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If you are a taxpayer and paid your income or business tax on time, this awards is an effort from TIOL to appreciate and boost the morale.....Register Now! Visit: https://tiolawards.in/nominate/

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Until last year I was quite baffled about why so many persons used to be expectantly excited on the budget day. Children were deprived of their undisputed right of watching their TV programmes on that day. I used to feel very irritated. What was in a Budget? Now, when I am in a Law School, I decided to demystify the Union Budget for my inquisitiveness. I was surprised to learn that the origin of the word budget comes from the Latin word ‘bulga’, meaning a little pouch. In French also, there was a word ‘bougette’, a little form of bouge, meaning “leather bag”. What we can understand that its first meaning in English indeed was “pouch, wallet, bag”, which naturally matches with its character and applicability today. Though, the little pouch or the wallet has been replaced by shining red briefcase for many years and red cloth-wrapped documents now. The first official use of the term ‘Budget’ which I could gather was done by Mr.Walpole, who is considered as the first de-facto Prime Minister of Great Britain when he presented the Financial Statement in 1773. The first Indian Budget was presented by James Wilson on February 18, 1869. Mr Wilson was designated as Finance Member of the Indian Council that advised the Indian Viceroy. The first Budget of Independent India was presented on November 26, 1947, by the then Finance Minister R K Sanmukham Chetty. It was also for the first time I happened to know about the ‘Halwa Ceremony’ related to presentation of Indian Budget. Initially the details of the Budget were kept secret, deliberately, and for that the staff involved in printing of budget were kept isolated in the North Block for about a week ahead of the presentation of the Budget and it started with a customary ‘Halwa Ceremony’ a household traditional sweet prepared for any important work. When I asked my father about the Budget, he replied to me in a very simple way. It is an exercise of balancing the income and expenditure and for that generally the rich ones ‘Budges’ i.e. makes room for others by making some more contribution to the Government kitty and the deserving class ‘gets’ it through various schemes of the government. That is Budget. Is that so simple? read more

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While talking of broadening tax base, we always talk of getting in more and more people in the tax net. Seems logical and convincing, but have we ever thought of educating those probable tax payers, right from the school. While discussing with my classmates and Professors, I was surprised to discover that though about fifty percent of our country’s revenue comes from Indirect Taxes, there was no course on indirect taxation right from the school to college education. Even the law courses also did not cover subjects of Indirect Taxation, except some recently introduced five years law programme. However, in commerce and law courses, Income Tax and then existing VAT laws were part of the curriculum and recently GST has also been introduced in such courses. Even if one tries to get through the tax subjects, the biggest hurdle is its linguistic marginalization. Since Independence, the biggest hurdle in the tax administration and education is it’s total dependence on English. With barely 10% of the total population having the ability to understand English, even after so much of educational advancements, how can we think of reaching the masses about tax education? Surprisingly, entire GST system is working on GSTN, which is totally engulfed by English and I have seen many State Tax authorities of Gujarat writing letters to the tax payers in Gujarati language. However, I could feel the winds of change. It can be seen now that for the first time in India, people have started discussing ‘taxation�� and the Government is also focused on educating and reaching out to the masses. For the first time, a compilation of FAQs on GST had been published in Hindi and almost all regional languages apart from English. This is a good sign for the tax system and the entire country. Here, I would appeal to all intellectuals and media persons to discuss taxation mostly in the vernacular language of the masses in the respective states and not in the language which improves their images or brand them ‘intellectuals and elite’ by virtue of their overt fluency in English. read more

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Taxation is an essential financial charge levied by any governmental body to be able to fund administrative activities. Dating back to Circa 3000 BC in Ancient Egypt and subsequently the Persian Empire back in 500 BC, taxation has served as the primary means to generating funds for Governments across the ages and regardless of democratic, monarchic, oligarchic or autocratic or even kleptocratic in nature.

It does not take a degree in rocket science for one to understand that taxation of individual income, corporate earnings and trading activities aids the state to amass enough revenue to provide the basic amenities to the people and in doing so, discharge those primary functions and responsibilities for which the public elects leaders to govern it. In layman’s terms, a Government discharges two broad functions – protection from external threats & maintenance of internal peace & harmony. The taxes paid by the people help the State in raising and equipping professional armies, which in turn protect the nation. As wars have always been expensive affairs, only economically strong nations can afford to wage them, thus establishing a causal link between taxation and national & regional security. Taxation also ensures internal peace, stability and harmony in the sense that it provides modern or state-of-the-art facilities to the people, such as educational institutions, transport facilities, healthcare institutions and also help fund the institution of the Police. More importantly, taxation aids the State to develop policies regarding industrialization and social security. It is apt to say that taxation policy gives a window into the soul of the society. With passage of time and the advancements in technology, taxation has evolved into a multi-faceted system. With the advent of the Goods & Service Tax (GST) regime, taxation has become a compliance-based fundamental duty to be fulfilled by employed citizens liable to pay tax on their personal incomes and by corporate entities. The shifting mentality entails that collecting taxes is not just a necessary function to be discharged by the Government – it also the duty of eligible citizens to pay their taxes. Hence the process of paying and collecting taxes entails equal efforts by the tax payer as well as the tax collector, towards national development. read more

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There is no doubt that today ‘Tax’ is the buzzword. It is aptly said by an American scholar that ‘the democracy will cease to exist when you take away from those who are willing to work and give to those who would not’. So in a country like India, there has to be a crucial balance between rights of the Citizens vis-à-vis the responsibility of its Government to devise policies and plans regarding Taxation.

The word ‘Tax’ comes from a Latin word ‘Taxo’, which means ‘estimate’. A tax is a compulsory fee or financial charge levied by a government on an individual or an organisation to raise revenue for public works. It is ‘Income Tax’ which impacts the pockets of the common salaried class the most. Have you ever imagined when the first ever income tax was levied in the history of Indian Taxation? The history of Income-Tax in modern India dates back to 1860 when the first Income Tax Act was introduced by James Wilson who became (British) India’s first finance member. This Act lapsed in 1865. Much later, i.e. in 1922, major changes were done in the Income Tax Act. Even after amendments there were merely 68 sections in the Act. Since then many revolutions came and gradual changes were made in the provisions of the Income Tax Act. These amendments though rational and just, they were not assimilable to the common man. That is why every time there was any change, it had to face a barrage of criticism from them. Even Albert Einstein, the profound scientist, found taxes inscrutable. He once said, “The hardest thing in the world to understand is the Income Tax”. As a result of these constant amendments, today the Income Tax Act, 1961 has approx. 300 Sections, which is undoubtedly the reason for calling it as a weighty tome. Let’s take note of an interesting trivia revolving around Taxes across the globe. There are few countries which impose some bizarre taxes:- Switzerland – where tax is levied on Pet dogs Ireland – where tax is imposed on the methane gas coming out from the fart of cow Arizona U.S – where tax is levied on purchase of ice blocks Even India because of varying culture and influences, in it’s various States including Punjab, Chandigarh and Rajasthan, imposed cow welfare cess. Very recently in Madhya Pradesh, state administration has made it mandatory for those applying for arms licence to donate 10 blankets to cows or serve for three days in a ‘gaushala’ (cow shelter). Coming to complex tax structure and frequent amendments in the provisions of the Act, which has someway caused mental pressure to the common citizens as they have to face undue harassment from certain dishonest taxmen during their assessment proceedings. Thus, it is the high time when the department must have taken it seriously to change their image in the eyes of the honest taxpayer of the country. If we talk about of future of Income Tax in India, first thing which comes to mind is the recent Taxation Laws (Amendment) Bill, 2019, which proposes lower rate of taxation for the new domestic manufacturing companies with an option to pay tax @ 15%, which were established after October 1, 2019 and started operations before March 31, 2023. The companies opting for lower tax rates will, however, not be entitled to claim any rebate or deductions. E-assessments through faceless mode, which has already been started for large tax payers as a pilot project is also paving the way forward for smooth inculcation of technology for simplification of procedural aspects of taxation. Also as per the Income tax department’s project “Insight”, watch of social media uploads of vacation, purchase details of heavy price items, costly tickets of concerts acts as a catalysts to do evaluation of escaped income. Many countries across the globe like Japan, Philippines, South Korea give various incentives to their compliant taxpayers. Even Pakistan has a scheme to reward the top 100 taxpayers every year with access to VIP lounges at airports, fast-track clearance at immigration counters, free passports and enhanced baggage allowance. Indian Government has also initiated a practise to distribute Bronze, Silver and Gold Category Certificates to various compliant taxpayers which CBDT terms as the first effort by the government to directly communicate to the tax payer as appreciation for their contribution. Given the negative image of the Income Tax Department caused due to generation of tax demand notices and rigorous assessment proceedings every year, a positive communication, was much needed. Any future scheme of the department to cut down on disputes and litigation on taxation, and to acknowledge / reward tax payers will be a welcome move and this is what the theme of the TIOL Annual National Taxation Awards – to reward the tax paying behaviour of a common man. Read more

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Goods & Services Tax (GST) is a headline grabber in India. What recently made it more ‘intaxicating’ was its ‘blending’ with Lottery. And the issue was – Some of the States which run the lottery business to raise funds for welfare schemes wanted to pay lower GST tax rate than the one to be paid by an authorised agency. Though the GST Council headed by the Union Finance Minister settled the issue through a voting process for a uniform tax rate of 28% but taxes on lottery have a long long history and some of the kings had managed to achieve stunning feats with the help of lottery! The first documented evidence of a lottery was traced from the history of the Chinese Han Dynasty between 205 & 187 BC. Lotteries are believed to have financed the mega government projects like the Great Wall of China. The Romans used to play with lotteries only as an amusement at dinner parties. Every ticket holder used to be assured of some prizes. Later Augustus Caesar used lottery tickets to raise funds for repairs of the city of Rome. In brief, lotteries were used an instrument to raise funds for either fortifying the town walls or to help poor like in the Netherlands. When it became a popular source of fund-raising, Emperors also began to levy taxes on sale of lottery tickets. The Dutch state-owned Staatsloterij is the oldest running lottery. The English word lottery is derived from the Dutch noun “lot” meaning “fate”. The first Italian lottery was held on January 9, 1449 in Milan. It was held by the Golden Ambrosian Republic to fund the war against the Republic of Venice. However, it was in Genoa that Lotto became very popular. The English had first experimented with Raffles and other games of chance and then moved to lottery which was chartered by Queen Elizabeth I, in the year 1566, and was drawn in 1569. In modern times, lotteries which were earlier banned by many countries, emerged as a source of tax revenue post Second World War when casino culture became popular. When India drafted its own Constitution, it also included Lottery in the State List II of the 7th Schedule of the Constitution afrer animated debate between some Members and Dr B R Ambedkar. Now, with 28% tax rate Lottery is going to enrich the revenue kitty of many States which would hopefully raise substantial funds to fund the schemes for the poor in their respective States. It is true that it is a vice but by buying tickets offline or online, buyers do contribute for a national cause and this is what TIOL Annual National Taxation Awards intend to celebrate – the tax paying behaviour of a common man. Let’s celebrate the tax-paying behaviour of the common tax payer notwithstanding the fact that playing lottery is an addiction or lottery is a sing good! read more

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Taxation! The expression sounds grim! Even our school books had anecdotes about how some kings had taxed their citizens for royals’ luxurious lives. The British taxed the peasants for centuries to finance their ambitious wars. Things changed when Modern States came into being. Elected governments tax only to build public assets and provide services such as water, roads, shelter, healthcare, waste management, dams, bridges, railways, airports and many more.

Besides services, governments working within a democratic framework, also have to cater to the needs of have-nots and disadvantaged population in a country. For instance, India has to look after over one-fourth of its population which struggles for two times meals. All such activities are undertaken by the Central or State Govenrments from the money collected through taxes. A common taxpayer who creates values and wealth in the society, carries the burden of fellow citizens by honestly contributing to the government kitty. It is a fact that the Governments collect over 10% of the GDP as taxes and this percentage would go up in the coming years, the contribution of all stakeholders in the taxation space needs to be celebrated in a big way. This is where TIOL Annual National Taxation Awards come into picture. TIOL, being a pioneer in the taxation knowledge dissemination space, has instituted as many as 10 Awards to recognise the contribution of all stakeholders. All these awards are going to be given away on the occasion of TIOL’s 20th Anniversary on April 25, 2020. It is an occasion to celebrate not only for the TIOLians but all the stakeholders who have patronised TIOL in the past two decades and also contributed to the Exchequers in a big way.

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Well, a blog from a tax professional would not be different musings. Calendar 2019 held on to GST like the Moon which eclipsed the Sun rays from reaching Mother Earth. A calendar 2019 that is just nearing its end which focused on the Technological aspect more than the Tax framework for which it exists. Yes colleagues, we spent more time this year on the form ( IT backbone of the Tax ) more than addressing framework issues that need more attention. We practically went through the year looking at March, July, November and December et al for filing Annual returns. We scraped through every element of the statutory forms and we asked for more simplicity and easy to work info trace. While the world waited in baited breath to see whether our GST was headed to be canned, the Indian resolve of holding out has paid off partly. We have seen through the difficult days of GSTR-2A credit recos, E-Way bill controversies, need to punish those thrive on holes in a honest tax system etc and we have just crossed the woods. As Thomas Frost said: “We have miles to go before we sleep” and with a destination in mind, let us take an informed roll call of the de minimis for 2020 so that we enjoy our largest IDT reform settling down. A) Let us file Returns ( Annual) and let the assessment process begin.( Do ) ( Please for heaven sake 2017-18) B) Let the States come more to the forefront than the tax being Union-driven. Why cannot we ask States to address GST Techincal issues solutions and place pilot projects for them. ( Example One State X addresses Composite / Mixed supply issue with solutions and place it independently to the Council and Law Committee instead of a joint team) (Do more) C ) Let us not keep tinkering with rates anymore on a quick basis. Let us wait to get full impact of measures to pump up economy, fructify before we increase the rates. ( Avoid / Refrain) D ) Let us not make it appear that the Technical might of Tax backbone ( data mining, analytics ) will unleash a raid raj ( Do less ). Any dishonest activity can be punished according to law without making it appear like a Tiger hunt. E) Advance Rulings need to be made more sincere in understanding commercial practices rather than hearing a case to decide a higher rate of Tax. ( Refraining) 

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WHY NATIONAL TAXATION AWARDS

One of the greatest requirements of today’s India is a Taxation Award. An award that will encourage taxpayers to engage in the country’s growth by recognizing their achievement, their contribution. It will show that a taxpayer’s achievements are appreciated and commended.

Awards do not only acknowledge success of an individual, but it also recognizes many other qualities like ability, struggle, effort and, above all, excellence. It will help people to recognize the expertise and outstanding achievements of an individual as a taxpayer. It will in return encourage people to do better and will serve as a form of motivation for others also. It will increase competitiveness. People want respect and recognition and want to feel like they worked for it. An honest taxpayer shall be respected and assured that every penny contributed by him makes the nation mightier and supports everyone irrespective of their class and position. Research has proved co-relation between personal income and corporate tax being the primary growth engines in development of a country. If you are a tax payer and pay your income or business tax on time, this awards is an effort from TIOL to appreciate and boost the morale. Apply today on https://tiolawards.in/

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INDIA'S first NATIONAL TAXATION AWARDS 2020

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OBJECTIVE OF THE AWARDS

To motivate, encourage, acknowledge the contribution of complaint taxpayers, tax technology service providers, active facilitators, positive-minded fiscal journalists, tax-friendly commissionerates, reform-minded States to the wheels of economic growth and act as a reliable channel providing Taxpayers’ feedback to the Policy Makers.

TIOL Awards 2020 is recognition of individual and corporates in the field of taxation in India. Its objective is to acknowledge the contribution of taxpayers and reform minded fiscal journalists. read more