PRIVATE ENTITY WILL ENTER IN INDIAN RAIL VERY SOON

Indian Railways may rope in private sector for trains on Delhi-Lucknow, Mumbai-Shirdi routes! Details here

By: Devanjana Nag | 

Published: June 26, 2019 12:54:06 PM

In a big policy shift, Piyush Goyal-led Indian Railways is looking to offer two trains to IRCTC for operation on haulage concepts with ticketing and on board services.

Initially, the official e-ticketing and catering arm of the national transporter, Indian Railway Catering and Tourism Corporation (IRCTC) will be given two trains to run.

Indian Railways to rope in private players for key train routes! Soon you may get to travel between Delhi-Lucknow and Mumbai-Shirdi on Indian Railways trains that are being run by private sector players. In a big policy shift, Piyush Goyal-led Indian Railways is looking to offer two trains to IRCTC for operation on haulage concepts with ticketing and on board services, learns Financial Express Online. The landmark move has been proposed as part of Indian Railways 100-day roadmap that has been drawn up by the Railway Board. According to an IE report, Delhi-Lucknow and Mumbai-Shirdi routes have emerged as the frontrunners for this experiment by Indian Railways.

According to the report, while Delhi-Lucknow and Mumbai-Shirdi routes are top on the list of internal considerations by the Railway Board, Ahmedabad-Mumbai, Bengaluru-Chennai, and Trivandrum-Kannur in Kerala are also being considered. All these routes are under 500 kilometres distance, as per the policy decision taken by Indian Railways. While at present, the Delhi-Lucknow route is served by around 50 trains every day, the Mumbai-Shirdi route, which is a popular pilgrimage destination in the country, does not run too many trains and is the only route under consideration by Indian Railways that is not served by a Shatabdi Express.

The capacity of the network in the 500-odd kms between the national capital and Lucknow is choked with passenger trains and goods trains, and currently, Swarn Shatabdi takes a duration of 6.30 hours. On the other hand, the 330 km long Mumbai-Shirdi route has two dedicated superfast trains, while other long-distance train services take a longer time. According to sources quoted in the report, there are two available routes to connect the two places and on both routes, feasibility is being assessed.

Initially, the official e-ticketing and catering arm of the national transporter, Indian Railway Catering and Tourism Corporation (IRCTC) will be given two trains to run. Indian Railways officials are hopeful that they will be able to operate at least one train within 100 days. The minimum specifications of on-board amenities, as well as the ticket cost, will be decided by IRCTC. The custody of the trains running on these routes will be with IRCTC and it will pay for the rakes including lease charges, to the financing arm of Indian Railways, Indian Railway Finance Corporation (IRFC).

Why did Viral Acharya quit from RBI ?

Reserve Bank Deputy Governor Viral Acharya has resigned from his post, six months before the scheduled end of his term “due to unavoidable personal circumstances”.

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Confirming his resignation, the RBI said, “A few weeks ago, Acharya submitted a letter to the RBI informing that due to unavoidable personal circumstances, he is unable to continue his term as a Deputy Governor of the RBI beyond July 23, 2019.”

Why did Viral Acharya quit?

Acharya is a strong votary of Central bank’s independence and differed with Governor Shaktikanta Das on inflation issues and repo rate reduction in monetary policy reviews this year.

Last year, the then RBI Governor Urjit Patel had differed with the government on several issues, including transferring the surplus to the government, more credit flow to small units, easing of curbs on public sector banks and funding support to the NBFC sector. Acharya had supported Patel in his feud with the government last year.

After resignation, what?

Acharya will be returning to New York University as CV Starr Professor of Economics. He was not expecting another term as he had supported former Governor Urjit Patel in RBI’s feud with the Government on several issues in late 2018, said a top-level source.

Viral Acharya Quits As RBI Deputy Governor Six Months Before His Term Ends

Viral Acharya, Deputy Governor of the Reserve Bank of India (RBI), has resigned from his post, six months before the scheduled end of his term at the Central bank.

Acharya, who had joined the RBI on January 23, 2017, had put in his papers a few weeks before the latest meeting of the Central bank's monetary policy committee (MPC) earlier this month, Business Standard reported on Monday.

"A few weeks ago, Acharya submitted a letter to the RBI informing that due to unavoidable personal circumstances, he is unable to continue his term as a Deputy Governor of the RBI beyond July 23, 2019," the RBI said in a short statement Monday.

Consequential action arising from his letter is under consideration of the competent authority, it said.

Since Acharya was appointed by Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi, the resignation would also be accepted by the panel.

He will return to teach at New York University Stern School of Business (NYU Stern) in August, as the CV Starr Professor of Economics.

Earlier this week, the Economic Times reported that RBI Governor Shantikanka Das and Acharya had differing opinions for the second consecutive time on key emerging issues that would drive the monetary policy decisions. 

To spur the economy, the RBI had cut repo rate by 25 bps to 5.75 per cent in June while switching to "accommodative" stance implying amenable to further cuts.

This is the third time on the trot that the six-member Monetary Policy Committee (MPC) has decided on a 25-basis points rate cut, making it a hat-trick of repo rate cuts.

The rate cut also comes in the backdrop of benign retail inflation. Following the MPC decision, the repo rate now stands at 5.75 per cent against 6 per cent earlier.

This is the second high profile resignation in the past six months at  RBI. In December, governor Urjit Patel resigned nearly nine months before the end of his scheduled term over differences with the government.

Acharya had joined the central bank last year after Patel was elevated to the post of governor in September 2016. The RBI is now left with three deputy governors N S Vishwanathan, B P Kanungo and M K Jain.

Acharya, who once called himself the 'poor man's Raghuram Rajan', was appointed for three years.

He took over at a time when the central bank was facing criticism for repeated changes in the rules related to deposit and withdrawal of money, post-demonetisation.

Last year, amid reported tensions between the Centre and the Bank, Acharya's speech on "undermining a central bank's independence" had made headlines for its scathing and open criticism.

"Governments that do not respect central bank's independence will sooner or later incur the wrath of financial markets, ignite economic fire and come to rue the day they undermined an important regulatory institution," Acharya had said while delivering the A D Shroff Memorial Lecture in October last year, almost two months before the then RBI Governor Urjit Patel resigned from his post.

BSNL, MTNL employees not getting salaries; Cong MP seeks govt's intervention

A Congress Rajya Sabha member Monday sought immediate steps to revive state-owned telecom firms MTNLand BSNL, saying employees were not being paid salaries on time.

Raising the issue during Zero Hour, Ripun Bora said while private sector companies have been alloted 4G and 5G spectrum, the two public sector enterprises were being forced to operate services through the 3G spectrum.

According to him, about 45,000 employees of MTNL and 1.74 lakh of BSNL were not being paid salaries on time for several months now.

"The government should bail them out," Bora said and made a case for recapitalisation of the two PSUs.

The Congress MP asked the government to take "immediate steps" to reduce losses of the two public sector telecom companies and revive them.

In his Zero Hour mention, Swait Malik (BJP) raised the issue of problems being faced by the people, including senior citizens due to cases of cheque bounce.

He described cases of cheque bounce as a serious issue and said people have lost their life savings.

Stressing that more than 20 lakh cases of cheque bounce were pending in courts, Malik made a case for stringent laws to deal with the menace.

He suggested that accused in cheque bounce cases should be made to deposit the entire amount involved in court pending disposal of the case.

How digitalisation will cause the next financial crisis

A new round of restructuring in the global economy based on digitalisation and militarisation could recreate the same structural conditions that triggered the Great Depression of 2008 suggests study

Amid rising debt levels and a slowing global economy, warnings are mounting that the global financial system is heading for another disaster.

In a new paper, William I. Robinson of the University of California adds to these warning bells by highlighting how the rapid rise of digitalisation and new technologies could potentially hurt the global economy.

In the face of a sluggish production sector and debt-driven consumption reaching breaking-point, Robinson argues that investors have turned to two intertwined outlets to invest surplus funds. One is the digital and data-driven economy. A handful of US-based tech companies that generate, extract and process data have absorbed enormous amounts of cash from 

financiers desperate for new investment opportunities, argues Robinson. He cites the examples of Apple, Microsoft and Alphabet holding hundreds of billions of dollars in reserves and the highest market capitalizations in 2017.

The enormous cash reserves and profits accumulated in the tech sector do not represent the production of new value so much as the surplus profits of the ‘digital capitalists’, writes Robinson. And the gap between the productive economy and ‘fictitious capital’ grows ever wider as financial speculation spirals out of control, he warns.

The second channel for the investment of surplus funds is in the police state. The bogus wars on drugs and terrorism, the construction of border walls, the expansion of prison-industrial complexes, deportation regimes, police, the military, and other security apparatuses, have become major sources of state-organised profit-making, writes Robinson.

Taken together, he suggests that this has led to the creation of a global police state which is controlling and repressing societies. Finally, he warns that digitalisation and militarisation are also likely to aggravate the underlying structural conditions behind the Great Depression of 2008 and trigger a similarly dire crisis.

Bank's Defaulter YS Chowdary of Sujana Group Joins BJP after Deserting TDP

Yalamanchali Satyanarayana Chowdary (YS Chowdary), chairman of Sujana group of companies and a member of Parliament (MP) from the Rajya Sabha, has joined Bharatiya Janata Party (BJP), leaving Telugu Desam Party (TDP). Mr Chowdary and his Sujana group of industries are among of the biggest bank defaulters and are under probe by several investigation agencies. 



Last year, in November, the Enforcement Directorate (ED) had attached assets worth Rs315 crore, including six luxury cars and documents during their raids at Mr Chowdary's residence and offices. The searches were conducted in a case of bank fraud of over Rs6,000 crore by more than 120 shell companies allegedly controlled by Mr Chowdary

Please check valuable 12 point before file your income tax return this year

Income tax return (ITR) filing season has begun for FY 2018-19. Don’t wait for the last date to file your ITR i.e 31 July 2019, it is better to keep all the required documents up-to-date and handy. This will ensure a smooth sail when you file your returns.

Documents’ Checklist for ITR filing

Given below is a list of all the documents that may be required while filing ITR for the financial year (FY) 2018-19. Taxpayers can take a look at each of these pointers and keep them ready if they are applicable.

• Form 16

Form 16 is a TDS certificate given by an employer. It provides the detailed break-up of the salary and the tax deducted on it. If the employer has deducted tax from the salary, it is mandatory to provide Form 16.

The new format of form 16 is in sync with the ITR-1 and ITR-2 forms prescribed for the financial year 2018-19. Form 16 includes 2 parts—Part A and Part B. Part A has the details, such as the tax deducted from the salary by the employer, Permanent Account Number (PAN) of the employee, and PAN and TAN of the employer. Similarly, Part B consists of the information regarding salary break-up, such as exemption allowances and perquisites.

The taxpayers can use the details from the Form 16 while filing their returns manually. Or else, they can just upload Form 16 on an online platform and do away the filing right away.

• Form 16A/Form 16B/Form 16C

Your bank will issue Form 16A for tax deducted from income sources such as fixed deposits. Upon selling a property, the buyer will issue Form 16B that states the tax deducted on the paid amount. In another case, landlords get Form 16C from their tenants stating the tax deducted on the rent received. Form 16C is mandatory for monthly rents above Rs.50,000.

The taxpayer can check the income received from various payees and tax deducted thereon, while filing their income tax returns, from the forms mentioned above.

• Form 26AS

Form 26AS can be thought of as a consolidated tax statement for a financial year. It includes details on all the taxes that has been deposited to your PAN, such as:

• Tax deducted by the employer
• Tax deducted by banks
• Tax deducted by other organisations based on the payments made to you
• Advance taxes deposited
• Self-assessment taxes paid

The form is available for download from the TRACES website. Taxpayers can log into the e-filing portal and download the form 26AS. They should ensure that the taxes deducted in FY 2018-19 are reflecting against their in Form 26AS. In case of any mismatch, they will have to ask the deductor to rectify the mistake, and then claim the TDS while filing returns.

• Tax saving investment proofs

All the tax-saving investments like 80C, 80D and 80E made by the taxpayer during the FY 2018-19 will have to be reported in the income tax returns. So, one has to keep all the investments proofs handy to ensure correct claim of investments is done.

For instance, a taxpayer can claim up to Rs 1.5 lakh in a financial year if he has invested in options under section 80C like EPF, PPF, tax-saving mutual funds, life insurance, NPS and so on.

Also, health insurance premiums paid for self, spouse, and/or children are eligible for tax deductions under Section 80D for a maximum amount of Rs.25,000. Insurance premiums paid for parents can bring in an additional deduction of up to Rs.50,000 under section 80D.

• Home loan statement

Loan statement provides break-up details of the principal and interest an individual has repaid to the bank towards a home loan. The document acts as a proof as well as source of information while filing ITR. Under Section 24, the interest paid to the home loan can reduce the tax liability allowing a tax claim of up to Rs.2 Lakh. Details on the interest paid and the rent received (if any) must be entered in the ITR form.

• Capital gains statement

Capital gains from property sale, mutual funds, and equity shares have to be notified to the income tax department through ITR. Purchase deed and sale deed are necessary to file the income received from selling a house. In the case of mutual funds and shares, one must have the statement from fund houses and/or brokers. For those who file ITR-2, the details of the buyer must be entered, such as name, PAN, and address. Capital gains from equity shares and equity-oriented mutual funds are taxable at 10% if it exceeds Rs.1 Lakh for FY 2018-19.

• Details of unlisted shares

Even if the source of income for a taxpayer is salary, he may hold shares of an unlisted company. In this case, it is mandatory to file ITR-2. The details of the investment along with the PAN of the company have to be submitted, such as:

• Opening balance
• Shares acquired during the year
• Shares transferred during the year
• Closing balance

• Aadhaar card

Quoting your Aadhaar card number while filing ITR has been made mandatory, if an individual has applied for it, the enrolment number may be entered.

• Pre-validation of bank account for ECS refund

From March 1, 2019, the income tax department will issue only e-refunds. Such refunds will be remitted to the bank accounts that are linked to PAN. It is necessary to pre-validate a bank account with PAN before filing your ITR.

• Bank account details

An individual must provide the details of all the bank accounts held while filing ITR. The following details have to be entered:

• Bank name
• Account number
• Account type
• IFSC code

Make sure to provide correct details so that the refund, if any is easily processed.

• Updated bank, post office, and PPF passbook

It is recommended to keep the passbooks of bank, post office, and/or PPF up-to-date before filing ITR. It becomes easier to report the details of income, such as dividend and interest with the updated passbooks.

• Interest certificates from banks and post office

These documents are necessary for taxpayers to collate the interest income earned from savings accounts and/or fixed deposit accounts.

Taxpayers must ensure correct reporting of the interest income in the ITR. Hence, it is appropriate to obtain interest certificates from banks or post office to know the actual interest earned.

If you fail to get the interest certificate, you have to get your passbook updated so that you can get to know the interest credited to your account during the financial year.

From each of the above documents gathered, taxpayers must check if personal and monetary details are appropriately recorded such as taxpayer’s PAN and interest credited. The collation of the above documents and information will ease the tax filing process for a taxpayer