Whispers Forum — 17 Jul 2020
Iran drops India from the Rail Project-Diplomatic Failure or Failure of Economic Intelligence ?
Iran has just dropped India from the Chabahar rail project in which India has already invested $ 500 million. The strategic infrastructure project along the Iran –Afghanistan border was finalized four years ago as part of a trilateral agreement between India, Iran and Afghanistan. The project was aimed at connecting India with Afghanistan and Central Asia bypassing Pakistan. The deal was inked in May 2016 and the first phase of the project was inaugurated in December 2017 and the entire project is scheduled for completion in March 2022.It has been alleged that Iran’s decision to drop India from this vital infrastructure project and go ahead with its construction with funding of $ 400 million from the Iranian National Development Fund is entirely attributable to delay in funding from India. This development should be considered a major set back to India and Prime Minister Honourable Shri Narendra Modi has to do the required damage control byclearing not only the pending bills with the Government of India but also provide some advance funding with an assurance that India is willing to provide the additional funding to the tune of $ 400 million required to complete the project in March 2022.This is important since China has finalized a 25-year strategic partnership with Iran for $ 400 billion for various infrastructure projects that will help China connect to Gwador port in Pakistan that will enhance its strategic influence in the region.Indian diplomats have to move ahead quickly since just a week ago the Iranian Transport and Urban Development Minister Mohammad Eslami inaugurated the track laying process for the 628 km Chabahar – Zahedan line which will be subsequently extended up to Zaranj across the border in Afghanistan.
Dr Sitharam Gurumurthi IAS (Retired)
(Former Member State Planning Commission & Additional Chief Secretary to the Government of Tamil Nadu Retired)
Founder Chairman
It is evident that there is trust deficit between income tax administration and tax payers. The result is less tax collection and less number of tax payers.Trust deficit is not only outside the department but within the department also. Trust deficit gives rise to tax harassment and tax terrorism. These words are neither liked by the tax administration nor by the tax payers. Even society does not like these words. Now the point is how to overcome the trust deficit. There are series of steps which can reduce the trust deficit but also enhance the image of the department. First and foremost is simple rules to follow. Simplicity is the key to success. Do not make the things complex. Income Tax Act is well defined but difficult to follow. Asking unnecessary details keeps public away from filing returns. Asking the details when there is no tax liability is one such example. In case tax authorities ask 350 millions people to file return to proof that their income is not taxable. It is something beyond imagination. Now see the example under Sec.112A, it is exempted upto 1 lakh on LTCG but the tax authorities are asking the details whether there is LTC loss or gain upto 1 lakh. Still the details to be given in return. Why?? There is no one to see or observe such things in Govt. It gives unnecessary problems and trouble to tax payers in filing the return. Such details where there is no tax liability, not to be asked by the department in return filing. There should be provision in the return forms to report the gain under section 112A upto 1 lakh in exempt income for reporting purpose and also to report LTC loss in case of transfer of equity or equity oriented MF. Secondly the mindset of working of tax authorities to be friendly with tax payers but not master and servant relation. They should provide necessary guidance to tax payers in case of difficulty. At present if tax payers approach the department for any advice/help, details such as PAN no., address etc.are asked. Why all these information. Tax payers become scared to approach the department in future. Things can ve worked out in simple and friendly way. But still the department is no mood to simplify the filing procedure. Tax payers have started filing the return and facing the difficulties in filing the table Sec.112A when there is loss and gain is less than 1 lakh. Govt. to consider such problems and issue necessary guidelines for simplification of filing the returns.The department still has no methodologies or tools to assess the income pf professionals, traders, businessmen etc where the tax compliance is not only low but tax collection is also low. Let the Govt. to work for innovative solutions for increase the tax collection. Suggestions from public should be welcomed by the Govt. to work out for better tax compliance. CAs always looks for their business and they want tax payers to approach for small problems also.
Naveen
Iran has just dropped India from the Chabahar rail project in which India has already invested $ 500 million. The strategic infrastructure project along the Iran –Afghanistan border was finalized four years ago as part of a trilateral agreement between India, Iran and Afghanistan. The project was aimed at connecting India with Afghanistan and Central Asia bypassing Pakistan. The deal was inked in May 2016 and the first phase of the project was inaugurated in December 2017 and the entire project is scheduled for completion in March 2022.It has been alleged that Iran’s decision to drop India from this vital infrastructure project and go ahead with its construction with funding of $ 400 million from the Iranian National Development Fund is entirely attributable to delay in funding from India. This development should be considered a major set back to India and Prime Minister Honourable Shri Narendra Modi has to do the required damage control byclearing not only the pending bills with the Government of India but also provide some advance funding with an assurance that India is willing to provide the additional funding to the tune of $ 400 million required to complete the project in March 2022.This is important since China has finalized a 25-year strategic partnership with Iran for $ 400 billion for various infrastructure projects that will help China connect to Gwador port in Pakistan that will enhance its strategic influence in the region.Indian diplomats have to move ahead quickly since just a week ago the Iranian Transport and Urban Development Minister Mohammad Eslami inaugurated the track laying process for the 628 km Chabahar – Zahedan line which will be subsequently extended up to Zaranj across the border in Afghanistan.
Dr Sitharam Gurumurthi IAS (Retired)
(Former Member State Planning Commission & Additional Chief Secretary to the Government of Tamil Nadu Retired)
Founder Chairman
It is evident that there is trust deficit between income tax administration and tax payers. The result is less tax collection and less number of tax payers.Trust deficit is not only outside the department but within the department also. Trust deficit gives rise to tax harassment and tax terrorism. These words are neither liked by the tax administration nor by the tax payers. Even society does not like these words. Now the point is how to overcome the trust deficit. There are series of steps which can reduce the trust deficit but also enhance the image of the department. First and foremost is simple rules to follow. Simplicity is the key to success. Do not make the things complex. Income Tax Act is well defined but difficult to follow. Asking unnecessary details keeps public away from filing returns. Asking the details when there is no tax liability is one such example. In case tax authorities ask 350 millions people to file return to proof that their income is not taxable. It is something beyond imagination. Now see the example under Sec.112A, it is exempted upto 1 lakh on LTCG but the tax authorities are asking the details whether there is LTC loss or gain upto 1 lakh. Still the details to be given in return. Why?? There is no one to see or observe such things in Govt. It gives unnecessary problems and trouble to tax payers in filing the return. Such details where there is no tax liability, not to be asked by the department in return filing. There should be provision in the return forms to report the gain under section 112A upto 1 lakh in exempt income for reporting purpose and also to report LTC loss in case of transfer of equity or equity oriented MF. Secondly the mindset of working of tax authorities to be friendly with tax payers but not master and servant relation. They should provide necessary guidance to tax payers in case of difficulty. At present if tax payers approach the department for any advice/help, details such as PAN no., address etc.are asked. Why all these information. Tax payers become scared to approach the department in future. Things can ve worked out in simple and friendly way. But still the department is no mood to simplify the filing procedure. Tax payers have started filing the return and facing the difficulties in filing the table Sec.112A when there is loss and gain is less than 1 lakh. Govt. to consider such problems and issue necessary guidelines for simplification of filing the returns.The department still has no methodologies or tools to assess the income pf professionals, traders, businessmen etc where the tax compliance is not only low but tax collection is also low. Let the Govt. to work for innovative solutions for increase the tax collection. Suggestions from public should be welcomed by the Govt. to work out for better tax compliance. CAs always looks for their business and they want tax payers to approach for small problems also.
Naveen