We shall over come.

This first appeared in Heraldo 25th Dec 2020

 

Usually 20/20 is a term used to denote clear vision or even great eyesight. 2020 was seemingly just the opposite, it was the year of the mighty mite. The year started with COVID19 appearing on the horizon, no one was sure what it exactly meant or rather no one could predict the actual outcome in their wildest imaginations.

 

For us in India, the lock down unfolded with a bang on March 23^st. No one knew what happened. Many were stuck in places away from home and life as we lived changed drastically from that moment on.

 

It was in these times of uncertainty,that the good in people came to the fore, almost immediately various individuals, corporates, NGOs came forward and started soup kitchens, distribution of essential food items and assisted those who could not afford to manage without their daily wage. It was not as if they were immune to the mighty mite, but they felt someone had to do the job, if it was not for these brave people many would have died from starvation rather than COVID.

 

Masks, sanitisers and disinfectants flew off the shelves and there was a palpable fear all around. The reports from far off Italy seemed to indicate that the mighty mite was fatal. We soon got over this manic fear and life began to revolve again, in a totally different way. The health care sector became the line of last resistance and they fought the virus with non stop efforts for days on end and pushed the mite back. We have to be careful so that their efforts do not go in vain and we avoid a second wave. Given that the virus has mutated, it means we have to be even more careful.

 

The virus may have dampened our lives but our spirits are still high and we must continue be that way. One way is to find “positives” in this pandemic. The first and foremost effect of the lock down or reduced human activity across the broad was the environment, the flora and fauna. Immediately they sprang to life and rejoiced as it seems at this human inactivity. The dust levels, pollution parameters all reduced considerably. This also meant we dirtied the world less as we have become more “hygiene” conscious. I do hope this trend continues and we throw used bottles and wrappers in dust bins rather than on the beach or street.

 

The second positive is that because we have slowed down, we now have more time for family, relatives and friends. The internet has proved to be a boon, allowing us to virtually celebrate our special days with our loved ones across the world, be it a birthday, a wedding or even a funeral. Video conferencing is not for only board rooms. It is here to stay and make life a little easier. Online education, one can attend a class in any part of the world sitting in ones home. This will be a boom for house bound individuals or anyone interested in skill enhancement, physical distance or age will no longer be a boundary for choosing resource persons.

 

The mighty mite has pushed us from our comfy couches into some form of physical activity. Across the board people are exercising as it is a way to boost immunity, be it yoga, running or cycling. Many have turned to online giving or taking classes given that gyms are closed. We are beating the virus by staying fit. This is a great sign as it will also reduce lifestyle diseases and make the planet healthy.

 

As we begin our year long celebration to be in a great mood for Goa@60 next year on the 19^th December, the spirit that gave us our freedom is alive. The youth of Goa, have shown that they are willing to stand up and speak and expect to be heard by the powers that be. I am sure the freedom fighters who we venerate today were also misunderstood by the powers that be in those days and they were called all sorts of names and jailed for one reason or another. In this case the youth were arrested and driven around the country side for being a threat to the security of the President of India.

 

Even Kasab, who deserved death from the moment he was caught, was given a fair trial and that is the nature of our great constitution. The police who appeared clueless as to what and why they were arresting the youth, preferred to drive them around for hours, without food and water. They seem to have been waiting for some direction, and with the President around all the powers would have been busy. The normal procedure should have been arrest, taken to the nearest police station and charged under the relevant sections of the law. This, sadly did not happen and someone should be held accountable.

 

The CM has said that cattle can be transported to the Goa Meat complex, in view of the beef shortage but there are some who openly and immediately opposed this move. Should they be arrested? Surely not. That is why we are called a democracy.

 

While we are blessed to see 2020 through, we have to stay alert, hopeful and positive that 2021 will be better. We must not give up but help others who may be struggling. We should stand up and speak up, with or without COVID as that is what our forefathers did when that took on the powers that be to ensure that each of us would live in a free and happy country.

 

Merry Christmas and a very happy and safe new year 2021

 

 

 

Lockdown and beyond

 

Was looking that the YES bank fiasco and tracking the story and all of a sudden there is no news, COVID 19 is news. If the RBI in its wisdom had announced that SBI would invest in YES bank first, instead of announcing a moratorium. The YES bank shares would have gone through the roof. But that was not possible because then for 7500 crores SBI would have got a few shares instead of 49% at a ridiculous price. What a game changer, just a shuffle of the decisions made. Why was SBI going to put public money in what RBI considered a failed bank? Why was this same logic not available to save a failed airline Jet Airways?

 

Both Jet Airways and YES were inherently good companies, great technology and cutting edge service, but with immoral and greedy owners. In India, decades back Swaraj Paul the original raider proved the point when he made a hostile bid for Escorts, indian owners even with a small holdings act and decide as if the they own 100%. Ofcourse there are many public companies where those who own 5% shares (mistakenly called owners) call the shots and even large FII’s like LIC or SBI sit at the board simply eating cashew nuts and drinking a beer, while the ‘owner’ squanders the company money. YES bank’s technology platform is probably the best in the Indian banking sector. In the case of YES bank, RBI sat on its hands for reasons best known to all.

 

None of the money laundering charges against the promoter warranted a moratorium, he could have been handled separately. It is no surprise that YES bank gave loans to shady promoters, that is occupational hazard for bankers in India, a phone call from someone and the papers move and loans disbursed without actually meeting the laid down criteria. This is not going to change unless criminal action is initiated against the borrowers and those who sanction such shady loans or frauds. Once this happens, sanctioning authorities will politely tell the caller that he cannot sanction the loan as he will get into trouble and indian banking will be saved of this malady…bad loans. So basically we need the LOCKUP in order to control the “virus of greed” that is fast spreading in Indian business with the political and regulatory systems not maintaining ARMS LENGTH decision making.

 

This is wishful thinking at present as the country has gone into a lockdown and PM Modi has said lets us focus on health of our communities and we will discuss health of our economy at a later stage. The saying “Aiz makha, faliam tukha” over many goan cemeteries is becoming a stark reality. China first reported this new virus and as it spread like a wildfire, we seemed to hope it did not come to India or that the heat would stop it. No such luck and it is now inside India, and today Goa.

 

The PM’s clarion call for a “Janta Curfew” seemed to have galvanised the Goan administration into action. Till then they were blind sided by the inconsequential ZP elections. Once these were postponed and then cancelled, the decisions started flowing. A one day lock down to coincide with the PMs call, which was great to see almost 100% adherence till 5 PM, when it unravelled and displayed the lack of knowledge among the population. This success prompted the complete lockdown for 3 days, however the PM’s call at 8 PM talking of a 21 lockdown meant another change and Goa also went into a 21 day lockdown. This 8 PM announcement is turning into a bandi of sorts, first Notebandi and now Gharbandi.

 

While everyone seems  to agree that this is the only and best way of stopping the virus from making giant inroads. It created a panic, what does one do for groceries in the next 21 days. Earlier many heeded the PM’s call not to stockpile and now those who disobeyed this request were laughing. This is something that tax tax evaders are very familiar with, they have the last laugh at the honest tax payers. The governments both Centre and State have calmed the nerves by putting mechanisms to ensure delivery of essential goods to households, so now everyone can calm down, pick a book or a beer and settle down for 21 days of doing nothing.

 

Actually there is a lot you can do, for one all the things you did not do for want of time, you can try it now. Talk to your neighbours across the balconies, read some books, watch movies, call up long lost relatives and use the magic of the internet to visit other peoples homes, good use of virtual reality. If you find something interesting to do, share it on your WA groups, please refrain from forwarding unverified news.

 

The economy was reeling and this is another body blow, however make no mistake, when the going gets tough the tough get going, so the Indian economy will bounce back and pretty soon for sure. This lull will be used by the economic think tanks to provide ideas that can help industry hit the ground running once this storm passes. There is also opportunity as going forward as the World will be looking to remove some eggs from the Chinese basket and India is one place  they can put them, we will have to ramp up our quality and productivity.

 

These are difficult days and support to the Government will ensure we can fight this virus together. Whatever y

Lockdown: The New Normal

 

Its been one month and some of us have just started operations in Goa, you cannot call it normal as the downstream distribution or upstream suppliers in other parts of India are still at home. In many parts of the country they are still locked down till May 03, or the rules are so stringent or cumbersome they cannot start. Goa, also has the distinction of being COVID free at present. To assume this means the danger is past us would be erroneous. China the epicentre of this global pandemic is already on the go, seems unfair, but that is life, usually seems unfair.

 

We can be sure that while we have slowed the progress of the virus with a lock down, we cannot stay locked in forever. We are no longer hunter gatherers, we are now used to having our food delivered, no reference to swiggy here. We neither grow our own vegetables, nor have our own source of meats, barring a few. A fisherman, may be able to get fresh fish, but everything else required to cook and eat it he would need to be supplied. This also means that given we are not a welfare State, a vast majority earn and eat on a daily basis.  Just think about it, check all that you used while on lockdown and realise, that someone somewhere had to work to ensure it finally reached you. This means that economic activity has to happen.

 

A lock down cannot be a permanent answer. What it did do was ensure that there was no run on the medical system. Will this be the only lock down, the answer is most likely no, “lockdown” will be the new normal, atleast till a vaccine is developed or at best we pick up the “herd immunity” that is being talked about. For that to happen we have to operate and live normally, the virus will get to most and once it has done its round, we will become generally immune. The age group 20 to 50 or thereabout have the best chance of developing this immunity and surviving. Older or younger will have to be protected.

 

While many State governments have responded well including the Goa government. We have to understand this a totally new phenomena, with no precedent, so if the governments change a decision quickly,  it is understandable as they are accessing the situation and course correcting. Social media also help highlight the issues quickly.

 

The decision to allow only one person per bike and two in a car or one can walk to work seems reasonable. However, that means a lot of people especially women who cannot ride, just cannot go to work in the absence of public transport. Assuming, it is a family member on the pillion, surely it can make no difference because they live in the same house anyway. So, the government must look at this aspect quickly in the absence of public transport. COVID has really made Government take quick decisions, we are a nation that moves without a helmet or a seat belt with impunity, we can now get a challan for carrying an extra passenger, oh yes and one hopes that the anti spitting rule stays. What about the pan shops at every nook and corner, should that not be taken out first, since you cannot have a “non spit” pan anyway. COVID is teaching us to follow rules.

 

It was a treat to watch how the industry and Government collaborated to ensure the smooth start to industry in rural areas. The Goa State Industries Association(GSIA), took the lead and aided by industrial estate associations worked with Government officials to help restart almost 1600 units smoothly, including issuing of approx 20000 odd travel permits for cars, buses and two-wheelers. This was all made possible by a simple online application. The better part was to see, industry self regulate and insist on Companies starting only if they could fulfil the Ministry Of Health conditions which included thermal scanning, disinfecting equipment and sanitising personnel. Earlier when only companies under essential services had to start the District officials were overwhelmed with the applications in addition to their disaster management duties, causing unintended delays. Frankly it was great to see the MD of GIDC, Mr. Neto with his team working with industry officials side by side to ensure the smooth distribution of passes across Goa, on a Sunday. This cooperation is going to go a long way in the future.

 

Today, if you go around, you will see people standing in a neat line with proper social distancing in front of before shops, ATMs etc. That is surely a change from our normal way of crowding around and someone behind shouting his order despite people ahead of him. Is it not a better system, why did this little virus have to teach us these niceties? The down side to the big markets closing is the springing at every nook and corner of street vendors. Is this a good thing, you have authorised vendors who have paid their taxes and registration sitting and twiddling their thumbs and yet a whole lot of fly by night operators with suspect quality making hay while COVID lurks. The authorities should make some changes here for sure. SO COVID brings out both good and not so good.

 

Everyone will look back and say, they have never seen days like this, true and the days ahead are going to be very different.  The human race has always looked at adversity in the eye and come out stronger. This is because we are, as Sadhguru recently paraphrased it “agile, brave and competent” enough to face any challenge. We will soon get used to the new normal and life will go on, hopefully in a better way.

 

 

Faceless eAssessment: A new tax reform

Tax reforms, has been one of the key focus areas of the Union government. The shift has been towards rationalisation, simplification, greater transparency, and creating an overall taxpayer-friendly ecosystem.  India is in fact one of the few countries in the world to adopt such a system. The scheme will bring in a paradigm shift in taxation by eliminating the human interface in the income tax assessment system. While, less than one percent get assessed every year, this move will give normal taxpayer a sense of relief and feeling of equality.

In essence, the faceless e-assessment is a randomised and automated system based on the concept of dynamic jurisdiction and follows a team-based approach. It eliminates the undesirable practices that emerge when there is scope for individual discretion and subjective judgement. The anonymous nature of the process will discourage high-pitched assessments and lead to objective, fair and just assessment orders. 

A revised Form 26AS, which has details on taxpayers’ high-value financial transactions, like cash deposits/withdrawals and property purchases undertaken during a financial year. What this effectively means is that. Tax dodgers, corrupt babus and politicians who went from rags to riches without any fear, as everything was managed. The averaged salaried tax payer could only fume. Now, a property purchased by a tax evader in the name of his driver will get automatically flagged as the drivers income will not match. So we will surely see more tax payers popping up and why not, it is also time everyone paid their fair share of taxes.

Under the new system, taxpayers will not be required to visit the local office on receiving income tax notices, obviating the need for face-to-face interactions. This also means time saved, as any request for information can be met from the comfort of your home or office. It also means tax consultants will have more time for clients as they will not be sitting in tax offices. The system will bring about a substantial increase in the tax base, by making the process more transparent and taxpayer-friendly.

With reduced hardships for the taxpayer, the faceless e-assessment system will foster voluntary tax compliance. The transparency and objectivity brought in by the new system will reduce tax litigations, which hitherto have been a major challenge. No more, will your local tax officer be in charge of your case. Four geographically separate units operating independently through the National E assessment Centre (NEAC). The four units are Assessment Unit, Technical Unit, Verification Unit and Review Unit. If assessment is done by one unit, review will be by another. And at no time will either tax payer or tax  officer know each other or where they are located. All communication happens through the NEAC and every document has a Document Identification No (DIN).

100% confidentiality will be a challenge as documents will provide some leads to the officer, but given that the system is in place to build trust, it will work out in the long run.

Large-scale implementation of the system is expected to be a big step that would benefit more than six crore income tax return filers in the country. Earlier, when implementing GST which itself was a reward to the honest tax payer, the Government showed willingness to tweak the rules as and when required so as to make it robust and taxpayer friendly. The same is expected with the Faceless scheme, which being new will have teething issues, however given a pilot was running the issues will be lesser. This shift will  create a need for informed recalibration on the part of taxpayers

From Goa’s perspective, Sec 5A is unique and it allows husband and wife to share the income. But, the TDS for bank interest is accounted for in the husband’s return and there was no provision to share it with the wife, creating issues when filing returns. This the department is aware of and required tweaking is in progress.

Over the last few years, the Income Tax Department has undergone a revamp in its approach, from being just a revenue-collecting organisation to becoming a more citizen-centric one by making available various functionalities on line. Technology intervention through the faceless assessment system will also help build trust within industry and wealth creators.

Given, that in India we have many languages, a taxpayer from Andhra would have many documents in Telugu and if the assessment unit is based in Haryana, understanding will be a challenge. Many goans, have documents in Portuguese. The department will consider hiring a translator rather than insisting on translated documents, a welcome step. On similar lines, High Court or Tribunal judgements vary across States, and if tax payer is relying on some judgement, the tax officer in another State will have to be aware. This will bring up the training and sensitisation issues that have to be taken care of in the department.

However, going forward it will not be enough to have a tax consultant who is well connected with the department officials. Only electronic submission is possible, so drafting or ability to explain in writing will be critical. It is going to be important that one has a tax consultant, who is knowledgeable and up to date. Basically, the systems bids farewell to “dalals” as we know them.

The system comes at a very appropriate time, where going digital is the new normal Covid-19 times. Let us wish the department and taxpayers, all the very best in successful implementation of the faceless e Assessment scheme.  

 

Development and Environment

 

If we look around, many of us live or use areas taken from mother nature. Residential/commercial spaces have come up on fields, khazan lands, thee list can go on. As we get older and hopefully wiser, world over there is a trend to safeguard natural resources. 

 

The Government, has enacted many laws to protect the environment, this is because there is a need to have regulation and order. The major laws related to the environment and wildlife protection, : The Environment (Protection) Act, 1986; prompted by the Bhopal gas leak of 1984. The Forest (Conservation) Act, 1980; the Wildlife Protection Act, 1972; Water (Prevention and Control of Pollution) Act, 1974; Air (Prevention and Control of Pollution) Act, 1981 and The Indian Forest Act, 1927. India, signed “The Stockholm Deceleration on Environment” in 1972.

 

The, Constitution of India, under Part IV (Article 48 A- Directive Principles of State Policies) stipulates that the State shall try to improve and protect the environment and safeguard forests and wildlife of the country. This would mean that every Indian atleast is charged with doing his best to protect the environment.

 

The Ministry of Environment and Forests (MoEF) was established in 1985, today it is the apex administrative body for regulating and ensuring environmental protection. Under this law, every development project is supposed to do an Environment Impact Assessment (EIA 2006) to get a clearance.

Ideally with all this, it is the Government who should be at the forefront of environment protection, unfortunately it appears to be the other way around and citizens are only expressing their constitutional duty.

Goa is currently undergoing a development overdrive. On the heels of an eight lane north south road that is underway. There is the double tracking at Cansaulim, the three projects in the protected Mollem forests, there is an IIT on the cards. Each of these, promises development for Goa and Goans. Each of these is facing strong opposition that is growing day by day. The question that begs an answer is, if it is for the benefit of Goa and Goans why is it being opposed? In the case of the opposition for Mollem, it is coming from a surprising quarter, youth.

 

The Environment Minister, Mr Cabral, is on record and one must commend him for facing the public at every request, he says categorically that those opposing the projects should give their reasons for opposition. He has released a promised white paper but that does not talk about alternative sites considered, solar augmentation and theft. There is no focus on distribution which is the key as there is no shortage of power available. Project details and rational have to come from the Governments side, upfront not after a backlash. 

 

Lets talk about Mollem. The three projects were proposed and cleared by video conferencing during the lockdown or so say the opponents. Was, the EIA done, if yes it should be made public and the numbers would speak. If it is power, then what is the current requirement and what is the future expectation that is going to be met by the project, was solar argumentation which is a national policy considered, was any alternative site less damaging to the flaura and fauna considered? The impression given, is only trees under the towers will be cut but when one goes to the project site a vast areas is cleared already, there are no sign boards, the truck carrying punjabi workers is registered in Madhya Pradesh. Right off the bat, there is no benefit for Goans, so many trucks idle? Do we need punjabis to do a survey? Were the trees felled following due process? What is the hurry, in COVID times? When trees are cut, twice the number have to be planted and these are being planted in neighbouring Karnataka, apparently there is no place in Goa for planting trees. Surely, someone has to relook this aspect.

 

The same questions are applicable to the road and rail projects, is the destruction of so much forest area or peoples ancestral homes, worth the trouble, how many cars and passengers will benefit with road widening and double tracking.

 

The issue seems to be TRUST DEFICIT. The people believe that all these projects are being done with one sole purpose and that is coal transportation. It is also true that MPT is pushing to expand it coal handling capacity as it see it as the only means of revenue for the port. MPT has seemingly decided that a cruise terminal is not a profitable venture, does that sound right? Surely one cannot develop a cruise terminal with a coal handling facility. Goa is a tourist destination, surely not because it has fast trains and faster roads and huge coal handling.

So the key for the government is to lay it cards on the table and specify how Goa and Goans will benefit from these projects in the long run. Giving information that is correct and verified will play a vital role. Above all the Government will have to clearly state and convince one and all that these projects are not designed to benefit the coal importers.

 

It would be nice if the Government heeded the cries of the people and addressed their concerns, rather than wishing them away as NAY sayers. This frank dialogue between the Government and the people, where the details are placed on the table transparently and at one time and after which the best course is chosen will go along way in removing the trust deficit and developing Goa, while protecting her environment as much as possible, because Goa is environment. Without that there is no Goa. Long live Goa.