Mumbai: Property Tax – 1000 Cr Loss to BMC

The BMC has failed and neglected to collect Rs.1000cr. plus amount in property tax. In this connection Watchdog Foundation has written letters to:
1) Comptroller Auditor General of India- to investigate loss to BMC on account of non levy of property tax on slum dwellers dispite signing agreement in 2006 between BMC, State Government and Government of India.
( PLEASE SEE THE REPLY RECEIVED FROM CAG DATED 25TH JULY 2013DIRECTING THE PRINCIPAL ACCOUNTANT GENERAL MAHARASHTRA TO EXAMINE THE MATTER AND SUBMIT REPORT TO CAG.)
2) Mission Director, Jawaharlal Nehru National Urban Renewal Mission- to discontinue grant to BMC for their failure to introduce mandatory property tax reforms as agreed in the aforesaid agreement signed in 2006.
3) Municipal Commissioner, BMC, Municipal Chief Auditior, Assessor and Collector and others for loss of revenue to BMC.
4) We have also filed RTI applications with aforesaid authorities seeking details of the action taken by them.
It is relevant to state that the Municipal Corporations of Delhi,Chennai, Banglore, Kolkatta, etc. are charging property tax to the slums / jhuggis / zopadis then why BMC dispite signing agreement in 2006 is not collecting property tax. This amounts to deliberate and intentional ommission on the part of MC and others of BMC to recover the said property tax. As such we demand that thisloss occuring to BMC due to the neglect of MC and others should be recovered from their salaries.
The BMC has threatned to recover the property tax that is due with 24% p.a. interest from tax payers. Our question to BMC is that they should first recover
a) Rs.143 Cr. from railways, which it has not paid in taxes for last 15 years
b) Similar or more amount is also to be recovered from State Government
c) The builders owe Rs.628 Cr. out of which only Rs.8 Cr. has been paid. As such is the BMC going to recover Rs.620 Cr. with 24% interest from the builders (seeattached news report).
PLEASE CIRCULATE THIS AMONGST YOUR FRIENDS AND RELATIVES AND TAXPAYERS TO CREATE MASS AWARENESS.
regards
For Watchdog Foundation
Nicholas Almeida/Godfrey Pimenta (gpimenta@rediffmail.com)

sfz62@yahoo.co.in

 

RTI_Reply-Comptroller

IFC to launch investment fund for Indian women SMEs

World Bank’s investment arm, the International Finance Corporation (IFC) is considering a women’s investment fund programme aimed at investing in women-owned businesses globally through private equity funds, reports Business Standard.

The programme would help SMEs in India and Africa and mid-cap companies in Southeast Asia. However, the quantum of the fund has not been disclosed by the Corporation.

According to IFC, working through experienced fund managers with regional and corporate banking experience would help improve corporate governance and train women entrepreneurs to grow their companies and create more jobs.

Furthermore, IFC’s ‘Banking on Women’ programme supports access to finance and builds technical capacity for women through global and regional financial institutions. “Women entrepreneurs are changing the face of the global economy, helping to sustain job creation and economic growth. It is estimated that women-owned entities represent over 30 percent of registered businesses worldwide. Unfortunately, on average, only 5 to 10 percent of women-owned entities have access to commercial bank loans,” said IFC.

Click Here to learn more

Mumbai Roadlogger

Mumbai is the financial capital of India and one of the the worlds largest and fastest growing cities. Yet its roads are in no better condition than the surface of the moon. This application aims to enable Mumbaikars to mail bad road conditions to the relevant authorities and make them aware of the issue. Municipal ward mail ids have been provided as ‘To'(primary) recipient while state & central representative mail IDs have been provided as ‘CC’ (secondary) recipients in case an escalation is required. There is also a facility to post the road conditions to Facebook so you can update friends and family.

Click Here to get this Android app

Cap on subsidised LPG cylinders

Government of India has been providing subsidy on Domestic LPG purchased by Consumers. There has been a change in norms of supply of Domestic LPG effective 14th of September 2012. This was further modified effective 18th January 2013. The number of Domestic Cylinders for which Subsidy can be availed for has now been capped at 9 refills per LPG Connection. More details are given below.

FAQs regarding cap on subsidised LPG Cylinders

  1. What is Capping of LPG cylinder?
  2. How many subsidised cylinder I will get in current financial year 2013-14?
  3. After I consume all capped quantity am I eligible for subsidised cylinder?
  4. What will happen to my subsidised quota when I transfer my connection?
  5. Am I eligible for subsidised quota if my connection is blocked?
  6. In case of new connection what will be the eligibility of subsidised quota?
  7. How can I keep record of my consumption of cylinder?
  8. I do not want subsidised cylinder, is it possible?
  9. A re subsidised cylinders applicable for reticulated LPG customers?

Click Here for more details

The draconian LBT explained

Local Body Tax (LBT) is a draconian Act, especially with key words like ‘goods’, ‘dealer’, ‘business’ loosely defined in the legislature, giving enough scope for the administrators to stretch their imagination to fanciful limits to the common man’s harassment and dismay

At the time of introduction of VAT in 2005 the Government of Maharashtra had promised that Octroi would be removed and there will not be any additional tax burden on citizens but now they have introduced  the LBT. Thus, LBT is not a good system of tax collection suited for the 21st century, and when there are many other better options available with the government.

Your dabbawala gets your tiffin box daily to your office in Fort area from your house in Thane. As the financial year comes to an end, one fine day, after December, a LBT officer lands in your office instead of the dabbawala with a warrant to arrest you for having brought into the city limits the goods exceeding the prescribed turnover limits.

Another point against LBT is the cascading effect of LBT. Unlike excise or service tax or VAT, there is no concept of set-off or input credit.

Click Here to read the full article by ANANTHRAM RAO, partner at Borkar & Shenoy, Chartered Accountants

Benefits available to Senior Citizens in India

CIRCULATE AND CREATE AWARENESS

THE BENEFITS FOR SENIOR CITIZENS IN INDIA

I. Transportation:

Ministry of Road Transport and Highways
:

i) Reservation of two seats for senior citizens in front row of the buses of the State Road Transport Undertakings. 

ii) Some State Governments are giving fare concession to senior citizens in the State Road Transport Undertaking buses and are introducing Bus Models, which are convenient to the elderly.

Under Delhi Transport Corporation:

1. Special Hire Service: – Apart from the normal services, the Corporation also provides buses to the Citizen of Delhi on Special Hire for marriage parties, picnics, etc.

2. Free/Concessional Passes: –  DTC also offers Free Passes to disabled persons, war-widows & their dependents, eminent sport personalities, Freedom Fighters etc. and Concessional Passes to various categories of commuters viz. Students, Senior Citizens, Residents of Resettlement Colonies, Journalists, etc.

For Senior citizens above the age of 60 years, Bus pass for all routes at Rs. 50 per month. Income has to be below Rs. 75000 per year.

Ministry of Railways:

1. Indian Railways  provide  30% concession in all classes and trains including Rajdhani/Shatabadi trains  for both males and females  aged 60 years and above.

2. Indian Railways also have the facility of separate counters for Senior Citizens for purchase/booking/cancellation of tickets.

3. Wheel Chairs for use of older persons are available at all junctions, District Headquarters and other important stations for the convenience of needy persons including the older persons.

4.. Ramps for wheel chairs movement are available at the entry to important stations.

5. Specially designed coaches with provisions of space for wheel chairs, hand rail and specially designed toilet for handicapped persons have been introduced.

Ministry of Civil Aviation:

1.  Indian Airlines is providing 50 per cent Senior Citizen Discount on Normal Economy Class fare for all domestic flights to Indian senior citizens who have completed the age of 65 years in the case of male senior citizens and 63 years in the case of female senior citizens subject to certain conditions.

2.  Air India is offering discount of 55% to senior citizens of 60 plus on flights to USA, UK and Europe on economy class. Further, Air India has now decided to reduce the age of 60 plus for discount on their domestic routes as well with immediate effect.  For Identity card, 2 passport sized photographs have to be submitted along with the form.

3.  Sahara Airlines is offering 50% discount on basic fare for travel on its domestic flights only to senior citizens who have attained the age of 62 years.  Discount is applicable in economy class only.

4. Kingfisher Airlines offers discount in Business class only for citizens of 65 years or above on sectoral basis. Age proof required.

5. Jetlite offers a discount of 50% on economy class for citizens of 65 years or above. One passport sized photograph required on the form along with age proof.

6. Jet Airways offers discount to senior citizens of 65 years or above.

For availing discount in domestic flights, senior citizens have to fill up a discount form along with a passport sized photograph and Age proof certificate. Jet Airways also provides Senior Citizen I-Card which is available in all ticket counters and requires 2 passport sized photographs and age proof certificate. For the I-Card a very nominal amount is charged.

II. Telecommunications:

i) Faults/complaints of senior citizens are given priority by registering them under senior citizens category with VIP flag, which is a priority category.

ii)  Senior citizens are allowed to register telephone connection under N-OYT Special Category, which is a priority category.
iii) MTNL in NCR offers a discount of 25% on Rs. 250 per month Plan. Age limit is 65 years or above.

III. Ministry of Consumer Affairs, Food and Public Distribution:

i) Under the Antyodaya Scheme, the Below Poverty Line (BPL) families which also include older persons are provided food grains at the rate of 35 kgs. per family per month. The food grains are issued @ Rs.3/- per kg. for rice and Rs.2/- per kg. for wheat.   The persons aged 60 years above from the BPL category were given priority for identification.

(ii)  Under the Annapoorna Scheme being implemented by the States/UT Administration, 10 kgs. of food grains per beneficiary per month are provided free of cost to those senior citizens who remain uncovered under the old age pension scheme.

iii) Instructions to State Governments for giving priority to the Ration Card holders who are over 60 years of age in Fair Price Shops for issue of rations.

IV. Ministry of Health & Family Welfare:

1. Separate queues for elderly persons in hospitals for registration and clinical examination.

2. Special Clinics, every Sunday between 10 am to 12 noon, for elderly persons available at the following hospitals in New Delhi.

a) Lok Nayak Hospital
b) GTB Hospital
c) Deen Dayal Upadhyay Hospital
d) Aruna Asafjahan Ali Hospital
e) Sanjay Gandhi Memorial Hospital
f) Dr. Joshi Memorial Hospital
g) Babu Jagjeevan Ram Hospital
h) Ram Rao Tula Memorial Hospital
i) Lal Bahadur Shastri Hospital

The services include health check-ups, operations, treatment of physically invalid, gynecology, ENT and ophthalmology along with pathological and radio therapy facilities.

V. Income Tax (Ministry of Finance):

1. For senior citizens the exemption limit is Rs. 2,50,000 up to which senior citizen pays no income-tax at all. The benefit of higher exemption limit for a senior citizen is available only when a person has completed 60 years of age.

2. The senior citizen should also take full advantage of section 80C of the Income Tax Act, 1961 whereby deduction up to Rs. 1.00 lakh is available for investment by way of insurance premium, repayment of the housing loan or investment in Senior Citizens Savings Scheme as also the Bank Fixed Deposit.

3. Similarly as also the Bank Fixed Deposit. Similarly, the citizen can also take advantage of the Mediclaim Policy. In case senior citizen or any member of his family suffers from serious medical problem of suffers from some disability he can claim certain other deductions under the tax law.

VI. MINISTRY OF SOCIAL & EMPLOYEMENT

1. Ministry of Social Justice & Empowerment is the nodal Ministry responsible for welfare of the Senior Citizens. It has announced the National Policy on Older Persons which seeks to assure older persons that their concerns are national concerns and they will not live unprotected, ignored and marginalized. The National Policy aims to strengthen their legitimate place in the society and to help older people to live the last phase of their life with purpose, dignity and peace. The National Policy on Older Persons inter alia visualizes support for financial security, health care and nutrition, shelter, emphasis upon education, training and information needs, provision of appropriate concessions, rebates and discounts etc. to Senior Citizens and special attention to protect and strengthen their legal rights such as to safeguard their life and property.   The National Policy on Older Persons confers the status of senior citizen to a person who has attained the age of 60 years.

2. The Ministry is also implementing following schemes for the benefit of Senior Citizens:

(a) An Integrated Programme for Older Persons (Plan Scheme) – This Scheme has been formulated by revising the earlier scheme of “Assistance to Voluntary Organizations for Programme relating to the Welfare of the Aged”.  Under this Scheme, financial assistance up to 90% of the project cost is provided to NGOs for establishing and maintaining Old Age Homes, Day Care Centers, Mobile Medicare Units and to provide non-institutional services to older persons. 

(b) The Scheme of Assistance to Panchayati Raj Institutions/ Voluntary Organizations/Self Help Groups for Construction of Old Age Homes/Multi-Service Centers for older persons (Non Plan Scheme) – Under this Scheme, one time construction grant for Old Age Homes/Multi-Service Centre is provided to non-governmental organizations on the recommendation of the State Governments/ UT Administrations.

VII. Ministry of Rural Development:

1. Under the National Old Age Pension Scheme, Central Assistance of Rs. 75/- p.m. is granted to destitute older persons above 65 years.  This Scheme has been transferred to the State Plan w.e.f. 2002-03.

2. Under the Annapurna Scheme, free food grains (wheat or rice) up to 10 kg. per month are provided to destitute older persons 65 years or above who are otherwise eligible for old age pension but are not receiving it.

If you know more, please comment and add to the list. If there are any discrepancies, please highlight them.

Understanding Educational Loans

Education is expensive and Higher education is all the more expensive especially foreign education. Hence the need for education loan, which is a  financial aid given to meritorious but needy students for meeting the expenses of their higher education in India or abroad. In this article we shall explain education loan, what it is, process of getting education loan, repayment, tax benefits under section 80E.

Here is a good article which answers the following questions :

What is education loan?

Who gives out education loans?

What is covered under the loan?

What is eligibility criteria for an educational loan ?

What is the maximum amount lent by the bank?

What is the interest applicable on Educational loans?

Where can the loan be availed from ?

Does one need to provide a guarantor or any other kind of security?

Are there any other fees applicable while taking this loan?

What are the documents required while applying for the loan?

How much time does it take for education loan to be sanctioned?

How is the loan amount disbursed?

When does the repayment of the loan starts?

Are there any tax benefits for educational loans?

What is education loan subsidy scheme?

Is there a penalty for pre-payment?

Is there any documentation required post the sanction of the loan ?

If one is unable to pay loan?

What happens if one takes a break from studies?

What if one doesn’t get a job?

Click Here for this interesting and useful article