October 15, 2024

Electoral Trust

Income Tax / /
electoral trust

Electoral Trusts Scheme, 2013 was notified by the Central Board of Direct Taxes (CBDT). An Electoral Trust is a Trust set up by companies with the sole objective to distribute the contributions received by it from other Companies and individuals to the political parties. Only the companies registered under Section 25 of the Companies Act, 1956 are eligible to make an application for approval as an Electoral Trust. The electoral trusts have to apply for renewal every three financial years. The scheme lays down a procedure for grant of approval to an electoral trust which will receive voluntary contributions and distribute the same to the political parties. The provisions related to the electoral trust are under Income-tax Act, 1961 and Income tax rules-1962. Definition and Purpose Electoral Trusts in India are established under Section 25 of the Companies Act as non-profit entities with the principal aim to ensure transparent and accountable political funding. These trusts facilitate the orderly receipt and distribution of voluntary contributions to political parties registered under Section 29A of the Representation of the People Act, 1951. The primary objective of these trusts is to enhance transparency and reduce potential conflicts of interest by serving as a neutral intermediary in the funding of political parties. Contributions to Electoral Trusts Electoral Trust can receive contributions from various sectors. The following categories of persons can contribute to an electoral trust: Indian citizens Domestic companies which are registered in India Firm or Hindu Undivided Family Group of persons or individuals, who reside in India. An electoral trust cannot accept contributions from: Any person who is not an Indian Citizen. Foreign Entity. Any other electoral trust. Mechanism for Distribution of Funds For administrative expenses, the Electoral Trusts are permitted to set aside a maximum of 5% of the total funds collected during a financial year. The remaining 95% of total income of the Trusts is required to be distributed to eligible political parties. Parties registered under the Representation of the People Act, 1951 are eligible to receive the contributions. Electoral trust are required to keep and maintain books of account including details of receipts, distribution and list of donors and receivers. Procedure for Accepting Contributions An electoral trust can accept contributions only by cheque, demand draft or account transfer to the bank. An electoral trust after receiving the contribution must allocate the same to the political parties. Thus, the job of the trust would be to merely receive it and donate it to the concerned parties. However, as already observed, they cannot donate to any other trust. Receipt for Contribution On receiving any contribution, an electoral trust must provide a receipt mentioning the following: Name and address of the contributor. Permanent account number of the contributor or passport number in the case of a citizen who is not a resident. Amount and mode of contribution including name and branch of the Bank and date of receipt of such contribution. Name the electoral trust. Permanent account number of the electoral trust. Date and number of approval by the prescribed authority. Name and designation of the person issuing the receipt. Electoral Trust Administration An electoral trust can distribute funds only to the eligible political parties. However, the electoral trust can for the purposes of managing its affairs, spend up to 5% of the total contributions received in a year subject to an aggregate limit of Rs.5 lakhs in the first year of incorporation and a sum of Rs.3 lakhs in subsequent years. Distributable Contributions The total contributions received in any financial year along with the surplus from any earlier financial year, if any, on managing its affairs, will be the total amount of distributable contributions for the financial year. An electoral trust will be required to distribute the distributable contributions received in a financial year. Moreover, an electoral trust is required to distribute at least 95% of the total contributions received during the financial year along with the surplus brought forward from earlier financial years to the eligible political parties before 31st March of the concerned financial year. Record Keeping All electoral trust are required to keep and maintain a regular record of proceedings of all meetings and decisions taken, books of account and other documents in reference to its receipts, distributions, and expenditure. The electoral trust should also maintain a list of persons from whom contributions have been received and to whom the same have been distributed. Auditing Records Electoral Trust audit must be conducted and the audit report would be furnished in Form No. 10BC along with its Annexure to the Commissioner of Income Tax or the Director of Income Tax as per its jurisdiction. All electoral trust are required to furnish a certified copy of the list of contributors and a list of political parties to whom sums were distributed. Government Oversight and Guidelines The governance of Electoral Trusts is heavily regulated, with the Central Board of Direct Taxes (CBDT) playing a pivotal role. The CBDT, under the Electoral Trust Scheme 2013, specifies the operational guidelines and approval procedures for these trusts. An electoral trust must apply to the CBDT for approval, which can be granted for up to three years but may be withdrawn if the trust fails to comply with the regulations or ceases to operate legitimately. FAQs What is an Electoral Trust? An Electoral Trust is a non-profit organization formed in India to receive voluntary contributions from individuals, companies, or other entities. These contributions are then distributed to political parties to promote transparency in the funding of elections. How does an Electoral Trust work? An Electoral Trust collects donations from various sources and distributes them to registered political parties. The trust is required to distribute at least 95% of the total contributions received to political parties, ensuring transparency and accountability in political funding.

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e-Migrate Portal

Updates / /
e-migrate portal

External Affairs Minister S. Jaishankar launched the e-Migrate V2.0 web portal and mobile app to enhance immigration services and expand their accessibility. Highlighting it as more than just a digital platform, Jaishankar described it as a beacon of hope and a commitment to protecting the rights and dignity of Indian workers abroad. The portal reflects global shifts in migration dynamics and addresses the increasing demand for skilled workers across various sectors. Jaishankar emphasized the need for a well-trained workforce in different geographies, which is only expected to grow. The revamped e-Migrate platform aligns with India’s evolving mobility ecosystem, enabling smoother travel and work abroad. He noted India’s proactive efforts in negotiating mobility agreements with several countries and emphasized the importance of a seamless framework for citizens working overseas. This initiative symbolizes India’s vision  India’s commitment to transparent labour mobility: Launch of e-Migrate portal In an effort towards safeguarding the welfare and interests of Indian workers abroad, External Affairs Minister S Jaishankar and Union Minister of Labour and Employment Mansukh Mandaviya launched the e-Migrate portal and mobile app in Delhi. This initiative underscores the Indian government’s commitment to creating safer, transparent, and inclusive mobility channels for its labour force. On Monday (Oct 14, 2024) at the launch event, Jaishankar described the e-Migrate portal as a “beacon of hope,” highlighting its role in protecting the rights and dignity of Indian workers in foreign lands. He stated, “The launch of the e-migrate portal, V2.0, is a testament to our continuing efforts to create a safer, more transparent, and inclusive mobility for Indian labour.” This digital platform is designed to enhance the ease of living and reflect the government’s commitment to people-centric governance. Jaishankar recalled Prime Minister Narendra Modi’s efforts to raise awareness about safe and legal migration channels, particularly referencing the commemorative postal stamp with the motto “Surakshit Jaayen, Prashikshit Jaayen,” which translates to “Go safe, go well trained.” He stated that this initiative aligns with the United Nations’ Sustainable Development Goals, particularly Goal 10, which advocates for orderly and responsible migration. The e-Migrate portal not only aims to improve transparency in the migration process but also addresses the vulnerabilities faced by migrant workers. Jaishankar acknowledged these challenges, stating, “While we recognize the invaluable contributions of our migrant workers to India’s economy and global reputation, we must also acknowledge the vulnerabilities that they face in foreign lands.” To address these concerns, the revamped portal includes 24×7 multilingual helpline numbers to assist workers facing urgent issues, as well as a feedback mechanism for continuous improvement.

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Production Linked Incentive (PLI) scheme forWhite Goods (PLIWG)

Updates / /
Production Linked Incentive (PLI) scheme for White Goods (PLIWG)

Recently, an online application window for PLIWG attracted huge response with 43% of new applicants from MSME sector. The 3rd Round of on-line application window for PLI Scheme for White Goods (Air Conditioners and LED lights) has attracted 38 responses with a  net committed investment of Rs 4121 crore ended on 12th October 2024 after being open for 90 days from 15th July, 2024. 43% of the new applicants are in the MSME sector which shows the confidence among MSMEs to become part of the value chain of manufacturing of components of ACs and LED Lights. The PLI scheme was launched by the Department for  Promotion of Industry and Internal Trade(DPIIT). The applicants include 8 existing beneficiaries of the Production Linked Incentive Scheme for White Goods (PLIWG) committing net incremental investment of Rs 1,285 crore. 30 new applicants have committed investment of Rs 2,836 crore proposing to manufacture varieties of critical components of ACs and LED Lights across India. Investments have been proposed across India spanning in 13 States including Jammu & Kashmir and Odisha and 49 new locations. Altogether, investments will be spread across 54 Districts in 18 States, at 174 locations. Manufacturing clusters are coming up at Noida-Greater Noida in UP, Neemrana and Bhiwari in Rajasthan, Aurangabad-Pune in Maharashtra, Sanad, Gujarat and Sri City in Andhra Pradesh. 6 AC manufacturers and 12 component manufacturers are in Sri City, Andhra Pradesh, also  nicknamed as  the Cooling City. The Scheme has a healthy mix of multinational and domestic Companies. Five additional Foreign Companies are investing Rs 245 Crore apart form 15 existing companies investing Rs 2,287 Crore Altogether, the scheme is expected to bring in investment in the component manufacturing ecosystem of ACs and LED Lights industry to the tune of Rs 11,083 crore. and generate approx. 80,486 direct employment. The Scheme is expected to lead to total production of components of ACs and LEDs in India of about Rs 1,81,975 crore.  As regards to bifurcation between two segments of PLIWG Scheme i.e. ACs and LED Lights, 21 applicants have applied for manufacturing components of ACs with a committed investment of Rs 3,679 crore and 18 applicants for components of LED Lights with a committed investment of Rs 442 crore. In ACs segment, several investments have been proposed to manufacture High value intermediates of ACs i.e. Copper Tubes (Plain / Grooved), Aluminium Stock for Foils or Fins for heat exchangers and Compressors which account for almost 50% of Bill of material (BoM) for room Air conditioners. In addition to that applicants have proposed to manufacture control assemblies for IDU or ODU, Heat Exchangers, motors, and Sheet metal components and plastic moulded goods etc. Similarly, LED Lights, LED Chip packaging, LED Drivers, Heat Sinks, LED Engines, and LED Light Management Systems etc. will be manufactured in India.  Applications have been filed for production of components which are not manufactured in India presently with sufficient capacity. Several applicants are vendors for large manufacturers such as Daikin, Voltas, Blue Star and LG Electronics in the ACs sector. Similarly, several applicants are suppliers of LED components for large LED Lights manufacturers like Surya, Orient, Crompton Greaves, Signify and Halonix etc. The overwhelming response from the Industry to participate under the PLIWG Scheme is also attributed to several factors namely: continuous interactions with the Industry through one-to-one meetings, physical meetings with vendors at Sri City, connect with the selected Ambassadors of India in foreign countries and weekly meeting with PLI beneficiary jointly organised by DPIIT and Project management Agency of the Scheme M/s IFCI Ltd. The application window for the PLI Scheme for White Goods was reopened based on the appetite of the Industry to invest more under the Scheme, which is an outcome of the growing market and confidence generated due to manufacturing of key components of ACs and LED Lights in India under the PLIWG Scheme. The application window was opened on the same terms & conditions stipulated in PLIWG Scheme notified on 16.04.2021 and PLIWG Scheme Guidelines issued on 04.06.2021, as amended from time to time. In order to avoid any discrimination, both new applicants as well as existing beneficiaries of PLIWG who propose to invest more by way of switching over to higher target segment or their group companies applying under different target segment were eligible to apply subject to fulfilling the eligibility conditions as mentioned in the Para 5.6 of the Scheme Guidelines and adhering to investment schedule as mentioned in the Scheme Guidelines. In terms of Para 6.4 of the PLIWG Scheme and Para 9.2 of the Scheme Guidelines, applicants shall only be eligible for incentives for the remainder of the Scheme’s tenure. The applicant approved in the proposed third round would be eligible for PLI for maximum three years only in the case of new applicants and existing beneficiaries opting for investment period upto March 2023 seeking to move to higher investment category. For existing beneficiaries opting for investment period upto March 2022 seeking to move to higher investment category in the proposed third round would be eligible for PLI for maximum two years only. Existing beneficiaries opting for the above, in case they are not able to achieve the threshold investment or sales in a given year will be eligible for submitting the claims as per their original investment plan. However, this flexibility will be provided only once during the Scheme period. The Union Cabinet chaired by Prime Minister, Shri Narendra Modi had given approval to the Production-Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED lights) to be implemented over FY 2021-22 to FY 2028-29 with an outlay of Rs 6238 Crore on 7th April 2021. The Scheme was notified by DPIIT on 16.04.2021. The Scheme Guidelines were published on 4th June 2021.  The PLI Scheme on White Goods is designed to create a complete component ecosystem for Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains. Domestic Value Addition is expected to grow from the initial level

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Mission Indradhanush

Government Schemes / /
mission indradhanush

The Intensified Mission Indradhanush (IMI) was launched in 2018 by the Central Government with the objective of covering all children under the age of two and pregnant women for immunization who were not covered under the UIP. This program was to intensify the Mission Indradhanush that had been launched in 2014. The objective of Mission Indradhanush was to have a 90% coverage of the UIP in India by 2020 and sustain the same. IMI 2.0. was launched in December 2019 and continued up to March 2020, to further extend the reach and coverage of the mission, including tribal and hard-to-reach areas. Although the scheme comes under the Ministry of Health and Family Welfare (MoHFW), it is supported by many other ministries/departments such as: Ministry of Information and Broadcasting  Ministry of Panchayati Raj Ministry of Women & Child Development Ministry of Housing and Urban Affairs The diseases covered under the mission are polio, diphtheria, measles, whooping cough, hepatitis B, tetanus, meningitis, rubella, Japanese encephalitis and pneumonia. Mission Indradhanush The aim is to fully immunize more than 89 lakh children who are either unvaccinated or partially vaccinated under UIP. It targets children under 2 years of age and pregnant women for immunization. It provides vaccination against 12 Vaccine-Preventable Diseases (VPD) i.e. diphtheria, Whooping cough, tetanus, polio, tuberculosis, hepatitis B, meningitis and pneumonia, Hemophilus influenza type B infections, Japanese encephalitis (JE), rotavirus vaccine, pneumococcal conjugate vaccine (PCV) and measles-rubella (MR). However, Vaccination against Japanese Encephalitis and Haemophilus influenzae type B is being provided in selected districts of the country. It is a nationwide initiative with a special focus on 201 high focus districts. These districts accounted for nearly 50% of the total partially vaccinated or unvaccinated children in the country. The rate of increase in full immunization coverage increased to 6.7% per year through the first two phases of ‘Mission Indradhanush’. Intensified Mission Indradhanush 3.0 In February 2020, the Central Government launched IMI 3.0 to further extend the coverage of the national immunization programme. The main objective of the mission is to reach the unreached population with respect to immunization and offer all the available vaccines under the Universal Immunisation Programme – UIP to all pregnant women and children under two years of age. The ultimate goal of the campaign is to achieve complete universal immunization in India. Coverage of IMI 3.0 It will have two rounds this year which will be conducted in 250 pre-identified districts/urban areas across 29 States/UTs. The districts have been classified to reflect 313 low risk, 152 medium risk and 250 high risk districts. Beneficiaries from migration areas and remote areas would be targeted as they may have missed their vaccine doses during the pandemic Key Focus Areas High-risk areas identified by the polio eradication programme, which includes populations residing in habitats such as urban slums with migration, nomads, brick kilns, constructions sites, other migrants, and hard to reach populations. Areas with low Routine Immunization (RI) coverage which had an outbreak of Measles/Vaccine Preventable Disease (VPD). Areas with vacant sub-centres. Areas with missed Routine Immunization (RI) sessions. Small villages, hamlets, dhanis or purbas clubbed with another village for RI sessions and not having independent RI sessions. Intensified Mission Indradhanush The Intensified Mission Indradhanush (IMI) was launched by the Government of India in 2017 to reach each and every child under two years of age and all those pregnant women who have been left uncovered under the routine immunisation programme. Under IMI, greater focus has been given on urban areas which was one of the gaps of Mission Indradhanush. The target under IMI was to increase the full immunization coverage to 90% by December 2018. However, only 16 districts in the country have achieved 90% coverage so far. The Intensified Mission Indradhanush 2.0 will target the districts which have immunisation coverage of 70% or below. FAQs What is Mission Indradhanush? Mission Indradhanush is a health initiative launched by the Government of India to improve the immunization coverage of children and pregnant women. It aims to protect them from life-threatening diseases by providing vaccines against preventable diseases. When was Mission Indradhanush launched? Mission Indradhanush was launched on December 25, 2014, by the Ministry of Health and Family Welfare.

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Administrative Progress Report

Government Schemes / /
administrative progress report

The history of administrative reforms in India dates back to January 5, 1966, and was consolidated by the Government of India to ensure a transparent and efficient system. These reforms have played a pivotal role in eliminating corruption and prejudice. The government forms a body of representatives who study the various aspects impacting the country’s development and then prepare a report to suggest reforms that have a positive impact. In recent years, the reforms have been revamped at all government levels as per need, which led to the 2nd ARC. The administration needs to be proactive, efficient, and responsive while addressing issues concerning Indian citizens with maximum governance and assistance. The 1st Administrative Reforms Commission Post-independence, the country required a well-defined framework to ensure development at a fast pace. This called for administrative reforms that would lead to a uniform system across all states and districts. The first commission was constituted in 1966, and a mandate was designed to define the machinery of the government bodies and public services. The bodies were responsible for implementing economic and social policies, ensuring the development and growth of the citizens. The commission submitted a total of 19 reports concentrating on different verticals. Officials were supposed to work extensively at all levels for integrity and efficiency. Below are a few major components of the mandate: ·         A mechanism for the Government and local bodies at all levels ·         Centre and state Government relationship ·         The economic and financial administration framework ·         District and personnel level administration ·         Administering agricultural framework ·         Address citizens’ grievances and render solutions as per the Government policies. ·         Public sector undertakings ·     Small-scale sector ·         Administration of central direct taxes ·         Government treasuries ·         Indian post and telegraph services ·         Administration of the life insurance industry Even though the mandate covered all major modules of the country’s machinery, some components were excluded from the commission. Separate commissions were appointed for them to ensure integrity at all levels. These were: ·         Defence administration ·         Security and intelligence agencies ·         External affairs ·         Education Under the leadership of Shri Morarji Desai, the history of administrative reforms in India was written aiming at the nations and its citizens’ growth and development. K.Hanumanthaiah later took over this commission as Morarji became the Deputy Prime Minister of the country. The 2nd Administrative Reforms Commission report Since the 1st ARC, India grew and progressed fast, which led to the need to revamp the reforms in accordance with the current needs. The 2nd commission report was prepared under the leadership of Shri M. Veerappa Moily. This report suggested upgrades and amendments in the 1st commission for better administration. The report was submitted on August 31, 2005. Apart from the initial mandate, 15 reports concentrated on different aspects. The reports were prepared as per the requirements of present India. The country has grown since Independence, and policies need to be updated to improve the governance and framework. Below are the few major points that the committee considered important and wanted to highlight. ·         RTI: Right to Information serves as a powerful tool in democracy. Here, people from all sections get the right to demand and know the government policies. This leads to an awakened and informed society and, therefore, a better quality of life. A transparent, dynamic, accountable, and conventional system lays the foundation for good governance. ·         Political ethics: For the first time in the history of administrative reforms in India, politics was under the scanner. The report highlighted the need for an unbiased framework for electoral bodies and politics. This included aspects like background check of candidates, disqualification in case of criminal record, a delegation of central armed forces at poll centres, etc. ·         E-Governance: The 2nd administrative reforms commission stated that the application of technology at all government levels is the need of the hour. The report suggested focusing on using information and technology in all possible ways to provide public services to citizens. This would ensure transparent and equivalent services to all classes of society. ·         Financial Management: The report emphasised the need for financial discipline and discretion to develop an efficient and responsive framework. Appropriate usage of resources with time management is the key for all government bodies for better results. Every department is expected to work on budgeting, funds flow, capacity building, accurate accounting system, audit, and use of technology to report every development to the government. ·         Combating terrorism: Terrorism poses a great challenge for the government and the ministry of home affairs. ·         Social capital: The report suggested laying out a framework for the social capital of the country. This involves the trusts and charitable institutions, and foreign contributions to such trusts. The report stated that SHGs in rural and semi-urban areas should be encouraged. An intensive policy needs to be constituted to ensure proper functioning even at district administration levels. ·         Exclusions: The commission kept all the mandates excluded in the 1st ARC as these were already governed by other bodies and were matters of national importance. Work on the 2nd ARC After an intensive study of the report submitted and suggestions given by the members, the Government of India decided to work on all the aspects. The machinery is now way more transparent and corruption-free, leading to flourishing businesses and, thereby, a better life. Since submitting the 2nd ARC report, several reforms have been introduced at district, state, and Central Government levels. These reforms have boosted the

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Power of Attorney

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power of attorney

A power of attorney (POA) is a legal authorization that gives the agent or attorney-in-fact the authority to act on behalf of an individual referred to as the principal. The agent may be given broad or limited authority to make decisions about the principal’s property, finances, investments, or medical care. POAs can be financial or they can pertain to health care. Both provide the attorney-in-fact with general or limited powers. What is Power of Attorney? Power of Attorney (PoA) is more than just a legal document. It’s a lifeline that allows one person to act on behalf of another, especially in their absence. Governed by the Powers of Attorney Act 1882, this legal instrument is often misunderstood but incredibly vital for various transactions, be it property management or medical decisions. Types of Power of Attorney Forms General Power of Attorney: This grants the Agent broad powers to handle a wide range of the Principal’s affairs. The authority under a General POA typically includes buying or selling property, managing business transactions, and handling banking matters. However, this type of POA becomes invalid if the Principal becomes incapacitated. Durable Power of Attorney: Similar to a General POA, it allows the Agent to manage the Principal’s affairs, but it remains in effect even if the Principal becomes incapacitated. This feature makes it particularly important for long-term planning. Special or Limited Power of Attorney: This grants the Agent authority to conduct specific acts or make decisions in specific situations, such as selling a property, managing certain financial transactions, or handling legal claims. It does not grant broad authority across all areas of the Principal’s life. Medical Power of Attorney: A Healthcare Proxy authorizes the Agent to make medical decisions on the Principal’s behalf if they cannot do so themselves. A living often accompanies it will that outlines the Principal’s wishes regarding life-sustaining treatment. Springing Power of Attorney: This POA “springs” into effect under specific conditions, typically when the Principal becomes incapacitated. It allows the Principal to retain control over their affairs until a certain event triggers the transfer of authority to the Agent. Stamp Duty for Power of Attorney If a General Power of Attorney is conferred to father, mother, brother, sister, wife, husband, son, daughter, grandson, granddaughter or any near relative, without any consideration, then Stamp Duty of Rs. 500/- is only applicable for registration. In case General Power of Attorney is conferred to someone other than a close relative and/or for consideration. Stamp duty is payable as per the property’s market value or the consideration, whichever is higher. In addition to the stamp duty, a registration fee of Rs.100 is applicable if the Power of Attorney is conferred without consideration in the name of the father, mother, brother, sister, wife, husband, son, daughter, grandson granddaughter or a near relative. In any other case, a registration fee is payable at Rs.10/- per Rs. 1000/- with a minimum of Rs. 100/- and a maximum fee of Rs. 30,000/- on the market value of property or consideration, whichever is higher. How a Power of Attorney (POA) Works A power of attorney is a legal document that binds the agent or attorney-in-fact and the principal. It’s used in the event of a principal’s temporary or permanent illness or disability or when they can’t sign necessary documents.1 Both parties must sign the document and a third party is usually required to witness it. Most POA documents authorize the agent to represent the principal in all property and financial matters as long as the principal’s mental state of mind is good. The agreement automatically ends if the principal becomes incapable of making decisions for themself. A power of attorney can end for several reasons, such as when the principal revokes the agreement or dies, when a court invalidates it, or when the agent can no longer carry out the responsibilities outlined in the agreement. In the case of a married couple, the authorization may be invalidated if the principal and the agent divorce. General Power of Attorney vs Special Power of Attorney General Power of Attorney A General Power of Attorney provides broad powers to the agent or attorney-in-fact to manage a wide array of the principal’s affairs. This type of POA is comprehensive and allows the agent to make decisions and perform actions as if they were the principals themselves. The authority typically includes handling financial transactions, buying or selling real estate, managing business dealings, and dealing with legal claims and litigation. Key aspects of a General Power of Attorney include: Broad Authority: The agent can perform almost any act the principal could, from managing finances to handling business transactions. Convenience: Ideal for individuals who need someone to manage all their affairs due to absence or incapacity. Termination: Generally ceases if the principal becomes incapacitated unless it’s specified as “durable.” Special Power of Attorney In contrast, a Special (or Limited) Power of Attorney grants the agent authority to act on the principal’s behalf in specific matters or events. This type of POA is used for particular tasks, such as selling a property, managing a specific legal action, or handling financial transactions in a certain account. The document clearly outlines the agent’s powers, limiting their authority to those actions. Key aspects of a Special Power of Attorney include: Limited Scope: The agent’s powers are narrowly defined and restricted to specific tasks. Precision: This POA is useful for principals who need an agent to handle specific duties without granting broad access to all affairs. Flexibility: Can be tailored to suit the principal’s precise needs for a particular transaction or period. Key Differences Scope of Authority: General POA offers wide-ranging powers, while Special POA is limited to specific tasks. Purpose: A General POA is suitable for the comprehensive management of one’s affairs, whereas a Special POA is ideal for particular transactions or events. Duration and Revocation: Both types can be revoked by the principal at any time, but the General POA often ceases if the principal becomes incapacitated, unlike the Special POA, which is typically task or time-bound. Choosing Between General and Special

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Andhra Pradesh Property Tax

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andhra pradesh property tax

As mandated by Indian law, each state has its own authorized body that collects property taxes. Property Tax AP is no exception. The Property Tax of Andhra Pradesh will vary based on the type of property as well as the jurisdiction. The taxes collected from one area are used to improve the public infrastructure of that particular area. Some of the places where this revenue is usually spent include improving education, sewer services, road constructions, fire services, and other public services that will be of great use to the public.  What are the Taxable Properties Under the AP House Tax? All commercial and residential buildings within the authorization of the Urban Local Bodies (ULBs) Any residential building with an Annual Rental Value of more than Rs 600. Kindly note that residential properties with an annual rental value of less than Rs 600 are exempted from AP House Tax payment. It is the responsibility of promoters and developers to register any changes in the property details with immediate effect so that the Town Planning Department can make the necessary changes in the Property Tax Assessment. Purpose Property Tax acts as one of the main sources of revenue for the Urban Local Bodies (ULB) in Andhra Pradesh.  The local governing body will assess the property and collects the property tax. The collected taxes are used for the jurisdiction in which the property is situated.  Some of the services for which the funds are used include education, sewer improvements, road and highway constructions, fire service and other services that highly benefit the community. Components of Property Tax As per section 85 of Municipal Corporation Act, the tax determined by the council will be levied on all buildings and lands within the limits of the Municipal that includes the following components. tax for general purpose water and drainage tax lighting tax scavenging tax. Assessment of Property Tax Serial Number Name of the owner Door No. Locality Zone Number Type of construction Nature of usage Plinth area in sq. meters As per Form A notification, Monthly rental value fixed per sq. meter. of plinth area Monthly rental value fixed on the property Half-yearly property tax Date of service of special notice Date of receipt of revision petition Date of hearing Orders of the Commissioner in brief Property tax fixed after disposal of revision petition Initials of the Commissioner Property Tax Andhra Pradesh- Various Rates Range of Annual Rental Value (Residential) Property Tax Rate Up to Rs 600 Exemption from Property Tax payment Rs 601- Rs 1200 17% Rs 1201-Rs 2400 19% Rs 2401-Rs 3600 22% >Rs 3600 30% Other than these, for all commercial buildings, the property tax is fixed at 30%.  Andhra Pradesh Property Tax Calculation In Andhra Pradesh, property tax is calculated based on the Annual Rental Value (ARV) and the Tax Rate as may be fixed by the Corporation for each property in the limits of the Urban Local Bodies. Annual Rental Value Annual rental value of buildings and lands is the basis for levy of property tax in Municipalities. The Annual Rental Value of a property is calculated based on the following parameters. Zonal location of the property Residential/Non-residential status Plinth area Age of the property Type of construction Other parameters applicable to specific situations. Property Tax Payment Online Step 1: Visit the official website of the Commissioner and the Directorate of Municipal Administration online portal to pay the property tax online. Step 2: Under online Payment tab on the home page, click Property tax. Step 3: The online payment section appears. Select the District, Municipality where the property is located and select the payment type as property tax from the drop-down list. Step 4: On clicking submit, the ‘property search’ dialog box appears. Enter the required details such as owner name, mobile number etc. and click search that redirects to the Payment section. Step 5: Click ‘Pay Tax’. The amount to be paid will be displayed. Make necessary payment through internet banking or credit/debit card. Check-list the terms and conditions and click submit. Step 6: The acknowledgement receipt on successful payment will be generated. FAQs What services does the CDMA website provide? Other than Property Tax, this website provides a bevvy of other vital services like Trade licensing, AP panchayat property tax payment, door number search in Andhra Pradesh, marriage and birth registration, land tax etc. What is the Property Tax for commercial buildings? It is fixed at 30% annually for all non-residential buildings.

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PMGKY ( Pradhan Mantri Garib Kalyan Yojana )

Government Schemes / /
PMGKY ( Pradhan Mantri Garib Kalyan Yojana )

PMGKY full form – the Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY) was initiated by the Narendra Modi-led Government of India in December 2016. It was launched as a follow-up to the Income Declaration Scheme. It had been launched earlier that year. The program, which is part of the Taxation Laws (Second Amendment) Act of 2016, allowed people to register unaccounted cash by paying a fine of 50% of the concealed revenue. A further 25% of the gain is paid in the scheme. It can further be refunded without interest within four years. It was again brought into more moderations in 2020, with several more changes than before. To alleviate the economic effects of the coronavirus-induced lockdown on the vulnerable, Prime Minister Narendra Modi announced a Rs 1.70 lakh crore relief scheme shortly after the lockdown was imposed on March 24. The Union Government of India declared on June 1, 2021, that it had already extended the ‘Pradhan Mantri Garib Kalyan Package (PMGKP) Insurance Scheme for Health Workers Fighting COVID-19’ for one year, effective April 24, 2021. The Central Government resurrected this insurance coverage for a one-year period in order to continue providing a safety net to the dependents of health workers assigned to care for COVID-19 patients. Details Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) is a scheme as part of Atmanirbhar Bharat to supply free food grains to migrants and poor. Phase-I and Phase-II of this scheme were operational from April to June, 2020 and July to November, 2020 respectively. Phase III of the scheme was operational from May to June, 2021. Phase-IV of the scheme during July-November, 2021 and Phase V from December 2021 till March, 2022 .Under this scheme, the center provides 5kg of free food grains per month to the poor. This is in addition to the subsidized (Rs 2-3 per kg) ration provided under the National Food Security Act (NFSA) to families covered under the Public Distribution System (PDS). The food grain and the amount may be variable. Phase VI:- The PMGKAY scheme for Phase VI from April-September, 2022 would entail an estimated additional food subsidy of Rs. 80,000 Crore. Salient Features of the Scheme The Indian Union Minister, Nirmala Sitharaman, announced on the 25th of March, 2020, an economic relief package of Rs.1,70,000 crore for the poor population and migrant workers. This scheme is outlined to cover 80 crores of the rural population of the country. The relief package includes food and components, which are divided into eight sections of the society. It is inclusive of pensioners, women, and the disabled. It includes contributing to the poor families with pulses through this yojana. The central government has claimed to distribute rice and wheat-based on each individual. In addition to the already existing rice distribution that had been allotted. This scheme meant relief plans to help in the survival of the deadly situation of the country. Eligibility for PMGKY The persons eligible for relief under  the Pradhan Mantri Garib Kalyan Yojana are as follows: All families below the poverty line are eligible for the PMGKY scheme . Antyodaya Anna Yojana (AAY): These families are identified by the States/UTs. The criteria is formulated by the Central Government. Priority Families (PHHs): These families are identified by the State Governments/UT Administrations. The criteria have been formulated by the States/UTs. Families headed by the following persons are eligible for PM Garib Kalyan Yojana : Widow terminally ill person disabled persons Individuals aged 60 years and above The following individuals who have no support from the family or society are eligible for PM Garib Kalyan Yojana : Widows terminally ill person disabled persons Individuals aged 60 years and above Single woman or single man All primitive tribal families are eligible. Other individuals who are eligible for PMGKY are:- landless agricultural labourer Marginal Farmers Rural Artisans/Craftsmen Individuals in the informal sector All HIV positive individuals who belong to families below the poverty line are eligible for the PM Garib Kalyan Yojana . What are the benefits of PM Garib Kalyan Yojana? All card holders get benefits under PM Garib Kalyan Yojana (PM Garib Kalyan Yojana in Hindi) . Subsidy is also given to 80 crore people through PMGKY (PMGKY in Hindi) . This scheme provides 5 kg extra ration to the beneficiaries. Under this scheme, the beneficiary is given wheat at Rs 2 per kg and rice at Rs 3 per kg. PM Garib Kalyan Yojana will help in reducing the economic, health and food related crisis of the poor of India. Specific Benefits of PMGKY for Different Sections For Wage Workers The wage workers who earn below the amount of 15,000 for a month in a business and have less than 100 employees will be paid 24% of their monthly wages into their Provident Funds account for three months. For Farmers Over eight crore farmers are said to benefit under the scheme with direct cash transfers. An installment of Rs.2000 is stated to be sent to these farmers in the first week of April. For Women The women of self-help groups under the Deen Dayal Yojana who were earlier eligible for similar loans up to Rs.10 Lakhs will be allocated with a collateral-free loan of Rs.20 Lakh. A total of 20 crore women holding Jan-Dhan Yojana accounts will get a payment of Rs. 500 for the next three months from the launch of the plan. For MGNREGA Workers Through this plan, the wages of MGNREGA employees were decided to be increased by Rs.2000 per worker. It eventually benefited five crores of Indian families. For Organized Sectors The Union finance minister also announced a hike in PF and the withdrawal limits for the organized sector. The scheme also brought forward a contribution to the employer and the employee who have less than 100 employees, where 90% of them earn lesser than ₹15,000 per month, the government would pay their EPF for three months. For Construction Workers The yojana provided a fund of ₹31,000 crores to assist 3.5 crore registered workers to protect them against economic disruptions. Documents Required to Apply for PM Garib Kalyan Yojana Ration Card

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Types of Company

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Types of Company

The Companies Act, 2013 differentiates companies based on the number of members. The Micro, Small and Medium Enterprises (MSME) Act classifies companies into micro, small and medium companies to grant them MSME benefits. Companies can also be classified based on the liability of their members, company ownership and listing status. According to Section 2(20) of the Companies Act, 2013, a “company” means a company incorporated under the Companies Act, 2013 or under any previous company law. The Companies Act of 2013 replaced the Companies Act, 1956. The Companies Act, 2013 makes provisions to govern all listed and unlisted companies in the country. The Companies Act 2013 implemented many new sections and repealed the relevant corresponding sections of the Companies Act 1956. This is landmark legislation with far-reaching consequences for all companies incorporated in India. Classification of Companies Companies on the Basis of Liabilities Companies Limited by Shares: In companies limited by shares, sometimes, shareholders of some firms may not always pay the full value of their shares at once. The responsibilities of members in these firms are limited to the number of unpaid dividends on their shares. Companies Limited by Guarantee: In certain businesses, the memorandum of association specifies monetary amounts that some members agree to pay. They will only be obliged to pay the guaranteed sum if the company is liquidated. They cannot be forced to pay additional money by the company or its creditors. Unlimited Companies: The liabilities of members of unlimited companies have zero limits. As a result, the corporation can use all of the shareholders’ personal assets to pay off its debts while it is winding up. Their responsibilities will include the entire company’s debt. Companies on the Basis of Members One-Person Companies (OPCs): As the name suggests, the shareholder in these businesses is only one person. Since OPCs are legal entities apart from their sole members, they are distinct from sole proprietorships. Unlike other companies, a one-person company does not need a minimum share capital. Private Companies: The articles of association of private corporations limit the transferability of shares for free. Private corporations must consist of a minimum of 2 to a maximum of 200 members. These members consist of both current and previous employees who even own shares. Public Companies: Unlike private organisations, public companies allow their members to transfer shares to others for free. Secondly, they must consist of a minimum of 7 members, with no limit on the max number of members they can have. Companies on the Basis of Control Holding and Subsidiary Companies: There are cases where a company’s shares may be held entirely or partially by another company. The company that owns these shares is now known as the holding or parent company. Similarly, a subsidiary is a company whose shares are owned by the parent company. Associate Companies: Associate companies are those types of companies where other companies have a significant influence. This ” significant influence ” entails owning at least 20% of the associate company’s shares. Other Types of Companies Government Companies: Government companies can be referred to as companies with more than 50% of share capital held by the central government, by state governments, or jointly owned by both kinds of governments. Foreign Companies: Foreign companies can be referred to as companies present outside India. These companies also conduct business in India, either on their own or by collaborating with other companies. Charitable Companies (Section 8): Companies with charitable goals, often referred to as NPOs, are termed charitable companies. These companies are also known as Section 8 companies as they are registered under Section 8 of the Companies Act, 2013. The primary goal of charitable companies is to promote religion, arts, culture, science, education, commerce, and many more. They do not pay money to their members because they don’t make any. Dormant Companies: These companies are usually set up to work on future projects. They do not have large accounting transactions and are not required to comply with all the regulations that apply to regular companies. FAQs What Is a Holding Company? A holding company is a company that doesn’t create its own products or services, but instead holds a controlling interest in other companies.6 Holding companies are also known as umbrella or parent companies. Investor Warren Buffett’s Berkshire Hathaway is one well-known example of a holding company. Can a Private Limited Company convert to a Public Limited Company? Yes, a Private Limited Company can convert to a Public Limited Company by meeting the necessary regulatory requirements, including increasing the number of shareholders and complying with securities regulations.

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Ad Valorem Tax

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Ad Valorem Tax

Ad valorem tax is a type of tax that is levied based on the assessed value of an item or property rather than a fixed amount. The term Ad valorem tax derives its meaning from the Latin word “ad valorem,” which means “according to value.” In other words, the tax is calculated as a percentage of the value of the item or property being taxed. What Is an Ad Valorem Tax? An ad valorem tax is calculated based on the value of an item of property such as real estate or personal property. The Latin phrase ad valorem means “according to value.” Ad valorem taxes are based on the assessed value of the item being taxed. The most common ad valorem taxes are property taxes levied on real estate but they’re also assessed as a component of car registration. They may extend to tax applications such as import duty taxes on goods from abroad. What are the Types of Ad Valorem Tax? Property Tax: Property tax is the tax levied on the commercial and personal properties owned by an individual. Every time an individual purchases a property, the state and municipal governments levy tax on the property. Sales Tax: This type of tax is levied on every transaction. Sales tax is applicable when anyone buys a product or service. It is expressed in the form of a percentage of the value of the product/service. Value Added Tax (VAT): VAT is the tax charged by the authorities on the services that help add value to the product/service. VAT is charged on the extra value added to the service or product. What are the Benefits of Ad Valorem Tax? Revenue Generation: Ad valorem taxes generate revenue based on the value of taxable items or properties. This means that as the value of these items or properties increases, tax revenue also increases proportionally. This can help governments collect more revenue. Fairness and Equity: Ad valorem taxes are fairer because they are based on the value of assets. Wealthier individuals or businesses generally pay more in taxes because they own more valuable assets or make larger purchases, promoting an equitable tax system. Encouraging Efficient Use of Resources: Property owners may consider the tax implications when using or developing their properties, potentially leading to more efficient land and resource use. For example, higher property taxes on undeveloped land might incentivize owners to put the land to productive use. Simplicity: In some cases, ad valorem taxes can be easier to administer and calculate compared to other forms of taxation, such as income tax. The tax rate is applied directly to the assessed value, making it relatively straightforward to determine the tax liability. Stability: Ad valorem taxes provide a relatively stable source of revenue for governments because they are tied to the value of assets or transactions. Even during economic downturns, when income tax revenue may decline, property values and consumption often remain more stable. Self-Adjusting: The tax base for ad valorem taxes can naturally adjust over time with changes in the economy and inflation. As asset values increase or decrease, the tax revenue adjusts accordingly without the need for frequent legislative changes. Transparency: Ad valorem taxes are usually transparent, as taxpayers can see precisely how their tax liability is calculated based on the value of the item or property. This transparency can foster greater trust in the tax system How does Ad Valorem Tax Work? The term Ad Valorem is a Latin word that literally means according to value. This type of tax is charged as per the assessed value of the property. This tax forms a major source of revenue for the Central and State governments. The assessors chosen by the concerned authorities determine the value of the property and decide the tax rate applicable for further tax calculation. FAQs How is Ad Valorem Tax calculated? To calculate ad valorem tax, you multiply the assessed value of the item by the tax rate (expressed as a percentage). For example: Tax Amount=Assessed Value×Tax Ratetext{Tax Amount} = text{Assessed Value} times text{Tax Rate}Tax Amount=Assessed Value×Tax Rate How does Ad Valorem Tax differ from specific tax? Ad valorem tax is based on the value of the property or goods, while specific tax is a fixed amount per unit of measurement (e.g., a set dollar amount per gallon of fuel or per pack of cigarettes), regardless of the item’s value.

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