Views Validated

30-Nov-2022: My Views are corroborated by the Prime Minister and the President of India

It's heartening and encouraging for me to have been corroborated by the Prime Minister and the President of India. Let me explain! 

Sometimes back (about four months), I wrote here about Judiciary Reforms in India, and suggested several measures. Please find this blog here:

Himansu Sekhar's BLOG: Judiciary Reforms (hisema.blogspot.com)

One can find the views and suggestions expressed in this blog are matching the views and suggestions of the Prime Minister and the President expressed recently during their public addresses.

It gives me great satisfaction, encouragement and fulfilment. Thank you all.

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Dogs' Day Out

16-Nov-2022: A National Dog Policy in the backdrop of Stray Dog feeding controversy

Currently, there is a case pending in the SCI (Supreme Court of India) about who can feed a street dog and how?

Sometimes back I had written about dogs and how they enjoy the esteem of a very sizable and powerful section of the society. These developments made me think and come out with a suggestion for our country's dog policy which we don't have till now.

Two important points make it necessary for this serious thinking. They are:

• On one hand we have a large population of dog lovers, pet dog owners, and we can't ignore their love for animals. We can't curtail their democratic freedom to express their emotion. Some sections of society and organisations plead for their life and dignity (Dog's Life Matters).

• On the other hand, we have the grueling menace of street dogs, disturbance to residential areas, unsafe public interaction, and dangerous situations. Many instances of dog bite have occurred of late- a potential hazard to children, the weak, elders, etc.

Unfortunately, we can't have both situations uncontrolled. Many countries have Dog Policies. Our country doesn't have one. Why not have one now when the time is ripe?

It's on this backdrop, these suggestions have been based. They are the following:

• Ban the street dogs completely. Subsequent points will tell how to manage the existing crowd of dogs.

• Pet dogs must be registered with the local body or municipality renewable every 1 to 5 years by paying a reasonable amount of fees. This will eliminate non-serious pet owners. 

• The municipality shall have adequate provision of veterinary and kennel services and may be funded by these fees.

• The municipality may from time to time declare the prohibition of ferocious breeds, which must not be adopted as a pet.

• There must be stringent rules & laws to control and establish public safety, preventing litter, and other guidelines. More of these in subsequent paragraph.

• 
  

Subhash Bose

18-Aug-2022: SUBHASH CHANDRA BOSE DEATH ANNIVERSARY:

August 18 is the death anniversary of Subhash Chandra Bose, one of India’s most enigmatic freedom fighters, a revolutionary and a nationalist who continues to inspire millions of Indians. He believed military strength was required for India to win its independence. He was also a follower of Swami Vivekananda.

Bose proclaimed the establishment of a provisional independent Indian government on October 21, 1943, and fought the British alongside Japanese troops. Let’s remember one of India’s bravest freedom fighter with some his memorable quotes:

• “Give me blood and I will give you freedom!” One of his most quoted lines is from a speech that Bose delivered to the soldiers of Indian National Army that he commanded along with Mohan Singh.

• “Freedom is not given – it is taken”

• “India is calling. Blood is calling to blood. Get up, we have no time to lose. Take up your arms! we shall carve our way through the enemy’s ranks, or if God wills, we shall die a martyr’s death. And in our last sleep we shall kiss the road that will bring our Army to Delhi.

• “It is only on the basis of undiluted nationalism and of perfect justice and impartiality that the Indian Army of Liberation can be built up.”

• “No real change in history has ever been achieved by discussions.”

• “One individual may die for an idea, but that idea will, after his death, incarnate itself in a thousand lives.”

• “Soldiers who always remain faithful to their nation, who are always prepared to sacrifice their lives, are invincible.”

• “The secret of political bargaining is to look more strong than what you really are.”

• “We should have but one desire today – the desire to die so that India may live – the desire to face a martyr’s death, so that the path to freedom may be paved with the martyr’s blood.”

• “When we stand, the Azad Hind Fauj has to be like a wall of granite; when we march, the Azad Hind Fauj has to be like a steamroller.”

Income Tax Reforms

08-Aug-2022: Income Tax Reforms

Income Tax being the major source of direct & personal taxes, is a very complicated system and has many hassles to while complying to it. This is one of the many reasons why people get discouraged and shun it. What is more astonishing is that in the name of “Simplification & Rationalisation” the IT Dept only complicates the system further. A classic example is the ITR-2 form which runs into 41 pages.

Here, I take the opportunity to suggest some basic ideas which may cut down the complicity of this system. These may look too simplistic, but have great comprehensive nature. Let’s see:

1. Our Financial Year is from 01-Apr to 31-Mar next year. Let’s simply make it the calendar year- 01-Jan to 31-Dec. This will remove great confusion about 2020-21, 21-22, and things like that. This suggestion was given by me in an article way back in 2012. And the GoI wanted to implement this feature in 2017-18, but later it was postponed indefinitely, don’t know why.
2. The concept of Financial Year (FY) and the Assessment Year (AY): these are coined because, what you earn in an FY has to be declared and paid tax in the next year named AY. But I say why the confusion? In any case when you enjoy any service in one period, you compensate it in the next period. Ex. House rent. The only exception is the Insurance premiums which need to be paid in advance. Well, what I suggest is to keep only “Financial” or “Accounting” Year nomenclature and while declaring & filing, just refer to the FY. Simple. It would reduce confusion.
3. The Rounding Off of the final figure to nearest Tens is now redundant because, the computer system has taken over for payment, refund etc. Earlier, small changes currencies were a problem physically. It will reduce system time.
4. The conception of Nominal (ex- in rents, etc.) and Accrual (ex- in receipts). These are imaginary figures, which may change from time to time. Also, taxing something which one has not “earned” but likely to earn because it has become due to him, is not a sound idea. It creates a lot of calculation which may change later when it is finally received at the hands of the Tax Payers. Then there is the chance of duplicate calculation when actually paid. These concepts need to be removed.
5. Double Taxation: For example, the MF AMCs pay dividend Tax to the exchequer, and again the Dividend is taxable at the hands of unit holders. For simplicity one of them must be removed- preferably the retail unit holders’.
6. TDS is another area of improvement. Though the GoI has enhanced the threshold limits, they are still less. For NBFCs & MF Dividend it is still a meagre amount- Rs. 5000 & Rs.4000, respectively. The following are the suggestions for the limits:
• Bank Interest for Senior Citizens: Rs. 1 Lakh, in a year
• Bank Interest for General Citizens: Rs. 80 K, in a year
• NBFC Interest: Rs. 50 K, in a year
• MF Dividend: Rs. 40 K, in a year
7. TDS, again: The IT Dept deducts TDS and finally, after the ITR filing determines the Tax liability, it refunds the excess TDS. Now it is seen that the TDS refund is more than 50% of the TDS collection. It means that the valuable resources are utilized during collection & refund, apart from the time delay outweigh the gain in tax receipt. It should be so adjusted that the refund be not more than 20% of the collection.
8. About the PAN Card: The Govt. says that PAN is invalid if not linked to Aadhaar. Well, then why not discard the PAN altogether and work with only Aadhaar. This will reduce a lot of paper work, risks, etc.
9. And finally, let me suggest the IT rate for taxable slabs:
• Up to Rs. 5.0 L – Nil (General), Rs. 7.5 L (Senior Citizens), 10.0 L (Super Senior Citizens),
• From Rs. 5.0 / 7.5 /10.0 L to Rs. 10.0 L – 10% plus the Lower Slab Amount,
• From Rs. 10.0 L to Rs. 20.0 L – 20% plus the Lower Slab Amounts,
• From Rs. 20.0 L to Rs. 50.0 L – 30% plus the Lower Slab Amounts,
• From Rs. 50.0 L to Rs. 1.0 Cr – 40% plus the Lower Slab Amounts,
• Above Rs. 1.0 Cr – 50% plus the Lower Slab Amounts,
• There shouldn’t be any surcharge over & above this.
10. Example: If one has an income of Rs. 1.2 Cr per annum, then the tax liability will be: 50K + 2L + 9L + 20L + 10L = Rs. 41.5 L (about 34.6% of the Taxable Income).

With these suggestions, I hope the Tax compliance will greatly improve. What do you say?