Budget 2024 Updates

July 21 (Sunday) was hottest day on earth since Ice Age: ScientistsRajasthan gets new industrial park in Union BudgetKamala Harris narrowly beats Trump in latest Presidential SurveyOver 200 killed in landslides in EthiopiaMacron to retain caretaker govt till OlympicsRepublicans at pain as Harris takes over Biden’s campaign fundsTN Chief Minister to boycott NITI Aayog Saturday meeting as TN gets nothing from BudgetBudget 2024 promotes New income tax regime; offers new tax slabs as sopBudget bonanza for MSMEs - Easier access to credit; boosting export capacityThe GST Summons: A relative can appear!Conditions for revocation of cancellation of registration - May be, maybe not!FM offers fiscal sops if land reforms are done within next 3 yrsAngel tax dumped for all classes of investorsDeduction hiked on non-govt employers' contribution to pension schemeBudget 2024: Gold, Cellphones, Cancer medicine now cheaperBenami Act: Immunity can now be withdrawn on IO reportBenami Act: 90 days time limit proposed to reply to noticeTPO gets powers to deal with domestic transactionsOne more Vivad Se Vishwas Scheme; Date to be notifiedNo deduction u/s 37 for settlement amount if paid for violation of any lawFM proposes to lessen tedium of TDS; reduces rates in many casesFM overhauls capital gains regime; to come into play from todayFM hikes exemption limit for long-term capital gain to Rs 1.25 lakh + hikes tax rate to 12.5% on specified financial assetsTourism: Temple corridors to be developed in BiharCGST - Finance Bill proposes to amend Sec 9 to take ENA out of purview of GST + inserts Sec 11A to regularise non-levy of tax on general practice in tradeCGST - Sub-sections to be inserted in Act to relax time-limit to avail ITC u/s 16(4) + New Sec 74A proposed to provide for common time limit for demand notices in fraud cases3.4% of GDP allocated as Capital expenditure to support infra sectorCGST - Proviso to be inserted in Sec 30(2) to provide for enabling conditions for revocation of registration + Amendment in Sec 39 to mandate return filing by TDS deductors even if there is no deduction in a particular monthIGST - Amendment proposed to prohibit refund of unutilised ITC on zero-rated supplyIncome tax - Finance bill revamps re-assessment regime againCustoms - Finance Bill proposes to amend Sec 28DA for acceptance of different types of proof of origin under FTAsFM hikes standard deduction to Rs 75K for new ITR regime + revises tax rates for all income slabs + Rs 7000 Cr revenue foregoneIncome tax - Search & Seizure cases - Block assessment is backBudget withdraws 2% equalisation levyFM reduces corporate tax rate for foreign companies to 35%FM proposes vivad se vishwas scheme + hikes monetary limits for filing appealsFM proposes 20% capital gains tax on short-term assets + listed financial assets held for more than one year to be classified as long-termGovt scraps TDS on Mutual Funds + decriminalises delay in depositing TDS + rationalisation of compounding of offences + revamps reassessment periodBudget proposes comprehensive review of I-T Act, 1961 + simplifies provisions for charities and TDSFM reduces customs duty on gold and silver to 6% + Nil BCD on nickel cathodeBudget proposes to reduce BCD on mobile phone and chargers to 15% + exempts 25 minerals from customs dutyFM exempts cancer medicines from Customs duty + amends BCD for various machinesFM proposes Rs 48 lakh expenditure outlay; 4.9% fiscal deficitFM announces Rs 1 lakh crore fund for developing space economyPromotion of Tourism - Vishnupad temple and Bodh Gaya temple corridors to be supportedFM announces over Rs 11 lakh crore capital expenditure in current fiscalGovt to invest in small Nuclear energy plants in partnership with private playersCentre to ask States to lower stamp duty for women purchasers of housesIBC - More Benches of NCLT to be set up to speed up recoveryFM spikes limit of Mudra loan to Rs 20 lakhsBudget offers financial aid to labour-intensive MSMEs in manufacturing sectorGovt announces 3 crore additional houses under PM SchemeGovt to secure Rs 15K loan for AP from multilateral agenciesGovt to frame new policy for all-round development of Bihar, Jharkhand and OdishaGovt to give one-month salary to all new recruits in formal sector through EPFOGovt to promote vegetable clusters closer to urban settlementsGovt to focus on productivity of agriculture with climate-resilient seedsFM allocates Rs 2 lakh outlay for PM's five schemes for job creation and farmersFM Nirmala Sitharaman presents 7th Union Budget in ParliamentBudget 2024: FM arrives at Parliament; Speech to begin at 11AMEconomic Survey 2023-24 - from GST PerspectiveUkrainian FM goes on tour to ChinaI-T- Additions framed u/s 69A are untenable where affidavits submitted by assessee's parents to explain source of cash deposits, were discarded by AO without consideration : ITATSurvey acknowledges productivity loss due to mental health disordersI-T- Short term capital gains returned by the assessee in terms of provisions of section 50 of the Act on assets held for a period of more than 36 months be treated as long term capital gains: ITATExpenditure on social services up from 6.7% to 7.8% of GDP: SurveyI-T-Additions framed u/s 68 are upheld where assessee is unable to prove genuineness of transaction involving purchase and sale of penny stock: ITATTrade deficit contracts to USD 78 bn from USD 126 bn in 2023I-T-Re-assessment is invalidated when there is no failure on part of assessee to make full and true disclosure of facts necessary for assessment: ITATCorporate profitability has peaked to 15-yr-old high between 2020-2023: SurveyI-T- When cash generated out of sales has been credited in the books of accounts, the provisions of Sec.69A could not be invoked: ITATBudget 2024: More relief for senior citizens & individual taxpayers on card; tweaking of capital gains tax likely; steady capital expenditure to stayI-T- If any amount invested is purely a strategic investment & for purpose of commercial expediency, then AO cannot hold such investments to be for non-business purpose: ITATGoogle backpedals on plan to scrap cookies from ChromeCus - For a HNWI individual, an expensive watch of 'Rolex' make would be his personal effect but same may not be the case if the person is of mere means - Pendant studded with diamonds not liable for confiscation: HCGovt amends Recruitment Rules for Debts Recovery TribunalGST - Even if no date, time or place of hearing is indicated in the notice issued, it was the duty of assessee to file his reply to SCN, which was admittedly received - Plea regarding violation of principles of natural justice cannot be countenanced: HCAbhinav Bindra conferred with Olympic OrderGST - Mismatch between value of e-way bills generated on portal and returns filed in Form GSTR-3B - Petitioner did not provide a comprehensive explanation - To remit sum of Rs.3.50 crores within six weeks - Matter remanded: HCHackers mercilessly hack Bangladesh PM’s website along with police portals
 
Reversing Parliament's Soiled Image Must Figure in 2019 Manifestos

FEBRUARY 25, 2019

By Naresh Minocha, Consulting Editor

INDIAN democracy touched a new low with the Promulgation of four ordinances post early closure of budget session of Parliament. There would have been no need for these temporary laws had the Parliament functioned till February-end, instead of ending budget session on 13th February.

The four transient laws are: 1) The Companies (Second Amendment) Ordinance 2019, 2) Muslim Women (Protection of Rights on Marriage) Second Ordinance, 2019 (popularly known as triple talaq law), 3) Indian Medical Council (Amendment) Second Ordinance, 2019 & 4) Banning of Unregulated Deposit Schemes Ordinance, 2019.

The new low is characterized by the Executive (the Government) usurping the powers of the Legislature (Parliament in this case) through repeated re-promulgation of ordinances.

Of the four ordinances notified on 21st February, the first three are re-promulgations for the third time in each case. All four would cease to be laws if the BJP fails to form the Government after the forthcoming Lok Sabha polls!

It would be for the New Government to decide whether any ordinance should be enacted as a regular law with or without official amendments. Non BJP alliance is highly unlikely to revive Triple Talaq. It emerged as symbol of Vote Bank politics as it overlook the plight of women deserted by husbands in other religions.

The bills introduced in Lok Sabha and not passed by Rajya Sabha lapse after completion of term of lower house (16th Lok Sabha in the present case).

The Government of the day re-issues an ordinance to cover up its failure to get it transformed into a regular law within six weeks of convening of a session of Parliament. Critics can view it as display of arrogance, bordering on contempt for judicial verdicts.

As put the Supreme Court in a verdict dated 2nd January 2017, "Re-promulgation of ordinances is a fraud on the Constitution and a subversion of democratic legislative processes, as laid down in the judgment of the Constitution Bench in D C Wadhwa" (case).

The Court also concluded: "The Ordinance making power does not constitute the President or the Governor into a parallel source of law making or an independent legislative authority".

If resort to ordinance is not restricted to emergency situations, then a stage might come where ordinance may become the norm and regular law an exception. It is here pertinent to recall what late Z.H. Lari said in the Constituent Assembly on 8th November 1948.

He stated: "There was a time when we used to complain that Ordinance was the rule and legislature was hardly consulted. I may here refer to the Father of the Nation who said: ‘Under the British rule, the Viceroy could issue Ordinance for making laws and executing them. There was a hue and cry against the combination of legislative and executive functions. Nothing has happened to warrant a change in our opinion. There should be no Ordinance rule. The Legislative Assemblies should be the only Law makers'."

NDA Government has to its credit 54 ordinances which is more than twice the ones (25) issued by previous UPA Government in its 2 nd tenure. The total temporary laws include several re-promulgated ordinances.

Modi Government should explain why and how frequent resort to ordinances constitutes Minimum Government, Maximum Governance.

The explanation is required keeping in view the fact that BJP fought against the Ordinance raj when UPA was in power. It is here pertinent to recall what Arun Jaitley, as the Leader of the Opposition in Rajya Sabha, stated on 2nd September 2013.

He moved a resolution "opposing the use of Ordinance path" for National Food Security (NFS) bill. Referring to political events organized by UPA to market NFS initiative, Mr. Jaitley said such "showcasing" sends only political signals and is not effective implementation of bill. He observed such acts "can never be a lawful, valid ground for promulgation of an ordinance".

Success in framing temporary laws reflects BJP-led NDA's failure to utilize 2014 mandate to herald the dawn of a new legislative India. The mandate was not used at all to clear the mountain of pending bills with some being decades' old. As many as 1980 bills, both Governmental and private, are pending in Parliament.

Did Prime Minister Narendra Modi extend his love for speedy decisions to this backlog? As the Leader of the House (Lok Sabha), did he strive to build broad political consensus for whittling down this mountain of bills? Did he work for long-neglected parliamentary reforms?

The popular mandate was, in fact, misused by sneaking in amendments to certain major laws in the Finance Bill, which is a money bill. Such bills, which are introduced in Lok Sabha, cannot be defeated by Rajya Sabha.

The popular mandate was not tapped to revive and enact few important bills that lapsed after exit of UPA regime. The lapsed bills, not touched by Modi Government, include Direct Taxes Code, 2010, the Public Procurement Bill, 2012 and half a dozen anti-corruption-focused bills.

It is here pertinent to keep in mind fact that UPA was a coalition led by Congress. It lacked the numbers to form the Government on its own. And yet it did not invoke ordinance-issuing powers with the same zeal as shown by BJP.

As we know, the bills introduced in Rajya Sabha do not lapse. The new Government, however, has a right to reconsider bills introduced in Rajya Sabha for moving amendments or for withdrawing them to introduce fresh ones.

Many bills, not passed by Lok Sabha or passed, but pending in Rajya Sabha, would thus lapse after dissolution of 16th Lok Sabha. Thus, 22 bills, which are in addition to ordinances, would lapse after constitution of 17th Lok Sabha.

The bills, destined to lapse, include Dam Safety Bill. Introduced in Lok Sabha on 12th December 2018, it provides for surveillance, inspection, operation and maintenance of specified dams for prevention of dam failure that can lead to disasters.

Yet another important bill destined to lapse is the Inter-State River Water Disputes (Amendment) Bill. Pending since 14th March 2017 in Lok Sabha, the Bill provides for initiatives to overcome grave deficiencies that have delayed resolution of such water disputes.

Apart from lapsed bills, the Government holds back many bills taking into account the Parliament's failure to meet more often. The data on number of bills that missed entry into Parliament is perhaps not compiled.

The problem of lapsed bills arises partly due to Executive-Parliament joint failure to arrange more sittings of both houses. The 16th Lok Sabha had only 331 sittings in which it cleared 205 bills.

According to M.R. Madhavan, President, PRS Legislative Research, this performance is below the 468-day average for all previous full-term Lok Sabhas. The 16th Lok sabha lost 16% of its time to disruptions.

The Rajya Sabha had 239 sittings during which it passed 154 bills. Should both houses of Parliament not meet more often to discuss and approve new bills?

Neither NDA nor the UPA cared to implement recommendations of National Commission to Review the Working of the Constitution (NCRWC) on slew of parliamentary reforms.

In its report submitted in March 2002, it recommended: "the minimum number of days for sittings of Rajya Sabha and Lok Sabha should be fixed at 100 and 120 days respectively".

If we go by this modest norm, Lok Sabha should have met for 600 days and Rajya Sabha for 500 days. Should voters not take both BJP and Congress to task for failure to act on NCRWC's recommendations?

The least the parties can do is to commit themselves to parliamentary reforms and detail them in their respective manifestos. They must promise not to use ordinance as an instrument for political grandstanding and for marginalizing the legislative process.

Let political parties clarify to voters their stand on package of reforms recommended by NCRWC.

A few salient recommendations of NCRWC are: A) Formation of a Standing Constitution Committee of Parliament for a priori scrutiny of the Constitution amendment proposals. B) Streamlining the functions of the Parliamentary and Legal Affairs Committee of the Cabinet. C) Setting up of a new Legislation Committee of Parliament to oversee and coordinate legislative planning. (D) Referring all Bills to the Departmental Related Parliamentary Standing Committees for consideration and scrutiny.

There are many more initiatives that the new Government can and should do to undertake sweeping legislative and legal reforms. The objective should be to make laws simple, fewer and less vulnerable to litigation.

While drafting manifesto for forthcoming polls the political parties should pay heed to observations about Parliament made by NCRWC.

It stated: "There is increasing concern about the decline of Parliament, falling standards of debate, erosion of the moral authority and prestige of the supreme tribune of the people. Corrective steps are urgently needed to strengthen Parliament's role as the authentic voice of the people as they struggle and suffer to realise the inspiring vision of a free and just society enshrined in the Constitution".

NCRWC added: "Also, it is of the utmost importance for survival of democracy that Parliament continues to occupy a position of the highest esteem in the minds and hearts of the people".

Ends


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