posted by Rahul Chimanbhai Mehta Rrg

The proposed WT = wealth law draft is to collect a wealth tax on land, construction, gold, shares, bonds, cash holdings etc . The wealth tax will be about (1% per year of value of (wealth minus basic wealth deductions) ) minus income tax paid, minus other taxes paid minus other contributions and minus wealth tax credit accumulated over past years). . Dear citizens of India , . My claim is that the proposed WT-MITMSC = Wealth Tax Minus Income Tax paid Minus Several Credits , will reduce the land prices, and will also reduce speculation in share markets. Reduction in land prices will reduce the amount a person has to spend in buying house or rents, and will increase his incomes minus rent. Reduction in land price will increase business and factories and will reduce unemployment. And it will increase income tax. And the reduction in land price will also reduce the problem of land acquisition. ===== Pls take a look at the proposed law-draft. For explanation, you can search on FB for Right to Recall Group activists in your city. You can call \ meet them and they will explain the clauses to you. After explanations , if you support this law-draft, then please send following order to MP via SMS. . =========== start of order to be sent to MP via SMS ========== . Dear MP , I order you to print the law-draft mentioned in http://ift.tt/1G56WkD . ======= end of sms text ==== . Dear MP, . If you have received the link to this law-draft then it is an order from YOUR voter , and NOT this author, to print the following law-draft in Gazette . ===== start of the law-draft ==== . section-1 : Basic definitions . (1.1) The word citizen in this draft would mean a registered adult voter . (1.2) The word land in this draft will include all plots, agricultural land and flats, offices, buildings, ownership over a plot created by owning a consutruction. And the word flat in this draft will include all construction --- apartments , bungalows , offices, buildings, warehouses, industrial shades and all other constructions. . section-2 : Main officers and their staff , offices . (2.1) ( instruction to PM ) . The PM will appoint an officer titled as NWTO = National Wealth Tax Officer to collect wealth tax. The citizens of India may replace him using Right to Recall NWTO clauses listed in RTR-NWTO section . (2.2) ( instruction to NWTO . PM , MPs , citizens ) . NWTO will prepare guidelines and give requirements of funds for running his offices across India. The guidelines will come into effect after PM prints them in Gazette or after MPs pass them as legislation or after citizens approve them using clauses given in the TCP-section of this draft . (2.3) ( instruction to NWTO ) . NWTO will recruit existing officers from Central Govt or any State Govt , after approval of their respective heads. NWTO will appoint one SWTO = State Wealth Tax Officer , one DWTO = District Wealth Tax Officer per District, and appoint one TWTO = Tahsil Wealth Tax Officer per Tahsil. They will all work under Central Govt under NWTO . . section-3 : Guidelines to make wealth tax rules and change wealth tax rules . (3.1) Parliament may amend this wealth tax laws as necessary. PM too may make rules and amend the rules under this law using GNs as needed. . (3.2) NWTO may issue circulars to calculate and collect wealth tax as needed. . (3.3) When a circular is issued by NWTO, it will be sent to all DWTO across India who will summon 12 Jurors at random. DWTO will explain the circular to the Jurors and Jurors may ask any CA or any person to present his views on the circular. And if majority of Jurors across India oppose the circular, then NWTO may or need not resign , and may or need not cancel the circular. His decision will be final. , (3.4) The citizens may issue a circular using TCP-clauses given in TCP-section of this draft. . section-4 : Filing wealth tax return . (4.1) Each wealth owner , except Indian citizens who have wealth below basic deductions. All foreign entities, all companies and all trust must file wealth tax returns. . (4.2) The wealth tax return must be filed within 210 days after closing of financial year, and must be filed within 30 days after income tax return is filed. . (4.3) The tax payer can use his PAN-ID or Adhar-ID to file his wealth disclosure. If he doesn’t have any of the two IDs, then he must obtain one ID within 3 months after this law is printed in Gazette. . (4.4) For HUF, the Karta can file separate return for HUF in which HUF will get no basic deductions, or can add HUF’s wealths with his wealth, and file a return. . section-5 : Basic deduction from wealth tax . This section has basic deduction of human entities below age of 60 years. . . (5.1) The basic deductions for all non-person entities , such as companies, trusts, HUFs etc will be zero. The basic deductions for foreigner persons will be zero. . (5.2) The basic deductions for persons above age of 60 years will be twice than basic deductions listed below. And for those above age of 80 years will be 4 times the basic deductions. The basic deductions of widows and widowers will be also twice. However, for widows or widowers of above age of 60 years, it will be only 2 times and not four times; and for widows or widowers of above age of 80 years, it will be only 4 times and not eight times. , (5.3) Unused deductions can be transferred to a family member. For definition and eligibility of family members, please see later sections (5.4) the non-agricultural plots - 25 sqmt per person, and unused deductions can be transferred to a family member . . (5.5) construction above 50 sqmt per person, and unused deduction can be transferred to a family member. . (5.6) agricultural land below 2 acres per family member ; and unused deduction can be transferred to a family member . (5.7) gold \ silver \ diamonds \ precious stones \ jewelry worth below Rs 50000 per male person and below Rs 2.5 lakh per female person ; and unused deduction can be transferred head of family. . (5.8) vehicles worth below Rs 1 lakh per person ; and unused deduction can be transferred to a family member. . (5.9) all shares \ bonds \ debentures owned in companies , in which companies are paying wealth tax on their shares \ bonds \ debentures , will be exempt from share owner . (5.10) shares \ bonds \ debentures worth below Rs 100,000 , owned in companies , in which companies are paying wealth tax on their shares \ bonds \ debentures ; this deduction isn’t transferable . (5.11) cash-in-hand below Rs 1 lakh per family member ; ; and unused deduction can be transferred to a family member. . (5.12) furniture, electrical items, electronic items, hardware, painting, art forms below Rs 3 lakhs per family member; ; and unused deduction can be transferred to a family member . (5.13) wealth outside India is not exempt unless person is returning NRI in which case wealth of Rs 10 lakhs per person will be exempt ; and unused deduction can be transferred to family member . (5.14) intellectual property such software, brandname, patents, copyrights, will be exempt from wealth tax for person as well as non-person entities . section-6 : WTC = Wealth tax credits for previous years . Several taxes and other payments made in past 4 years will become wealth tax credit. . (6.1) WTC will be calculated for each financial year separately. It will be labeled as WTC-AY-YYYY-(YYYY+1) i.e. WTC for Financial Year starting 1-apr-YYYY to 31-mar-(YYYY+1). . (6.2) WTC will be calculated for 4 years before this wealth tax law starts. . { Explanation : . FY = Financial Year , AY = Assessment Year. . Say wealth tax starts from FY 1-apr-2016 to 31-mar-2017 i.e. AY-2017-2018. and onwards. . Then WTC will be calculated for four previous years . WTC-AY-2013-2014 : wealth tax credit generated out of taxes paid for FY 1-apr-2012 to 31-mar-2013 i..e AY 1-apr-2013 to 31-mar-2014 . WTC-AY-2014-2015 : wealth tax credit generated out of taxes paid for FY 1-apr-2013 to 31-mar-2014 , AY 1-apr-2014 to 31-mar-2015 . WTC-AY-2015-2016 : wealth tax credit generated out of taxes paid for FY 1-apr-2014 to 31-mar-2015 , AY 1-apr-2015 to 31-mar-2016 . WTC-AY-2016-2017 : wealth tax credit generated out of taxes paid for FY 1-apr-2015 to 31-mar-2016 , AY 1-apr-2016 to 31-mar-2017 } .. (6.3) pro-rata income tax paid on non-salary income in an AY will be WTC for that AY . (6.4) pro-rata 50% income tax paid on salary income will be WTC . { Explanation : if salary income is say Rs X and non salary income is say Rs Y and total tax paid was Rs T, then of tax from salary income will be Rs T * X / (X + Y) and tax paid from non-salary income will be Rs T * Y / (X + Y) } . (6.5) wealth tax \ service tax \ excise \ vat \ octroi \ cst \ local body taxes \ pay roll tax\ professional tax\ municipal property tax and all taxes paid to central govt (except customs) , state govt or local govt in that AY as stated in the return will become WTC for that AY. Customs duty paid will not be counted towards WTC. . (6.6) for every employee , (0% of salary below Rs 2 lakhs, 5% of salary between Rs 2 lakhs and Rs 5 lakhs, 10% of salary between Rs 5 lakhs and Rs 10 lakhs ; and 15% of salary over Rs 10 lakhs) will be added to WTC . { Explanation : Say an employer had 3 employees and salaries paid in an AY were Rs 150,000/- , Rs 260,000/-, Rs 600,000/- and Rs 1200,000/- . The WTC from employee’s salaries will be Rs 0, Rs 3000 , Rs 25000 , Rs 95000/- respectively . Total WTC from employees’ salary will be sum of these four numbers. } . (6.7) for every employer, 15% of the employer side PF paid by the employer will be added to WTC of employer . (6.8) The penalties on unpaid or late-paid taxes will be fully included. Only 50% of the interest paid due to non-payment or late-payment will be included. . (6.9) WTC will not consider actual date of payment but only the amount due in each FY or corresponding AY . (6.10) To claim and correct WTC of a year, a person will have at most 2 years after ending of that AY. For first 4 years’ WTC, it will be till 3 years after the wealth tax law implementation starts. . (6.11) In case of dispute on WTC amount, the govt records will be deemed final in case of discrepancy. The Jurors may revise the amount after a trial . section-7 : Wealth tax credits for subsequent years . For the years after passing the law, the Wealth Tax Credits for an AY consist of following . (7.1) income tax paid on non-salary income . (7.2) 50% of income tax on salary income . (7.3) all other taxes due to central govt (except customs), state govt and local govt , such as in that AY ; penalties and interest paid, and fines paid on taxes will not be included . (7.4) 15% of salaries paid by payee a/c cheque , or cash , if employee enters cash salary his cashbook maintained at the bank or mentions in his income tax return . (7.5) 15% of PF paid by the employer . (7.6) number of service takers multiplied by Rs 500 . section-8 : Calculation of wealth tax . (8.1) LC = Land and construction will be valued at circle rate or purchase price, which ever is higher. There will be no depreciation on land and depreciation on construction will be 5% a year and indexation increase would apply. . (8.2) M = Machinery , vehicles, hardware will be valued at purchase price. and 10% annual depreciation and no indexation will apply. Furniture will be valued at purchase price and 5% annual depreciation and indexation will apply . (8.3) GS = Gold, silver, metals, diamonds and precious stone will be valued at annual average market price . (8.4) SP = (a) If company is paying wealth tax on shares, then taxable share price will be average market capitalization during the year minus value of land, construction, precious metals gold, precious stones (b) if owner is paying wealth tax then it will be average share price across the year (c) either company or owner but not both will pay wealth tax on share . (8.5) In each case, applicable basic deductions can be subtracted. . (8.6) Wealth tax payable will be 1% of (LC + MF + GS + SP ) minus applicable basic deductions. . (8.7) If wealth tax is negative then it will become wealth tax credit for that AY . (8.8) if wealth tax payable for that year is positive, then oldest WTC will be used to lower it. And when all WTC are exhausted , the tax payer will be required to pay the wealth tax. . (8.9) In case of inability to pay, the tax payer can request locking of his property, and in that case interest of 9% per year will apply. However, the value of property must be at least twice the outstanding tax . section-6 : Eligibility to become family member . (6.1) For the purpose of wealth tax, an individual can register himself as solitaire i.e. alone or part of family. which ever suits him best. . (6.2) One person cannot be member of two families. Persons registered as solitaire cant be member of any family. Non-person entity or foreigner cant be member of family for wealth tax purposes. . (6.3) A family cannot have more than 12 members. The family member must not have wealth above Rs 25 crore , not counting land and constructions. . (6.4) Family will consist of Head of the family, who can be male or female above 18 years of age. . (6.5) The spouses of Head can become member of the family. . (6.6) The children can become member of the family . (6.7) The parents and parents-in-law can become member of the family . (6.8) Children of son / daughter can become member of family , but only if son / daughter is also member of the family. . (6.9) The children of grand children cannot become member of the family . (6.10) Unmarried or divorced sister of the Head can be member of family. Brother below 18 years can become member of the family. (6.11) Children of brother or sister cannot become member of family . (6.12) No one except above can become member of family . (6.13) If a person has more than 4 children, then only 4 can be part of family for wealth tax purposes. . (6.14) If a person wants to form family for wealth tax purpose, then he will need to register his family members by personally appearing at Patwari = Talati = Village Officer. And the members too will have too appear at office of any Patwari in India and acknowledge it. For minors, permission of both parents will be needed. . (6.15) The family members can transfer their basic deductions amongst themselves . (6;.15) The family members cannot transfer their WTC to anyone . section-Jury-Trial : Jury Trial for wealth tax disputes . (J.1) ( instruction to NWTO , all tax payers) . Wherever there is dispute between NWTO or his officer and tax payer, NWTO or his officers will form a CCA = Committee of Chartered Accountants and form a Jury to decide the case. This section gives rules of formation of CCA and the Jury. . (J.2) ( instruction to NWTO ) . NWTO will appoint a Jury Administrator for each District called as DJA = District Jury Administrator, and one Jury Administrator for each State called as SJA = State Jury Administrator, and one Jury Administrator for India called as NJA = National Jury Administrator . (J.3) ( instruction to NJA , SJA , DJA, all WT officers , all tax payers) (J.3.1) A tax dispute between a tax payer and tax officer will be filed in district in which tax payer is voter of or is resident of or has registered offices, in that order. If the tax payer or tax officer wants to change the venue to a district in same state, then may get order from SJA or State High Court. And if either of the two wish to change venue to a district in India outside the State , then he may get order from NJA or Supreme Court. . (J.3.2) For every tax dispute in district, the DJA = District Jury Administrator will randomly select 3 to 10 CAs from a list of CAs who have agreed to provide assistance in cases. The CAs selected must be between the age of 30 years and 55 years, and must have 5 years of experience as CA. . (J.2.3) DJA will randomly select voters from voter list of India between age of 30 and 55 years. The person must not have appeared in any Jury in past 10 years and must not have faced any conviction in past. . (J.3.3) Number of Jurors – The number of Jurors will be at least 12 and at most 1500. The Jurors . number Jurors will be 12, if the wealth tax evasion as claimed by WTO = Wealth Tax Officer is below Rs 10 lakh. And there will 1 extra Jurors for every Rs 10 lakhs of wealth tax evasion as claimed by WTO. The highest size will be 1500 Jurors . (J.3.4) Location of Jurors --- The Jurors will be selected from Districts whose District Courts are linked via video conferencing to districts where trial is being run. In the district isn’t connected with any district via video conferencing, then all Jurors will be from District where the case is filed. . (J.3.5) Disputes of valuation of wealth – if the dispute is only over valuation of land, then dispute will resolved by the Jurors in that district. The number of Jurors will be 12 + plus 1 Juror per Rs 10 lakh of difference in valuation , with maximum of 1500 Jurors. However , DWTO, SWTO or NWTO may ask for change of venue to decide the valuation of the land. . (J.3.6) Appeal against judgment of of District Jurors can be filed with Jurors or Judges in State High Court and later with Jurors or Judges in Supreme Court as decided by other prevailing laws . section-RTR-NWTO : Right to Recall NWTO . (RTR.1) ( instruction to Cabinet Secretary , Union Govt or officer he deputes ) . If any citizen of India wishes to become NWTO , and he appears in person or via a lawyer with affidavit before the Cabinet Secretary, then the Secretary would accept his candidacy for NWTO after taking filing fee same as deposit amount for MP election. . (RTR 2) (instruction to Talati , or Talati’s Clerks) . If a citizen of that district comes in person to Talati’s office, pays Rs 3 fee , and approves at most five persons for the NWTO position, then the Talati would enter his approvals in the computer and would him a receipt with his voter-id#, date/time and the persons he approved. . (RTR.3) ( instruction to Talati ) . The Talati will put the preferences of the citizen on PM's website with citizen’s voter-ID number and his preferences . (RTR.4) (instruction to Talati) . If a the citizen comes to cancel his Approvals, the Talati will cancel one of more of his approvals without any fee . (RTR.5) (instruction to Cabinet Secretary) . On every 5th of month, the CS may publish Approval counts for each candidate as on last date of the previous month. . (RTR.6) (instruction to PM ) . If a candidate gets approval of over 51% of ALL registered citizen-voters (ALL, not just those who have filed their approval) in a district, then PM may or need not expel the existing NWTO and may or need not appoint the person with highest approval count as NWTO . The decision of PM will be final . section-TCP : TCP-clauses . (TCP.1) ( instruction to District Collector ) . if any citizen wants a change in this law-draft, he may submit an affidavit at Collector’s office and Collector or his clerk will post the affidavit on the website of Prime Minister for a fee of Rs 20/- per page. . (TCP.2) (instruction to Talati or Patwari) . If any citizens want to register his opposition to this law-draft or any section or wants to register YES-NO to any affidavit submitted in above clause, and he comes to Talati’s office with voter-ID and pays Rs 3 fee, Talati will enter YES/NO and give him a receipt. The YES-NO will be posted on the website of the Prime Minister. .. (TCP.3) (instruction to Talati or Patwari) . If any citizens want to register his opposition to this law-draft or any section or wants to register YES-NO to any affidavit submitted in above clause, and he comes to Talati’s office with voter-ID and pays Rs 3 fee, Talati will enter YES/NO and give him a receipt. The YES-NO will be posted on the website of the Prime Minister.

by Rahul Chimanbhai Mehta Rrg



from Right to Recall Group http://ift.tt/1G56WkD