Before going through the content of the article let us understand what the word Tax Terrorism means. The term ‘tax terrorism’ was first used by the current Prime Minister Narendra Modi to describe the adversarial approach adopted by tax authorities under Congress lead UPA.
“Tax Terrorism” in simple words means a situation in which Tax Authority can use their powers to impose unreasonable tax on an honest taxpayer. This may be either in the form of unjust and inequitable tax laws or by enforcing the tax law on the general public in a harsh manner, which generally happens when the taxman views every transaction with suspicion.
Tax Terrorism can also be defined as aggressive use of legal and tax machinery by the Government to extract maximum tax revenue from taxpayer, which creates great inconvenience and harassment to the tax payers. Many aggressive steps of government like retrospective taxation, unnecessary litigation, seeding out demand notices, higher interest rates on delayed tax payments, unrealistic penalties e.g.- Penalties under Sec. 270A and 234E and delay in refunds etc. form part of tax terrorism.
For the current BJP government when it contested Lok Sabha Elections in 2014, Tax Terrorism was one of the key issues and the Party had promised that they will make all efforts to end the Tax Terrorism prevalent at that time under UPA Government. An extract of the BJP Election Manifesto for 2014 Lok Sabha Elections is as follows:-
“Taxation”
UPA Government has unleashed ‘Tax terrorism’ and ‘uncertainty’, which not only creates anxiety amongst the business class and negatively impacts the investment climate, but also dents the image of the country. BJP realizes the importance of having a Tax Policy Roadmap, so that people are aware of the future and plan accordingly. We will:
- provide a non adversarial and conducive tax environment
- rationalize and simplify the tax regime
- overhaul the dispute resolution mechanisms
- bring on board all State governments in adopting GST, addressing all their concerns
- provide tax incentives for investments in research and development, geared towards indigenization of technology and innovation”
BJP used the word Tax Terrorism as UPA Government tried to impose various taxes by making a statute applicable from Retrospective effect. But if we analyse the changes made by this NDA Government i.e. BJP lead government since coming into power in the year 2014, we will find that BJP is not far behind or in fact, may be ahead of the earlier government in one or other way.
Drawback of Tax Terrorism
1. Lower FDI- Tax Terrorism creates an atmosphere of uncertainty and keep the FIIs away from entering the Indian Market.
2. Negative impact on ease of doing Business- Tax Terrorism leads to lower ease of doing business.
3. Lower confidence of Business Community in India’s business environment, leading to lower investments.
4. All the Government programmes like Start up India, Make in India etc. will be hit negatively.
Measures needed to reduce Tax disputes / Tax Terrorism
- Improving tax administration and fixing the loopholes in the existing laws so that tax avoidance can be curbed.
- Implement tax reforms including income declaration, automation of assessment, etc.
- Improved tax dispute resolutions so that the investor confidence can be boosted.
- Bring back black money on priority by taking strict measures against Swiss Banks as done by USA
- Keep a Strict No for Retrospective Amendments
- Reforms in Litigation Management by creating Machinery to reduce domestic & international tax litigations.
- Bring certainty and uniform approach on important taxation issues affecting industry. Capacity-building in tax tribunals and setting up of the National Tax Tribunal to replace high courts should be revived with the implementation of the National Tax Tribunal Act, 2005.
- Tax payer should be considered as Customer by Income-tax department.
- Assessing officer should be responsible for administration of tax law and not for collection and he should be given any collection Target and collection and recovery work should be given to a department which is Independent of Assessing officer.
- Government should not use any coercive measures to fulfil any targets it has set for itself.
- Grant automatic stay till disposal of first appeal to taxpayer against any Tax Demand.
- Fix limit for CIT (A) to dispose of the appeals and till passing of CIT(A) order assesse should not be treated as “ Assesse in default”.
- GAAR may be deferred for another 2 years as Government need to build confidence mechanism and to train its officers for its proper for implementation
- Increase tax exemption limit to Rs.5 lacs as promised by BJP Government during 2014 Loksabha Elections and maximum rate of 30% may be introduced beyond income of Rs.25 lacs.
- Bring accountability for tax officers, commissioners and all involved in making assessments, deciding appeals, conducting surveys and searches.
- Simplify Tax Returns instead of complicating them in the name of disclosures and reduce compliance burden on Taxpayers
Why we think that Tax Terrorism is at its Peak under the BJP regime (Recent Past)?
Forced disclosure under Income Disclosure Scheme (IDS 2016) – As we all know the IDS 2016 has not got the response as expected by Government and in order to make the scheme successful government started giving targets to its officers and under the pressure of such targets, taxmen started threatening Taxpayers with Survey or Raids. These threats left the taxpayer with no option but to disclose certain sum under IDS 2016. Under such an environment, many taxpayers who were not having any black-money were also forced to declare Income under IDS 2016. Can’t we call such Blackmailing as Tax Terrorism? Income disclosure schemes should have worked on incentives and not on intimidation.
Every other day Threats by Taxmen, Revenue Secretary and by other Government Machinery- For the first time in my life I have seen a Government who instead of encouraging tax compliance positively choose to threaten taxpayers by Penal consequences on daily basis.
Confusing / Threatening / Contradictory Statements by Taxmen, Revenue Secretary and by other Government Machinery-
Here we are not dealing with harsh, unpopular and non tax payer friendly measures taken by the BJP Government since it has come to power in the year 2014. We are only discussing the things which have happened post 08.11.2016 i.e. the day honourable Prime Minister Shri Narendra Modi announced his Demonetisation scheme by which he has withdrawn legal Tender of Rs. 500 and Rs. 1000 notes.
As we all know social media has assumed greater significance in recent past and so has the digital and print media.
What the Government has done recently is that it has demonetised Bank Notes of Rs. 500 and Rs. 1000 to eradicate the black money out of the system, but without taking into account the way people may try to convert their Black Money into white post demonetisation.
One of such measures used by the black-money holders was that of depositing Cash into the bank account(s) of others in order to convert their black Money into white. The Finance Minister, Revenue Secretary etc. first said that any amount deposited up to Rs. 2.50 Lakh will be Tax Exempt and no enquiries will be made for those depositing cash up to such amount considering the same as below the tax exemption limit.
But after few days of such announcement, the Government has come with a Press Release saying that even if the deposit is less than 2.50 Lakh the same can be subjected to income tax and penalty if it is established that the amount deposited in the account was not of the account holder but of somebody else. Also the person who allows his or her bank account to be misused for this purpose can be prosecuted under the Income Tax Act.
Here, the intention of the Government seems to be correct. But by issuing such threatening press releases, it has created an atmosphere of fear amongst the depositors even if they have made the deposit out of their own savings. In fact many small taxpayers/ Common Men are scared to deposit any amounts in their account as they are scared to deposit due to fear of unnecessary harassment by Income Tax officers, post deposit of amount in their bank account and were left at mercy of brokers who are converting Cash into Gold, Foreign Currency and other valuable for a hefty commission ranging up to 50% total amount to be converted.
The Government has further failed to properly clarify that Cash Deposit (of whatever amount), if the same is from explained sources and has not been earned by tax evasion can be deposited without any limit. No action will be taken by the Assessing Officer if the assesse explains the same in proper manner. Government further failed to issue a guideline on what will be deemed as properly explained source of Cash Deposit.
To further add insult to injury, the Government has vide Notification No. 105/2016-Income Tax, given powers to Income Tax Officer (ITO) to select any case for scrutiny assessment and such unchecked power will certainly increase corruption and harassment to assessee.
We have already seen, an Income Tax officer issuing notice to an assessee from Siliguri for a mere deposit of Rs. 4.5 Lakh in his current account. Accordingly, we can imagine the way things will unfold in coming days.
On August 9 2016 during Debate on GST bill in Rajya Sabha PM Narendra Modi said that GST Bill is a crucial step for putting an end to “tax terrorism” as new indirect taxation regime will subsume seven to 13 taxes.
It seems to be the beginning of Tax Terrorism and Inspector Rule under BJP regime unless the Government takes remedial measures and reinstalls the confidence back in the minds of people.
I Would like to invite comment of our readers on the above issue.
Author Bio
I completely agree with you, Sir. This NDA government tries to impose a tax on each and everything. hence it shows the tax terrorism effect.
Apart from this, I am requesting you to answer my query, please. Why these big guns like Ambani, TVTV, Birla are quiet on the current issue on Demonization? Whether they all have converted their Black money into White Money? or Only the small Traders, Farmers or Labourers have Black money?
Looking forward to your reply. I request everyone, who reads this comment, to think about this.
Warm Regards
Prashant Bhargava
B. COM, LLB 2014-2017
Jindal Global Law School
I am not agree with the your views. Day by day business people are doing more wrong practices. they are understating their profit to avoid taxation. You will hardly get any businessman/Professional who are showing correct profit. For catching these people it is important to implement law strongly. The best thing is that the revenue officers are not irritating annyone. I my self went so many time they are behaving very nicely and after presenting the proof immediately they are closing the case. No bribe at all in last 2 year.
every commercial activity should be registered, returns filed regularly. also every individual in India should declare all his assets and liabilities as on today. any increase in assets and liabilities should be properly explained. otherwise the individual should be seriously penalised. this should be applicable to all politicians, industrialists, farmers, govt.officials and every business man. all land properties should be properly recorded and linked to PAN or AADHAR to identify the actual owners.
then only there will be a level playing field for all and no black money generation.
For past three years, Asset and Liability sheet attached in ITR 4 is to be mandatorily filled up only by the assesses whose Gross Total Income amounts to more than 25 lacs INR .
On getting opposition from professionals as to why Asset and Liability sheet to be mandatorily filled up in ITR 4 only and not in ITR 1, 2 & 3 , Govt. has modified the rules from the assessment year 2016-17
1. Filling up of Asset and Liability sheet will be applicable to all ITRs i.e 1, 2 3 & 4 for assesses having Gross Total Income of more than 50 Lacs. Now, what was the necessity of increasing the Limit from 25Lacs to 50Lacs .
2. Moreover, in case of ITR 1, 2 and 3 only 6 items in the Asset and Liability sheet are to be mandatorily filled up whereas in ITR 4 , 11 items are to be filled up.
Now, if the Govt is genuinely keen to eradicate black money , it should have asked for individual Balance Sheet for all ITR s , and for all income structures , whatever figure may it be .
common man is put to lot of inconvenience which is not for a day or two but for the days to come. Our’s is basically cash based economy where in people mostly settle transactions in cash. Any how common man should not have been put to inconvenience especially with 2000 rupee notes.
Yes. I agree that tax terrorism has increased during BJP regime. Its not not post 8/11 events. Even before that the finance budgets (from tax angle) is draconian, like imposing tax on dividend above Rs. 10 lakh, removing exemptions from service tax on services provided to educational institution (in the name of rationalisation the FM has simply removed the existing concessions), TCS provisions on cash transaction exceeding Rs. 2 and 10 lakh etc are terrorising provisions
Every initiative will have two faces and if it’s government’s initiative it has to see two way consequences. And I feel the government has failed to see the umbra of the situation created all around in small towns and villages.
People in small towns have stopped trading itself who are merely doing cash transactions as they don’t have cash in their hands. What about those people who just earn every month and spend it in that month itself. What about their earnings for the month November and December.
Only necessities are been bought by people in small towns, what about other shops which are been empty from past 15days.
All those who replied here are merely effected as they get their salary credited to their accounts even in Nov and Dec.
I am not trying to prove the initiative is wrong, but it should have all round measures and people in small towns and villages (75% of population) shouldn’t feel suffocated. It’s based on my own town’s experience
implementing atleast with alternative currency notes speak loudly and clearly that the country is run by efficiently inefficient. They did not wash the stomachs and brains of those who are creating black money.
Further the Govt. seems to have taken granted that IT dept. is not AtALL responsible for creating black money. (? it is recovering the dues to it from 2001 onwards – ? ? ? it does not speak of the reasons for the refund amounts lying with it from 2001 )
Similarly ? administrative measures the Govt. has taken against the erring bank officials – who are part of creating black money.
Simply banning of the currency will NOT yield any results EXCEPT conveying how high handedly the politicians in power can behave.
Really appreciable. Actually I think the persons who are having black money are not much in tension then as the common people. Even if the corrupt peoples cases are reopened they will be paying bride and close the case, but what about the common people who have never visited Income tax office. All we know how corrupt is our Department the trouble is to be faced by common people at last.
I totally agree step taken by the government if very good and for the good of the country, but dont create fear among the people. Thanks sir for sharing your views
Except for salaried class where are honest tax payers?
Going through the contents of article and replies to it, I feel no no body is interested to pinched but should have the maximum benefits. HNI says we are already paying taxes, general public says we are no having much earning but wants subsidy in every item/ scheme. So, gentlemen, please not when a doctor administers an antibiotic it doen’t gives relief to the specific problem only, but have certain side effects also. If we are interested to change ourselves even now we shouldn’t expect good status for each and every citizen.
First of all as professional Chartered Accountant you are creating wrong impression about Taxman. Each and every citizen of India must follow and comply with IT laws of our country.
Our people have habit of hiding undisclosed income and inspire of giving many chances by current government of prime minister Shri Narendra Modi people didn’t disclose their real income. Therefore this government is left with no other option but to give strict notices as per IT laws.
Our people must go through redical change.
People don’t understand unless you force them.
Well done NAMO government and his team.
All said Rightly. People with general and media knowledge may talk say anything, but as professional we all know that there could have many other ways to enforce tax compliance rather than threatening. Now, the ITO has also power and we all know what is going to be happen now.
the very statement that Govt should encourage people to pay taxes by incentive and should not create threats by imposing penalties is illogical one.
one should think about the fact that what makes the govt take such steps.
the person not paying taxes needs to feel scared of Govt for sure, otherwise it will be situation like kingdom without powerful king.
People crib and compare India with foreign country in its cleanliness whether on roads or in financials aspects and spending that govt does on its people.
But when there are steps taken by Govt in good faith the same is criticized with illogical arguments.
Can we not question about the intention of creators / hoarders of money. I understand the diffculties but are we trying to give a more human approach to ppl who were persuaded and then warned about the disclosure. I mean how many times do you request ppl to come clean. It has to be a two way deal and not always govt has to be responsible. The fact remains ppl still continue and search ways for conversion. Is this correct. Primarily we want to allow ppl to continue thier methods and mindset which has been ” Hoarding and non payment of tax is my right and I shall snatch it ir not given”.
Money for economy is blood. If the blood gets blocked in your body, we know the impact. Let it flow and flow thru the right and proper channel to keep ourselves healthy.
Sir,
Please explain the steps or ways Government encouraging tax compliance positively.
Please explain inviduals keeping cahs in in lakhs in the house is in order.
Explainging problems is not sufficent, it should contains solutions and suggestion.
Ur views are really pathetic U dont look like CA, totally misleading article spreading terrorism by ur stupid intellectual. *मोदी सरकर के दो साल का रिपोर्ट कार्ड खुद पढ़िए ओर लोगो को भी पढ़ाइये*
दो साल में अनेको योजनाओं की शुरुआत की गयी है जिनका लाभ सीधा भारत की जनता को मिल रहा है।
*1-प्रधानमंत्री जन धन योजना*
*2-प्रधानमंत्री आवास योजना**
*3-प्रधानमंत्री सुकन्या समृद्धि योजना*
*4-प्रधानमंत्री मुद्रा योजना*
*5-प्रधानमंत्री जीवन ज्योति बीमा योजना*
*6-प्रधानमंत्री सुरक्षा बीमा योजना*
*7-अटल पेंशन योजना*
*8-संसद आदर्श ग्राम योजना*
*9-प्रधानमंत्री फसल बीमा योजना*
*10-प्रधानमंत्री ग्राम सिंचाई योजना*
*11-प्रधानमंत्री गरीब कल्याण योजनाये*
*12-प्रधानमंत्री जन औषधि योजना*
*13-मेक इन इंडिया*
*14-स्वच्छ भारत अभियान*
*15-किसान विकास पत्र*
*16-सॉइल हेल्थ कार्ड स्कीम*
*17-डिजिटल इंडिया*
*18-स्किल इंडिया*
*18-बेटी बचाओ, बेटी पढ़ाओ योजना*
*20-मिशन इन्द्रधनुष*
*21-दीन दयाल उपाध्याय ग्राम ज्योति योजना*
*22-दीन दयाल उपाध्याय* *ग्रामीण 23-कौशल्या योजना*
*24-पंडित दीनदयाल उपाध्याय श्रमेव जयते योजना*
*25-अटल मिशन फॉर रेजुवेनशन एंड 26-अर्बन ट्रांसफॉर्मेशन (अमृत योजना)*
*27-स्वदेश दर्शन योजना*
*28-पिल्ग्रिमेज रेजुवेनशन एंड स्पिरिचुअल ऑग्मेंटशन ड्राइव (प्रसाद योजना)*
*29-नेशनल हेरिटेज सिटी डेवलपमेंट एंड ऑग्मेंटशन योजना (ह्रदय योजना)*
*30-उड़ान स्कीम*
*31-नेशनल बाल स्वछता मिशन*
*32-वन रैंक वन पेंशन (OROP) स्कीम*
*33-स्मार्ट सिटी मिशन*
*34-गोल्ड मोनेटाईजेशन स्कीम*
*35-स्टार्टअप इंडिया, स्टन्डप इंडिया*
*36-डिजिलोकर*
*37-इंटीग्रेटेड पावर डेवलपमेंट स्कीम*
*38-श्यामा प्रसाद मुखेर्जी* *रुर्बन मिशन*
*सागरमाला प्रोजेक्ट*
*39-‘प्रकाश पथ’ – ‘वे टू लाइट’*
*40-उज्वल डिस्कॉम असुरन्स योजना*
*विकल्प स्कीम*
*41-नेशनल स्पोर्ट्स टैलेंट सर्च स्कीम*
*42-राष्ट्रीय गोकुल मिशन*
*43-पहल – डायरेक्ट बेनिफिट्स ट्रांसफर फॉर LPG (DBTL) कंस्यूमर्स स्कीम*
*44-नेशनल इंस्टीटूशन फॉर ट्रांसफॉर्मिंग इंडिया (नीति आयोग)*
*45-प्रधानमंत्री खनिज क्षेत्र कल्याण योजना*
*46-नमामि गंगे प्रोजेक्ट*
*47-सेतु भारतं प्रोजेक्ट*
*48-रियल एस्टेट बिल*
*49-आधार बिल*
*50-क्लीन माय कोच*
*51-राष्ट्रीय ग्राम स्वराज अभियान – Proposed*
*52-प्रधानमंत्री उज्ज्वला योजना*
*फोरवर्ड कीजिये दोस्तों भारत मे हर एक के मोबाइल पर* सही बात है मोदी ने कुछ काम नही किया है ।।
देखो हर साल कांग्रेस कितना काम करती थी।।
खोदकर लाया हूँ उनके काम ।।
2011 -2जी स्पेक्ट्रम घोटाला 1,76,000 करोड़
2011 कॉमन वेल्थ घोटाला 70,000 करोड़
2010 आदर्श घर घोटाला 900 करोड़
2010 S बैंड स्पेक्ट्रम घोटाला 2,00,000 करोड़
2010खाद्यान घोटाला 35,000 करोड़
2009 चावल निर्यात घोटाला 2,500 करोड़
2009 उड़ीसा खदान घोटाला7,000 करोड़
2009 झारखण्ड खदान घोटाला 4,000करोड़
2009झारखण्ड मेडिकल उपकरण घोटाला130करोड़
2008हसन् अली हवाला घोटाला 39,120 करोड़
2008 काला धन 2,10,000 करोड
2008 स्टेट बैंक ऑफ़ सौराष्ट्र 95 करोड़
2008 सैन्य राशन घोटाला5,000 करोड़
2008 सत्यम घोटाला 8,000 करोड
2006पंजाब सिटी सेंटर घोटाला 1,500 करोड़
2006ताज कॉरिडोर घोटाला 175 करोड़
2005 आई पि ओ कॉरिडोर घोटाला1,000करोड़
2005 बिहार बाढ़ आपदा घोटाला 17 करोड़
2005 सौरपियन पनडुब्बी घोटाला 18,978करोड़
2003 स्टाम्प घोटाला 20,000 करोड़
2002 संजय अग्रवाल गृह निवेश घोटाला 600करोड़
2002कलकत्ता स्टॉक एक्सचेंज घोटाला 120करोड़
2001केतन पारिख प्रतिभूति घोटाला 1,000करोड़
2001UTI घोटाला 32 करोड़
2001 डालमिया शेयर घोटाला 595 करोड़
1998 टीक पौध घोटाला 8,000 करोड़
1998 उदय गोयल कृषि उपज घोटाला 210 करोड़
1997 बिहार भूमि घोटाला 400 करोड़
1997 सुखराम टेलिकॉम घोटाला 1,500 करोड़
1997 SNC पॉवेर प्रोजेक्ट घोटाला 374 करोड़
1997 म्यूच्यूअल फण्ड घोटाला 1,200 करोड़
1996 उर्वरक आयत घोटाला 1,300 करोड़
1996यूरिया घोटाला 133 करोड
1996चारा घोटाला 950करोड़
1995मेघालय वन घोटाला300करोड़
1995 प्रेफ्रेंशल अलॉटमेंट घोटाला 5,000 करोड़
1995दीनार घोटाला (हवाला) 400करोड़
1995कॉबलर घोटाला 1,000 करोड़
1995 वीरेंदर गौतम (कस्टम टैक्स) घोटाला 43करोड़
1994चीनी घोटाला 650 करोड़
1992हर्षद मेहता (शेयर घोटाला) 5,000 करोड़।।
बोफोर्स तोप घोटाला -राजीव गांधी 960करोड़
सालो राम मंदिर और पेट्रोल पर रो रहे हो ।
इनमे से 5 के नाम भी पता था क्या ।
इतनी मेहनत कर रहा है पर तुम्हारी आदत है न हर चीज में डंडा करने की ।।
अगर ये तंग आकर हट गया न तो तुम्हे फिर यही कांग्रेस मिलेगी ।।
जितने भी उसके बाहर घूमने से परेशान है वो कान खोल कर सुन लें वो बाहर जाकर हनीमून नही मना रहा ।।
सुरक्षा मजबूत कर रहा है भारत देश की ।
आज तुम सबको किसान दिख रहे हैं
और जब यूरिया और खाद घोटाला हुये तो कुछ नही दिखा ।।
अगर कुछ सचाई दिखे तो शेयर जरूर करें ।।
अगर लोगों को अँधेरे में रखने वालों ।।
और बिना बात के मुद्दे बनाने वालों को जरूर शेयर करें
।।धन्यवाद????
मोदी को प्रधानमंत्री बने 2 वर्ष हुआ की अच्छे दिन का ताना मारने लगे हैं कुछ लोग।
1.जवाहरलाल नेहरु 16 वर्ष 286 दिन।
2.इंदिरा गाँधी 15 वर्ष 91 दिन।
3.राजीव गाँधी 5 वर्ष 32 दिन।
4.मनमोहन सिंह 10 वर्ष 4 दिन।
कुल मिला कर 47 वर्ष 48 दिन में अच्छे दिन को ढूंढ नहीं सकते ।
और 2 वर्ष में हीं अच्छे दिन चाहिए।
ये कैसा न्याय है???
ये कैसी राष्ट्रभक्ति है????
फल खाना है तो पेड़ बड़ा होने दो।
भारत वासियों से विनम्र विनती, अगर अच्छे दिन चाहिए तो धैर्य रखें,
आपने प्रधानमंत्री चुना है कोई जादूगर नहीं।
अगर सिर्फ whats app or facebook पे जोक सुन सुन के मोदी जी की विदेश दौरों का पता है तो मुर्ख हो । इन उपलब्धियों के बारे में भी पता होना चाहिए …
***** साल एक शुरुआत अनेक *****
1. मोदी जी ने सऊदी अरब को “On-Time Delivery” Premium charges on Crude Oil के लिए मना लिया है ।
2. India भूटान में 4 Hydropower stations Dams बनाएगा । जिस से Green energy मिलेगी ।
3. India नेपाल में सबसे बड़ा hydro dam बनाएगा जिस से 83% Green energy इंडिया को मिलेगी। (इसके लिए china कब से लगा हुआ था )
4. जापान के साथ समझोता हुआ. वो भारत में 10 लाख करोड़ invest करेंगे और bullet train चलाने में मदद करेंगे।
(कांग्रेस के टाइम में ये समझोता सिर्फ 1000 करोड़ का था)
5. Vietnam के साथ रिश्ते सुधारे हैं और अब भारत को आयल देने और आयल रिफानरी में भारत के लिए मदद करेगा।
कांग्रेस के समय उसने मना कर दिया था ।
6. इरान अब डॉलर की जगह रूपये में आयल देने को राजी हो गया है । इससे काफी बचत होगी ।
7. मोदी जी 28 साल के बाद औस्ट्रेलिया जाने वाले प्रधानमंत्री बने और वहां दोस्ती के रिश्ते बनाये । अब वहां से Uranium मिलेगा जिससे बिजली बनाने के लिए काफी मदद मिलेगी।
8. मोदी जी इस साल श्री लंका गये, 27 साल में कोई भारतीय पी एम वहां गया…और टूटी हुई दोस्ती सुधारी, जिसका फायदा चीन उठा रहा था,जो कांग्रेस ने श्री लंका ना जाके बिगाड़ ली थी।
9. China के सामान india में बहुत बिक रहे हैं , इसके लिए बोल दिया की या तो इंडिया में invest करो नही तो गैर क़ानूनी माना जाएगा । अब China $20 billion Invest करेगा।
1 India ने North East and around India china border पे रोड बनाना शुरू कर दिया है ताकि हमारी army को जाने में दिक्कत न हो।कांग्रेस इस बनाने में डरती रही।
12. India यमन से 4000+ Indians को लाने में सफल रही ।ये सब मोदी और सऊदी अरब किंग की दोस्ती की वजह से संभव हो पाया।
13. India की Air force की ताकत कमजोर हो गयी थी। इसके लिए आते ही फ़्रांस से 36 Rafale fighter Jets खरीदने के लिए deal की है।यह ड़ील सात साल से अटकी हुई थी..
14. after 42 years कोई पी एम Canada गया…भारत को Uranium देने के लिए राजी हो गया है । इस से बिजली की समस्या से निपटने में मदद मिलेगी ।
15. Canada अब भारतीयों को On-Arrival visa देगा।
16. अब तक हम अमेरिक और रूस से ही Nuclear Reactor खरीद सकते थे । मगर अब फ़्रांस भारतीय कम्पनी के साथ यही बनाएगी । MAKE IN INDIA
17. बराक ओबामा से दोस्ती की और अमेरिका अब भारत में 16 Nuclear power plant लगाने में मदद करेगा । जिस से भारत में बिजली की दिक्कत ख़तम हो जाएगी ।
अगर एक खुशहाल और खुबसूरत भारत देखना चाहते हो तो..
इतिहास के अज्ञानी अगर देश के लिए कुछ करना है तो
मोदी जी के इस दो साल के काम को भारत की सारी जनता तक पहुचाए
Don’t create panic among common people,
BJP is already imposed more tax like KKC & SBC and reduction in petrol and diesel prices.
Nobody will oppose in taking action against block money but should not arras small tax payers and poor.
this is the first honest article on the state of affairs which the nation is facing daily…instead of minimum government we are exposed to maximum mis governance and unfortunately the finance ministry is the culprit…the root cause is the absolutely one sided laws passed by the previous regime and continued by the current regime…14A, illogical mandatory penal provisions….a big let down
Sandeepji I admit your opinions expressed in the article. we welcome all measures taken to control and eradicate the Block money and corruption. But it should not allow to cause inconvenience to the law abiding tax payers by the corrupt officials. The assessees should not be made panic on these punitive measures initiated. Unless all these preventive regulations are handled with care and caution, there is every scope for Tax terrorism. The central govt. has to give necessary guidelines to the Tax officials.
I really don’t understand why this article is placed during this situation. And the role of CA.
I appreciate for your deep observation. But my dear friend why to focus on negative side of the Govt. Feel by heart as a true Indian citizen what steps are going on is right or wrong and what are long term effects.
The whole India is supporting and well said they have HOPE for futures. Some times rather think of clients point of view see like a citizen in this situation role of CA is to cool down the small vendors rather opposing the step of Govt.
The problem is to the persons who have black money. Why support to defaulters rather to Govt.
The Government action in curbing the block money is accepted however they are not focusing on the reduction of tax instead imposing one or the other taxes like SBC & KKC it’s no where different from UPA.
Government should ork on taking confident of investors and general public, don’t create panic among the common people.
Especially middle class people were worried more whenever BJP comes in to power. Even now its repeating.
Dear Sandeeep Ji,
I don’t agree with your views because:
1) There has been no change in the statute as in the Vodafone retrospective taxation case. Enforcing the statute is and has always been the duty of the government so just a statement by the government as to its commitment to uproot the black money economy isn’t really supposed to scare any genuine business person.
2) No additional penalties have been levied and I guess it is the prerogative of the govt to find ways to ensure proper tax collection. If businessmen are inconvenienced because no specific “transitory provisions” were made the government has been successful in executing its plan with an “element of surprise” which as you will agree was essential for this entire exercise.
3) The PRINCIPLES OF NATURAL JUSTICE will continue to govern the outcome of any case whether or not any specific provisions are made for the assessment of amounts deposited during the demonitization drive.
4) The IT Act 1961 has always sought to tax income that had previously escaped assessment. No amendments for redusing penalties or instituting more lenient prosecution comes to mind.
5) It is our duty as professionals to calm down people who are unnecessarily alarmed and explain that only people with un taxed income need to be scared of this drive.
6) It is common knowledge that there will be problems in the initial stages. Even people with no black money will face some inconvenience (I was myself shocked by that notice for 4.5 lakhs in Siluguri). BUT I personally believe that there will be a learning curve and the Dept will soon begin to receive instructions about how to go about their business and not make any “vexatious assessments”. Another thing I am positive about is that this drive will actually create a better business environment with all the black money and the power black money can command,out of the equation.
God bless my motherland.
I think Sandeep has taken a very myopic view while writing the article.
His view “These threats left the taxpayer with no option but to disclose certain sum under IDS 2016. Under such an environment, many taxpayers who were not having any black-money were also forced to declare Income under IDS 2016” is totally unexpected from a CA.
Can / Will anyone who doesn’t have any further income to declare, will declare just in the name of threats. People are fearful only if they have done any wrong. Just because of verbatim by the Govt, no one declare.
It has become a story of blind and elephant. Decisions like these are taken in consultation with sincere, renowned and people of calibre. Its not a overnight decision. Its easy to write articles reflecting few pains of the individuals.
Had the Govt declared that every one with a ID will get Rs 2000/- from the bank free, no one would have complained of the queues or the hardships.
I am dismayed with your views Sandeep!!
I partially agree with you, not in total. Yes the approach by the government is on the aggressive front but if you see the situation, I personally feel that such a step was necessary.If the approach would have been a lighter one without any harsh actions/threats of Income tax notices then it would have been a move without any benefit. Yes money would have been recovered but the people would then start accumulating black money again in a similar fashion. To end this all and take the the economy towards a cashless, more digital one this step was necessary.
I think the government has not printed enough Rs 2000 and Rs 500 new notes and declared demonetisation. This will have a long term effect on the economy.
While the inconvenience caused to the Public at large is understandable and I agree with the views of the author to that extent, it also cannot be denied that menace of black money had become like a serious disease in the society needing surgical treatment at the earliest. Black money owners are considering it there fundamental right to deal in black money and using all ways and means to escape the current predicament without any loss to them. The sting operation shown by India Today a few days back clearly showing how Jandhan and other savings account are being used for converting black into white at a commission is a case in point, post which the government hardened its stance. The connivance of people with black money holders for their small greed is only to be blamed for the present situation.
Sandeepji, Totally agree with your views. This Government is worst than Congress.
Very well said and totally agree.
I feel government should not send negative message to public.
I think everyone is aware bout the consequences of depositng others money in their own account.
As far as demonetization is concern intent was good but implementation was not so good.
Before parting i must say that current step of demonetization is not tax terrorism only subsequent step could have more soften so as to encourage more compliance of IT law
Sandeepji,
Read your Article, totally agree with each & every point you have mentioned. If PM & FM wanted to remove Black money, end corruption, there should not be a currency note ok f more than Rs.100. This foolish people threatning innocent people. Absolutely Tax Terrorism worst than Congress.
I truly agreed with the author’s view.I never understand the meaning of law whereby one has to go to the Hon’ble Supreme Court for clarification,intent etc of the statute.Role of CA should be procedural as far as the law is concerned and of accountant and financial service planner.On the contrary ,there service under the complexity of legal enactments is just to make them understand to the assessee and which is rarely same if compare the view of two professionals on most of the issues.
Every one is baffled, including Govt. sources. Who will decide the source’s correctness? Unaccounted money can not always be black. This is the target on the savings of majority of people and not black money. They have opened NEW/Fresh avenues of generating black money by sudden rush. Only this action is not going to fulfill the aim. Lets hope for the best and wait. Who knows, miracles may happen…..
This is true to the core. As on date, the authorities are bent upon denying the legitimate beneficial entitlements even by way of cheating. No useful purpose can be ever served by doing so because this incentivizes corruption by holding the beneficiaries to a ransom. You can’t bring the nation’s economy to a grinding halt by withdrawing 86% of the money in circulation & be happy about it? By demonetization you have shot the messenger because simplest definition of money is what money does & there is no colour of money as such. The nation will have to pay a very heavy price & the poor & the middle class will suffer. Jobs will be lost in spite of the fact that the Indian economy needs more than 10 lakhs jobs to be created every month. Demonetization cannot end corruption. This is simply an excuse & time will reveal the bitter truth.
Rightly said…..
I don’t agree the views expressed in the article by Sandeep. Please understand the fact that only 1% of India’s population is paying tax and all others are enjoying the benefits of taxes paid by us. Where is the justice? Why 99% of the population not paying tax? is there any analysis? I think the Government is making the right move to protect the interest of the honest tax payers. Hats off to our PM for the bold and brave decisions.
Sandeepji your article is rich in content .Agreeing with you,
1.Department should take Suo-motto steps in implementing F.R.Singhvi’s case in scrapping penalty U/s 232 E.
2. Withdrawing the power to Assessing officer in selecting cases for scrutiny.if it is not done assessee will not be able to Persue his present case freely.
It is also suggested for automatic guillotine of demands upto Rs .5000/- kept pending for long years,regardless of its merits.
Sandeep, i totally agreed with your views. Our government is doing all right things with poor and ill execution. Were they not aware of impact if 86-87% value of currency would be withdrawn in 4 hours time ? At execution level things are flip flop, 4000/- exchange to start with, another day it is 4500/- then 2000/- and then exchange holiday on saturday. Really i am not sure with time permitted to deposit money till 30th Dec 2016 can be reduced over night.
Still people at urban place with use of plastic money, home delivery by groffers, online payment etc are fairly placed. I have seen pain of rural people who travel 10 to 15 kms for getting money at ATM and after waiting for hours and hours left empty hand. A daily wage earner is waiting for exchange or money withdrawal instead of earning bread for his family. No one tried to understand impact on other part of society like marriages, farmers, transport operators etc etc the list is long.
A proper execution with plan B/C would have helped lesser friction within the society but somehow intend seems to serve fast, uncooked dish will also do.
Government also had given full time to disclose their black money with simple tax. Now every thing in vain….Govt going in right way…
Yes very truly stated. People are more and more confused.
Very Truly stated, People are more and more confused.
I AGREE THAT Tax Terrorism IS ALIVE IN INDIA STILL IT HAS TO REACH THE PEAK
I HAVE BEEN A VICTIM SINCE LAST 4 YEARS,
YOU ARE ONLY TALKING OF DIRECT TAXES. JUST SIMMULATE THE INDIRECT TAXES ALSO
I HAVE CONTESTED An IT SCRUTANEY for 2012-2013 all my vendors and suppliers are issued a cross verification , infact the department has recreated my books of account by getting ledgers from every nook and corner.WITH ZERO ERRORS period 18 months. then service tax scrutanet 2014-2015 period 7 monts NILL RESULTS then service tax AUDIT 2011-2015 period 4 months NILL RESULTS with forced payments of 6 lac left to dispute still to contest IT scrutaney 2014-2015 I THINK IT COULD BE A TIME TO WIND UP ALL MY BUSINESS AND RELAX AT THE RETIREMENT AGE WITH SOME AGRI SECTOR INCOME
The Government’s move is with good intention, but with bad preparation. Position of all stakeholders should have been considered.
I completely agree and unable to understand why FM is trying to threaten the peoples that 200% penalty be levied, higher income compared to earlier years would be vefified or scrutinised etc. Does they want the peoples to opt unfair means of converting black to white,instead of taking them in the main course.
Sandeepji, though things seems to be getting complicated or at least they have been projected to us in that manner, I still think that government is trying to do right thing. In any society to properly and efficiently function, there must be a fear of law. India has become a place where majority of people do not fear from law. The people of India are getting used to “chalta hai” and “dekh lenge” attitude. In business also, one who is not following any rules and not paying legitimate taxes are giving competition to those who are incurring additional cost for legal compliance and paying taxes. The people who are complying all the laws felt cheated.
This step instills the confidence in them that there is some kind of government existence in this country. So terming it tax terrorism is not fair. Today, from this action of government those people who are used to doing their business in black, will be compelled to do it in white manner and this will definitely be a great step for the country.
Thanks Sir, for highlighting the facts, much appreciated.
Sandeep Ji
I absolutely differ from the view expresed by you regarding tax terrorism, as the government has done step wise step whatever it could do. But when the public of India including me do not hesitate in adopting unfair means to covert black money into white, the government reviewed the thing going on and then changed its stand on phased manner. As far as the question of creating an atmosphere of terror is concerned it is a matter of understanding and differ person to person. It may be terrot for tax evadersa but not for others.
Sandeep ji, it is a fight against Black money and we all know that the government had to issue such statements to discourage those who were being used as moles. We all know if government would not show such stance, people will make all wrong efforts to defeat the very purpose of the exercise
As regards IDS, opportunity was provided to all to come clean but no one came with polite pursuance. We all are aware that all efforts were made to reach out to the public for IDS. Then how can you expect government to continue to soothe same thing who still continue to adopt wrong measures.
We have seen changes in I T Act and procedures someday reducing litigation and better tax management. Now ITR processing and refund issue and TDS processes have streamlined to a great extent.
The changes in rules are already in place and the same are in line with the statements made.
As regards a notice by any one official needs to be seen as an isolated case and needs to be condemned and taken up at cbdt/government level.
Sandeep ji, read your article. Truly Tax Terrorism word was coined by our PM against UPA. The statements and actions by the current government during IDS and even during this demonetisation I believe is just to create a deterrent for all citizen to come forward to declare their black money . Surely the route of IDS was not available to corrupt babus, judiciary or politicians or the people engaged in illicit and illegal trade. People engaged in normal trade and commerce were given an opportunity to declare and come clean out.
Naturally after IDS, and during demonetisation, PM is not willing to give escape to business class also who are endulged in illegal practice and hence ask all such people to deposit currency . If you have legitimate currency, no one will question and even if question , you need to justify that only. I don’t think , I can be called as tax terrorism
Still people adopting illegal and unethical ways for conversion, needs to be questioned ..
Very rightly stated… Things are getting more and more complicated !