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Civil Service Focus

Dear Sir/Madam,

Yes India a career empowerment movement initiated by students works for students and within students to come very close to them and to identify the basic needs and problems faced by them. It consists of many projects where our organisation focuses on school students as well as on college students. We provide training and coaching programmes for the students to enter in Central Universities. We also provide coaching for NET/JRF aspirants.

As part of our new venture we have decided to focus the attention of school students towards Civil Service on the basis of their interest. We all know that Civil service is the one area where an aspirant needs to show his mettle both instinctively and explicitly. Preparing for civil services needs a thorough understanding of the prevailing trend.

The entry test-[Civil Service Aptitude Test]-become more competitive and evaluate ones inherent talents, which cannot be built overnight. It needs a systematic effort, preferably beginning from the high school classes. Cultivating a habit of working towards the goal right from the early years holds the key to realisation of the dream. UPSC searches for best talent with comprehensive and better understanding. Keeping this vision in mind we conduct a five days residential workshop for expatriate students, with comprehensive training module to explore and fine tune the young calibre. The workshop is scheduled on 20th to 24th of July at MS Swaminathan research centre,Kalpetta, Wayanad. The entry is restricted for 40 students. First come will be served first. As a follow up there will be one year online course to the participants. We promise that it will be an incredible heightening in their life.

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Yesindia Civil Service Focus
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Sri Padmanabhaswamy: The Lord of the rings, necklaces and taxes – topic for discussion

http://www.dnaindia.com/india/report_sri-padmanabhaswamy-the-lord-of-the-rings-necklaces-and-taxes_1564164

Sri Padmanabhaswamy: The Lord of the rings, necklaces and taxes
Published: Sunday, Jul 10, 2011, 1:04 IST
By Malavika Velayanikal | Place: Bangalore | Agency: DNA
The recovery of treasure worth over Rs5 trillion from the vaults of Sri Padmanabhaswamy temple in Thiruvananthapuram has stunned the nation.
Thanks to it, in Kerala’s libraries, sections devoted to Travancore history are seeing some action after decades. Interestingly enough, there are plenty of records on the wealth that was unearthed.
The story of how so much wealth flowed into the temple vault begins in the 15th century, when the temple administration was controlled by a closed group, recorded as “ettara yogam” (the council of eight and a half) with eight and a half votes. Of these, eight votes went to seven Pootti (a Brahmin sub-caste) families and one Nair family. The Travancore royals held just half a vote.
This powerful council of eight and a half divided the Travancore region into eight provinces, and the eight lords of Ettuveetil Pilla, a powerful Nair family, was put in charge of each. These eight Nair feudal lords soon became more influential than even the royal family. They were also notorious for their cruelty. History textbooks say that they conspired against the royals, and tried to kill young Marthanda Varma, who had to run away from the palace, and hide among the branches of a huge jackfruit tree. In exile, Marthanda Varma, with help from neighbouring kings, raised an army, attacked and killed all the eight lords, and became the king of Travancore.
The king went on to fight and win many civil wars. The losers were fined heavily, and most of the fines collected went into the temple treasury. The wealth of the Travancore kingdom during his rule was found to be almost as much as that of the Bourbon Kings in France around the same period.
Though an excellent strategist, Marthanda Varma lacked the infrastructure to defend the wealth and his kingdom against attacks, and so had to rely on the faith surrounding the temple. Therefore, in 1750, he ceded his crown at the feet of the deity in an officially recorded event, known as ‘Tripadidanam’. He basically abdicated his throne in favour of Lord Padmanabha, declaring himself and his descendants to be “Padmanabha Dasa”, meaning servants of the Padmanabha who would carry out the God’s commands. Doing so essentially meant the transfer of the kingdom’s wealth to the temple.
With this brilliant move, Marthanda Varma secured his kingdom from possible attacks by his enemies. The neighbouring kings dared not wage war against Travancore, ruled as it was, by the God himself. Instead, they made generous donations to the temple vaults to mollify Padmanabha.
Marthanda Varma renovated the temple and built the massive store rooms under the sanctum sanctorum, which became the vault of the kingdom.
Padmanabha thus became the ruler of the land, and his insignia, “Valampiri Shankhu” (a conch-shell) became the state emblem of Travancore.
Taken from the masses
Historical evidence backs the claim that Marthanda Varma was responsible for most of the wealth found in the recent search. True, the bags of gold coins, diamonds, precious stones, 18-feet-long gold necklaces, jewellery weighing many kilograms, and solid-gold statues of gods and goddesses landed in the vault via the king. But in reality, the temple treasury was nourished by the sweat and blood of the masses as well.
One of the main sources of the royal income was taxes. They were incredibly high for the lower castes, with marriages, childbirth and even death being taxed. Country boats, ploughs, carts, umbrellas, headscarves, why, even a moustache, were taxed. Mothers were allowed to breastfeed their newborns only after they paid the ‘mulakaram’ (breast-tax) to the local lord, who would then grant permission.
It took a small but bloody revolution during the time when the Maathoor Panikkers were the landlords of Kuttanad to stop the breast-tax. The bloodiest story of the protest was of a young woman (name not known) from Cherthala’s Kapunthala family. She breast-fed her child without official sanction and the news reached the ears of the landlord.
Enraged, he rushed to the Kapunthala house. The young woman faced him fearlessly, irking him further. He ordered her to pay the tax, and she agreed. She went into the house, and returned with her two breasts chopped. She threw them at the feet of the shocked landlord, collapsed and died.
There is a custom that the members of the royal family follow. AsPadmanabhadasas, they consider it their duty to keep the wealth of the deity intact. After every temple visit, they vigorously rub off specks of dust stuck on their feet so that Padmanabha does not lose even a grain of dust that belongs to him! While there’s no disputing the fact that the Travancore kings were zealous custodians of the deity’s wealth, it is undeniable that the loot is coloured not just by faith, but also by defeats, fears, deaths, conquests, and atonements.

Sources: Mathilakam Records, Kerala Charithram by P Sankunni Menon, Thiruvithaamkoorinte Charithram by A Sreedhara Menon

Facebook adds in Skype video chat

Facebook announces a partnership with Skype to add a video chat service to the social networking site, a week after Google launched a similar feature. Read more ›

http://www.bbc.co.uk/go/rss/int/news/-/news/technology-14054860

PAN card must to purchase jewellery worth over Rs 5 lakh

BANGALORE: In an attempt to combat black money, the Centre has made it compulsory to submit permanent account number (PAN) for purchase of jewellery or bullion exceeding Rs 5 lakh . The rule of quoting PAN will also apply to those who avail debit cards from banks . The Central Board of Direct Taxes (CBDT) and the Income Tax Department have issued a notification amending the rules.

This amendment will come into effect from July 1, 2011. The CBDT and IT department has already sent a communication to all jewellery dealers, bullion traders, nationalised and private banks which are distributing debit cards.

CBDT has now incorporated four new transaction sunder Rule114Bof the Income Tax Act which will require PAN for these transactions. The rule also stated that the PAN number is necessary for use of debit card, insurance payments exceeding Rs 50,000 a year, buying jewellery or bullion exceeding Rs 5 lakh.

As per the old act PAN was compulsory for getting a credit card. The new amended provision under rule 114B (ii) was inserted for issue of a credit or debit card after quoting PAN. At present any withdrawal of more than Rs 50,000 in a single purchase or issue of cheque for Rs 50,000 needed PAN. Now payment of Rs 50,000 or more in a year as life insurance premium will also require PAN. “It is good from the view point of the country’s economic development but we fear the new rule will create inconvenience for our business and daily transactions,” S Venkatesh Babu , secretary , Bangalore Jewellery Association, said .

Ref http://m.timesofindia.com/business/india-business/PAN-card-must-to-purchase-jewellery-worth-over-Rs-5-lakh/articleshow/8783665.cms

India has enormous opportunity for Sharia-compliant investments With nearly 200m Muslims, the country could expand sector

By Rushdi Siddiqui, Special to Gulf NewsPublished: 00:00 June 19, 2011

When you consider that there are nearly 200 million Muslims in India, it is surprising that one of the world’s fastest growing economies has little or no facilities for them to invest their money in a Sharia-compliant manner.
Indeed, the total size of 100 per cent Islamic funds registered for sale in India was a miniscule $3.1 million (Dh11.4 million) as of March 2011, according to Lipper, a Thomson Reuters company.
Not that India’s reluctance to embrace Islamic finance is unusual in non-Muslim countries, like so many other places, there is a hostility to the practice based on the incorrect belief that it is a political or religious movement, or that it propagates an ideology that is inconsistent with democratic values.
It is fair to say that the Islamic finance industry also shares some of the blame for this perception, it is not yet savvy or sophisticated enough in the realm of public relations and marketing.
Article continues below

But, actually, India is important for the growth of Islamic finance. The country has historical ties to the Gulf, and is not only part of the Bric group of nations (Brazil, Russia, India and China), but it is also categorised as a rapidly developing economy (RDE).
So India presents an obvious opportunity, but the question remains: is India ready for Islamic finance?
Key effect
The recent establishment of an Islamic finance institution in Kerala, with the backing of the local government, has at least gone some way to suggesting that it is. One of the key effects of this has been the revelation that Islamic finance is about business and not religion, it does not favour one religion over another. Islamic finance is “user agnostic”; its door is open to all.
In recognition of this, the local proponents and Indian stakeholders should perhaps think about rebranding Islamic finance.
Turkey has achieved this by renaming Islamic banking “participation banking”. This is an initiative that India could certainly consider.
Soon, as it happens, India will have “participation banking” at its doorstep — Turkey’s Bank Asya, an Islamic bank, announced in March its interest in establishing a representative office in India.
Fourteen of the countries that make up the G20 have some form of Islamic fin-ance, including India. The UK, for example, has been involved in Islamic finance since the early 1980s and it is still a well-functioning inclusive secular democracy.
A more technical question is: if India was to expand its level of Islamic banking, should this be a retail or wholesale approach?
A deposit-taking Islamic commercial bank, that is, retail, will present more challenges, as legislation, regulations, and mindset issues still need to addressed. Second, what is the number of bankable Muslims in India?
How many Islamic funds, with small minimum amounts, have been launched and available to the onshore “man on the street” since the BSE launched their Sharia index in 2010?
It is also worth mentioning that a number of financial scams have been perpetrated on this generally financially illiterate Muslim community, hence, new offerings are viewed with scepticism.
A wholesale approach implies fewer signs-offs from regulatory bodies, because it is not dealing with the public’s money. For example, in 2006, Bahrain-based Islamic investment bank, Gulf Finance House, embarked on the ambitious Energy City India, a $2 billion project in Maharashtra.
Funds
Other areas for consideration for India include Islamic trade finance funds (major bilateral trade with GCC) and Islamic venture capital (VC) funds working with technology parks in, say, the UAE for areas like alternative energy, health care, water and others.
But it does not mean non-bankable Indians would be excluded from Islamic fin-ance. Indeed, some of the recent developments with micro-finance in Andra Pradesh have not left the best impression with recipients and regulators. I have said elsewhere, unlike micro-finance, which creates a creditor-debtor relationship and interest rates often becomes usurious, we should look at Islamic micro-funding, as an equity approach aligns the interests of the parties and prevents the debt trap.
The amounts to be disbursed would be the same, and the areas for funding will be Sharia-compliant, as micro-finance doesn’t typically involve financing the “sin” sector.
The funding would be for Muslims and non-Muslims, therefore building future customers. Obviously, vetting and monitoring costs are higher, but it should result in more focused investments.
Finally, if Islamic finance is involved in developing local infrastructure, financial enfranchisement and contributing to employment – as it no doubt would be – I imagine that the opposition to it on the part of chief ministers of Indian states would eventually fade away.

The writer is global head of Islamic Finance at Thomson Reuters. Opinions expressed are in his personal capacity.

Government Issues Clarification On DTC (Direct Tax Code) Clause For NRIs (Non Resident Indians)

If you are an NRI (Non Resident Indian) fretting over the New Taxation Clauses, due to be introduced as part of DTC (Direct Tax Code), adversely affecting your tax-liabilities, we have some good news in store for you. In one of our earlier blog-posts, we had mentioned a New Clause in DTC (Direct Tax Code), which when implemented will ensure NRIs (Non Resident Indians) who frequent their native country i.e, India, will have to pay More Taxes on their Global Income.

As per the existing laws, an NRI(Non Resident Indians) is liable to pay taxes on his or her global income, if he or she stays in India for a period of more than 182 days in a financial year. But DTC (Direct Tax Code) proposes to shorten this duration to just 60 days.

Indian Government has just issued a clarification on DTC (Direct Tax Code) clauses specific to NRIs. On Saturday, Finance Minister Pranab Mukherjee allayed apprehensions among Non Resident Indians (NRIs) that the proposed Direct Taxes Code (DTC), when implemented, would badly affect them in terms of their tax liability owing to a clause in the Bill defining their residential status. Moreover, no final decision has been taken as yet on the clauses incorporated in the DTC (Direct Tax Code), as the Bill is still under scrutiny by a Standing Committee Of Parliament.

He clarified that it was a “misconception” that if an NRI stays in India for 60 days in a financial year, his status turns into Indian residents for taxation purposes. As per the DTC proposal, an NRI will be deemed as resident only if he has also resided in India for 365 days or more in the preceding four financial years, together with 60 days in any of these fiscal years. “Only when the two criteria are met, an individual will be considered resident for taxation purposes,” he said.

In a further clarification, Mr. Mukherjee pointed out that even if an NRI becomes a resident in any financial year, his global income does not immediately become liable to tax in India. Global income would become taxable only if the person also stayed in India for nine out of 10 precedent years, or 730 days in the preceding seven years.

The NR EYE: NRIs to pay more tax if they stay more in India by MOIZ MANNAN

Overseas Indians would now be severely restricted with regard to their length of stay in India if they were to avoid paying income tax on their global income. A Bill to that effect was introduced in the Indian Parliament last week and if approved is sure to cause a lot of worry to non-resident Indians (NRIs). Perhaps the most severely hit would be NRI businessmen in the Gulf who continue to have business interests at home and thus are frequent visitors.
The new Direct Tax Code (DTC) bill introduced in Parliament proposes to impose tax on the global income of NRIs if they stay in India for a period or periods amounting to 60 or more days in a year. Under the existing Income Tax Act, 1961, an NRI is liable to pay tax on global income if he is in India in that year for a period or periods amounting to 182 days. Thus, if an NRI wants to escape the tax net he will have to spend 10 months out of the country compared to six months under the existing law.
The new code is expected to come into effect from April 1, 2012. The DTC also retains the existing provision under which an NRI is also liable to pay tax on his global income if he resides in India for a period of 365 days or more over a period of four years prior to the assessment year. In addition, the DTC has also removed the ‘Resident Not Ordinarily Resident (RNOR)’ category to simplify the tax laws. Now, there would be only two categories, ‘Resident’ and ‘Non-Resident’.
According to experts, under the proposed dispensation, a non-resident would be at greater risk of becoming an ordinary citizen and become liable to pay tax in India as the threshold limit has been reduced. Officials have been quoted by the media as saying that a phrase “being outside India” in the existing income tax law exempted individuals who stayed outside the country for six months from paying taxes. This was prone to misuse and allowed individuals to escape tax in any country.
More than 25 million Indians stay overseas and one million visit the country every year. A large number of NRIs particularly those working in the gulf countries usually visit India for longer durations. They will be given relief from payment of tax for two years on their global income in the transition period when they become resident from non-resident, a Central Board of Direct Taxes (CBDT) official has been quoted as saying.
Financial expert A.N.Shanbag of Wonderland Consultants says, “Whether NRIs and PIOs will agree – especially with the last point is a moot question – for a finer reading of the DTC seems to suggest that it’s the diaspora who seems to have been the most adversely affected constituency under the DTC.” He makes the point with an example of an NRI who, say, currently earns Rs2,00,000 as NRO interest. With the protection of the basic exemption limit of Rs1,60,000, only Rs40,000 would be taxed at the rates of 10 per cent resulting in a tax liability of Rs4,000. Under DTC, straightaway a flat rate of 20 per cent tax would apply thereby resulting in a tax payable of Rs40,000 – ten times the earlier amount.
Another provision with a sharp impact is that the hitherto fully exempt long-term capital gains on equity and equity mutual funds are slated to be taxed at a flat rate of 30 per cent. The discrepencies in the provisions are so vast that while a resident Indian will be required to pay tax of Rs3,84,000 on his taxable income of Rs25,00,000, an NRI earning equivalent capital gains will be called upon to pay almost double tax of Rs7,50,000.
However, Shanbag says, what will come as a blow to most NRIs and investors in property is that even for let out or deemed let out properties, tax will be payable on the higher of the actual or ‘presumptive rent’. This presumptive rent is a new concept under the DTC. Presumptive rent is fixed at 6% of the ratable value fixed by the local authority. Where no ratable value has been fixed, 6% shall be calculated with reference to the cost of construction or acquisition of the property.
There is one good provision, though, for returning NRIs. An exemption has been provided in case of income earned outside India, if it is not derived from a business controlled from India, in the financial year in which the returning NRI becomes an Indian resident and the immediately succeeding financial year. However, the benefit of the said exemption would be available, only if such individual was a non-resident for nine years immediately preceding the financial year in which he becomes a resident.
The proposed code provides for wealth tax liability in the case of the value of all global assets of an individual or HUF (Hindu Undivided Family). However, an exemption has been provided in case of the value of assets located outside India in case of an individual who is not a citizen of India or an individual or HUF not resident in India. Hence, while returning NRIs who are non-citizens will enjoy wealth-tax exemption for their overseas assets, NRIs with Indian citizenship becoming residents will attract wealth-tax liability on such assets held abroad.

DTC and NRIs

The recently released DTC Bill has unraveled some unpleasant surprises for the NRIs, Rohit Bothra, senior tax professional with Ernst & Young lists down the proposed changes, which the NRI community need to be vigilant about.

The much awaited Direct Tax Code, 2010 (DTC) is finally before the public and the Hon’ble Finance Minister’s effort to maximise the collection of direct tax revenue by widening and deepening the tax net appears to hit the Indians working abroad (NRIs).

The major change introduced by the DTC is in the criteria of determining the residential status of NRIs who, are working abroad, and come on visit to India. Currently, such NRIs who are citizen of India or Person of Indian Origin (PIO) are regarded as resident, only if, they stay in India for 182 days or more in the financial year.

However, under the proposed DTC, any inbound individual (including NRIs/PIO) will become resident, if they are present in India for 60 days or more in the financial year and 365 days or more over a period of four years prior to the financial year and would be liable to pay taxes on their Global Income.

This change would have an adverse impact on the NRIs frequently visiting India either for personal or business visits, since, they now need to plan and check the duration of each of their visits in any year to avoid becoming resident.

However, a resident would be eligible to claim exemption of income accruing to him/her outside India, from a source other than a business controlled in or a profession set up in India, if the resident:

1. has been a non-resident in India in nine out of ten preceding financial years; or

2. has been in India for less than 730 days, during the seven preceding financial years

Thus, NRIs who become resident of India may not be required to pay tax on their global income, if they satisfy any of the above mentioned conditions.

NRI income to be computed under two broad heads

The other major change introduced by the DTC is with respect to computation of income, which now needs to be computed under two broad heads – income from ordinary source and income from special source.

The special source computation requires certain income (interest, dividends by company and profit distributed by a fund on which distribution tax has not been paid, royalty or fees for technical services and income by way of insurance including reinsurance) earned by non residents to be taxed at a specified rate instead of the normal slab rate applicable to individuals.

Moreover, no deduction on account of investment/expenditure in LIC, PF, tuition fees, etc would be available against income from special source.

Under the present domestic law, NRIs have an option to be taxed on specified income (being investment income or income by way of long-term capital gains on foreign exchange asset) at special rates without certain benefits (such as indexation, deductions etc.) or at normal rates with benefits.

Taxable income for NRIs

Under the proposed DTC these optional approaches of taxation have been discontinued and investment income (being interest and dividend) from any asset is taxable under the head Income from special source at specified rates (gross basis without any deduction) and all other income is taxable under the head Income from ordinary sources at normal slab rates.

Thus, an NRI who has earned investment income in India amounting to Rs 2.6 lakhs may not be required to pay any tax in India under the current provisions, if he has eligible investment/ expenditure, the benefit of which can be availed upto the specified limit (Rs 1 lakh) and the normal slab benefit of Rs 1.6 lakhs.

However, under DTC, on the same income the NRI would be required to pay taxes of Rs 52,000 (@20% on Rs 2.6 lakhs).

Though apparently, the above provision appears to be really harsh on the NRIs, the same may even offer a benefit to NRIs who are subject to tax at the rate of 30% in prevailing law and will be taxable @ 20% under the proposed DTC.

NRIs be aware of the provisions of proposed DTC

Thus, the principal of progressive taxation and equity in tax laws seems to get defeated in this case.

Moreover, proposed DTC specifically provides that a non-resident shall not be entitled to claim relief under the provisions of the relevant tax treaty, unless, a certificate of tax residence is obtained by him from the tax authority of the overseas country in a prescribed form.

While this certificate is practically required under the current provisions also (if the case was picked up for assessments); in the proposed DTC the same will become a mandatory requirement.

In summary, a word of caution for NRIs – (be) aware of the provisions of proposed DTC and be learned so as to plan accordingly in advance before 1 April 2012.