July 2024

Section 55 – Arbitration And Conciliation Act, 1996

Arbitration And Conciliation Act, 1996 / /

Foreign awards when binding Any foreign award which would be enforceable under this Chapter shall be treated as binding for all purposes on the persons as between whom it was made, and may accordingly be relied on by any of those persons by way of defence, set off or otherwise in any legal proceedings in India and any references in this Chapter to enforcing a foreign award shall be construed as including references to relying on an award.

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Section 54 – Arbitration And Conciliation Act, 1996

Arbitration And Conciliation Act, 1996 / /

Power of judicial authority to refer parties to arbitration Notwithstanding anything contained in Part I or in the Code of Civil Procedure, 1908 (5 of 1908), a judicial authority, on being seized of a dispute regarding a contract made between persons to whom section 53 applies and including and arbitration agreement, whether referring to present or future differences, which is valid under that section and capable of being carried into effect, shall refer the parties on the application of either of them or any person claiming through or under him to the decision of the arbitrators and such reference shall not prejudice the competence of the judicial authority in case the agreement or the arbitration cannot proceed or becomes inoperative.

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Section 53 – Arbitration And Conciliation Act, 1996

Arbitration And Conciliation Act, 1996 / /

Interpretation In this Chapter “foreign award” means an arbitral award on differences relating to matters considered as commercial under the law in force in India made after the 28th day of July, 1924,— (a)   in pursuance of an agreement for arbitration to which the Protocol set forth in the Second Schedule applies, and (b)   between persons of whom one is subject to the jurisdiction of someone of such Powers as the Central Government, being satisfied that reciprocal provisions have been made, may, by notification in the Official Gazette, declare to be parties to the Conventions set forth in the Third Schedule, and of whom the other is subject to the jurisdiction of some other of the Powers aforesaid, and (c)   in one of such territories as the Central Government, being satisfied that reciprocal provisions have been made, may, by like notification, declare to be territories to which the said Convention applies, and for the purposes of this Chapter an award shall not be deemed to be final if any proceedings for the purpose of contesting the validity of the award are pending in the country in which it was made.

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What is a Partnership Deed?

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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

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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

Income Tax / /
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

Income Tax / /
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

Government Schemes / /
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)

Government Schemes / /
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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