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

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On Deterring Undervaluation of Property

IT was more than a decade and a half ago that Nicholas Kaldor suggested as part of his package of tax reform for India that the government ought to have the right to take over a property at the taxpayer's valuation where the government believes that the said property's value has been understated for tax purposes. Kaldor's recommendation was a broad one in the sense that the government's right to acquire property was related to the taxpayer's declaration of value for purposes of taxation regardless of whether or not the property passed hands in sale or underwent any construction. Almost exactly 15 years thereafter, the Direct Taxes Enquiry Committee, more popularly known as the Wanchoo Committee, when confronted with the problem of the use of property undervaluation as an outlet of tax-evaded money, recommended that the government should acquire the right to take over properties whose value has been understated in formal documents of transfers on sale. The purpose of both Nicholas Kaldor and the Wanchoo Committee was expressly the same, namely to deter the use of property undervaluation with a view to evading taxes, but the Wanchoo Committee's recommendation was far narrower than Kaldor's.

The Little-Mirrlees Manual-An Evaluation of Its Relevance for the Developing Countries

An Evaluation of Its Relevance for the Developing Countries Bimal Jalan Introduction THE current upsurge of interest in the methods of project evaluation would semi to he the result of two empirical findings with respect to the results of past industrialisation policies in developing countries: (a) that, in these countries, there exist pervasive divergences between market prices and social values, and (b) that the pursuit of import substitution strategy by many of these countries has led to the encouragement of import substitution projects regardless of social costs. The finding that social values may diverge from market prices is, of course, not new in economics; what has given it a new relevance for development policy is the conviction that widespread government intervention in the economies of developing countries may have served to further accentuate rather than attenuate these divergences. 1 Once it could also be shown that government policies have made possible the domestic production of many manufactured products in developing countries at exceptionally high social cost, the conclusion was inevitable that what the developing countries needed was a good method of project evaluation, which would bridge the gap between private and social values.

Short-term Projection of Net Domestic Product at Current and Constant Prices

at Current and Constant Prices THE annual publication1 on net national product in India includes the provisional estimates of net domestic product with a time-lag of about one year or more. Thus, at present, the estimates have been published upto 1969-70 only. Even the quick estimates which are based on partial data and past growth rates appear with a lag of about six months. In view of the urgency with which these estimates are required for planning purposes an attempt has been made here to work out advance estimates of net domestic product (NDP).
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