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November 15, 2016: A chartered accountant (CA) from Gujarat’s Surat has written an open letter to Delhi Chief Minister Arvind Kejriwal, as he has been criticising the move taken by Prime Minister Narendra Modi to fight against black money.
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Here is the full text of the CA’s open letter to Arvind Kejriwal:
Sir, I am a practising Chartered Accountant aged 28 in Surat and I was very hopeful that you would support the Notification for Demonetization of Currency and was very eager for your Reaction because your very entry into Politics was for supporting any small move to reduce Black money and Corruption and after all, this was indeed a very big and bold move….!
But after going through the Video released yesterday, my expectations from AAP as a Commonmen were shattered once again because I believed that a person of such stature and designation as you would spread positivity all around without any ifs and buts to make this Mega Clean-up Drive possible and rather help the common men in mitigating the problems rather than nagging about the same and hence I would like to bring to your knowledge the following Points
As you have stated in your Video that it took full 2 days for you to understand the various aspects of the Scheme and even after consultation with various Experts , you could not basically understand the Logic of why 2000 Rupee Notes were released instead of 1000 Rupee Note, I would like to make an attempt to tender my best possible logic ( Please enlighten me if I am wrong somewhere) as follows:
Sir, let us Simply take 2 Scenarios to understand the funda !
Scenario A : If as per your suggestion , Rs. 2000 Note are not issued but only New Rs. 1000 Notes are issued.
Lets say , for example Mr. X has Rs. 1,00,000/- black money in 100 Old Notes of Rs. 1000 each.
Mr. X divides those Rs. 1,00,000/- into 10 Equal Bundles, each comprising of 10 Old Notes of Rs. 1000 each and puts each Stack on a Table.
On Day 1 , in the morning Mr. X would deposit the first Bundle i.e. 10 Old Notes of Rs. 1000 valued at Rs. 10,000 into the bank and on same Day 1 in the Evening he would withdraw 10 New Notes of Rs. 1000 again valued at Rs. 10,000 and put it in the Locker in his house.
Now the real Game starts.
On Day 2 : Morning , Mr. X would deposit the second bundle of 10 Old Notes of Rs. 1000 valued at Rs. 10,000 kept on the Table. However in his books of accounts submitted to Income Tax Department, he will show that he has deposited the same 10 New Notes which was withdrawn on Day 1 : Evening ( which is actually still lying in the Locker of House )
On Day 2 : Evening , Mr. X would again withdraw 10 New Notes of Rs. 1000 valued at Rs. 10,000/- and keep the same in Locker . So at the end of Day 2, Mr. X has Rs. 80,000 on Table in Old Notes and Rs. 20,000/- in New Notes in Locker.
Now Day 3 will come in next weekaslimit of Rs. 20000 per week
The same exercise shall continue till Day 10 and by the end of Day 10, Mr. X shall have no Old Notes and Rs. 1,00,000 in 100 New 1000 Rupee Note in the Locker.
However, to the Income Tax Department, Mr. X has shown that he was having only Rs. 10,000/- as black money initially ( i.e. one bundle of 10 Notes of Rs. 1000 ) and he has rotated the same Rs. 10,000/- by depositing it into Bank account in the morning and withdrawing it in the evening and again redepositing the same on next day and so on.
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Thus, Mr. X has paid tax only on initial Rs. 10,000 whereas he has managed to convert all his Black money of Rs. 1,00,000 into new Notes.
This Modus operandi is called Peak theory i.e. theory of rotation of same money which is accepted by most of the High Courts and Tribunals. Revenue is also helpless to catch Mr. X because the above scenario can also occur in genuine cases where you withdraw money from bank to purchase something and then when you think that no good deal is available, you may again deposit the same money into your bank account and are not required to pay tax again.
Scenario B : Watch what happens when PM issues New 2000 Rupee Note instead of 1000….!
Mr. X deposits first bundle of 10 Old Notes lying on Table in the Bank on Day 1 : Morning and then he withdraws 5 New Notes of Rs. 2000 on Day 1: Evening and keeps it in locker.
Now on Day 2 : Morning when he goes to deposit second bundle of 10 Old Notes of Rs. 1000 each and wrongly shows the Income Tax Department that he has redeposited the same money which was withdrawn on Day 1:Evening – Bingo !!!
He is caught red handed !! because the Bank slip on Day 2 submitted to bank shows deposition of 10 Notes of Rs. 1000 each whereas the Govt knows that Mr. X could never have withdrawn on Day 1 any note of Rs. 1000 because they were never Printed !!!!
Now Isn’t it really a Master StrokebyMr. Narendra Modi, the beloved Prime Minister of our country ?!
Sir, you have stated in the Video that if Someone gives you the logic of issuing New notes of Rs. 2000 instead of Rs. 1000, you will Salute the PM and support him in his endeavour. I hope this explanations finds you in good health and I am waiting for the support in full sense.
Even if the above explanation is not completely true, we should rely on and respect the PM of our country who is elected through clear democratic majority.
Further, the fact that when someone is holding the new Rs. 2000 Rupee Note , he is phychologicaly getting a sense of freshness that the country is in the growth phase. Messages are being circulated not to write anything on New Notes. Imagine if the Govternment would have never issued new higher denominations notes with inflation and growth we would still be dealing with Annas and Pavlis!!
Sir, the above example also gives you an explanation as to why the withdrawal limit is kept so low because the above modus operandi can still be done with Rs. 500 note however, the incentive would be less because Mr. X cannot withdraw more than Rs. 10000/- in a day and even if he withdraws Rs. 10,000/-, there is every possibility that Banks shall give Mr. X, 2000 Rupee note. So Mr. X cannot follow the above modus operandi.
And believe me Sir, each and every condition in the Notification is seen to take care of the problems likely to be faced by Citizens and at the same time making sure that such Sophisticated theories are not resorted to by Black money hoarders, but questioning everything in the name of Freedom of Expression may create Panic situations or bring out Loopholes and hamper the success of reforms.
Sir, you have again criticised and stated in the Video that printing Rs. 2000 rupee note will help to increase Corruption because Stacking those Rs. 2000 Rupee Notes would require lesser Space as compared to Stacking Rs. 1000 Notes.
In this regard, I would like to ask that Sir, have you come across any case where the “Babus” have not taken any bribe and done work honestly because they had a small Bag which could not be fitted with Rs 1000 Notes ?!
Or have you come across any Businessman who has declared unaccounted money solely because there was no space to keep those Rs. 1000 Notes !!
As stated in the Video by you, it is true that inspite of PM efforts, there shall be dubious commission agents and unaccounted Investment in gold through jewellers, but as far as I remember when the jewellers were on strike for 45 days when our PM levied excise duty on gold in month of April 2016, it was you who supported their strike. It shows that whenever some changes are suggested to regulate a particular Market, AAP opposes them and then now you nag that the Gold market is unregulated.
Infact I believe that the PM had a full blue print for the development of our country right from Day 1 of his being elected if I recall my last 3 years as a Professional.
Firstly they asked for all the bank account number in your Return of Income
Then they linked your PAN with Aadhar
They linked all the subsidies, pension and other benefits directly to your bank account throughDirectBenefit Transfer Scheme.
Then they gave opportunity to all the common men to open an account with bank through Jan Dhan Yojna
They entered into revised treaty with most of the countries in which unaccounted money goes through HAWALA e.g. Mauritius and thus the route of Black Money coming from Mauritius which everyone knew is stopped.
They passed few strict laws to overcome the evil of black money such as Benami Transaction Act and Foreign Black Money Act
They levied Excise duty on Gold.
They also made TCS compulsory for Cash transactions above 2 lakhs.
They withdrew lakhs of pending income tax and service tax litigations where Common men had won at Appeal level and Department had gone further.
They also entered into information exchange agreement with such countries.
Then they gave last opportunity to all black money hoarders through Income Declaration Scheme, 2016
Now they have a Scheme for Dispute Resolution Panel again to reduce Litigation till December 2016.
Now the masterstroke, that they have banned Rs. 500 & Rs. 1000 denominations.
Not only the destination of this whole process is commendable but even the journey or the chronology of these events is interesting which explains the ultimate destination and who knows ,may be the journey is still not over and the ultimate destination may still be the Swiss Account holders!!
Further, you have stated in your Video that penalty would be levied at the rate of 200%. The said statement has created a panic and people have stated discounting their own hard earned cash.
BeinginIncome tax Department in the past , you ought to know that as per the present Income Tax Act,1961 penalty is never levied on Cash deposits but on “concealed income”. Hence when the common men is depositing Cash in hand which is duly accounted or out of his past savings and even out of unaccounted current years income whose return is yet to be filed, there shall not be any penalty if there is no mismatch between returned income and assessed income. Even the Government Officials in their statement used the words “underreporting” or “mismatch”. To understand the definition of “underreporting”, Sir please refer Section 270A of the Income Tax Act or go through the following article:
No penalty on high denominations notes deposited into bank if such amount is declared in return of income by paying appropriate tax
Instead you could have encouraged the citizens to pay appropriate Tax.
Nowhere in the Video have you stated anything relating to Fake currency or Counterfeit Notes because you know that the issue of Existing Fake Currency issolvedfoolproof.
Which situation would be better ?
A Labourer standing in queue to exchange Notes from bank for a Short term.
Scenario B :
A Labourer working hard whole day to get a Fake Note at the end of the day?!
The issue ofTerrorrist Funding is also tackled but you chose to remain silent on the same.
You have stated that Modiji should have infused Rs 100 Note from before and it would have been you only to have said in this video that “Arre ATMse do din pehle se hi Sirf Rs. 100 ki Note bahar aa rahi thi toh sab ko pata tha , yek koi Secret nahi tha”
Now Sir, if I am to believe that you really don’t understand these simple concepts even after consulting with Experts for 2 days as already described by you, I am deeply saddened because the common men believe that you are an IITian and have spent considerable time in Income Tax Department also.
Contrary to the same, If I am to believe that you already know the benefits of demonetization which I first learnt in Standard 8 when subject of economics was introduced to me and the concept of Peak Theory which is described by me above and which I learnt with my very limited experience while pursuing my profession of Chartered Accountancy , then I am more saddened and feel AAP Party as more dangerous because I believe that above any religion, politics or reservations in any caste or creed, it will always be education which shall uplift the common men and it is the common men who have elevated you to a position where you are looked by millions as their Idol and it is your duty to educate them and spread knowledge and not keep them in ignorance to preserve your vote bank.
I am grateful to all my Teachers who have selflessly shared their knowledge and some fellow members of CA fraternity who are playing an active role in creating awareness andeducatingCommonmen about the positive consequences of Demonetization true to the Jewel crowned to the profession as “Partner in Nation Building” and I would therefore like to advise the citizens not to sell the notes at discounted prices or deposit the cash into bank accounts of other benami persons in fear of penalty. Further, do not claim any bogus expenses or bogus loss to gain more trouble. Do not manipulate accounts by creating bogus cash on hand. Be sporty and pay tax honestly to buy peace of building capital.
CA Mehul Shah
PS : Sir, Please share the same explanation to Rahul Gandhiji too as lately you both share the same thoughts and statements and have same queries.
Wait for a miraculous amount of tax collection this year !!
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I have mainly written this Letter mainly for my love for writing and my love for questioning and understanding the concepts and in view of the freedom of speech and expression my country offers and hope that no one is offended.
by NewsGram team
Developed by the Indian Institute of Tropical Meteorology (IITM), Pune, a Decision Support System (DSS) that extends the ability of the existing air quality early warning system (AQEWS) to have decision-making capability for air quality management in Delhi-NCR was launched on Tuesday.
The website for the DSS (https://ews.tropmet.res.in/dss/) is designed to help the Commission for Air Quality Management for NCR and Adjoining Areas (CAQM) by delivering quantitative information about the contribution of emissions from Delhi and its 19 surrounding districts; the contribution of emissions from eight different sectors in Delhi; and the contribution from biomass-burning activities in the neighbouring states.
These information would assist in managing the air quality in a timely manner, a release from the Ministry of Earth Sciences said.
The need was stated by the CAQM, which was formed by the Ministry of Environment, Forest and Climate Change, during a meeting held in January 2021.
Recently, the Commission reviewed the progress made by IITM and had in principle approved the current version of DSS for air quality management in the Delhi-NCR. The IITM has also developed a new website for DSS with the entire system made operational, the release said.
Union Minister of State for Earth Sciences, Jitendra Singh, while launching the website for AQEWS on the occasion of 'Azadi Ka Amrit Mahotsav' week organised by the Ministry of Earth Sciences, said, "DSS is a significant contribution to 'Azadi Ka Amrit Mahotsav' on behalf of MoES and IITM and suggestions are invited on this issue."
The website also has a feature whereby the users can create their own emission reduction scenarios (from 20 different districts, including Delhi) so as to examine the possible projected improvement in air quality in Delhi for the next five days.
"This information would explicitly highlight the most important emission sources responsible for the degradation of air quality in Delhi and suggest possible solutions to ameliorate the same. With a plethora of quantitative data, the AQEWS integrated with DSS could become a user-friendly tool for air-quality management in and around Delhi," the release said. (IANS/JB)
Keywords: Delhi, India, Pollution, IITM, Ministry of Earth Sciences
On the first day of the two-day meeting of BJP and Rashtriya Swayamsevak Sangh (RSS) leaders on Tuesday, discussions were held on important issues related to education and the National Education Policy-2020. Apart from senior RSS leader Suresh Soni, representatives of various organisations associated with the Sangh Parivar -- working in the field of education -- were present in the meeting in New Delhi.
According to sources, Union Education Minister Dharmendra Pradhan, who attended the meeting on behalf of the government, shared information related to the National Education Policy-2020 and the government's policy on important issues related to the education sector. Pradhan also shared details of the efforts being made by the government in the field of education.
Discussions were also held regarding the impact of the situation arising out of Corona and how much it has affected the education sector. In the meeting, the RSS leaders asked several questions and provided suggestions to the Union Minister regarding the education policy of the government.
According to the sources, RSS wants the policy to be implemented expeditiously. All aspects related to the policy were discussed in Tuesday's meeting. On the second and the last day of the meeting on Wednesday, special issues related to education will be discussed in which representatives of various organisations of the Sangh, Union Ministers and several BJP leaders will be take part.
Meanwhile, in order to convey its point of view to the government on various issues, the Sangh keeps on calling such coordination meetings related to specific issues, in which RSS representatives -- working in that particular area -- provide feedback to the government. (IANS/JB)
Keywords: BJP, RSS, New Education Policy, Education, India
An old saying, "prevention is better than cure" should be the first scoop in the cup of excitement if you are out to explore the world. To make traveling safe, make sure you check some practical safety tips before and while on the journey.
Here are some tips that can keep you safe, ignoring the hurdles and risks during traveling.
Health issues are of major concern while traveling. These risks are common especially when you are traveling to a place where the diet is different from what you are used to. Health conditions like stomach infections, climatic diseases like flu, cold, etc can knock at your door.
Before traveling, make sure you did complete research about the weather conditions of those destinations where you planned to stay. Keep all the stuff with you, like basic medications, and clothes that will be helpful to keep you safe from the weather and ensure safe travelling.
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Travelers sometimes encounter the risk of being scammed at the departures or during the flights. This risk becomes more obvious when you don't speak the familiar language or don't have complete knowledge about the complex procedures.
Any stranger can come to you regarding the procedure completion and take advantage of your ignorance and fool you. Stay alert for these scams and keep these things in mind.
●Always use the ATMs that are linked to the banks.
●Know the basic procedure of checking
●Do not wear expensive jewelry to show off
●Keep the emergency services phone numbers
●Put the locks on the suitcases
To avoid transportation mishaps, you should search for all forms of transportation before leaving the place that can take you to the planned destination Photo by Guilherme Stecanella
The transportation you choose for your trip can be a blessing or sometimes a tricky tournament. To avoid transportation mishaps, you should search for all forms of transportation before leaving the place that can take you to the planned destination. And especially when traveling to faraway places.
Choose the one that is comfortable and free of hassles. For example, while choosing to travel by air, make sure you know the flight schedules. Make sure you book your flights with trusted airlines. International flights from Australia, Cathay Pacific, is the one of the best in this regard.
Apart from checking the flight's schedule, try to book your ticket in advance so you don't end up stranded on the ticket booth asking for tickets and no time slot is spared for a specific time.
Whether you are traveling domestically or internationally, you need identification. When traveling outside the country, your passport is the most important thing to carry and keep a check on. The most valuable traveling documents you should check on are:
Keep copies of these documents in case they get lost by mistake. In the case of stolen documents, the copies of these will help to make the process of getting them back a bit easier.
To avoid trouble, check out the guidelines such as rules and regulations. Follow the policies that are required. Before zipping your bags, check the customer's reviews to see what they faced worse while traveling through certain transportation if you chose the same one and what advice they shared. This will help you avoid those things that can put you in the same situation.
Before traveling, know the surroundings. Be aware of how the locals of that area talk and dress. Usually, tourists or travelers carry lots of cash and other valuables with them. That brings them under the spotlight. Those people who show off their appearances as a traveler from a different place and culture are more at risk of being scammed.
You can avoid those scams by:
●Dressing yourself like a local
●Don't show off yourself by standing in the middle of a crowd and take pictures
●Don't make it apparent if you get lost in the streets
Before traveling to some new place, especially when you are traveling outside the country, make research about the language spoken there. It helps you a lot, especially when you get lost or injured. Try to learn the basic phrases in the language being spoken in that particular area you are traveling to. Phrases like:
●I need help
●Where is the hospital
●Please guide me on the way to my hotel, etc.
If you are traveling outside the country, getting traveling insurance is recommended Photo by Denise Jans on Unsplash
Experiences matter. It is a bit hard to know the place you planned to visit if you have not visited it before. Make sure you find the experienced travelers who already have visited. Take advice from them. Ask them about their experience and what things you should do and what not. Do's and don'ts of that particular area. You can watch youtube videos that tell the lifestyle of a specific place.
Also read: 5 Must-Haves to Travel Light
If you are traveling outside the country, getting traveling insurance is recommended. It covers all unexpected injuries. Unfortunately, if you get a trip to the hospital or in case you lose your belongings, traveling insurance covers everything for you.
ATMs are the common places for thieves to steal the information of travelers. No doubt, they are the most convenient spot to take the money in the right currency. But it is recommended to stay cautious while using ATMs.
Check your back if anyone is stalking you or the person standing behind the mirrors waiting for his move, is not too close to finding out all the figures and info you entered.
You might not be familiar with the new place you are traveling to. To avoid uncertain situations like moving in the wrong direction, make sure you set the GPS in your phone so you reach your destination safely and on time without going through any hassle.
(Disclaimer: This article is sponsored and contains some commercial links)
Keywords: Travel, Tips, Apps, Language, Guidelines,