’ politicians have been criticizing the move, as the nation won following demonetisation.
In the video, the BJP attempted to take a dig at corrupt politicians, who have been criticizing PM Modi’s Demonetisation move.
In the video, a woman, playing the character of a frustrated, corrupt politician can be seen going on a rant over PM Modi’s note ban initiative, which was aimed to combat black money, corruption, fake currency and terrorism.
The video ends with a voice-over saying demonetisation has not only brought out this frustration of corrupt citizens, but also black-money, claiming that almost 99 per cent cash which was previously lying hidden with people has now entered the banking system.
The one-minute video, which is now going viral on social media, has already been re-tweeted more than 2 thousand times since it was released on November 7, on the eve of demonetization move.
Ahead of the Demonetisation anniversary, the last few days have witnessed several leaders present their opinions on PM Modi’s demonetization move.
Finance Minister Arun Jaitley called PM Modi’s note ban initiative a ‘watershed moment’ while Piyush Goyal, Minister of Railways believes the move has pushed India towards a more transparent economy.
However, the move is being criticized by ex-Prime Minister Manmohan Singh calling it ‘irresponsible’. The opposition maintains that PM Modi’s note ban initiative has caused reckless damage to the country and the Indian economy.
On Demonetisation anniversary, the BJP is set to observe November 8 as ‘anti-black money day’, while opposition leaders are set to observe the day as ‘black day’ in protest against the note ban initiative.
New Delhi: The entire Indian agriculture value chain is set to change drastically and food processing is going to be one of the main industries of the country in the future, Finance Minister Arun Jaitley said on Friday.
“The farm to kitchen chain is going to change in India, like elsewhere, with increased agricultural production, better storage facilities, more food processing and changing consumer food preference,” Jaitley said at the inaugural session of the World Food India 2017 here.
“Food processing is going to be one of the principal industries of India in future, and an entrepreneur in 2017 should think of the industry from the perspective of where it will be in 2040, 2050,” he said.
In terms of market size, the Indian food market was worth $193 billion in 2016 and is expected to cross $540 billion in 2020, officials said here. The sector has been growing at the rate of 12 per cent annually.
“There is a silent revolution ongoing in India. There is an expanding middle class and below that there is a growing aspirational class, which is building up reasonable purchasing power,” the Finance Minister said, noting that this provided an enormous potential market for food products in the country.
About the potential, Food Processing Minister Harsimrat Kaur Badal said that only about 10 per cent of agricultural produce is processed in the country, leading to a lot of wastage.
The industry enjoys many fiscal incentives, including preferential credit under priority sector lending, she said.
“There is 100 per cent FDI (foreign direct investment) allowed into the sector through the automatic route and we have seen inflows increase 40 per cent over the last year,” she said.
“The proposal for a Food Processing Bank is also under active consideration.”
In the presence of delegates from many countries, the event was inaugurated earlier by Prime Minister Narendra Modi, who pointed out that India is the biggest producer of milk in the world and the second in rice, wheat, fish and vegetable output.(IANS)
New Delhi, September 18, 2017 : Indian and International media is full of articles regarding large number of farmers in India committing suicide due to debt pressure.
Instead of going to the root of the problem and analyzing the reasons for this phenomenon, Indian politicians have come up with an absurd idea of farm loan waivers.
Majority of Indian farmers under debt trap own very little land. Farming on such small piece of land is not economically feasible. This sector is highly unorganized. Most of the time, no planning is involved in cultivation, irrigation and harvesting.
Middlemen exploit farmers by buying their produce at a very low price and then selling it at a premium to the end consumers.
The irony is that a large number of Indian politicians claim huge incomes from agriculture while farmers starve.
In the province of Madhya Pradesh 24 farmers committed suicide this year over crop loss and failure to repay loans but 18 of the 20 cabinet ministers of the state have shown ‘agriculture’ as their main source of huge incomes.
How come politicians are earning in Billions through farming while the real farmers are struggling to make both ends meet?
Let’s examine the issue in-depth.
The income earned from agricultural land is exempt from income tax under section 10 (1) of the Income Tax Act 1961. Politicians, bureaucrats and businessmen in India launder their money misusing the above income tax clause.
Normally, one cannot own agricultural land in India unless their forefathers have been agriculturists. Rich and influential people in the country obtain agriculturist certificates by ‘greasing the palms’ of the local land officials.
Farmers are not required to maintain detailed records in India. This provides an excellent loophole to pass off unaccounted and undeclared cash as agricultural income. It is done by showing fake sales cash receipts of agricultural produce, which like other certificates can be purchased in India through bribes.
Approximately 800,000 tax declarants in India state exorbitant amounts as agricultural incomes while filing their annual income tax returns.
This income, a whopping INR. 874 Lakh Crores was eight times more than the cumulative GDP of India for the financial years 2011 and 2012.
The average annual income declared by these assesses comes out to be anywhere between Rs. 30-80 Crores, on which they don’t pay any taxes.
It’s obvious that the aforesaid is not agricultural earning instead it’s declared as agricultural income by these assesses just to avoid paying taxes.
According to National Bank of Agriculture and Rural Development (NABARD) Delhi, with hardly any farming land has more farmers indulging in agriculture than Madhya Pradesh, Uttar Pradesh, Karnataka and West Bengal provinces.
Delhi’s so called ‘farmers’ received Rs. 22,077 Crores in agricultural loans during 2009. In reality, these ‘self proclaimed farmers’ are the owners of big farm houses on the outskirts of the capital.
The authorities are well aware of this malpractice. The Tax Administration Reform Committee in its report in November 2014 said, “Agricultural income of non-agriculturists is being increasingly used as a conduit to avoid tax and for laundering funds, resulting in leakage to the tune of Crores in revenue annually”
The Finance Minister of India, Arun Jaitley on 26th April said that the government of India does not plan to tax the farm income.
It reveals that Indian politicians cutting across party lines indulge in this malpractice, 27% of the winning Lok Sabha M.P’s in 2014 elections have declared wealth of over Rs. 1 Crore, majority of which has been mentioned as agricultural income.
Indian opposition politicians blackmail the political party in power by indulging in spurious farmer agitations.
If there is a bumper crop then the opposition parties start shouting that prices have crashed due to over-supply in the market. When farming cultivation fails due to the vagaries of nature, then they start throwing statistics about farmers suicide.
A group of ‘self proclaimed’ farmers from Tamil Nadu province camped at Jantar Mantar in Delhi, the Indian capital city during March this year and indulged in cheap theatrics to draw attention to their protests.
The leader of this group, P. Ayyakannu is demanding that all farmers should be given loan waivers from banks and quoted highly inflated figures of farmers suicides in Tamil Nadu.
The Tamil Nadu government on 28th April, 2017 conveyed to the Supreme Court of India that no famers committed suicide in the state and clarified that a few, who took this extreme measure did it due to personal reasons.
Many farmers died due to old age and other medical issues. Ayyakannu clubbed all of them together to gather national as well as international attention.
Ayyakannu called off this whole play in Delhi on 23rd April after 40 days, when the Chief Minister of Tamil Nadu came to meet these protestors. He said that their group is giving a one month’s time-frame to the government in order to fulfill their demands otherwise, they would resume their protests in the national capital from May 25 on a bigger scale.
This impostor farmer leader Ayyakannu again came back to Delhi again on 16th July with his gang of ruffians to continue their drama.
Ayakannu as per media reports is not even a farmer, but a lawyer, who makes huge amounts of money through out of court settlements and personally owns hundreds of acres of land.
He and his bunch of hooligans all look quite healthy and well-fed. They don’t appear like destitute farmers as claimed by them.
Fake farmers like the aforementioned Ayyakannu are just the front faces of this façade in the name of farmers.
The remote controls of such characters remain in the hands of politicians, who use them for their narrow, selfish, corrupt agendas depending on the political situation at the state and national level.
The governments of Punjab, Maharashtra, Karnataka, Rajasthan & U.P. provinces have waived off agricultural loans worth Billions. This has set up a very bad precedent for the rest of the country.
There are no ‘free lunches’ in this world. These half baked measures like loan waivers just make people lazy parasites.
The following steps would go a long way in helping the real distressed farmers;
Scientific soil and climate testing should be done across all farming regions in India. Farmers can then be educated about which crops to grow profitably, in how many cycles; depending on the soil conditions and climate of the region.
Implement agricultural reforms like farming co-operatives, where farmers having small agricultural land holdings can be encouraged to come together and pool their land plus resources together.
Crop storage infrastructure should be built and maintained in every village so, that farmer can store their surplus produce rather than sell it desperately at a low price.
Crop insurance must be compulsorily introduced all over the country wherein, farmers by paying a nominal amount need not bother about their crops getting destroyed through excessive rain or drought.
Organic farming needs to be encouraged instead of over-reliance on chemical fertilizers. The food waste produced by an entire village can be easily turned into biodegradable compost, through innovative schemes like Vermicomposting.
Vermicast can replace fertilizers in the agriculture fields. This would save money for the farmer and provide high quality chemical free crops.
The APMC’s (Agriculture Produce Marketing Committees) have created a coterie of middlemen, who along with the complicity of these committees, form a virtual barrier between the farmer and the consumer, paying the former a pittance for his produce and charging the latter exorbitant amounts for fruits and vegetables. Vegetables are purchased at Rs. 2 or 3 a kg from farmers and then sold at 30 to 40 rupees per kg to urban consumers. This setup has been going on for decades in every town and city of India. Millions of urban Indians pay artificially higher prices and majority of farmers are underpaid due to this flawed system. The profits are made by middlemen, who do not pay taxes on these huge earnings. It is a common practice for them to store money in cash and not in banks.
These APMC’s must therefore be abolished immediately. Farmers should get direct access to the end consumer through the elimination of middlemen. This would ensure a better monetary return for farmers.
Private moneylenders in and around the villages charge a very high rate of interest from farmers. This unscrupulous sector should be bought under government regulation by bringing down the rate of interest to a rational level.
Government schools in villages are in shambles. They need to be upgraded so, that quality education at an affordable price is available to every child in the village. This would uplift farmers children through educational empowerment. It will enable them to make a transition to non-agricultural professions in future and enhance their family earnings considerably.
The aforementioned steps would cost the government far less than what it is losing in the absurd loan waiver schemes, which anyways don’t help the poor marginal farmer at all. As regard dealing with the fake farmers of India.
The solution entails; no farm loan waivers and bringing the agricultural income above a certain threshold under the tax bracket.
The aforesaid measures would prevent the fake farmers façade spreading rapidly all over the country, while resolving the agrarian crisis of India by assisting needy farmers of the country.
The author is a Master Degree holder in International Tourism & Leisure Studies from Netherlands and is based in China.
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