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16th April 2018 Part-2: Daily News Analysis
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Prevention of Money Laundering Law needs to be strengthened

Jatin Verma is teaching live on Unacademy Plus

Jatin Verma
Have appeared in UPSC CSE thrice. Have been taking Unacademy Plus courses Academics- Polity, Economics & Current Affairs.

U
Unacademy user
make course on chem and bio also
Chip system promote data collection like Facebook
Sir in the news analysis of Chip insertion in set-top box, this news points can be useful for what cocncern.....I have this small issue
Kanwar Singh
2 years ago
in context of right to privacy and reporting of fake TRP
Tanjeet Singh
2 years ago
ohk
Ans is Bihu.. 3-4 days ago,a news was published in Hindu that wheat i .e rabi crop sowing is postponed for a week due to rain in Punjab.
Sr
bhaiya aap bhut achha pda rahe ... hindi medium me bhi helpful. ..
Rongali Bihu , Month - Bohag, 1st month of Axomiya celender
  1. want to be startin anses hoiag 2 but thh Important News Articles (Taking Delhi/Noida edition as the base) Page 2 East News: Nagaland loses soil heavily due to 'jhum Page 7 Nation News: Govt. ties up with IIT-Delhi for safety switches on vehicles y has pl Page 7 Nation News: Chip in for viewership data, says I&B Ministry he # Page 10 News: Arun Jaitley takes oath as Rajya Sabha member for new term reve Page 10 News: Pakistan denies Sikh pilgrims consular access Page 11 News: PMLA will need more changes Page 12 World News: Modi's visit could see pacts on migrants, Ayurveda centre Page 12 World News: U.S. will impose new sanctions on Russia Page 13 Business News: 'Robust exports can help India grow at 890, Page 13 Business News: 'NPAs, high debt level to ebb in 6-9 months' Page 13 Business News: 'Closing down firms will not help local economy' Page 13 Business News: E-tailers may have to clarify if they profiteered from GST cut Page 13 Business News: India to ally with China on 'Asian premium' Page 14 Business Review: What demonetisation did to tax collections hink h causeb ferent et t a pu OLIse rk and t stay


  2. want to be starting to Page 7 Nation News: Chip in for viewership data, says I&B Ministry The Information and Broadcasting (I&B) Ministry has proposed the installation of a chip in new at thh television set-top boxes to collect data on channels watched, with duration. The move is aimed to get "more authentic" viewership figures for every channel This would help advertisers and the Directorate of Advertising and Visual Publicity (DAVP) to spend their advertising expenditure wisely The Directorate of Advertising and Visual Publicity (DAVP) is the nodal agency of the g government for advertising by various Ministries and its organisations The proposal was part of the Ministry's response to a number of recommendations made by the TRAI on issues related to new direct-to-home licenses The Ministry also "feels that Doordarshan viewership is under-reported" and if the chip is installed, it would give the real viewership figures of the channel The move is seen to end the monopoly of the Broadcast Audience Research Council India u (BARC), which measures the television audience preferences in the country. re he e ar k h ent The BARC does not reveal how they arrive at the viewership figures, methodology they apply and the area of survey But TRAI, in its response to the Ministry's suggestions, said, if the Ministry desires its recommendation on this issue, it may send a separate reference to TRAI as per the provisions of the TRAI Act, 1997 ts that


  3. cranted to show the hos ht Page 10 News: Arun Jaitlev takes oath as Raiva Sabha member for new term The Finance Minister Arun Jaitley took oath as a Rajya Sabha member for a new 6-year term. Mr. Jaitley, who has been working from the controlled environment of his home after being diagnosed with a kidney ailment, was administered the oath of office in the chambers of Rajya Sabha Chairperson re he Elected to the Rajya Sabha from Uttar Pradesh last month, this special swearing-in ceremony was done because of the Finance Minister's health condition Mr. Jaitley had been re-appointed as a Leader of the Rajya Sabha following his election from Uttar k h Pradesh but could not be sworn in because of ill-health ent The Finance Minister had stopped attending office in North Block since April 2. Cancelling his scheduled overseas trips, Mr. Jaitley tweeted to confirm his illness. ts that


  4. Page 10 News: Pakistan denies Sikh pilgrims consular access at thh India accused Pakistan of violating diplomatic protocols after Islamabad allegedly prevented meetings between visiting Sikh pilgrims and Indian diplomats. India said that by not allowing such a meeting, Islamabad had shown inexplicable diplomatio discourtesy. re A standard practice has been that the Indian High Commission consular/protocol team is attached he with visiting pilgrims, to perform consular and protocol duties, like helping out in medical or family emergencies. However, this year, the consular team has been denied access to Indian Sikh pilgrims. e ar * Islamabad even compelled the Indian envoy to return while on way to a prominent gurudwara there. As per MEA, a group of around 1800 Sikh pilgrims was on a visit to Pakistan from Apr 12 under a bilateral agreement on facilitating visits to religious shrines. Lodging a protest with Pakistan, India said these incidents constitute a clear violation of the Vienna Convention of 1961 on diplomatic relations, the bilateral Protocol to visit Religious Shrines, 1974 and the Code of Conduct of 1992, _for the treatment of diplomatic/consular personnel in India and Pakistan. 'No meeting': The team could not meet the pilgrims on their arrival at the Wagah railway Station on April 12. Similarly, it was denied entry into Gurdwara Panja Sahib on April 14, for a scheduled meeting with pilgrims there. Is


  5. bs t.j r) (sh os r8d S, e-t ou Sa sBead he it prt St ho eotp h s a e s na r, P e lad een ppn Ile -ti-es krnc e ao ri it reae vod nnne ean e-il o roa ter dtelf mbt ei is a fi u P 00 nes nhl io w k in r r, e e eh np is t i eia ot sa


  6. want to be startin anses hoiag 2 cranted to show the hos ht to Page 11 News: Prevention of Money Laundering Act will need more changes at thh India wi have to make money laundering an explicitly standalone offence to upgrade its compliance ahead of the on-site mutual evaluation by the Financial Action Task Force (FATF), which is due in November-December 2020. FATF is an international body that sets global standards for fighting illicit finance. (p he Among the key recommendations of the FATF, is that money laundering be made a standalone Despite several amendments, the Prevention of Money Laundering Act (PMLA) remains a This means a case under the Act depends on the fate of cases pursued by primary agencies such as offence. k h predicate-offence-oriented law. ent the CBI, the IT Department or the Police. The latest instances are the verdicts in the 2G spectrum and Aircel-Maxis cases by the CBI courts, in which the money laundering angle probed by the Enforcement Directorate fell apart Karnataka case: On the issue of attachment of assets, however, the Karnataka High Court, in a 2016 judgment, appreciated the agency's stand that money laundering was a standalone offence in view of Sections 5 and 8 amended in 2013,_read with the definition of 'property' in Section 2(1(v) of the Act ts that


  7. want to be startin anses hoiag 2 cranted to show the hos ht ant Predicate Offence A "predicate offence" is an offence whose proceeds may become the subject of any of the money-laundering offences established under the Convention. Many States already have laws on money-laundering, but there are many variations in the definition of predicate offences theSome States limit the predicate offences to drug trafficking, or to drug trafficking and a few other crimes. Other States have an exhaustive list of predicate offences set forth in their legislation. Still other States define predicate offences generically as including all crimes, or all serious crimes, . or all crimes subject to a defined penalty threshold. . 9 ean k h ent stay ts


  8. Page 11 News: PMLA will need more changes (contd.) Check list FATF recommendations on money laundering set an internation The Enforcement Directorate is empowered al standard which countries should implement through measures to investigate the financial aspects of those crimes as defined under the other penal laws, which are adapted to their circumstances. The recommendations: Identify the risks, and develop policies for international coordination he listed in the PMLA schedule Establish powers and responsibilities for the competent authorities (e.g., investigative, law enforcement and supervisory authorities) o The first FATF mutual evaluation of India was done in 2010 when the body expressed satisfaction with the measures taken by the country. However, in the same breath, the FATF highlighted a number of lacunae in the then extant legislation and suggested changes. Since then, a range of laws have been amended Enhance the transparency and availability of beneficial ownership information of legal persons and arrangements Facilitate international cooperation After analysing PMLA provisions, the FATF recommended that legal measures should be taken to allow for confiscation of the money laundered as subject of the ML (money laundering) offence and which is not contingent on conviction for the predicate offence. .


  9. want to be startin anses hoiag 2 cranted to show the hos ht to Page 12 World News: PM Modi's visit could see pacts on migrants, Avurveda centre at thh Efforts to give new impetus to the Commonwealth and U.K.-India bilateral relations wil get under way, as a Commonwealth business forum kicks off ahead of the Commonwealth Heads of Government Meeting (CHOGM) that Prime Minister Narendra Modi will attend in London. . The Commonwealth Business Forum, which will bring together business leaders and political figures from across the Commonwealth, would explore ways of raising intra-Commonwealth trade from around $525 billion in 2015 to around $700 billion by 2020, alongside looking at some of the contemporary challenges and opportunities around technology, skills, and protectionism. The CHOGM meet is to take place alongside Mr. Modi's bilateral visit to the U.K., in which a range of issues, including immigration, technology cooperation and education, will be in the frame. he e ar k h ent . Diaspora event: Ahead of the CHOGM meeting, Mr. Modi will arrive in the U.K. for the bilateral visit, during which he will hold meetings with U.K. PM, Prince Charles and the Queen, alongside a diaspora event in central London . The two meetings with Mr. Modi held by Ms. May will be seen as part of efforts by Britain to emphasise its eagerness to forge closer ties with India, amid growing scepticism and concern about Britain's ability to secure lucrative post-Brexit trade deals. ts that


  10. want to be startin anses hoiag 2 cranted to show the hos ht at thh A MoU on the return of illegal migrants to India, previously agreed and relating to an issue that Britain has repeatedly raised, will be formally signed. Other agreements include: Setting up of an Ayurveda research centre in the U.K. Other Issues to be raised: Whether any moves will be made to respond to Indian concerns about Britain's immigration regime In what format Britain raises issues around the treatment of religious minorities in India Johal's detention: the detention of Jagtar Singh Johal, a British citizen who remains in custody in India after being arrested last year. re he e ar With an Indian diaspora of around 1.4 million, Mr. Modi's visit will attract much attention. A ent number of rallies, both to protest and support Mr. Modi, are being planned during and ahead of the visit. The protests will include: One by the South Asia Solidarity group over attacks on religious minorities, Dalits and" the media The U.K. Sikh Federation will also hold a protest for Johal's detention Nazir Ahmed, a Member at the House of Lords on the "peaceful resolution" to conflicts in Kashmir, Puniab and other northeastern States Action for Elephants' group: on protecting temple elephants ts that


  11. want to be startin anses hoiag 2 cranted to show the hos ht at th Page 12 World News: U.S. wi impose new sanctions on Russia The U.S. will impose new sanctions on Russia over an alleged chemical attack by the Syrian regime of President Bashar al-Assad, U.S. Ambassador to the UN. an . U.S. Ambassador said: The sanctions, to be announced by Treasury Secretary, would target companies that supplied Damascus with equipment and other material related to chemical weapons. he Russian sanctions will be coming down. He said, "With the political and diplomatic actions that we're taking now, we wanted Syria's. friends Iran and Russia to know that we meant business and that they were going to be feeling the pain from this as well.' ent * U.S. officials have blamed Russia for failing to rein in its Syrian ally, as the guarantor of a, 2013 agreement to dismantle Svria's chemical weapons . That agreement was brokered by Moscow to avert retaliatory U.S. strikes in the wake of a sarin ck in the rebel-held Eastern Ghouta suburbs of Damascus on August 21, 2013 that reportedly killed more than 1,400 civilians. ts that


  12. want to be startin anses hoiag 2 cranted to show the hos ht ant to Page 13 Business News : 'Robust exports can help India grow at 8%, at thh India can achieve more than 8% growth rate in a sustained manner if it takes steps to revive investments and make exports competitive, said an Asian Development Bank (ADB) Economist. In its Asian Development Outlook, 2018, the ADB said it expects India's growth to pick up to 7.3% in current fiscal and accelerate to 7.6% in the next financial year. (ADB) Economist said: Efforts will have to be made to streamline agriculture marketing and improve supply chain. This is the area where there is scope for more reforms. Right now, the investment and exports drivers are really not firing... Once those two engines fire up India can sustainably grow at 8%. India was still a "marginal player" in global trade and there was a lot of potential to increase exports. As Chinese exports are becoming expensive because of rising wages, India can reap u* benefits by improving competitiveness e ar ent - Ease of Doing Business and state of infra need to be improved to get the benefit from trade and be better integrated into the value chain. Lot more reforms would be needed in infrastructure and regulatory policies, if India wants to achieve a double digit growth Credit to infrastructure and industry is picking up, which is a positive sigin ts that


  13. want to be startin anses hoiag 2 cranted to show the hos ht to Page 13 Business News: 'Closing down firms will not help local economy' at thh With the Tamil Nadu Pollution Control Board (TNPCB) rejecting the application of Sterlite Copper seeking renewal of its consent to operate its plant at Thoothukudi, the Vedanta Group unit finds itself facing a fresh challenge. Since its inception several summers ago, the copper smelter project in the port town had witnessed eWhen it is in the midst of a Rs. 2,500-crore expansion plan to double capacity, problems have Some locals and green brigades have mounted a campaign against the expansion on the ground The denial of consent, in the meanwhile, to operate the existing plant by the TNPCB for want of Sterlite Copper CEO said: testing times. re he begun to revisit the unit. that the smelter had been a source of pollution and risk to fisheries more clarifications had further complicated situation for the company e ar k h ent Given the current situation, it will take some time for a dialogue to commence. Sterlite is reaching out to the community on a daily basis. Efforts are to keep the channels of communication open so that a win-win solution can be arrived at for all parties. Sterlite is trying to create more awareness among community through various media. The plant was under regular maintenance, which is a planned activity once in every 3-4 years. ts that


  14. LT cranted to show the hos ht Page 13 Business News: E-tailers may have to clarify if they profiteered from GST cut (contd.) FMCG, real estate: Majority of complaints are against firms in real estate and the FMCG sector. The complaints include selling goods at an MRP that did not reflect the revised GST rates The benefits of input tax credit received by a business not being passed on to the end consumer. re he NAA has now partnered with community social network Local Circles to reach out to the people as part of their awareness campaign on the issue. e ar k h ent ts that


  15. want to be startin anses hoiag 2 cranted to show the hos ht to at thh Page 14 Business Review: What demonetisation did to tax collections The argument about whether demonetisation was good or bad for the economy refuses to die down even a vear after the event. Former RBI Governor Raghuram Rajan took potshots at it in a recent speech. Former RBI Governor Raghuram Rajan highlighted: re he While one can endlessly debate, with very little data, on whether the ban on high-value currency notes dealt a body blow to terrorism, corruption and counterfeiting, one area in which its impact can be quantified with data is tax compliance. e ar k h In the last 16 months, there has been a lot of premature analysis on India's tax compliance metrics based on sporadic data points cited by the Finance Minister and tax officials. But with the deadline for FY17 return filings ending on March 31, official data on direct tax collections for FY17 and ,u. FY18 is available. This makes an objective analysis possible on what demonetisation did to India's - tax base. The news is mostly good Better collections: India managed a second consecutive year of strong growth in its direct tax collections in FY18. Net collections (gross mop ups minus refunds) increased by 17.1% in the just concluded fiscal year, to Rs. 9.95 lakh crore. This was after a 14.6% increase in the mop ups in FY17. ts that


  16. want to be startin anses hoiag 2 cranted to show the hos ht ant to at thh Former RBI Governor Raghuram Rajan highlighted (contd.): . It should be noted that IT rates have largely stayed put in the last couple of years, with only minor . Now, compared with the first two years of the NDA rule, the last two years' numbers are very ,:, . But seen from a historical perspective, a 14% or even 17% annual increase in direct taxes isn't . Well, a good way to gauge if direct tax collections have really revived up post-demonetisation, is increases in the surcharge and cess components. healthy. In FY15 and FY16, India's direct tax kitty witnessed growth ofjust 8.9% and 6.9% extraordinary for the Indian economyv to evaluate direct Tax Buoyancy. he e ar Given that direct taxes both for individuals and businesses are levied as a percentage of their annual income, it is reasonable to expect taxes collected to march in step with GDP growth. This is what tax buoyancy measures, by dividing the growth in tax collections for each year by the nominal GDP growth. Higher the number, the better the compliance. Applying this measure to India shows that tax buoyancy has indeed picked up_post- demonetisation. (In the seven years from FY08 to FY14, direct tax buoyancy hovered between 0.5 and 1.1 times, averaging out at 1 for the period). But since demonetisation, direct tax buovancv doubled from 0.6 times in FY16 to 1.3 times in FY17 and accelerated further to 1.7 times in FY18 With this the Centre's direct tax coffers could fill up even faster in the coming years. ent ts


  17. want to be startin anses hoiag 2 cranted to show the hos ht ant to at thh Former RBI Governor Raghuram Rajan highlighted (contd.): . More filers: The direct tax collection numbers put out by the CBDT include mandatory deductions by way of the much-hated TDS. (It accounts for 1/3rd of the collections each year) In FY14, 3.79 crore IT returns were filed by taxpaying entities (this includes individuals, small businesses and companies) Over the next two years to FY16, this number crept up to 4.36 crore. That's a 15% addition over two years. But the latest CBDT data (provisional) tells us that the number of filings zoomed to 6.84 crore by the end of FY18. That's a 57% increase in the last two years (2.48 crore new filings) re he e ar Once a citizen begins to file returns, a contribution to direct tax collections must inevitably follow. Better compliance would eventually provide headroom for the Centre to prune down IT rates. Tax base estimate ent In the latest Budget, the Finance Minister pegged India's current direct tax base at 8.27 crore ui taxpaying entities. The official definition of 'tax base' sweeps in all assessees who have filed their IT returns in the last three years, and adds in those who paid TDS Now, the Indian population featured 25 crore households as per the last Census. If one assumes agricultural households to make up about 40% of that number, (given that agricultural income is exempt from tax) potential tax-paying households (or entities) can be guesstimated at about 15 crore. A tax base of 8.27 crore makes up well over half of this number


  18. want to be startin anses hoiag 2 cranted to show the hos ht Former RBI Governor Raghuram Rajan highlighted (contd.): . Of the estimated population of 132 crore, the working population is estimated at about 40% (52.8- at thh crore). If half of the workforce is assumed to be engaged in agriculture, that's a potential tax base of 26 crore individuals. With individual income tax payers already topping 6 crore, it is clear that a p fourth of those who owe income tax are already paying tax he Detractors will point out that, though India's tax base has grown at a furious pace in the last couple re of years, the CBDT's tax collections haven't kept pace with the number of newbies joining the tax system e ar . But hopefully, as India's income levels improve over the next few years and it transitions into a ent middle-income economy, these new return filers will graduate into the higher tax slabs and cough- up their due share of taxes . This should pave the way for the government to loosen up on its anti-evasion measures and rune its sky-high income tax rates ts that