July 15, 2024

What is a Partnership Deed?

What is a Partnership Deed

A partnership firm is one of the popular types of organisations for starting a new business in India. A minimum of 2 partners are required to start a partnership firm. Partners establish a partnership firm through a partnership deed. A partnership deed is an agreement between the partners of a firm that outlines the terms and conditions of partnership among the partners.  A partnership deed, a partnership agreement, is a written document among business partners. It’s a preferred choice among entrepreneurs due to its many benefits. However, running a partnership business involves planning and risk. Disagreements, financial issues, or internal conflicts can jeopardize your venture. Before investing your savings and efforts, it’s wise to sign partnership deed a partnership deed, a legal document that safeguards each party’s interests. What is a Partnership Deed? The smooth and successful running of a partnership firm requires a clear understanding among its partners regarding the various policies governing their partnership. The partnership deed serves this purpose. The partnership deed contains various terms such as profit/loss sharing, salary, interest on capital, drawings, admission of a new partner, etc. in order to bring clarity to the partners. A deed of partnership also known as a partnership agreement is a legal document signed by two or more partners who come together and decide to run a business for profit. The partnership deed helps to resolve any disagreement or conflict which arises between the partners regarding the partnership norms. The purpose of a partnership deed is to give a clear understanding of the roles of all partners, ensuring the smooth running of the operations of the partnership firm. Types of Partnership Deeds General Partnership Deed: The general partnership deed contains the terms and conditions of a general partnership, where each partner shares equal responsibility for the management of the firm business and are jointly liable for debts or obligations. Limited Partnership Deed: The limited partnership deed establishes a limited partnership, which includes general and limited partners. The general partners have unlimited liability for the debts of the partnership firm, while the limited partners have limited liability and do not participate actively in the management of the business. Necessity of Partnership Deed A Partnership Deed, preferably written, holds immense importance for a business. While an oral agreement lacks legal weight, a written deed becomes vital in disputes. The explicit terms and conditions outlined in the deed act as a pre-emptive measure against misunderstandings among partners, defining duties, profit/loss ratios, and the amount invested by each partner. The importance of a partnership deed is rightfully stated, as it minimises the likelihood of conflicts and fosters a clear understanding among business owners. Importance of a Partnership Deed It helps partners to define the terms of their relationship. It regulates the nature of business and liabilities, rights and duties of all partners. It helps to avoid misunderstandings between the partners since all of the terms and conditions of the partnership are specified in the deed.  In the case of a dispute amongst the partners, it will be settled as per the terms of the partnership deed. There will be no confusion between the partners regarding the profit and loss sharing ratio amongst them.   It mentions the role of each individual partner. It contains the remuneration that is to be paid to partners, thereby avoiding any dispute or confusion.  It ensure smooth functioning of the firm as the terms and liabilities between partners are in a written form. Contents of a Partnership Deed The partnership deed contains the following details: Name of the firm- The partners of the firm should decide the firm’s name which adheres to the provisions of the Partnership Act. The firm name is the name under which the business is conducted. Details of the partners – The deed should include details of all the partners, such as their names, addresses, contact number, designation, and other particulars. Business of the firm – The deed should mention the business that the firm undertakes. It may be dealing with producing goods or rendering services. Duration of firm – The deed should mention the duration of the partnership firm, i.e. if the firm is constituted for a limited period, for a specific project or for an unlimited period. Place of business – The deed should contain the principal place of business where it carries on the partnership business. It should also mention the names of any other places where it conducts business.  Capital contribution- Each partner will contribute an amount of capital to the firm. The entire capital of the firm and the share contributed by each partner are to be mentioned in the deed. Sharing of profit/loss – The ratio of sharing profits and losses of the firm amongst partners should be noted in the deed. It can be shared equally amongst all partners, or according to the capital contribution ratio or any other agreed ratio.  Salary and commission- The details of the salary and commission payable to partners should be mentioned in the deed. The salary and commission can be paid to the partners based on their role, capabilities or any other capacity. Partner’s drawings- The drawings from the firm allowed to each partner and interest to be paid to the firm on such drawings, if any should be mentioned in the deed. Partner’s loan – The deed should mention whether the business can borrow loans, the interest rate of loans, properties to be pledged, etc. It can also mention if a partner of the firm can borrow loans from the business or not. Duties and obligations of partners- The rights, duties and obligations of all the partners of the firm should be mentioned in the deed to avoid future disputes.  Admission, death and retirement of partners- The deed should mention the date of admission of the partner, the regulations governing the admission of a new partner, resignation, or changes after the death of a partner of the firm. Accounts and audit – The deed should contain details about the audit procedure of the firm. It should mention the details of how the partnership accounts are to

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S. 14(1) Hindu Succession Act

S. 14(1) Hindu Succession Act

The main object of the Hindu Succession Act, 1956 (the Act) is to remove inequalities between men and women with respect to rights in property and evolves a list of heirs entitled to succeed on intestacy based on natural love and affection rather than religious efficacy.The Hindu Succession Act of 1956 was passed by the Parliament to alter and codify the law of intestate or unwilled succession among Hindus, Buddhists, Jains, and Sikhs.The Act abolishes the Hindu woman’s limited estate. Any property possessed by a Hindu female is to be held by her absolute property and she is given full power to deal with it and dispose it of by will as she likes.The Act was amended in 2005 by the Hindu Succession (Amendment) Act 2005 (the Amendment Act)The statement of objects and reasons of the Amendment Act explained the purpose for which amendments were made to law concerning rights of women in the following words-“…….The retention of the Mitakshara coparcenary property without including the females in it means that the females cannot inherit in ancestral property as their male counterparts do. The law by excluding the daughter from participating in the coparcenary ownership not only contributes to her discrimination on the ground of gender but also has led to oppression and negation of her fundamental right of equality guaranteed by the Constitution. Having regard to the need to render social justice to women, the States of Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra have made necessary changes in the law giving equal right to daughters in Hindu Mitakshara coparcenary property.”A few sections were omitted by the Amendment Act and there were consequential amendments to section 30X of the Act dealing with testamentary succession by including the rights of a woman also to dispose of by will or other testamentary disposition any property, which is capable of being so disposed of by her in accordance with the provisions of the Indian Succession Act, 1925 (39 of 1925), or any other law for the time being in force and applicable to Hindus. There was also amendment to the schedule of the Principal Act by adding in Class I after the words “widow of a pre-deceased son of a pre-deceased son”, the words “son of a pre-deceased daughter of a pre-deceased daughter; daughter of a pre-deceased daughter of a pre-deceased daughter; daughter of a pre-deceased son of a pre-deceased daughter; daughter of a pre-deceased daughter of a pre-deceased son.”After referring briefly to the Act and the amendments made by the Amendment Act let us shift our focus to section 14 of the Act which has the caption reading as “Property of a female Hindu to be her absolute property.” Section 14 of the Act This section is considered to be a progressive step giving rights of a property to a Hindu female.Section 14 of the Act reads as under-“14. Property of a female Hindu to be her absolute property. — (1)   Any property possessed by a female Hindu, whether acquired before or after the commencement of this Act, shall be held by her as full owner thereof and not as a limited owner.     Explanation.—In this sub-section, “property” includes both movable and immovable property acquired by a female Hindu by inheritance or devise, or at a partition, or in lieu of maintenance or arrears of maintenance, or by gift from any person, whether a relative or not, before, at or after her marriage, or by her own skill or exertion, or by purchase or by prescription, or in any other manner whatsoever, and also any such property held by her as stridhana immediately before the commencement of this Act. (2)   Nothing contained in sub-section (1) shall apply to any property acquired by way of gift or under a will or any other instrument or under a decree or order of a civil court or under an award where the terms of the gift, will or other instrument or the decree, order or award prescribe a restricted estate in such property.” The case of V. Tulasamma (supra) This decision [V.Tulasamma’s case Supra] was rendered by a Bench consisting of 3 Hon’ble Judges – Hon’ble Justice Shri. P.N. Bhagwati, Hon’ble Justice Shri. A.C. Gupta and Hon’ble Justice Shri. Syed Murtaza Fazalali and the main judgment was delivered by Hon’ble Justices Shri. P.N. Bhagwati and Shri. A.C. Gupta and Hon’ble Justice Shri. Syed Murtaza Fazalali delivered a separate but concurring judgment.The propositions emerging in respect of incidents and characteristics of a Hindu woman’s right to maintenance have been crystallised by the Supreme Court at para.20of this judgment as under-“Thus, on a careful consideration and detailed analysis of the authorities mentioned above and the Shastric Hindu Law on the subject, the following propositions emerge with respect to the incidents and characteristics of a Hindu woman’s right to maintenance: (1)   that a Hindu woman’s right to maintenance is a personal obligation so far as the husband is concerned, and it is his duty to maintain her even if he has no property. If the husband has property, then the right of the widow to maintenance becomes an equitable charge on his property and any person who succeeds to the property carries with it the legal obligation to maintain the widow; (2)   though the widow’s right to maintenance is not a right to property but it is undoubtedly pre-existing right in property, i.e., it is a jus ad rem not jus in rem and it can be enforced by the widow who can get a charge created for her maintenance on the property either by an agreement or by obtaining a decree from the civil court; (3)   that the right of maintenance is a matter of moment and is of such importance that even if the joint property is sold and the purchaser has notice of the widow’s right to maintenance, the purchaser is legally bound to provide for her maintenance; (4)   that the right to maintenance is undoubtedly a pre-existing

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Belated Return – how to file income tax return for last years

Belated Return

The deadline to file your income tax returns, there’s no need to panic. You still have the option to file your tax returns after the due date, although with a penalty. This article provides a comprehensive guide on understanding and filing belated returns, ensuring you navigate the process smoothly while avoiding potential financial penalties.  What is Belated Return? A belated return is a return filed after the deadline i.e. 31st July of the assessment year but before 31st December of the assessment year. While late filing has consequences, it’s still better than facing potential penalties for non-compliance. The due date to file income tax return for the Financial Year 2023-24 is 31st July 2024. If you miss filing your ITR within the original deadline, then you can file a late return, known as Belated Return. Filing ITR for Previous Year Missed filing ITR for previous year within due date, you can file a belated return on or before 31st December of the relevant assessment year. For Example, for the AY 2024-25, the timeline to file a belated return is on or before 31 December 2024.In case you miss the belated return deadline, then you may file ITR-U in certain specified cases.The amendment vide Finance Act 2021 reduced the timeline of filing the belated return. With effect from AY 2021-22, you can file the belated return three months before the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. What is an ITR-U or Updated ITR? ITR-U is a form that allows taxpayers to correct errors or omissions on their ITRs up to two years from the end of the relevant assessment year to update their return. In the Union Budget 2022, the government introduced the ITR U form for updating income tax returns. ITR U form is a rescue for those who have not filed their ITR or made inaccurate and false entries while filing their income tax returns. Section 139(8A) under the Income Tax Act allows you a chance to update your ITR within two years, i.e., 24 months from the end of the relevant assessment year. These two years are calculated from the end of the year in which the original ITR was filed. For instance, for AY 2023-24, you can file an ITR-U after the end of the assessment year, i.e., 31 March 2024, but within two years from there, i.e., 31 March 2026. File ITR-U. Regardless of whether the taxpayer has filed an original, belated, or revised ITR or has completely missed filing the ITR in a specific financial year, he/she can file an ITR-U upto 2 years of the relevant assessment year. Drawbacks of Filing Late Return The following are the disadvantages of filing a belated return: Interest may be applicable under sections 234A, 234B and 234C. A late fee will be levied under Section 234F while filing a belated return:  Gross total income Late fee up to Rs. 2.5 lakh No Penalty Rs. 2.5 lakh – Rs. 5 lakh Rs 1,000 more than Rs. 5 lakh Rs 5,000 If you have incurred losses, like business and capital losses, they cannot be carried forward and set off in the subsequent years. However, an exception is available for losses from house property that can be carried forward even if you file your returns late. Deductions/ Exemptions Disallowed: Deductions/ exemptions u/s 10A, 10B, 80-IA, 80-IB, 80-IC, 80-ID and 80-IE shall not be available if you delay ITR filing. These tax-saving benefits are allowed only if the ITR is filed before the original deadline. Who is Eligible to File Form ITR-U Under Section 139(8A)? Any taxpayer can file an updated return u/s 139 (8A) whether he has furnished/not furnished an original return, revised return, or belated return in case of any omission, error, or wrong statement in his earlier return of income. An Updated Return can be filed if: Return previously not filed Income not reported correctly Wrong heads of income chosen Reduction of carried forward loss Reduction of unabsorbed depreciation Reduction of tax credit u/s 115JB/115JC Wrong rate of tax Who is Not Eligible to File Form ITR U u/s 139 (8A)? If an updated return is already filed If an updated return is the return of loss If an updated return reduces Income Tax Liability in the return filed earlier If the updated return results in an increase of Refund If a search has been initiated under Section 132 If books of Accounts or any other documents are called for by the Income Tax Department under section 132A. If the survey has been conducted under section 133A If any proceeding of assessment, reassessment, re-computation, or revision is pending or completed for that relevant year If the Assessing Officer has information against such person under the Prevention of Money Laundering Act or Black Money (Undisclosed Foreign Income and Asset) and Imposition of Tax Act or Benami Property Transactions Act or Smugglers and Foreign Exchange Manipulators Act and the same has been communicated to the assessee. If the information for the relevant assessment year has been received under an agreement referred to in section 90 or section 90A in respect of such person and the same has been communicated to him prior to the date of furnishing of return under this subsection. Other Notified Persons What is the Time Limit to File Updated Return? The time limit to file an updated return u/s 139 (8A) is 24 months from the end of the relevant assessment year. The updated return of FY 22-23 (AY 2023-24) can be filed till 31st March 2026. For example, Assessment Year Last Date of Updated ITR Filing AY (2021-22) 31 March 2024 AY(2022-23) 31 March 2025 AY(2023-24) 31 March 2026 How to File Belated Returns? Step 1: Log in to your account on the e-filing account Step 2:  Click on ‘e-File‘ > Choose ‘Income Tax Returns‘ and > Select ‘File Income Tax Return‘ Step 3: Select the relevant assessment year Step 4: If you select the mode of filing as ‘Online’, follow Steps 5-10.  Step 5: Click on the ‘Start new filing’ button Step 6: Select the applicable status

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Calculating Income Tax Late Payment Interest

Calculating Income Tax Late Payment Interest

The income tax department strives to make it as easy and convenient for citizens to comply with advance tax payments. So, one has the option of paying it in 4 instalments over the financial year.  However, if you still default, there are some consequences in the form of an interest penalty. Basically, Section 234C deals with interest to be levied on defaulters of advance tax instalment payments. Section 234A: Delay in filing Income Tax Return All taxes should be paid before the end of a financial year. In case there is any outstanding tax, the balance should be paid and income tax returns filed on or before July 31 of every following assessment year (AY). If the tax returns are filed after this date, then the taxpayer is charged 1% simple interest every month of the outstanding tax amount. The interest is calculated from the due date of filing returns till the date the return is actually filed. Interest under Section 234A Delay in filing the return of income would result in a late payment interest to be levied as per Section 234A. Interest amount of 1% per month (simple interest) would be applied on the tax amount outstanding. Example: A taxpayer has unpaid taxes that are outstanding. He has not filed his IT Returns by the due date (31st Jul). The income tax payable was ₹ 23,300 and he filed his IT returns on 8th Nov. What will be the late payment interest levied on him under Section 234A  for the delayed filing of IT Return? Actual Filed Date: 08-NovDelay in Filing: 3 Months and 8 days delay (Delay is calculated from the due date of 31st Jul and is rounded as 4 months)Tax Payable: ₹ 23,300Late Payment Interest: 1 % * ₹ 23,300 * 4 months =   ₹ 932 Section 234B: Incomplete Payment of Tax In case an individual has to pay Rs 10,000 or more as tax in a fiscal year, then advance tax is applicable. The tax dues that are paid at a specific time period, as regulated by the Income Tax Department are termed as advance taxes. Businessmen, self-employed professionals, and salaried employees are liable to pay advance tax, where tax payable amounts to Rs 10,000. Under Section 44AD, when a taxpayer opts for computing business income, which has a turnover of 8% on presumptive basis, he is exempted from paying advance tax. Senior citizens above 60 years and with no income also enjoy tax exemptions under this section. The taxpayer should have paid the maximum amount (least 90%) of the total tax payable by the end of the financial year. Failure to pay the tax, if the amount is more than 10% of the liability, then a penalty of simple interest 1% will be charged under Section 234B. Advance Tax means paying your tax dues based on the dates (usually quarterly) provided by the income tax department. If you don’t pay advance tax, you may be liable to pay interest under section 234B. Interest under Section 234B Delay or shortfall in paying advance tax as per the income tax calendar would result in late payment interest to be levied as per Section 234B. All assesses are required to pay Advance Tax (at least 90 %) where the tax payable is Rs 10,000 or more. Late Payment Interest is applicable if the tax liability is more than Rs 10,000 and the taxpayer has not paid any advance tax or if the taxpayer has paid advance tax, but advance tax paid is less than 90% of ‘assessed tax’. Example (Not paying Advance Tax): A taxpayer has ₹ 15,400 as tax payable, but he has not paid any advance tax until 31st March. If the entire tax was paid by him 0n 3rd Oct, when he files the return of income, how much interest is he liable to pay as per Section 234B? Actual date of paying tax: 03-OctDelay in Filing: 6 Months and 3 days delay (Delay is calculated from 31st Mar which is the end of FY  and is rounded as 7 months)Tax Payable: ₹ 15,400Late Payment Interest: 1 % * ₹ 15,400 * 7 months =   ₹ 1,078 Example (Shortfall in paying any Advance Tax): A taxpayer has ₹ 38,500 as Tax Payable. He has paid ₹ 20,000 towards advance tax until 31st March. If the remaining ₹ 18,500 was paid by him 0n 25th Aug, when he files the return of income, how much interest is he liable to pay as per Section 234B? Actual date of paying tax: 25-AugDelay in Filing: 4 Months and 25 days delay (Delay is calculated from 31st Mar which is the end of FY  and is rounded as 5 months)Tax Payable: ₹ 38,500Advance Tax Paid: ₹ 20,000 (which is only 51.9 % of tax payable)Penalty to be applied for: ₹ 38,500 – ₹ 20,000 (Advance Tax that is paid already) = ₹ 18, 500Late Payment Interest: 1 % * ₹ 18,500 * 5 months =   ₹ 925 Section 243C: Delay in Periodic Payment of Tax Income tax should be paid on time every financial year to avoid interest and penalty on late payment. Advance tax can be paid on the dates mentioned below: 15% of advance tax on or before June 15 in case of corporate taxpayer. 45% and 30% tax advance to be paid by corporate and noncorporate taxpayer respectively, on or before September 15. 60% and 75% of tax advance by non-corporate and corporate taxpayers should be paid on or before December 15. 100% tax advance by both corporate and noncorporate taxpayers should be paid on or before March 15. Interest under Section 234C The following table provides the details on the cut off date and the advance tax payable: Due Date All Tax Payers except those who have opted for presumptive income u/s 44AD Taxpayers opting for presumptive income u/s 44AD 15th June Upto 15 % of Advance Tax Payable Nil 15th September Upto 45 % of Advance Tax Payable Nil 15th December Upto 75 % of Advance Tax Payable Nil 15th March Upto 100 % of Advance Tax Payable Up to 100% of Advance

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mukhyamantri yuva sambal yojana

mukhyamantri yuva sambal yojana

The Government of Rajasthan has launched the Mukhyamantri Yuva Sambal Yojana for the unemployed youths of the state. Under this scheme, the government will provide monthly financial assistance to support the unemployed graduates. The primary objective of the scheme is to increase the employment opportunities among the youth and placing them in the different department of the State Government.  The Chief Minister Yuva Sambal Yojana is being run by the Rajasthan government for all the unemployed youth of the state. Under this scheme, unemployment allowance ranging from ₹ 4000 to 4500 rupees is given every month to educated unemployed youth by the government. If you are a resident of Rajasthan state and have passed graduation but are still unemployed, then you can take advantage of this scheme. Mukhyamantri Yuva Sambal Yojana 2024 The Chief Minister Yuva Sambal Yojana has been started by the Rajasthan government to benefit the unemployed citizens of the state. Under which the government will provide unemployment allowance of Rs 4000 per month to educated male applicants and Rs 4500 per month to transgender, women and specially abled applicants. Only educated and unemployed youth can apply under this scheme. Under the scheme, these young men and women will be given an opportunity to do internship by the government. After this, an internship certificate will also be given. The beneficiaries will have to provide four hours of service in the allotted office, after which they will receive unemployment allowance every month. The expenses incurred in this scheme will be borne by the state government. Objective of Mukhyamantri Yuva Sambal Yojana The main objective of launching the Chief Minister Yuva Sambal Yojana by the Rajasthan government is to improve the economic condition of unemployed youth by providing them financial benefits so that the youth do not have to depend on anyone else for their small needs. The number of unemployed youth in the state is very high, so the government is trying to empower the unemployed through the scheme. By taking advantage of this scheme, unemployed youth will become self-reliant and their economic condition will improve. Benefits and Features of Chief Minister Yuva Sambal Yojana Chief Minister Yuva Sambal Yojana has been issued by the Rajasthan State Government under which unemployment allowance will be given to educated unemployed youth. Under the scheme, male beneficiary will be given Rs 4000/- per month and specially abled, female and transgender beneficiaries will be given Rs 4500/- per month unemployment allowance. The benefit of the scheme will be available for a maximum of 2 years or until employment/self-employment is obtained. Pregnant women will be given 6 months exemption under the scheme on the basis of medical certificate. Under the scheme, the beneficiaries will have to provide service for 4 hours in the allotted office, in which disabled candidates can get a relaxation of 1 hour considering the difficulty in commuting. Unemployment allowance will be transferred to the beneficiary’s bank account through DBT. Only educated unemployed young citizens will get the benefits under the scheme and they will be able to apply online. If an ineligible youth or girl is taking benefit of the scheme then he/she may have to deposit penal interest. Under this scheme, skill training will be provided to the beneficiary by the government, for this Rajasthan Skill and Livelihood Development Corporation will act as a nodal agency. During the internship, the beneficiary’s internship certificate will be uploaded on the SSO ID portal every month. Key facts of Rajasthan Chief Minister Yuva Sambal Yojana To avail the benefits of Yuva Sambal Yojana, the applicant has to apply online in the same regional employment office in which he is registered. To apply you will need to e-sign. If you are a specially abled beneficiary, you will have to upload the disability certificate issued by the competent authority. If you are a married woman who has passed graduation examination outside the state, you will have to upload the certificate of being a native of Rajasthan and marriage certificate. In case you are a beneficiary of Scheduled Caste/Tribe, you will have to upload the caste certificate issued by the competent authority. In case of skill training/vocational training, its certificate has to be uploaded. If the beneficiary gets any kind of employment or self-employment during the period of receiving the allowance, then he will stop getting the allowance benefits. To avail unemployment allowance, the applicant has to upload the internship certificate on the online portal. The youth who will not do internship will not get the allowance benefits. All the certificates of the applicant will be checked by the District Officer. Eligibility for Rajasthan Chief Minister Yuva Sambal Yojana Only the native residents of Rajasthan state are eligible to apply in Mukhyamantri Yuva Sambal Yojana . Only youth having graduation degree from a recognized university can apply under the scheme. If a girl from another state marries a permanent youth of Rajasthan state after passing graduation and is unemployed, she will also get the benefit of the scheme. The applicant should not have a job or be self-employed. The age limit for general category beneficiaries is 21 to 30 years and for ST/SC/Bisexual, Women and Specially Abled beneficiaries the age limit is 21 to 35 years. Applicant must register at the local employment office before applying. The applicant should not be receiving any allowance/scholarship or any kind of assistance under any scheme. If the applicant has been dismissed from any post by any government department or institution, he will not get the benefit of the scheme. The allowance will be provided to the applicant for a maximum of two years or until he gets employment/self-employment. Maximum 2 members from a family can avail the benefit of the scheme. The applicant can apply under the scheme only from April 1 to June 30. Only 2 lakh youth will be given unemployment allowance every year. Documents required for Chief Minister Yuva Sambal Yojana Aadhar card I Certificate Bank passbook marriage certificate Caste certificate Educational Qualification Certificate Copy of Jan-Aadhaar/Bhamashah card Age

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procurement of foodgrains on minimum support price (msp)

procurement of foodgrains on minimum support price (msp)

Minimum Support Price (MSP) is the assured price at which foodgrains are procured from farmers by the central and state governments and their agencies, for the central pool of foodgrains.  The central pool is used for providing foodgrains under the Public Distribution System (PDS) and other welfare schemes, and also kept as reserve in the form of buffer stock.  However, in the past few months, there have been demands to extend MSP to private trade as well and guarantee MSP to farmers on all kinds of trade.  This blogpost looks at the state of public procurement of foodgrains in India and the provision of MSP. Historical perspective of MSP The Price Support Policy of the Government is directed at providing insurance to agricultural producers against any sharp fall in farm prices. The minimum guaranteed prices are fixed to set a floor below which market prices cannot fall. Till the mid 1970s, Government announced two types of administered prices : Minimum Support Prices (MSP) Procurement Prices The MSPs served as the floor prices and were fixed by the Government in the nature of a long-term guarantee for investment decisions of producers, with the assurance that prices of their commodities would not be allowed to fall below the level fixed by the Government, even in the case of a bumper crop. Procurement prices were the prices of kharif and rabi cereals at which the grain was to be domestically procured by public agencies (like the FCI) for release through PDS. It was announced soon after harvest began. Normally procurement price was lower than the open market price and higher than the MSP. This policy of two official prices being announced continued with some variation upto 1973-74, in the case of paddy. In the case of wheat it was discontinued in 1969 and then revived in 1974-75 for one year only. Since there were too many demands for stepping up the MSP, in 1975-76, the present system was evolved in which only one set of prices was announced for paddy (and other kharif crops) and wheat being procured for buffer stock operations. Is MSP applicable for all crops? The central government notifies MSP for 23 crops every year before the Kharif and Rabi seasons based on the recommendations of the Commission for Agricultural Costs and Prices, an attached office of the Ministry of Agriculture and Farmers’ Welfare.   These crops include foodgrains such as cereals, coarse grains, and pulses.  However, public procurement is largely limited to a few foodgrains such as paddy (rice), wheat, and, to a limited extent, pulses Since rice and wheat are the primary foodgrains distributed under PDS and stored for food security, their procurement level is considerably high.  However, the National Food Security Act, 2013 requires the central and state governments to progressively undertake necessary reforms in PDS.  One of the reforms requires them to diversify the commodities distributed under PDS over a period of time. How does procurement vary across states? The procurement of foodgrains is largely concentrated in a few states.  Three states (Madhya Pradesh, Punjab, and Haryana) producing 46% of the wheat in the country account for 85% of its procurement .   For rice, six states (Punjab, Telangana, Andhra Pradesh, Chhattisgarh, Odisha, and Haryana) with 40% of the production have 74% share in procurement .  The National Food Security Act, 2013 requires the central, state, and local governments to strive to progressively realise certain objectives for advancing food and nutritional security.  One of these objectives involves geographical diversification of the procurement operations. Is MSP mandatory for private trade as well in some states? MSP is not mandatory for purchase of foodgrains by private traders or companies.  It acts as a reference price at which the government and its agencies procure certain foodgrains from farmers. In September 2020, the central government enacted a new farm law which allows anyone with a PAN card to buy farmers’ produce in the ‘trade area’ outside the markets notified or run by the state Agricultural Produce Marketing Committees (APMCs).  Buyers do not need to get a license from the state government or APMC, or pay any tax to them for such purchase in the ‘trade area’.  These changes in regulations raised concerns regarding the kind of protections available to farmers in the ‘trade area’ outside APMC markets, particularly in terms of the price discovery and payment.  In October 2020, Punjab passed a Bill in response to the central farm law to prohibit purchase of paddy and wheat below MSP.   Any person or company compelling or pressurising farmers to sell below MSP will be punished with a minimum of three-year imprisonment and a fine.  Note that 72% of the wheat and 92% of the rice produced in Punjab was purchased under public procurement in 2019-20. Similarly, in November 2020, Rajasthan passed a Bill to declare those contract farming agreements as invalid where the purchase is done below MSP.   Any person or company compelling or pressurising farmers to enter into such an invalid contract will be punished with 3 to 7 years of imprisonment, or a fine of minimum five lakh rupees, or both.   Both these Bills have not been enacted yet as they are awaiting the Governors’ assent. How has MSP affected the cropping pattern? According to the central government’s procurement policy, the objective of public procurement is to ensure that farmers get remunerative prices for their produce and do not have to resort to distress sale.  If farmers get a better price in comparison to MSP, they are free to sell their produce in the open market.  The Economic Survey 2019-20 observed that the regular increase in MSP is seen by farmers as a signal to opt for crops which have an assured procurement system (for example, rice and wheat).  The Economic Survey also noted that this indicates market prices do not offer remunerative options for farmers, and MSP has, in effect, become the maximum price that the farmers are able to realise. Thus, MSP incentivises farmers to grow crops which are procured by the government.  As wheat

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Delhi Domicile Certificate

delhi domicile certificate

Residents of Delhi should obtain a domicile certificate Delhi to prove that they are permanent residents of that state. A Delhi domicile certificate helps residents of Delhi to get benefits under various state government services and programmes. The NCT government or the Revenue Department issues the Delhi domicile certificates.  Purposes of Domicile Certificate Domicile Certificate is used to get local preference in many situations. It is required to avail resident based reservations which are made in educational institutes or government jobs, etc. It is also used for students to apply for scholarship schemes aimed at residents of the State. Domicile certificate may also be required by institutions giving loan as proof of place of residence. Domicile certificate eligibility in Delhi The applicant has been residing in Delhi for more than three years. The applicant owns a property in Delhi. Women who are not residents of Delhi but marry a person who lives in Delhi. Documents Required Affidavit as prescribed in Annexure-I of the domicile certificate form. Identity Proof (Aadhar card, Voter ID card, Ration Card, etc.) Resident Proof (Electricity bill, water bill, telephone bill, etc.) A copy of Birth Certificate. Proof of the applicant owning a land. Passport size colour photograph How to apply for a domicile certificate in Delhi? Step 1: Visit the official Delhi Government e-District website. Step 2: Click on the ‘Apply for Certificates Online’ option available on the right-hand side of the homepage. Step 3: Click the ‘Register’ option if you have not registered on the e-District website. Step 4: Select the document type as ‘Aadhaar card’, enter your Aadhaar number and click the ‘Click Here’ button. Step 5: Enter the required details and click the ‘Register’ button.  Step 6: Click the ‘Apply Online’ tab and select the ‘Apply for Services’ option. Step 7: Click the ‘Apply’ button against the ‘Issuance of Domicile Certificate’ from the displayed list. Step 8: Fill in the application, upload the required documents and submit the form. How to get a domicile certificate offline in Delhi? Eligible applicants should visit the office of the Deputy Commissioner,  Sub-District Magistrate,  Common Service Center (CSC), or Sub-Divisional Magistrate and get the domicile certificate application form. They should fill out the form, attach the required documents, and submit it with the applicable fees. The applicants will get the application number.  FAQs Is a domicile certificate compulsory in Delhi? To take admission to educational institutions that have seats reserved for Delhi residents. To apply for jobs giving preference to local candidates, i.e. Delhi residents. To apply for loans from institutions requiring a domicile certificate as proof of place of residence. To apply for state scholarship schemes that require a domicile certificate as residence proof. To apply for resident-based reservations in government services. To obtain benefits under the Delhi state government schemes. Domicile certificate validity in Delhi The validity of a Delhi domicile certificate is lifelong.

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Maharashtra Legal Heir Certificate

maharashtra legal heir certificate

A legal heir certificate is an important document upon the death of a family member. It establishes the relationship between the deceased person and his/her legal heirs. Legal heirs of a deceased person are spouse, children and parents.  The legal heirs must apply and obtain the legal heir certificate to transfer the ownership of assets of the deceased person to themselves. A legal heir certificate can be obtained after the death certificate is obtained from the municipality/ corporation to claim their right over the deceased person’s properties and dues.  What is a Legal Heir Certificate? A Legal Heir Certificate is a crucial document that establishes the relationship between the deceased and their legal heirs. It is necessary to transfer the ownership of the deceased’s assets, such as property, bank accounts, and other financial assets, to their legal heirs. Uses of the Document Legal heir certificate will come in handy when there is a requirement to transfer an electricity connection, house tax, telephone connection, patta transfer, bank account, etc. When a government employee is deceased, the certificate is used to sanction family pension and to get a permit for compassion grounds. In addition to this, this document can state the relationship between the legal heir and the deceased which would be required to claim for insurance, pension, retirement benefits, service benefits or other central and state government schemes. Necessary Information Name of the deceased Details of the family members of the deceased Applicant’s Signature Date of Application Residential Address Eligible Nominees Wife of the deceased Husband of the deceased Son of the deceased Daughter of the deceased Mother of the deceased Documents Required An application form that is duly filled. Death certificate Identity card Ration card Death certificate Maharashtra Legal Heir Certificate Application Procedure Step 1: Approach the Taluk Office The applicant has to visit the Tahasildar or Taluk office. An alternate option to apply for the same is when the applicant can approach a lawyer from the District Civil Court. Step 2: Receive the application form The applicant has to obtain the application form from the concerned Tahasildar officer. Step 3: Enter the details The applicant has to enter all the required information in the application form. Step 4: Attach the documents Upon entering the details, the applicant has to attach all the mandatory documents to the application form. Step 5: Affixing Stamp The applicant has to affix a stamp of Rs. 2 in the application form. Step 6: Submit the application The applicant has to submit the application form to the authorised officer in the Tahasildar office. Step 7: Verification Process The application is verified by the Village Administrative Officer and Revenue Inspector. Step 8: Issuing the Certificate After completing all the verification process, the certificate will be issued by the concerned authority mentioning all the legal heirs of the deceased. Fee Structure The applicant has to affix a court fee stamp of Rs. 2 on the application. Processing Time The time taken to process the certificate is 15 days from the date of applying. FAQs Is a married daughter a legal heir? Yes, both married and unmarried daughters are considered legal heirs and have the same rights as sons. Can a person with a Legal Heir Certificate sell the deceased’s property? A person holding a Legal Heir Certificate alone cannot sell the deceased’s property. However, they can proceed with the sale after obtaining written consent and a No Objection Certificate from all other legal heirs.

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SIP Calculator

sip calculator

Prospective investors can think that SIPs and mutual funds are the same. However, SIPs are merely a method of investing in mutual funds, the other method being a lump sum. A SIP calculator is a tool that helps you determine the returns you can avail when parking your funds in such investment tools. Systematic Investment Plan or SIP is a process of investing a fixed sum of money in mutual funds at regular intervals. SIPs usually allow you to invest weekly, quarterly, or monthly.  SIP Calculator is a valuable tool that helps investors estimate the future value of their mutual fund investments made through a Systematic Investment Plan (SIP). By inputting the monthly SIP amount, investment duration, and expected rate of return, the calculator can determine the projected corpus amount at maturity. This tool empowers investors to make informed financial decisions by providing a clear understanding of the potential growth of their SIP investments. What is a SIP Calculator? A SIP calculator is a simple tool that allows individuals to get an idea of the returns on their mutual fund investments made through SIP. SIP investments in mutual funds have become one of the most popular investment options for millennials lately. These mutual fund sip calculators are designed to give potential investors an estimate on their mutual fund investments. However, the actual returns offered by a mutual fund scheme varies depending on various factors. The SIP calculator does not provide clarification for the exit load and expense ratio (if any). This calculator will calculate the wealth gain and expected returns for your monthly SIP investment. Indeed, you get a rough estimate on the maturity amount for any of your monthly SIP, based on a projected annual return rate. How can a SIP return calculator help you? SIPs are a more lucrative mode of investing funds compared to a lump sum amount according to several mutual fund experts. It helps you become financially disciplined and create a habit of savings that can benefit you in the future. A SIP calculator online is a beneficial tool, which shows the estimated returns you will earn after the investment tenure. Few of the benefits of SIP calculators include – Assists you to determine the amount you want to invest in. Tells you the total amount you have invested. Gives an estimated value of the returns. How do SIP calculators work? SIP Calculation Formula  FV = P [ (1+i)^n-1 ] * (1+i)/i  FV = Future value or the amount you get at maturity. P = Amount you invest through SIP i = Compounded rate of return n = Investment duration in months Example of a SIP Calculator Jane is 30 years old and works as an investor. She is thinking about how she can invest money for retirement purposes. So, Jane decides to put money into a mutual fund product via a Systematic Investment Plan. Investment amount: ₹35,000 per month  Investment period: 30 years  Expected interest rate: 8% per annum Frequency of investments: Monthly Result: With the above Formula the SIP Calculator would give following results: Future Value of the investment: ₹5,25, 10,331  Total Investment: ₹1,26,00,000 (35,000 * 12 * 30) Potential Returns: ₹3,99,10,331 (Future Value – Total Investment) Advantages of Using a SIP Calculator Accurate Planning: SIP calculators forecast the future growth of an investment well based on specific input criteria. It includes the amount to be funded, the duration, and the expected return. SIP calculators apply mathematical algorithms. It develops definite approximations so traders can manage their finances. Comparison of Several Scenarios: Changing the components of your inputs in SIP calculators, like amount, duration, and anticipated rate, means that they help users evaluate various investment conditions. They assist them in making informed choices. It is based on their economic objectives. Thus coming up with alternative investment strategies that may result in desirable outcomes. Visualisation of Potential Returns: Through systematic investing, SIP calculators help buyers see how their money can grow. Regarding their investing plans, graphs and charts are also available to help them understand the power of compounding. It enables them to make informed choices. Goal Setting and Progress Monitoring: SIP calculators aid traders in setting attainable financial targets and monitoring their progression towards them. By entering their specific financial goals, such as retirement savings or funding their child’s education, investors can estimate the required investment amount. From there they can see how they progress over time. FAQs Are SIPs similar to mutual funds? People often tend to think of SIP as either mutual funds or different than a mutual fund. The fact is that SIP is just a style of investment and not a fund/scheme or a stock/investment avenue. It is an investment vehicle to invest periodically in a fund/scheme of your choice. How to calculate SIP returns in Mutual Funds? To calculate SIP returns in mutual funds, divide each SIP amount by the respective NAV to get the units, sum all units purchased, and add all SIP amounts for total investment. Multiply total units by the current NAV for current value. Calculate returns using ((Current Value – Total Investment) / Total Investment) * 100

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Rajasthan Old Age Pension Scheme

rajasthan old age pension scheme

In 2 October 2021, The “Mukhyamantri Vriddhjan Samman Pension Yojana” was started by the Labore department of Rajasthan. It will provide the benefits to old age people. By offering financial assistance, the program not only eases the burden of financial worries but also honors the lifelong contributions of seniors to the state’s social fabric. It recognizes their wisdom, experience, and resilience, affirming their rightful place in society and ensuring they can live out their golden years with dignity and respect. The old age pension in Rajasthan scheme is a social safety net program that provides financial assistance to senior citizens in the state of Rajasthan. The old age pension in Rajasthan scheme covers all citizens of Rajasthan who are above the age of 60 years and provides them with a monthly pension. The old age pension Rajasthan scheme has been successful in reducing poverty among the elderly population of Rajasthan and has helped improve their quality of life. Rajasthan Old Age Pension Scheme Highlights Under the Chief Minister old age pension in Rajasthan Scheme, the Rajasthan Government will provide a monthly pension of ₹1,000 to eligible individuals. This financial assistance aims to support senior citizens in meeting their basic needs and ensuring a dignified livelihood during their old age. Other Highlights are listed below : Under the scheme, senior citizens aged 60 years and above are entitled to a monthly pension The scheme is implemented through Direct Bank Transfer (DBT) mode Eligible pensioners can receive the pension in their bank account on the 11th of every month The scheme is currently operational in all the districts of Rajasthan. The Objective of the Rajasthan Old Age Pension Scheme 2024 The old age pension in Rajasthan is a social security scheme introduced by the Government of Rajasthan for senior citizens aged 60 years and above. The objective of the old age pension scheme is to provide financial assistance to the elderly citizens of the state who are not in a position to support themselves financially.  Benefits of Old Age Pension in Rajasthan A regular source of income: The monthly pension helps senior citizens to meet their basic needs and improves their quality of life. Improved health: With a regular source of income, senior citizens are able to afford better healthcare and live healthier lives. Social security: The pension scheme provides a safety net for senior citizens, who are often the most vulnerable members of society. Financial independence: The scheme gives senior citizens more financial independence, allowing them to live without depending on family or friends for support. A sense of dignity: The pension scheme allows senior citizens to maintain their dignity and self-respect, as they are no longer dependent on others for financial support. Eligibility of Rajasthan Old Age Pension Scheme 2024 The applicant should be a native of Rajasthan and living in Rajasthan, The female applicant should be 55 years or older. The male applicant should be aged 58 years or older The total annual income of the wife/husband from all sources should be less than ₹48,000/- People belonging to BPL/Antyodaya/Aastha Card holding families/Sahariya/Kathauri, Khairwa castes have been exempted from the income-related condition. Documents of Old Age Pension Scheme 2024 Aadhar Card Copy Jan Aadhar/Bhamashah Card Copy Bank passbook front page copy (Account holder name, Account No, IFSC code). Passport size photo. Income Certificate. Disability Certificate. How to Apply for Rajasthan Old Age Pension Scheme 2024 Step 1: Visit https://sso.rajasthan.gov.in/signin to apply for the scheme Step 2: Register using Jan Aadhar and then log in Step 3: Select RAJSSP on the SSO portal and access the application form for the pension scheme  Step 4: Provide personal information and upload necessary documents  Step 5: Submit the online application  Step 6: The application will be verified by Tehsildar / Naib Tehsildar / Nagar Palika / Municipal Corporation office  Step 7: Upon verification, the application will be forwarded to the Sub Divisional Officer or Block Development Officer for approval  Step 8: Once approved, the pension amount will be transferred to the applicant’s bank account every month. FAQs Can Other state person also apply for this scheme? A native of the Rajasthan state only. What DBT? DBT stands for Direct Benefit Transfer. It is a mechanism used by governments to transfer financial assistance or subsidies directly to the bank accounts of beneficiaries.

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