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30 lakhs, 2.5 Kg gold seized from tailor in Chandigarh

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Rs. 30 lakh in cash and two and a half kilograms of gold were recovered from the premises of a prominent tailor in Chandigarh by the Enforcement Directorate as part of its operation to unearth illegal cash. Out of the seized cash Rs. 18 lakh were in new Rs. 2,000 notes, the rest were in 100- and 50-rupee notes.

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Acting on a tip off, the ED investigators swooped down on the premises of Maharaja Tailor in Punjab’s Mohali and at sector 22 in Chandigarh.

 

After examining the bill books of the shop, the officials found that the owners of the tailoring shop had bought 2.5 kg gold at a rate of Rs. 44,000 per 10 gram after demonetisation.

The ED investigators said that they were verifying how the notes were exchanged and who the owners of the shop bought the gold from.

The seizure comes three days after ED officials recovered Rs. 2.19 crore cash from a cloth merchant in Chandigarh. The Chandigarh Police had arrested a senior bank employee of a private bank in Mohali for allegedly providing new currency to cloth merchant Inderpal Mahajan on commission basis.

ED had seized Rs. 2.19 crore including Rs. 17.74 lakh in Rs. 2,000 denomination, Rs. 12,500 in Rs. 500 denomination from the house of Mr Mahajan on 14 December.

(With inputs from PTI)
 

Kejriwal demands setting up of commission to probe source of political parties’ funds

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Delhi chief minister Arvind Kejriwal on Saturday demanded setting up of a commission to probe source of funding of political parties.

Arvind Kejriwal

He also questioned the central government’s decision to exempt political parties from paying income tax while depositing old 500 and 1,000 rupee notes.

He sought to link the Centre’s tax exemption decision to the meeting between Prime Minister Narendra Modi and Congress Vice President Rahul Gandhi yesterday, suggesting the announcement was outcome of the parleys between the two.

“Common people are being investigated if they deposit Rs 2.5 lakh individually. But if political parties are not going to be investigated even if they deposit Rs 2,500 crore following the decision, then it is wrong.

“We demand setting up of an independent commission to probe into bank accounts details of political parties over the past five years, to investigate into their sources of funding,” Kejriwal said at a press conference.

He also asked the Centre to make public details of money deposited by all political parties post-demonetisation and sought removal of the “less than Rs 20,000 donation cap” for tax exemption, saying “each paisa the parties receive should be declared”.

“The income tax returns filed by AAP right from its formation until now are being enquired into. We are presenting each of the receipts and vouchers to the income tax department. We are not scared, what other parties, BJP, are scared of? Why they too should not be probed?” he asked.

 

Kejriwal, a bitter critic of Modi, accused the latter of helping political parties — the “biggest hoarders of black money” — to convert it into “white” at a time when common people have been forced to queue up outside banks and ATMs to withdraw their hard-earned money.

“Ye desh ke sath dhokha hai (it is a big fraud played on the country),” Kejriwal said.

Stating it was “surprising” that the tax exemption decision came after Gandhi led a Congress delegation to meet Modi, Kejriwal demanded that the Congress Vice President make public details of Modi’s corruption as he claimed to have supporting documents.

“He is not sharing details of Modi’s corruption, is only talking about it… Then he meets the PM and seals a deal. I will insist Gandhi to make public the evidences and that he stops entering into deals with Modi. Or else, the country will not forgive him,” Kejriwal said.

Hitting out at the Prime Minister, Kejriwal alleged Modi’s intentions were “bad” right from the day he announced demonetisation on November 8.

Meanwhile, Kejriwal also denounced the decision to hike petrol and diesel prices, which he saw as a repercussion of demonetisation and sought its immediate reversal.

“We oppose the hike in fuel prices. This is direct result of demonetisation. The rupee has become weak in international market post-demonetisation, leading to hike in the fuel prices. This should be rolled back immediately,” he said.

To a question, the chief minister said the AAP is “not affected” by demonetisation.

He reiterated demonetisation is an “unconstitutional” move and likened it to dacoity by the Prime Minister on bank accounts of people as they are not being allowed to withdraw their hard-earned money.

Referring to a case pending before the Supreme Court with regard to demonetisation, Kejriwal hoped it takes cognisance of concerns and declares the move as “unconstitutional”.

(With inputs from PTI)

Courtesy: Janta Ka Reporter
 

Ravi Shankar Prasad’s controversial statement, says demonetisation like ‘labour pain’,will result in ‘joy’

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Union Law Minister Ravi Shankar Prasad today likened demonetisation woes to “labour pain“, saying its end result would be as “joyful” as the birth of a baby.

Ravi Shankar Prasad
Photo courtesy: livemint

Prasad made the remarks at an event organised by the Delhi BJP’s IT cell that lay emphasis on how demonetisation was an opportunity for the country’s transition towards a cashless economy.

However, Prasad said the government’s motive behind demonetisation was “less cash”, not cashless. He criticised the Opposition parties for “not allowing” the Parliament to function.

 

“People will face a little problem. But the pain is like the one that a woman in labour undergoes. Eventually one will experience the joy like one does hearing the first cry of a baby,” Prasad said.

He asserted that the defunct notes deposited in the banks will be scrutinised and not all of it will be considered “white”.

At the gathering, largely consisting of lawyers, Prasad also took jibes at former Prime Minister Manmohan Singh, saying, he was “happy” when Singh spoke.

“I eagerly wait for the speeches of two people. Manmohan Singh and Rahul Gandhi,” he said, and went on to hail Prime Minister Narendra Modi for having “raised” India’s stature in the global community through his foreign trips.

He said the amount deposited in the banks will help in investing in strengthening the Indian Army, assisting farmers, small traders, building roads, adding that “naxals and terrorists” are a troubled lot due to the decision.

Speaking at the event, Delhi BJP chief Manoj Tiwari said politicians like Arvind Kejriwal and Akhilesh Yadav, who are opposing the measure, are actually “aware of its benefits”.

Tiwari also referred to Modi’s statement that former Prime Minister Indira Gandhi had “rejected” Wanchoo Committee’s recommendations in 1971 to bring demonetisation.

(With inputs from PTI)

Courtesy: Janta Ka Reporter
 

Modi Govt’s Black Money Hunt Spares Political Parties -No IT Scrutiny on Old Notes Deposit

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No checks on deposits by political parties

On Friday, December 16 Revenue Secretary Hasmukh Adhia said if the deposits are in bank accounts held by political parties, they would attract no tax.

Arun jaitley
Image: Business Standard
 
Despite it’s high voltage campaign, ostensibly against black money, political parties appear to have been spared. Is this a brazen attempt to build a cross-party silence or consensus?Worse, this means that individuals or corporations can launder their money through the account of political parties and escape the net!

The Modi government has put out an email ID for whistleblowers to send information about possible conversion of black money by individuals, but it seems to have given political parties a free run with deposits of old currency notes in their accounts. On Friday, Revenue Secretary Hasmukh Adhia said if the deposits are in bank accounts held by political parties, they would attract no tax.

The government has put out an email ID for whistleblowers to send information about possible conversion of black money by individuals, but it seems to have given political parties a free run with deposits of old currency notes in their accounts. On Friday, Revenue Secretary Hasmukh Adhia said if the deposits are in bank accounts held by political parties, they would attract no tax.

Both the Economic Times and the Indian Express have widely reported this controversial move.

“Dekhiye, if it is a deposit in  the account of political parties, they are exempt. Lekin agar individual ke account mein, kisi ke bhi account mein jama ho raha hai, toh woh toh definitely the information will come on our radar (See, if it is a deposit in the account of political parties, they are exempt. But if it is deposited in any individual account, in anyone’s account, that information will definitely come on our radar.)

Finance Ministry officials said that the tax exemption to political parties will be subject to existing conditions in the law. According to Section 13A of the Income-tax Act, political parties are exempt from income tax provided they maintain books of accounts and record details of individuals making donations over Rs 20,000.

Separately, at a FICCI event, Finance Secretary Ashok Lavasa, when he was asked about deposits of political parties, said, “Jab tak 30 December tak purane note koi bhi jama kara sakta hai toh isme kisi ke khilaaf aisa koi vyavdhaan nahi hai ki falaana aadmi nahi kara sakta aur falaana kara sakta hai (Until December 30, anyone can deposit old notes. There is no provision that says so-and-so cannot deposit and so-and-so can). Anybody in India can deposit these notes in his account.”

Having collected around Rs 1 crore in every search-and-seizure and admissions of Rs 2,600 crore of concealed income through 295 surveys, the tax department on Friday announced commencement of the second opportunity. Beginning Saturday, Adhia said, citizens can come clean with their unaccounted wealth through the Pradhan Mantri Garib Kalyan Yojana (PMGKY) till March 31, 2017.

Declarations made in the 105-day scheme will be subject to total 49.9 per cent of tax, penalty and surcharge, along with the declarant having to deposit 25 per cent of the undisclosed income in an interest-free deposit scheme for four years. Adhia said that black money cannot be converted to white unless taxes on undisclosed assets are paid and full investigation is concluded. Adhia announced an e-mail ID — blackmoneyinfo@incometax.gov.in — for whistleblowers to send information about possible conversion of black money.

Central Board of Direct Taxes (CBDT) chairman Sushil Chandra said the tax department was also receiving a lot of real-time information, which was being matched with existing profiles of tax assessees. He said that since the November 8 announcement of discontinuing high-denomination currency notes, the department had seized Rs 393 crore after conducting 291 searches and seizures. Of this, Rs 316 crore were cash seizures, including Rs 80 crore in new currency notes. Apart from this, jewellery worth Rs 77 crore was seized.

“Deposits in bank accounts are being watched and, therefore, they should come very clean under this scheme which is the last window available for anyone,” Chandra said, adding that around 3,000 notices have already been issued based on the deposits made after November 8.

Emphasising that scrutiny of data will be “non-intrusive” so that there is no fear of ‘Inspector Raj’, Adhia said that the government would also take help from professional agencies to analyse information of deposits made post the currency discontinuation decision.

“We want people to come forward and declare on their own unaccounted cash/deposit. The moment all the deposits come by December 30, we will analyse the voluminous data that we get. We would scrutinise all the data in a non-intrusive manner so that the fear of ‘Inspector Raj’ is not there in the minds of people,” he said.

Unlike the previous four-month long tax compliance window — Income Declaration Scheme (IDS) — which ended on September 30, declarants under the PMGKY will have to produce a receipt ensuring that they have paid taxes and penalties, before filing a declaration. Under IDS, declarants made their disclosures before payment of tax and penalty. The disclosure scheme is part of The Taxation Laws (Second Amendment) Act, 2016, approved by the Lok Sabha earlier this month and has the President’s assent.

Adhia said that while declarations made under the new taxation and investment regime of PMGKY will not be admissible as evidence under different tax Acts such as Central Excise, Wealth Tax or Companies Act, the declarants will not enjoy any immunity under existing criminal laws.

He said that if the undisclosed cash or deposit in accounts was not declared under the PMGKY scheme, it will attract tax, surcharge and cess totalling 77.25 per cent of the income if it is declared in the income tax returns. In case the disclosure is not made either using the scheme or in returns, a further 10 per cent penalty on tax will be levied followed by prosecution, he said. Under the scheme, the income declared will not be included in the total income of the declarant under the Income Tax Act for any assessment year.