Long queues again? ATMs go dry as many states face cash crunch: Top updates

Several states are facing a cash shortage despite currency flows in the economy at the pre-demonetisation level

A cash crunch has been reported in several states of India -- Karnataka, Maharashtra, Andhra Pradesh, Rajasthan, Uttar Pradesh, Madhya Pradesh and Telangana. People are facing a huge monetary crisis, with a majority of automated teller machines (ATMs) running out of cash. In Bihar's Patna several ATMs have gone 'out of service' causing inconvenience to the locals.

Taking stock of the situation, Union Finance Minister Arun Jaitley said: "We have reviewed the currency situation in the country; there is more than adequate currency circulation and it is available with the banks... a temporary shortage caused by the sudden and unusual increase in some areas is being tackled.

Here are the top developments in the crisis caused by a sudden shortage of cash across several states and what the government is saying:1. Life gets miserable for many Indians, especially traders: Despite the currency flow in the economy going back to the pre-demonetisation level, ATMs are going dry making life miserable for many residents, especially traders. Many are running from one ATM to another in search of currency notes.

ALSO READ: Demonetisation redux? ATMs again running dry across states amid cash crunch

2. Some ATMs not dispensing more than Rs 5,000: Only one ATM at State Bank of India’s branch had cash, but the machine was dispensing only up to Rs 5000 cash and that too only in the form of Rs 100 currency notes, according to The Times of India report.

The people in Delhi, on the other hand, said that most of the ATMs are dispensing only Rs 500 notes.

3.Hyderabad, Varanasi office-goers face troubles: In Hyderabad, office goers have told news agency ANI, that they have been unable to withdraw cash from ATMs in several parts of the city since yesterday. There are reports from Varanasi as well of people saying there is no cash at ATMs since yesterday, said TOI report.

However, people in Madhya Pradesh claimed that they have been facing a cash crunch for the last two weeks.

4. Govt's meeting with RBI on cash shortage across states: The finance ministry held a meeting with the Reserve Bank of India (RBI), banks, and state government officials on Thursday to take stock of cash availability after receiving complaints of the dearth of money in some states. The non-release of funds by the Centre is being cited as one reason for the cash crunch.

budget 2018: Will Modi govt fulfil housing expectations of millions?

To provide comfort to home consumers as well as inspire investment in under-production homes

The "Housing for All through 2022" project has set the stage for a sturdy healing in the residential property market. in thebeyond years, we've got visible an unparalleled recognition on reforms channelised via the Benami Transactions (Prohibition) modification Act 2016, demonetisation, real property Regulatory Act (RERA) and the goods and offerings Tax (GST) regime. So, this time, the finances for FY2018-19 may be plenty more vital than ever. The provisions, if moved in niceguidelines, could have the electricity to hold the momentum and cement domestic consumers' self assurance.

at the same time as such a lot of difficult decisions have already been taken, it will be worthwhile to rationalise further the direct tax systems impacting domestic customers. I accept as true with that there's room for development in some of the high earnings tax (IT) provisions meant to incentivise the home shoppers.

Deduction on home mortgage hobby: The IT Act has provisions below which a home purchaser can claim a deduction on home mortgage hobby paid in the direction of an beneath-construction property, in five identical instalments for fivefinancial years. however this deduction is blanketed within the common deduction amount of Rs 2 lakh that you canclaim in a financial yr.

Union Budget 2018 : also, the situation of equal deduction for the duration of five years leaves restricted room for domestic consumers to claim benefit of the cutting-edge yr's interest paid. buyers can claim the advantage handiest after receiving possession of the assets and as a result there may be no gain at some point of the construction duration. Given so many residences are delayed in ownership, the interest factor paid all through production can also end up very high.

pattern this: A domestic consumer pays Rs 7.five lakh over five years of construction duration as hobby in the direction ofhome mortgage. In this case, he can declare Rs 1.five lakh every 12 months, but then this amount is protected inside thebasic limit of Rs 2 lakh, as a result making no good sized impact on his taxable earnings.

To provide relief to home consumers as well as encourage investment in below-creation homes, the authorities should introduce a separate tax advantage for pre-EMI hobby for the duration of the construction length.

Deduction on interest paid after of entirety for allow-out houses: As price range 2017 has imposed a restrict of Rs 2 Lakh on deduction of interest paid for non-self-occupied properties beneath segment 71 of earnings Tax Act, funding in residences for condo have become less appealing. condo housing is an important a part of the housing industry because it gives a roof to individuals who cannot have the funds for their personal homes. To make condo housing extraattractive, the authorities have to increase the restrict to Rs three lakh.

Indian Army weighs fitting reply to LoC beheading. Here are its options

The options: attacks by ground forces on Pak posts, strikes by aircraft, missiles or artillery guns

The army has begun weighing its options to retaliate against Pakistani forces on the Line of Control (LoC), after their troops, employing jihadi extremists, killed and beheaded two Indian soldiers near Poonch on Monday, top generals said.

Business Standard learns the incident took place when an Indian patrol of 8-10 soldiers was checking the border fence, a perilous task involving physically moving along the fence, very close to the LoC, to check that it has not been cut or its electronic sensors damaged.

According to the modus operandi of Pakistani troops on forward LoC posts, the exposed patrol first came under intense fire from automatic weapons, which Pakistani soldiers had stealthily deployed in temporary positions, just across the LoC.

With two Indian jawans injured in the firing, a “border action team (BAT)”, comprising jihadi fighters, darted across the LoC to the border fence. Covered by the Pakistan army’s firing, the jihadis killed the two jawans, beheaded them, and returned to their side of the LoC, bearing the heads as trophies.

The employment of a BAT is a well-rehearsed Pakistani tactic that creates deniability by using jihadis to cross into the Indian side. If any jihadis are killed or captured, the Pakistan army disowns it as an infiltration attempt. Regular soldiers remain on their side of the LoC, firing on Indian posts and patrols to cover the BAT's move.

A range of retaliatory measures are being weighed by India’s generals, including attacks by ground forces on Pakistani posts, or strikes by aircraft, missiles or massed artillery guns. Read more

जनता की सहूलियत को ही नियमों की जुगत

जनता से संवाद स्थापित करने के अपने मासिक रेडियो प्रसारण 'मन की बात' में प्रधानमंत्री नरेंद्र मोदी ने एक बार फिर नोटबंदी का बचाव करते हुए इस दौरान बदले गए तमाम नियमों को भी जायज ठहराया। साथ ही उन्होंने संकेत दिए कि भ्रष्टïाचार के खिलाफ अपनी मुहिम को तेज करने के लिए सरकार जल्द ही बेनामी संपत्तियों पर भी शिंकजा कसने की तैयारी कर रही है। नोटबंदी के बाद कई बार बदले नियमों पर प्रधानमंत्री ने कहा कि जनता की ओर से मिली प्रतिक्रियाओं के बाद सहूलियत के लिए ही इतनी बार नियमों में बदलाव किया गया। बेईमानी और भ्रष्टाचार के काले कारोबार में लिप्त लोगों के खिलाफ सख्ती जारी रखने का संकल्प व्यक्त करते हुए मोदी ने पूर्ववर्ती कांग्रेस नीत सरकार पर बेनामी संपत्ति से जुड़े कानून को कई दशकों तक ठंडे बस्ते में डालने का आरोप लगाते हुए कहा कि वर्तमान सरकार ने बेनामी संपत्ति कानून को धारदार बनाया है और आने वाले दिनों में यह कानून अपना काम करेगा। आकाशवाणी पर प्रसारित संबोधन में मोदी ने कहा, 'मैंने 8 तारीख को (नोटबंदी की घोषणा के दिन) पहले ही दिन कहा था कि यह लड़ाई सामान्य नहीं है। 70 साल से बेईमानी और भ्रष्टाचार के काले कारोबार में कैसी शक्तियां जुड़ी हुई हैं? उनकी ताकत कितनी है? ऐसे लोगों से मैंने जब मुकाबला करना ठान लिया है तो वे भी सरकार को पराजित करने के लिए रोज नए तरीके अपनाते हैं।'

उन्होंने कहा कि जब वे नए तरीके अपनाते हैं तो हमें भी तो उनकी काट के लिए नया तरीका ही अपनाना पड़ता है। तू डाल-डाल, तो मैं पात-पात, क्योंकि हमने तय किया है कि भ्रष्टाचारियों को, काले कारोबारों को, काले धन को, मिटाना है। भ्रष्टाचार के खिलाफ कठोर कदम जारी रखने का संकल्प व्यक्त करते हुए मोदी ने कहा, 'मैं आपको विश्वास दिलाता हूं कि यह पूर्ण विराम नहीं है, यह तो अभी शुरुआत है। ये जंग जीतनी है और थकने का तो सवाल ही कहां उठता है, रुकने का तो सवाल ही नहीं उठता है।' उन्होंने कहा कि जिस बात पर सवा-सौ करोड़ देशवासियों का आशीर्वाद हो, उसमें तो पीछे हटने का कोई प्रश्न ही नहीं उठता है।' Read more

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Demonetisation: Income disclosure schemes 20 years apart yield roughly the same

Adjusted for inflation, the earlier scheme would have collected Rs 25,000 crore, according to Soumya Kanti Ghosh

Union Finance Minister Arun Jaitley’s Income Declaration Scheme (IDS) 2016 will collect a little over Rs 30,000 crore in taxes, whereas former finance minister P Chidambaram’s Voluntary Disclosure of Income Scheme (VDIS) in 1997-98 garnered around Rs 10,000 crore in taxes.

Adjusted for inflation, the earlier scheme would have collected Rs 25,000 crore, according to Soumya Kanti Ghosh, chief economist, State Bank of India. This works out to an inflation rate of five per cent a year for the last 19 years.

The tax rate, including cess and penalty, in this year’s income disclosure scheme was higher at 45 per cent against 30 per cent for individuals and 35 per cent for companies in 1997-98.

Assuming mostly individuals availed the VDIS in 1997-98, the scheme would have garnered Rs 37,500 crore for the exchequer in today’s rupees if the tax rate were 45 per cent.

The 1997-98 scheme saw disclosures worth Rs 33,679, which in today’s rupee terms work out to about Rs 84,000 crore. About 475,000 individuals and companies had disclosed their unaccounted wealth and income in the scheme.

In 2016, the government received declarations from 71,726 individuals worth Rs 67,382 crore. The tax under IDS 2016 is to be paid in three installments till September 30, 2017.

The tax department has rejected two disclosures in this year’s scheme: Rs 13,500 crore by a businessman in Ahmedabad and Rs 2 lakh crore by a family in Mumbai.

Jaitley had earlier refused to compare tax collections under the two schemes, stating many assessees had paid tax in advance during the 1997-98 scheme because the scheme’s tax rates were the same as normal rates.

The government has come out with another income declaration scheme, the Pradhan Mantri Garib Kalyan Yojana, following demonetisation, allowing declarers to pay a 50 per cent tax on undisclosed income and depositing a quarter of the amount for four years.(more)

Black money window: FM Jaitley to meet industry chambers, CAs

Black money window: FM Jaitley to meet industry chambers, CAs

Union Finance Minister Arun Jaitley will meet industry chambers, Chartered Accountants, and other professionals over the four-month window provided to holders of undeclared wealth to come clean.

According to reports, the Finance Minister will clear doubts about the four-month window provided to domestic blackmoney holders to pay their taxes and escape harsher penalties.

The Income Tax Department has already adopted a four-pronged strategy to ensure success of the scheme.

Prime Minister Narendra Modi had earlier warned the black money holders to take advantage of the scheme or face action.

This comes after the Prime Minister during his 'Mann ki Baat' address asked people to declare their undisclosed income by September 30, making it clear that this is the last chance to avoid problems that will follow after the window of opportunity closes.

"It will be better that you take advantage of the window provided and save yourself from the difficulties that you can face after September 30," he said.

Read more

PM Modi ticks off Subramanian Swamy over Raghuram Rajan remarks

PM Modi ticks off Subramanian Swamy over Raghuram Rajan remarks

Prime Minister Narendra Modi today disapproved of party MP Subramanian Swamy's attacks on RBI Governor Raghuram Rajan and some top finance ministry officials saying they are "inappropriate".

Calling Rajan "no less patriotic", he virtually ticked off Swamy saying "if anybody considers himself above the system then it is wrong".

The Prime Minister's comments assume significance in the context of Finance Minister Arun Jaitley and the BJP distancing themselves from Swamy's recent attacks on Rajan, CEAArvind Subramananian and Economic Affairs Secretary Shaktikanta Das.

Swamy also had made some carping comments about Jaitley without taking his name.

"Whether it is in my party or not, still I think such things are inappropriate. This fondness for publicity is never going to do any good to the nation. People should conduct themselves with utmost responsibility. If anybody considers himself above the system, it is wrong," the Prime Minister told Times Now channel in an interview.

Without taking the name of Swamy, Modi was asked about the comments of "your Rajya Sabha MP" in the context of Raghuram Rajan and queried whether it was appropriate.

Even after that there have been criticisms made against very senior government officials, the questioner said recalling Modi's recent counsel to party leaders in Allahabad to maintain balance and restraint in their speech and conduct.

Read more.

Latest developments in India's NSG bid

Latest developments in India's NSG bid

The admission of India into the Nuclear Suppliers Group (NSG) is taking new turns every day. China has now lowered its stance against India's membership by saying that NSG is open to discussing the entry of the countries who have not signed the Non Proliferation Treaty (NPT).

The 48- member club manages the flow of nuclear technology all over the world, with an aim to ensure the non proliferation of nuclear weapons and technologies. India has been vying hard for years to be part of this group as it would help the nation gain access to a plethora of new technologies, reduced depence on conventional sources of energy, among others.

This year with firm support from nations like United States, United Kingdom, Russia, India has a bright chance of getting into NSG. But, Pakistan with the backing of China is hell-bent on blocking this with the argument that the admission of a non-NPT signatory into the group is discriminatory. It says that all the nations who have not signed this treaty should be considered for the entry into the group.

China firmly supports this stand of Pakistan and says that they are not against India's admission to NSG but then Pakistan's membership should also be discussed. Earlier, the Chinese foreign ministry said the issue of India's membership to the 48-member group wasn't even on the agenda of the NSG's plenary meeting in Seoul. On Monday, Chinese Foreign Ministry spokesperson Hua Chunying Beijing said: "We understand that non-NPT countries are concerned about their entry into the NSG. But since NSG is still divided about the issue, so it is still not mature to talk about the entry issue in the annual conference in Seoul."Read more.

People not satisfied with mere slogans, PM tells party

People not satisfied with mere slogans, PM tells party

The Bharatiya Janata Party (BJP) is yet to resolve its confusion on who would be its chief ministerial candidate for the Uttar Pradesh Assembly polls and whether at all it should announce one. But the aggression in Prime Minister Narendra Modi and party chief Amit Shah's speeches at a public rally here underscored the importance of a good performance by the BJP in the UP elections, slated for early 2017, if Modi is to return as prime minister in 2019.

Both Modi and Shah appealed to the people of UP to reject the nepotism, casteism and lawlessness wrought by Samajwadi Party and Bahujan Samaj Party, who were hand-in-glove in corruption. Modi credited the people of UP for enabling BJP to win a majority of seats in the Lok Sabha elections and that the state has given India several of its prime ministers. BJP, along with its ally Apna Dal, won 73 of UP’s 80 seats in 2014. Shah was more direct. “The road to Delhi goes via Lucknow. BJP forming a government in the state in 2017 will pave Modi's way to Delhi in 2019,” he said.

While Modi stayed away from the more contentious issues and promised development to the youth of the state and to its farmers, Shah raked up alleged exodus of Hindus from Kairana in western UP. Read more.