Intense lobbying begins for 7 Maharashtra RS Seats

by Harish Gupta, National Editor, Lokmat Group

special report 

Intense lobbying begins for 7 Maharashtra RS Seats

Fadnavis tops the chart of probables, Pawar sure to return

Dhoot, Husain Dalwai may miss the bus

Harish Gupta

New Delhi, Feb 5

Quiet but intense lobbying has begun for seven Rajya Sabha seats from Maharashtra falling vacant. Given the composition of 288 member state Assembly, BJP will bag three Rajya Sabha seats while the remaining four will go to the Sena-NCP-Congress combine. If sources are to be believed, the NCP is asking the Shiv Sena to spare an extra Rajya Sabha seat for it. The Congress has 44 MLAs in the House and can easily win one seat.

Of the seven retiring MPs, the return of NCP supremo Sharad Pawar is a foregone conclusion. The NCP will take a decision on its second candidate only after Sena's green signal. Thus, the future of NCP's Majeed Memon hangs in the balance.

The BJP leadership has assured Ramdas Athawale, Minister of State for Social Justice & Empowerment of his re-election though his RPI doesn't have the numbers. But uncertainty continues about the remaining two BJP candidates.

Highly placed sources in the BJP say that there is an outside chance of Devendra Fadnavis being brought to Delhi through Rajya Sabha and inducted into the Union Ministry. The former Maharashtra Chief Minister is a blue-eyed boy of the Prime Minister and wants to use him in national politics as the party is not keen to destabilize the Uddhav Thackeray government, at least for now. But no final decision has been taken. Fadnavis has been in Delhi for campaigning and held talks with members of the party high command. Amar Shankar Sable, sitting BJP MP is also a contender for being renominated for second term. The name of Ajay Sancheti, a former RS MP, is also being mentioned. One also hears that a noted economist may be brought to Rajya Sabha from Maharashtra. Uday Raje Bhonsle who quit his Lok Sabha to join the BJP, is also in the reckoning.

It is also learnt that Shiv Sena sitting MP Rajkumar Dhoot is unlikely to make a cut this time. But the intense battle is going on in the Congress for the lone Rajya Sabha seat. The sitting MP Husain Dalwai is not to be renominated and many are in the fray including Rajni Patel, Rajiv Satav, Milind Deora, Rajiv Shukla and Mukul Wasnik. Prithviraj Chavan is also keen to return to national politics quitting his MLA seat.

The biennial polls will be held early next month.

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Govt. eyes Rs 70000 crores from Amensty scheme

by Harish Gupta, National Editor, Lokmat Group

special report with Table 

Govt. eyes Rs 70000 crores from Amensty scheme

DeMo declarants get last chance to come clean

Harish Gupta

New Delhi, Feb 3

The government hopes to mop up as much as Rs 50000- 70000 crores in Income Tax under an Amensty scheme announced by Finance Minister Nirmala Sitharaman in her Budget on Saturday last.

Interestingly, this bail out package will not only apply to 5 lakh tax dispute cases involving an amount of Rs 11 lakh crores, but also to those who got Income-Tax notices under Demonetisation scheme. These 4.78 lakh disputed cases include 87000 notices issued under DeMo scheme of November 2016. The IT department found these 87000 cases as suspicious entries amounting to Rs 1.50 lakh crores.

It is learnt that the Prime Minister, Narendra Modi was personally keen to bring this one last Amensty scheme for these suspicious assesses to pay taxes minus penalty and interest. The Central Board of Direct Taxes (CBDT) is hopeful that it will collect Rs 70000 crores extra under this Amensty scheme.

The scheme will cover all tax litigation, including those against individuals. Thousands of jewelers across the country including more than 500 in Mumbai, are likely to avail benefit under this scheme open until June 30, 2020.

The scheme “Vivad Se Vishwas” is aimed at bringing down tax disputes pending at the level of the Commissioner of Income-Tax, Tribunals and Courts. The government hopes that the number of disputes will come down drastically as the government is only seeking the principal amount which is pending for even for some decades without interest & penalty. The dispute at the Commissioner level alone is Rs 5.71 lakh crores. It is this amount that the government is targeting and reap the harvest by March 31, 2020. Those who want to settle dispute by June 2020 will have to pay 5% extra.

This initiative is similar amnesty scheme that the PM cleared for indirect tax floated in the July 2019 Budget. The Sabka Vishwas Scheme fetched the government over Rs 35,000 crore and resolved 1.61 lakh cases. The amount involved in these dispute was Rs 80,000 crore tax dues and the government settled for Rs 35000 crores. That scheme waived up to 70 per cent of the tax dues and 100 per cent of interest and penalty. But the Direct Tax scheme will not give any relief in principal tax demand. PM Modi was enthusiastic about the success of this scheme as he repeatedly mentioned of it at his public rally today.

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PM Clears action against Nepal, China

by Harish Gupta, National Editor, Lokmat Group

PM Clears action against Nepal, China

Budget hits two neioghbours hard

Harish Gupta

New Delhi, Feb 2

Prime Minister Modi has sent clear signals to two neighbouring countries clearly in the Budget 2020-21 presented by Nirmala Sitharaman on Saturday last – Nepal and China- that it can’t be business as usual.

If the financial assistance to Nepal has been cut as much as by one third during 2020-21 Budget, import duty on cheap finished goods from China has been raised hugely.  

It seems his honeymoon with China is also over and except for sweet talking, Modi has decided to take full advantage of the out-break of deadly Coronavirus as the world is suspending businesses. The slapping of huge customs duty on 300 plus items may help the Indian domestic industry. But China will suffer the most as imports will be hit. In the process, the government hopes to mop up import duty during the 2020-21 as much as Rs 1.38 lakh crores. It seems Modi has joined hands with US President Donald Trump in curtailing growth of Chinese economy and take advantage of Coronavirus when the world is shunning the Chinese dragon.

No doubt, raising Customs Duty is aimed at helping MSMEs in the country as dumping from China has been hurting them. This will boost domestic industry, local employment and eventually impact GDP. But it’s a big move on the part of government sitgnaling the end of financial honeymoon.

If Nepal decided to join hands with China in a big way, India has cut financial assistance to Nepal during 2020-21 as much as 33%. Nepal saw a cut of Rs four billion from the Rs 12 billion that it received in the previous fiscal year from India. Nepal had received around INR 7.63 billion in fiscal year 2018-19. However, the assistance was raised to as much as Rs 12 billion during 2019-20 as PM Modi wanted very close relationship with Nepal. But during 2020-21, Nepal saw a biggest cut in the allocation though it will still be a recipient of the third largest Indian assistance i.e. Rs 8 billion.

Prime Minister Modi has also told the Finance Ministry to review Rules of Origin requirements, particularly for certain sensitive items, to “ensure that Free Trade Agreements (FTAs) are aligned to the conscious direction of “Make in India or Assemble in India.

Imports under Free Trade Agreements (FTAs) are on the rise. Undue claims of FTA benefits have posed threat to the domestic industry. Such imports require stringent checks.

FM Throws Please-All Tax Budget Googly

by Harish Gupta, National Editor, Lokmat Group

FM Throws Please-All Tax Budget Googly

Cuts Taxes, Withdraws DDT

But Takes Away 70 Exemptions

Sensex down 1000 points

Harish Gupta

New Delhi, Feb 1

Finance Minister Nirmala Sitharaman Budget echoed what the industry was telling Prime Minister Narendra Modi for months - put more money into the hands of the people by reducing tax. She has done exactly the same by reducing personal tax and in the process took a hit of Rs 40,000 crores. Tax payers can pay less taxes under the new system, save more money and spend as they wish. The slabs have been reduced considerably for those earning up to Rs 15 lakhs a year.

But there was a catch ! The FM introduced a “Dual Personal Income Tax” system whereby the tax-payer will lose benefits of 70 out of 120 exemptions that were available to them. The tax payers can opt for any of the two systems. If you want old system of taxes you take advantage of all 120 exemptions. If you want new system, pay less and lose 70 exemption.

This is a googley and no one is sure who will opt for whom. After introducing the “Dual Tax system” for the Corporate sector where it can opt for old 22% tax slab or new 15% slab, the same comes for personal tax too. Obviously, the government wants people to spend money instead of saving and prop up the economy. The slow-down is largely because people are not spending the money.

Another big boost given to companies was withdrawal of Dividend Distribution Tax (DDT). This is surely music to the ears to the companies and foreign investors too. However, the individual tax payers will have to pay dividend tax irrespective of any slab he may be. This is another googly.

However, the government took a series of steps in the Budget to end tax terrorism including creating an institution of a new taxpayer charter, amending the Companies Act to bring criminal liability in certain areas to end, bring faceless appeals etc.

True to the commitment made by PM Modi, the Budget also gives a boost to Make in India and Assemble in India by enhancing customs duty on variety of items and reducing excise duties.

What has baffled everybody is that the please Industry Budget has taken the Sensex crashing by 1000 points today. But Nirmala Sitharaman was confident when she said today, “Wait until Monday, why rush to a conclusion... the full implications will be understood by then.”

Interestingly, PM Modi did not launch any big ticket scheme. Rather, the government slashed allocation for major schemes in the Budget for next fiscal.

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The Untold story of Abrogation of Article 370

by Harish Gupta, National Editor, Lokmat Group

A Lokmat Exclusive story

The Untold story of Abrogation of Article 370

How A Constitutional Blunder was averted on J&K !

An Alert JS saved Amit Shah of huge embarrassment

Harish Gupta

New Delhi, Jan 30

It has now surfaced that a Constitutional blunder was averted on August 5 when Union Home Minister Amit Shah was in the midst of getting the abrogate of Article 370 passed in the Rajya Sabha.

In fact, Amit Shah was jubilant as the government has almost succeeded in getting the bill passed in the Upper House despite not having even a simple majority. Ministers after ministers were rushing to Amit Shah's Parliament House's chamber to congratulate him when he came to have a cup of tea.

It was around 5 in the evening when a Joint Secretary who was quietly standing in toe whispered that the J&K Re-organisation and abrogation of Article 370 would be illegal unless the prior approval of the Lok Sabha is taken.

There was a stunning silence in the room packed with ministers and couple of officers. One of  Amit Shah's favourite ministers snubbed the JS for his atrocious suggestion. He said the twin bills were cleared by experts and procedures adopted in abrogating Article 370 and there was no need for a new element.

But Amit Shah has an uncanny knack and allowed the JS to have his say. It was pointed out that since Article 370 can be abrogated only by the J&K Constituent Assembly or the J&K Assembly in the absence of the former, the Rajya Sabha cannot abrogate it. He pointed out a Resolution has to be placed in the Lok Sabha first authorising the House to be vested with the powers of J&K Assembly. Once this was done, the twin bills can be passed. 

The Joint Secretary was found to be correct in his submissions. But this created a new problem and a lot of formalities were to be done. . It was also discovered that the Lok Sabha was discussing the Surrogacy bill. Amit Shah walked up to the Speaker and impressed upon him the need to immediately seek the permission to table the resolution vesting the powers of the J&K Assembly in Parliament breaking the dicssion on the Surrogacy Bill. There were hardly any Opposition members on the benches except for the DMK's T R Baalu who opposed it. But the ruling party had it way and the Resolution was allowed.

A triumphant Amit Shah walked back to the Rajya Sabha armed with the Lokn Sabha authorisation and tabled it the RS in the melee. Rest is history.

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