Strong law against benami property: Modi defends changes in note ban rules

Vows to take forward the fight against unaccounted money and corruption

Breaking News : Dismissing the criticism of frequent changes in rules after demonetisation, Prime Minister Narendra Modi on Sunday alleged that those who cannot endorse corruption and black money openly are relentlessly finding fault with his government. He vowed to take forward the fight against unaccounted money and corruption by implementing a strong law against benami properties.

“I assure you this is just the beginning in our fight against corruption. We have to win this war. There is no question of stopping... there is no question of retreat,” said Modi, under sharp attack from the Opposition over demonetisation, with Congress Vice-President Rahul Gandhi levelling allegations of “personal corruption” against him.

In his last monthly address this year in the Mann ki Baat programme, Modi defended the changes in the rules related to deposits and withdrawals, saying these have been done to reduce people’s problems and defeat the forces which are out to thwart his government’s fight against black money and corruption.

“Being a sensitive government, it amends rules as required, keeping the convenience of the people as its foremost consideration, so that citizens are not subjected to hardships,” said Modi. At the same time, it has to come out with “antidotes” against new tactics of the “murky enterprise of perfidy and corruption”.

“People, who cannot endorse corruption and black money openly, resort to searching for faults of the government relentlessly,” he said, lashing out at critics.

He said that some people who are spreading rumours that political parties enjoy all concessions and exemptions “are wrong” and asserted that “all are equal before law” and they have to abide by it.

The PM criticised the Opposition for not allowing Parliament to function and said he wanted a good discussion on this campaign as well as on political funding, had both Houses run properly.

Modi also talked about the benami property law that came into being in 1988, but neither its rules were framed, nor was it notified and laid dormant for years.(more)

Note ban: PM Modi silent on gains, hints pain may last little longer

Prime Minister Narendra Modi addressed a well-attended public rally in Kanpur, the precursor to what many expect to be his game changing rally in Lucknow on January 2. The Lucknow public rally will come at the end of his promised 50 days of “pain” of note ban.

He had earlier promised that days of pain would lead to “gain” for the public. However, the PM on Monday seemed to be suggesting that the pain might last a little bit longer, and he didn’t for once utter the word “gain” in nearly an hour long speech, and exhorted people to be willing to suffer inconveniences for a few more days for a brighter future of the country.

The PM railed against the Opposition for not letting Parliament function, for obstructing his fight against black money and corruption and for lying and trying to mislead people. Modi said India, post-note ban, was divided into two halves – a small minority of politicians trying to protect black money, corruption and dishonesty, and the other half comprising the hardworking and honest poor and middle classes of the country who are fighting this battle to reclaim their right.

The PM said he congratulated the Election Commission for having demanded from political parties to come clean on their donations. He said the Bharatiya Janata Party (BJP) welcomes the move, and he had requested at the ‘all party meeting’ before the winter session of Parliament to have a discussion on making political donations transparent.

Taking a dig at the Congress party’s lack of commitment to stopping black money, the PM said that party had a treasurer Sitaram Kesri, about whom Congress leaders themselves said how he didn’t maintain any accounts of donations received by the party. “Na khaata na bahi, jo Kesri kahe wahi sahi,” the PM said, adding this is how the Congress conducts its politics.(more)

• Modi has given 60% of India's wealth to 1% of the population: Rahul on note ban
• New rules: You can deposit more than Rs 5,000 in bank accounts only once till 30 Dec

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)

Jewellers shut shops for 12th straight day after income-tax surveys

Gold and jewellery establishments in the national capital remained closed for the 12th day today after the Income Tax Department conducted surveys following reports of alleged profiteering and tax evasion by traders and other operators in reported conversion of demonetised notes.

The survey operations were carried out on November 10 in at least four locations in Delhi-NCR region, including Dariba Kalan, Chandni Chowk and Karol Bagh.

The government on November 8 announced the demonetisation of 500 and 1,000 rupee notes to flush out black money.

Most of the jewellery houses have been closed since November 11 in the national capital.(more)