ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By Govind Bhattacharjee

Tax on Agricultural Income

A 2019 Comptroller and Auditor General report has brought out glaring irregularities in the exemptions given to agricultural income for income tax purposes. Exempting large income on agriculture from taxation not only makes the agricultural sector a conduit for money laundering and concealment of black money, but also holds back the much-needed modernisation and reform of the sector. Although everyone agrees on the desirability of taxing agricultural income, successive governments have shied away from it for electoral reasons.

A House of Cards

The Central Civil Services (Conduct) Rules, 1964, which apply to all public servants in the country, date from colonial times and are reflective of a colonial mindset. Civil servants no longer want to be treated as unruly kids ignorant of their roles and responsibilities. These dated rules must be consigned to the dustbin of history and replaced by a new code of ethics based on self-regulation, accountability, and transparency.

Is the Special Category Status Really Dead?

Though the Fourteenth Finance Commission report gives an impression that the special category status given to some states has de facto been abolished, the reality is that the benefi ts enjoyed by these states remain well protected. The biggest flaw of the special category mechanism is that the benefits flow in perpetuity without any accountability or performance monitoring of the states. This has made them overwhelmingly dependent on central funding. It is therefore imperative to bring in more accountability into the mechanism of such liberal transfer of funds and their end use.