An Account of Unaccounted Income is a discussion document that takes an in-depth look at India's unaccounted economy. It is important to distinguish between different categories of unaccounted economy, each of which has different method of functioning and different implications for the economy. The unaccounted economy is a combination of the illegal economy, unreported economy, unrecorded economy and finally, the informal economy.
This discussion document focuses on the size of the unaccounted economy and the processes involved in generating and utilising unaccounted income. It dwells on select sectors of the economy, which are more vulnerable to unaccounted income, such as real estate, education, mining, trade misinvoicing and illicit financial flows, and gold. Finally, the document looks at corruption and malpractices in government contracts and schemes.
Foreign capital inflow in india- analysis , impact , measure , wayforwardAman Sindhwani
Foreign Investment In India ,Need for foreign capital, factors affecting foreign Inflows , Capital Flows in India , impact , Measures and a way forwards
Impact of taxation on cross border investment Isha Joshi
Consequent to the implemented economic liberalisation in India during the 1990s, substantial international investment activity began within the Indian capital markets and through corporate vehicles with an increasingly vibrant fervour. In fact, today, Foreign Institutional Investors (FIIs) play a crucial role in the liquidity, growth and vitality seen in Indian capital markets. Simultaneously, along with increasing FII activity, as a result of the favourable economic and political climate, India also witnessed an increasing quantum of Foreign Domestic Investment (FDI).
The regulation of these investment channels and instruments was at the front and centre of economic policy debate, a part of which revolves around taxation. There is undoubtedly a proximate and intelligible nexus between taxation and the employment of these investment tools. A taxation regime that is favourable can work in effectively attracting more international investment which in turn would enhance market liquidity, activity, and growth.1 While FIIs and FDIs may appear to be similar investment channels, for the most part, they serve entirely different objectives, and operate in substantially different manners and are subject to different regulatory regimes in terms of exchange, economic and taxation policy.
In the coming sections of this paper, the authors have attempted to analyse several aspects of FII and FDI taxation in India. The first section delineates the differences in FIIs and FDIs, their market strategy, modus operandi, and objectives, while ascertaining what exactly these investment channels imply and the various investment vehicles that may be employed by foreign actors.
The subsequent section of the paper outlines the tax regime applicable to such FDIs and FIIs, depending on the organisational scheme and objective of the business vehicle so employed for the investment.
Given that FIIs and FDIs essentially involve a foreign element, the question of double taxation is one which necessarily requires to be addressed. To that end, in the third section of this paper, the authors have looked at Double Taxation Avoidance Agreements (DTAAs) (Tax Treaties) in the context of FIIs and FDIs.
Key Takeaways:
- Algeria in numbers
- Business Environment
- Procedure for Setting up Business
- Obtaining Business and Expat Permits
- Impact of COVID and Reforms
Thanks For Watching, Please Subscribe To Our Channel: https://www.youtube.com/channel/UCVMYEbHo5lmvUZzTNbsqrig?sub_confirmation=1
Foreign capital inflow in india- analysis , impact , measure , wayforwardAman Sindhwani
Foreign Investment In India ,Need for foreign capital, factors affecting foreign Inflows , Capital Flows in India , impact , Measures and a way forwards
Impact of taxation on cross border investment Isha Joshi
Consequent to the implemented economic liberalisation in India during the 1990s, substantial international investment activity began within the Indian capital markets and through corporate vehicles with an increasingly vibrant fervour. In fact, today, Foreign Institutional Investors (FIIs) play a crucial role in the liquidity, growth and vitality seen in Indian capital markets. Simultaneously, along with increasing FII activity, as a result of the favourable economic and political climate, India also witnessed an increasing quantum of Foreign Domestic Investment (FDI).
The regulation of these investment channels and instruments was at the front and centre of economic policy debate, a part of which revolves around taxation. There is undoubtedly a proximate and intelligible nexus between taxation and the employment of these investment tools. A taxation regime that is favourable can work in effectively attracting more international investment which in turn would enhance market liquidity, activity, and growth.1 While FIIs and FDIs may appear to be similar investment channels, for the most part, they serve entirely different objectives, and operate in substantially different manners and are subject to different regulatory regimes in terms of exchange, economic and taxation policy.
In the coming sections of this paper, the authors have attempted to analyse several aspects of FII and FDI taxation in India. The first section delineates the differences in FIIs and FDIs, their market strategy, modus operandi, and objectives, while ascertaining what exactly these investment channels imply and the various investment vehicles that may be employed by foreign actors.
The subsequent section of the paper outlines the tax regime applicable to such FDIs and FIIs, depending on the organisational scheme and objective of the business vehicle so employed for the investment.
Given that FIIs and FDIs essentially involve a foreign element, the question of double taxation is one which necessarily requires to be addressed. To that end, in the third section of this paper, the authors have looked at Double Taxation Avoidance Agreements (DTAAs) (Tax Treaties) in the context of FIIs and FDIs.
Key Takeaways:
- Algeria in numbers
- Business Environment
- Procedure for Setting up Business
- Obtaining Business and Expat Permits
- Impact of COVID and Reforms
Thanks For Watching, Please Subscribe To Our Channel: https://www.youtube.com/channel/UCVMYEbHo5lmvUZzTNbsqrig?sub_confirmation=1
Key Takeaways:
- Business environment and business structures in Zimbabwe
- Tax aspects and investment incentives
- Balance of Payments
- Impact of COVID on Zimbabwean economy
Brief overview of Foreign Portfolio Investments - impact on the economy and impact by the economic variables, with special statistics & focus on India.
Key Takeaways:
- Zambia in numbers
- Steps for Registering business in Zambia
- Time and Cost involved in registration
- Tax structure and incentives for businesses
This video would describe about two important types of foreign investments- the foreign direct investment and foreign institutional investor.
FDI is when a company makes investment in foreign country by setting up the business over there.
FII is an entity or institution which makes investment in a foreign country by getting registered in the stock exchange of foreign market to trade in securities.
Foreign companies invest in India to take several advantages like relatively lower wages, cheaper production, new potential customers, tax exemptions, tapping growth potential of market, interest rate arbitrage.
It also benefits the host country by providing employment, increasing capital flow, greater investment opportunities, foreign exchange, transfer of new technology, skills & knowledge.
When FIIs invests in large in Indian stock market, rupee appreciates and the balance of payment improves
When FIIs withdraws, rupee depreciates and the balance of payment weakens
A comparison has been made between FDI and FII based on various factors like employment, tax rate, time period etc.
FDIs invests in the real economy while the FIIs invests in stock market only.
FDIs pay higher taxes as compares to the FIIs
FDIs generates mass employment as compared to FIIs that generates no or few employment opportunities
Both these foreign investments highly influence the country's economy and financial system.
It has its own positive and negative impacts. Do watch the video to know all about FDIs and FIIs.
Thank you for watching
Subscribe to DevTech Finance
Tax management paper BBA University of PeshawarEmmaSidd
Q.1. Withholding tax is levied on the withdrawal of cash from the bank accounts by the customer. The current rate of the withholding tax is 0.3% for Tax filers and 0.6% for Non-Tax Filer. What is your opinion; is withholding tax meant to be a major source of earning for the government or helpful for documentation of the economy?
Q.3 Wealth Tax Return form used for the return of net wealth under section 14 of the Wealth Tax Act, 1963 (XV of 1963). Explain the legal importance of Wealth Tax Return proforma?
This was presented by CA. Sudha G. Bhushan as a key note speaker in the national seminar on Foreign INvestment Flows in India organised by Lala Lajpat Rai Institute of Management.
Key Takeaways:
- Business environment and business structures in Zimbabwe
- Tax aspects and investment incentives
- Balance of Payments
- Impact of COVID on Zimbabwean economy
Brief overview of Foreign Portfolio Investments - impact on the economy and impact by the economic variables, with special statistics & focus on India.
Key Takeaways:
- Zambia in numbers
- Steps for Registering business in Zambia
- Time and Cost involved in registration
- Tax structure and incentives for businesses
This video would describe about two important types of foreign investments- the foreign direct investment and foreign institutional investor.
FDI is when a company makes investment in foreign country by setting up the business over there.
FII is an entity or institution which makes investment in a foreign country by getting registered in the stock exchange of foreign market to trade in securities.
Foreign companies invest in India to take several advantages like relatively lower wages, cheaper production, new potential customers, tax exemptions, tapping growth potential of market, interest rate arbitrage.
It also benefits the host country by providing employment, increasing capital flow, greater investment opportunities, foreign exchange, transfer of new technology, skills & knowledge.
When FIIs invests in large in Indian stock market, rupee appreciates and the balance of payment improves
When FIIs withdraws, rupee depreciates and the balance of payment weakens
A comparison has been made between FDI and FII based on various factors like employment, tax rate, time period etc.
FDIs invests in the real economy while the FIIs invests in stock market only.
FDIs pay higher taxes as compares to the FIIs
FDIs generates mass employment as compared to FIIs that generates no or few employment opportunities
Both these foreign investments highly influence the country's economy and financial system.
It has its own positive and negative impacts. Do watch the video to know all about FDIs and FIIs.
Thank you for watching
Subscribe to DevTech Finance
Tax management paper BBA University of PeshawarEmmaSidd
Q.1. Withholding tax is levied on the withdrawal of cash from the bank accounts by the customer. The current rate of the withholding tax is 0.3% for Tax filers and 0.6% for Non-Tax Filer. What is your opinion; is withholding tax meant to be a major source of earning for the government or helpful for documentation of the economy?
Q.3 Wealth Tax Return form used for the return of net wealth under section 14 of the Wealth Tax Act, 1963 (XV of 1963). Explain the legal importance of Wealth Tax Return proforma?
This was presented by CA. Sudha G. Bhushan as a key note speaker in the national seminar on Foreign INvestment Flows in India organised by Lala Lajpat Rai Institute of Management.
Analysis on under-invoicing of Imports into India.pptxtaxguruedu
In today’s age of globalization, imports from and exports to other countries have provided the consumers with a choices galore. Items are imported and exported by a country from/to the other country on the basis of the competitive advantage they have on the particular items.
The initiatives proposed by honourable Finance Minister in his budget speech on February 28, 2016 to effectively deal with the problem of black money, which eats into vitals of our society and economy, are highly commendable. The measures initiated by the government in the last nine months to bring back the black money in Swiss Banks has already brought very fruitful results and the names and the details of possible offenders have already been disclosed to Special Investigation Team set up by honorable Supreme Court.
Post Article 370 scenario:
A worsened security situation in Jammu and Kashmir abetted by Pakistan, exacerbated by the absence of legitimate political channels, a weak economic infrastructure, and an inadequate administrative capacity.
Further, this situation is unlikely to change for the better over the next two years.
To manage this worsened security situation while rebooting economic and political mechanisms, India’s policy approach should be:
1. Security: reduce visibility while increasing security over the near term
2. Economy: build public infrastructure to support private investment
3. Administration and governance: decentralise and devolve
4. Politics: return to political normalcy as the security situation improves
5. Employment and entrepreneurship: remove obstacles to livelihood and entrepreneurship, invest in relationships, build social networks
For each policy approach, the document lists initiatives that the Union government can take up.
Mobilised violence is detrimental to the democratic fabric of India. It prevents individuals from enjoying their right to speak, move and conduct business freely. It can also cause injuries and loss of life to bystanders, in addition to significant economic costs from a cessation of economic activity and damage to property.
This Discussion Slidedoc is based on the Takshashila Discussion Document – A Framework for Countering Mobilised Violence. Existing legal measures being insufficient in addressing the problem. This Slidedoc recommends that mobilised violence can be better targeted by making a few specific changes to the legal instruments currently in place to counter such incidents. The Slidedoc presents two primary recommendations to counter mobilised violence.
Creation of a law that targets groups engaging in mobilised violence and not just individual perpetrators of violence.
Refining the scope of hate speech under the IPC to focus on the incitement of violence.
This is a presentation highlighting the key points in the report released by The Takshashila Institution and Vidhi Centre for Legal Policy at an event in Bangalore on December 5, 2018.
Financing public health in India is a vital challenge. As a response, the Union government transfers funds to the lower tiers of government, specifically meant to improve the public health services. The stated goal of specific transfers is to ensure that at least certain minimum standards of healthcare are achieved all across the country. However, our analysis of this category of funds in the period 2005 to 2015 highlights several problems that make this goal difficult to achieve.
First, the transfers are poorly targeted, as these are not linked to health indicators. Instead, such transfers by and large tend to be incremental. Second, the specific purpose transfer system has not been very helpful in offsetting the fiscal disabilities of the poorer states. Third, there is evidence to suggest that States substitute grants received from the Union government for their own spending with the result that there has not been a commensurate increase in overall spending on healthcare.
This Blue Paper was prepared as a result of a roundtable discussion organised by the Takshashila Institution on 4 September 2017, based on the Discussion Document, Beyond Consent: A New Paradigm for Data Protection.
The discussion document brings forth a rights-based model (Rights Model) to help secure the interests of a data subject sharing his data with data controllers. This Rights Model assures to every individual, an inalienable right over his personal data. Any data collector that wishes to access a data subject's personal data must ensure that they do so in a manner that does not violate this inherent data right.
The Blue Paper highlights the recommendations of the all participants at the roundtable discussion, which was chaired by Rahul Matthan.
Gene drives are being explored for alleviating vector-borne infectious diseases however, the risks of employing them need to be understood. This Slidedoc assesses the potential use of gene drives in India by performing a stage-wise risk assessment of deploying gene drive.
Gene drive mosquitoes are an application of Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR) technology. The application is to develop mosquitoes that decrease the incidence of mosquito-borne diseases.
Research into gene drives should be promoted however, there are risks associated with their potential use in India. Given the nature of the technology, it is recommended that robust monitoring mechanisms for disease incidence, mosquito burden and ecological impact be implemented before deploying these mosquitoes.
Data driven decisions on identifying the type of gene drive and deployment locations will ensure effective use of the technology.
Indian Prime Minister Narendra Modi is visiting Wuhan for a two-day informal meeting with Chinese President Xi Jinping on April 27 and 28, 2018. The two leaders are expected to discuss “issues of overarching, long-term and strategic importance” along with changes in the global order.
This could potentially imply a fundamental shift in India’s approach towards China after deepening friction over the past three years.
This Slidedoc provides a cost-benefit analysis of a strategic reset, keeping in mind India’s national interests. Based on the analysis, it arrives at an assessment that the potential costs of such an approach by India outweigh the potential benefits.
This Slidedoc presents a strategic framework that provides insights into China’s behaviour and highlights various alternative policies that China may consider for engagement in the Indian Subcontinent. An underlying assumption is that China is modeled as a rational actor in this framework.
What is China’s strategy in the Indian subcontinent?
China’s growing footprint in the Indian subcontinent is one arc of an overarching strategy to expand its global presence and influence. This study unpacks the underlying drivers of China’s policy in the region and examines the enabling and constraining factors. Based on these, it identifies a repertoire of ongoing measures and long-term policy approaches that China can and is employing.
China's ongoing measures of engagement in the subcontinent include:
Control over resource streams
Display of aggressive intent by Chinese armed forces
Control over flows of people and ideas
Denial/Provision of support at international fora
China's long term approaches to expand its presence and influence include:
Investing in multi-purpose projects
Interfering in domestic affairs of other states
Providing strategic support to non-democratic regimes
Expanding hard power reach
This Slidedoc presents a strategic framework that provides insights into China’s behaviour and highlights various alternative policies that China may consider for engagement in the Indian Subcontinent. An underlying assumption is that China is modeled as a rational actor in this framework.
What is China’s strategy in the Indian subcontinent?
China’s growing footprint in the Indian subcontinent is one arc of an overarching strategy to expand its global presence and influence. This study unpacks the underlying drivers of China’s policy in the region and examines the enabling and constraining factors. Based on these, it identifies a repertoire of ongoing measures and long-term policy approaches that China can and is employing.
China's ongoing measures of engagement in the subcontinent include:
Control over resource streams
Display of aggressive intent by Chinese armed forces
Control over flows of people and ideas
Denial/Provision of support at international fora
China's long term approaches to expand its presence and influence include:
Investing in multi-purpose projects
Interfering in domestic affairs of other states
Providing strategic support to non-democratic regimes
Expanding hard power reach
Over the next quarter century, the international order is likely to change considerably. A new geopolitical and macroeconomic context will necessitate a flexible strategy to maximise India's national interest.
In this Discussion Document, an analytical framework is developed to visualise possible New World Orders at the intersection of two axes. The first axis represents five possible geopolitical trends, organised by the degree of global polarity. The second axis represents four geoeconomic trends, based on the degree of growth, automation, trade, and labour movements.
In each scenario, the proposed strategies to maximise India's national interest are determined. The most frequently-occurring strategies are used to develop an agenda that will hold India in good stead, regardless of how the world shapes up.
Domestic Economic Reforms
Liberalise major sectors, implement labour and factor market reforms. Be an attractive destination for FDI.
Focus on the employment elasticity of growth in addition to growth itself. Collaborate with foreign universities for skilling the workforce.
Build a social security net to deal with inequality, unemployment, skill obsolescence, and an aging population.
Reforms for India’s engagement with the world at large.
Three critical military shifts needed: from land to sea, from the physical to the virtual (cyberwarfare); and from manpower to firepower.
Champion the cause of globalisation as movement of labour, goods, and services is critical for India’s growth.
Retain flexibility in terms of alignment: be open to larger partnerships and global projects, as well as unilateral action.
Partner with other middle powers, especially those concerned by G2 dominance.
For millennia, the Himalayas constituted a strategic frontier between two dissimilar civilisations. In this presentation, Nitin Pai argues that nuclear weapons are the new Himalayas and the India-China contest has gone beyond the mountains, to the Oceans and beyond. Presented at Bangalore International Centre in June 2010.
A new smart river water management system that can allocate water to states in a dynamic, equitable and efficient manner.
The current system relies on court-administered water quotas, which is broken and dysfunctional. We are proposing to replace it with a system where states get a basic water entitlement and have to pay a Kaveri River Fund for more, and receive payouts from the Fund during drought years. It can change the issue from an emotional-political one to an ordinary-economic one, as well as give the first incentives for water conservation in the basin at the state-level.
The Takshashila Institution and the US Consulate, Chennai, hosted a roundtable conference on reviewing India’s coastal security architecture at The Hyatt MG Road, on 23 September 2016.
The slides provide an overview of the event, the key challenges faced by India in securing its coastline, views and recommendations by the discussants on ways to overcome them.
Why Future Deck?
The Takshashila Future Deck is a set of cards designed to spark conversations about emerging challenges and opportunities that are facing India and the world.
Creating the Deck
This project was inspired by a similar deck created by the Centre for Strategic Futures, Singapore. Each card in the deck is a potential driver of India's future. The cards are grouped in the following sub-sets: Macroeconomic Shifts, Technology and Society, Citizenship and Governance, Future of Conflict and the Drivers of Growth.
Using the cards
The deck can be used in workshops to prioritise issues for further research, to examine the impact of the issues on public policy, and to craft scenario narratives about the future.
Participants can assume public roles and examine how individual cards could impact them, and also draw up new scenarios based on how two or more cards would affect each other.
Prof Mukul Asher, Councillor at the Takshashila Institution, analyses the Bangalore municipal budget (BBMP) for students of the B.PAC Civic Leadership Incubation Program. The Takshashila Institution is B.PAC's knowledge partner.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
1. ANACCOUNT OF UNACCOUNTED
MONEY IN INDIA
This presentation deals with
concepts related to
unaccounted income,
followed by sector specific
analysis and finally,
generation and utilisation of
unaccounted income due to
graft.
Takshashila
Discussion Document
November 21, 2016
Prepared by:
Anupam Manur
ManasaVenkataraman
TheTakshashila Institution
2. 2|
Unaccounted economy in
India
Unaccounted economy includes a combination of illegal economy, unreported
economy, unrecorded economy and the informal economy.
Illegal economy comprises of income generated by economic activities that are in
violation of legal statutes defining the scope of legitimate forms of commerce.
Unreported economy comprises of economic activities that circumvent or evade
fiscal rules as set out in the tax code.
Unrecorded economy comprises of economic activities circumventing the
institutional requirement of reporting to government statistical agencies.
Informal economy is not taxed and hence not accurately monitored by government
agencies.
Unaccounted economy comprises of transactions
and incomes on which due taxes have not been
paid and is not reflected in any other statistics on
economic activity within the country.Thus, it is
equivalent to income that is unreported in GDP.
3. 3|
Unaccounted Economy in
India
Thus, apart from income earned through illegal
means, the term unaccounted income includes
legal income concealed from public authorities to:
— evade payment of taxes
— evade payment of other statutory
contributions
— to evade compliance with the provisions of
industrial or other laws
Illegal,Unrecorded,
Unreported andInformal
Economy
4. 4|
Stock vs. Flow Stock Vs. Flow (Unaccounted wealth vs. income)
Incomes are flows generated during any given time period, while wealth relates to the
stock at a particular point in time.
Unaccounted wealth can be defined in two ways. First, the amount of wealth not
reported for the appropriate tax liable and second, the accumulation of unaccounted
income over a period of time.
Unaccounted wealth is tough to measure or estimate due to a lack reliable measures of
accounted wealth to begin with.
DomesticVs. Foreign Unaccounted incomes
Unaccounted wealth exists both within and outside the country, in jurisdictions which
are ‘non-transparent’ and in forms which do not reveal the actual owner of the
resource.
UtilizationVs. Generation of Unaccounted Income
The generation of unaccounted income relates to the suppression of scale of economic
activity through an increase in corresponding expenses or through a reduction of
reported sales.
Utilization of unaccounted income refers to the expenditure incurred out of unaccounted
incomes, such as expenditures on purchase of assets like gold, precious stones, real
estate, and other commodities.
Incomes are flows generated during any
given time period, while wealth relates to
the stock at a particular point in time.
5. 5|
Share of Unaccounted
income in India’s GDP
69.6
66.2
49.4
45.2
41.7
0
10
20
30
40
50
60
70
80
Share in total GDP
1980-81 1990-91 2000-01 2004-05 2009-10
Estimates of unaccounted income in India varies
greatly with different estimation methods and there
is no consensus on the estimate.The range is from
25% of GDP to 75% of GDP for 2009-10.The
numbers used here are from a study from NIPFP[1],
which uses “State Space based estimate”.
Therehasbeenasteadydeclineintherate of
generationofunaccounted moneyinIndia.
[1] Source: A Study on Unaccounted Income in India, National Institute of Public Finance and Policy (NIPFP), 2012
6. 6|
Size of Unaccounted Income
Multiple Estimation Methods, Multiple Estimates
The size of unaccounted income in India depends upon
the definition of unaccounted income and within that,
the method chosen to estimate it.
Measures that look only at income that is unrecorded for
tax tends to be much smaller. For example, estimates by
the Finance Ministry forWorld Bank, Schneider et al, and
earlier estimates of NIPFP peg unaccounted income in
the range of 20-25% of GDP.
The diagram alongside will help clarify the different
estimations.
In this document, unaccounted income is represented by
the part that is unreported in GDP and amounts to 40%
of GDP.
8. 8|
Trade Misinvoicing
1. Misdeclaration about the quantity of goods
2. Misuse of export promotion schemes: exploitation of incentives provided to
exporters, possibly through over-invoicing exports
3. Bogus or dummy Importer Exporter Codes (IEC)
4. Country of origin frauds: knowingly violate the rules of origin in order to take
advantage of bilateral trade agreements, lower tariffs, or to avoid country specific
restrictions or tariffs.
5. Undervaluation and overvaluation of imports/exports: the price and quantity of
goods are incorrectly reported and is the most common form commercial fraud.
Discrepancy in India’s FDI inward position:
Estimates of accumulation of unrecorded foreign
assets in India amount to US $89 billion (2011).
Example: India has underreported inward FDI flows
from Mauritius of US $108 billion[2]
Processes
$35.9
billion
The net financial flows for trade misinvoicing
for the year 2010 amounts to:
[2] Source: A Study on Unaccounted Income in India, National Institute of Public Finance and Policy (NIPFP), 2012
9. 9|
Trade Misinvoicing
When imports are over-invoiced, the amount of money paid out is far higher than the
actual value of goods imported into the country. Similarly, when exports are under-
invoiced, the amount of money received as export earnings is shown as far less than
the value of goods sent out.
On the other hand, importers would under invoice imports in order to escape
customs duty. Export over invoicing may occur when exporters try to take advantage
of export financing or other incentives given to exporters.
These practices happen simultaneously and the net amount dictates the flow.
Between 2000 and 2009, there was a net outflow of US $42.6 billion to Switzerland.
In the same period, there was a net inflow of $33 billion from Singapore into India
through trade misinvoicing.
The amount that has illicitly been moved
out of India between 2010 and 2013
through trade misinvoicing[3].
How does misinvoicing work?
$332 billion
[3] Source: The Drivers and Dynamics of Illicit Financial Flows from India: 1948-2008, Dev Khar, Global Financial Integrity, 2010
10. 10|
Example of Trade
Misinvoicing
AUS exporter ships 50 cars to
India. However, he sends the
invoice of $1 million to the Indian
company’s subsidiary in Mauritius
and gets paid for that amount.
The Indian importer sells the cars for $2
million, but shows the import bill of $1.5
million, thus evading tax of $500,000 and
parking it in an offshore account.
11. 11|
Illicit Financial Flows
Illegal or illicit capital flows can be generated through a number of means that are not
revealed in national accounts or balance of payments figures: trade mispricing, bulk
cash movements, Hawala transactions and smuggling. Illicit financial flows involve
cross-border transfer of the proceeds of corruption, trade in contraband goods,
criminal activities, and tax evasion.
Estimate of total capital flight from India in
2010. As a percentage of GDP, illicit flows
from India range from 6.7% in 2007 to 0.9%
in 2009[4].
The net outflow from India has been $41
billion from 1970 to 2010[5].
Hawala Transactions
Hawala mechanism involves a network of agents and is used by migrants and other
players to transfer money from one location to another without the use of the formal
banking sector.
The individual who wants to transfer funds to another country uses an agent and
hands over the money to be transferred along with the recipient’s details. Another
agent in the recipient’s host country hands over the prescribed money and the two
agents settle the differences.
The rationale behind the use of such remittance systems are: 1) cost-effectiveness,
efficiency and reliability for people seeking to transfer legitimate or legal incomes and
2) lack of bureaucracy, lack of a proper trail and tax evasion or money laundering for
those who have difficulties revealing the sources of funds.
Since Hawala transactions are ‘invisible’ to legal authorities, it has been a vehicle for
the financing terrorist activities and money laundering.
$24.8 billion
[4] Source: A Study on Unaccounted Income in India, National Institute of Public Finance and Policy (NIPFP), 2012
[5] The Price of Offshore Revisited, Henry, Tax Justice Network, 2012
12. 12|
Illicit Financial Flows
Potential inflows through Hawala dealers:
1. Transfer by migrant workers to their families in India, mostly due to convenience, lower
transfer charges and better exchange rates.
2. Recovery of revenues transferred abroad through export under-invoicing. Exporters
would reduce their tax liability by EUI and bring back the locked revenue through
Hawala routes. However, FII and FDI are more attractive options.
3. Transfers by NRI to finance investments in India (real estate, etc).
Potential outflows through Hawala dealers:
1. Outflow for legitimate investment in India:Tax policies incentivising FDI and FII as
against domestic investment would encourage investors to seek to mask local
investment as FDI/FII.
2. Transfer for investment in the rest of the world: Investment through tax havens can
generate incomes with low tax liabilities from almost anywhere in the world. Further, if
income generated in India is unaccounted/illegal, better to move it out of the country to
avoid detection.
3. Transfers to finance import under-invoicing/export over-invoicing: Imports face customs
duties and local taxes on subsequent sales. However, by under-invoicing and meeting
the balance through Hawala, importers can escape high customs rates.
The total informal hawala market in India for
foreign exchange transactions in 2010.
Though the absolute number has been
increasing, the share of hawala in total
private transactions have reduced from
0.3% in 1991 to around 0.1% in 2010 [6].
Processes
[6] Source: A Study on Unaccounted Income in India, National Institute of Public Finance and Policy (NIPFP), 2012
$6 billion
13. 13|
Illicit Financial Flows
RoundTripping is the process of channeling local funds to special purpose entities
abroad and the subsequent return of funds to the local economy in the form of direct
investment.
In India, the rationale for round-tripping is the favourable treatment received by
investment from specific countries, for ex, Mauritius, Cyprus, Singapore and the
UAE, as a result of the specific provisions in DoubleTaxation AvoidanceAgreement
(‘DTAA’) with these countries.
The FDI statistics illustrate the preference for inflows from countries that are
recipients of special tax treatment from India. Nearly 28% of FDI inflows in to India
comes from Mauritius.
The present value of India’s total Illicit financial
flows.This is the stock of illegal capital flight from
India from 1948 to 2010. However, a significant
portion of this returns to India as part of round
tripping.
This is the product of corruption, bribery and
kickbacks, criminal activities, and tax evasion.
Illicit financial flows grew at 6.4% in real terms.
India lost $16 billion a year from 2002-2006 [7].
Round Tripping
[7] Source: The Drivers and Dynamics of Illicit Financial Flows from India: 1948-2008, Dev Khar, Global Financial Integrity, 2010
$462 billion
14. 14|
Money Laundering
From stashing unaccounted money in Swiss bank accounts to complicated Hawala
nets, money laundering has taken its own form in India.
Three part procedure to launder black money:
1. Placement:Criminals place illegal money in the financial system to launder it.The
likelihood of being caught is highest at this stage.
2. Layering: Hiding black money behind several layers of transactions, distancing the
money from the launderer. (eg: offshore accounts, shell companies, etc.)
3. Integration: Illegal money is integrated into the financial system and mixed with
other assets. Once this happens, distinguishing such money from legitimate money
becomes impossible.
4. Money may be laundered through: (i) establishing anonymous companies in tax
havens; (ii) trade mis-invoicing; (iii) purchasing artwork, jewellery, real estate, high
end automobiles, etc.
Money laundering through the underground
diamond trade runs into Rs. 400 billion.
Approximately Rs. 18.86 trillion of black money
was laundered out of India over the last decade.
Laundering money by banks takes place when they
ignore KYC norms, banking personnel are complicit
[8].
Processes
[8] Source: A Study on Unaccounted Income in India, National Institute of Public Finance and Policy (NIPFP), 2012
Rs. 400 billion
15. 15|
Real Estate
India’s real estate sector makes up about 5-6% of GDP (US$ 40-45 billion) and is
expected to touch $180 billion by 2020. Of this, the housing sector alone contributes
90-95%, while commercial segments and organised retail makes up the rest. From
2005 to 2012, the real estate sector received $10.2 billion from FDI.
Different Players in the market
Main Players: Developers, builders, contractors, and investors
Investors span traders/speculators, outright buyers, project financiers, real estate
funds/investment trusts/ private equity funds, property agents/brokers, and
underwriters.
The Central Economic Intelligence Bureau estimates
that up to 40% of the total unaccounted income in
India is parked in real estate.
The Sector
40% of total
black money
16. 16|
Real Estate
Vulnerability of the real estate sector to the generation and absorption of unaccounted
income:
The “White Paper on Black Money” by the Finance Ministry (2012) notes that real
estate is a “common means of parking unaccounted money”.
Rapid urbanisation and migration; the limited availability of land; discretionary rules
for the allotment/sale of government land; the acquisition of private land by the
government; zoning regulation laid down different urban development authorities;
rules relating to stamp duties and registration charges and the difficulties in correctly
valuing the actual cost of construction have all contributed to the prevalence of
unaccounted income in real estate.
Further, the ease of concealing ownership through benamis, use of false identities,
corporations, or trusts, disguising ownership through complex structures spread across
several tax jurisdictions adds to the problem.
The percentage of real estate transactions that is
unaccounted in India.
The Central Board of DirectTaxes attribute this
mainly to the incomparability of immovable
properties and the ensuing variable valuations[9].
The Sector
[9] Source: CEIB, A Study on UnaccountedIncome in India, National Institute of Public Finance and Policy (NIPFP), 2012
40% of real
estate
17. 17|
Real Estate
1. Percentage completion method for accounting annual profits: Builders do not bring into
P/L account any amount of the project till 20 to 40 per cent of the project cost is completed.
2. Absence of project-wise accounts: Most builders prepare and submit a composite
financial statement of projects spanning different locations and regulations, making it
easier to conceal inflation of costs and suppression of receipts.
3. Suppression/Understatement of receipts: Due to high tax rates – stamp duty of 5-14%
and long term capital gains of 20% - both buyers and sellers tend to under-report the
transaction value and settle the differential via cash. Understatement up to 40-50% is
common.They also generate various receipts from ancillary sources, which aren’t recorded.
4. Inflation of expenses: It is a common practice to inflate expenses through fictitious bills
and overstate rates/quantities.Wage is an important expense in real estate projects and
can easily be overstated by manipulating wage/attendance registers and paying via cash.
5. Inflation of profits from projects exempt from IT
6. Linkages with other taxes: The large amount of unaccounted money in real estate is
attributed to high transaction tax, in the form of stamp duty, which ranges from 3-14%.
The existence of multiple levies of service tax also contributes to unaccounted income.
Finally, sales tax and work contracts incentivise developers and builders to go the
unaccounted route.
Estimate of unaccounted money
generated in real estate transactions in
India in the year 2010-11[10].
Issues in Taxation in Real Estate
[10] Source: A Study on Unaccounted Income in India, NationalInstitute of Public Finance and Policy (NIPFP), 2012
Rs. 4 trillion
18. 18|
Real Estate
Corruption in Land Acquisition
Corruption in real estate begins with land acquisition – via allotment or auction. Politicians and
builders have inside information about upcoming critical infrastructure projects, which can
increase land rates. Politicians also leverage their power to help builders acquire land for a
commission.The vagueness of ‘public purposes’ leaves public land vulnerable for allotment to
private individuals.
Land Notification and Denotification
Under this, a politician involved in the decision to notify land for acquisition can acquire land
through relatives and claim huge amounts in compensation. Politicians also denotify lands
identified for acquisition in exchange for bribes from builders and developers. Several former
Chief Ministers of Karnataka have land notification and denotification cases filed against them.
One such instance in Bangalore cost the Karnataka state exchequer around Rs.5 billion.
Corruption in Approvals: Builders are keen to build up to the maximum amount possible,
whereas, building byelaw places limits on Floor Space Index (FSI).The mechanism for fixing FSI
in different parts of the city is opaque. After FSI, the builder requires several approvals from
different regulatory bodies, and at each stage, there is ample scope for corruption.
In Maharashtra, for example, a builder needs about 60 approvals from the government to
construct a property, which typically takes between one and four years. In order to ensure
approvals, builders have to resort to paying bribes, which add about 30% to the project cost.
Unaccounted value as a percentage of total value of
transaction in New Delhi in the year 2010 amounts
to 78%. In Bangalore and Kolkata, the number is
around 50%[11].
Corruption in Real Estate
[11] Source: A Study on Unaccounted Income in India, National Institute of Public Finance and Policy (NIPFP), 2012
78% in New
Delhi
19. 19|
Education
Regulated and Unregulated: The regulated sector in education consists of school
education and higher education, which is further categorised into technical, non-
technical and medical education.The unregulated sector consists of pre-school,
coaching and vocational training institutes.
Biggest sources of black money in this sector are bribe payments made by these
institutions to get approvals, extremely high capitation fees in higher education
(around Rs.5 million for a seat in medical college and Rs. 1.5 million in engineering),
high donations for school admissions, gold plating of expenses incurred, branding
and sale of franchise, etc.
Educational institutions are often not held to the same standards of accountability
as other firms.The DirectorateGeneral of IncomeTax does not have a regular system
for exchanging information with other institutions that are authorised to register
charitable institutions.
Educational institutions are often exempt from filing annual returns in digital forms.
The amount of unaccounted income
generated in the education sector in a
year.
The estimated total capitation fee
for 2011 was Rs.59.53 billion in
Indian higher education[12].
The Education Sector
[12] Source: Investigative research report on black money generation in Education, Centre for Research and Prevention ofComputer Crimes, June 2014.
Rs. 484 billion
20. 20|
Gold
The demand for gold in India is quite inelastic as evidenced by the 25% growth in
demand for gold despite a 400% rise in import duties.
The jewellery demand in India was estimated at 0.4 grams per annum per capita.This
represents 75% of the total demand for gold in India.
Gold plays a major role in the generation and absorption of black money in the
country.When import duties increase, smuggling of gold increases proportionately. IT
officials raiding and finding crores worth of gold is quite a common story.This shows
that gold is a popular instrument for storing unaccounted income.
There’s also significant round tripping of gold. Some agents have nominated agency
status, which allows them to import gold free of duty on certain conditions. In order to
meet this criteria, these agents import gold, convert them into coins and jewellery,
export it, get it recycled into gold bars and import it again to India.
Gold is also a popular instrument in the Hawala market for settling differences
between agents.
According to a report by Macquarie titled “India’s
fatal attraction”, Indians hoard about $950 billion or
18,000 tonnes of gold.
Around 8% of India’s total household savings are
held in gold
India is the world’s largest consumer of gold,
accounting for 11% of global gold stock [13].
Demand for gold and Malpractices
[13] Source: Gold: dulling India’s economy, Neil Munshi, Financial Times, 05 December, 2011
$950 billion,
18,000 tonnes
21. 21|
Mining
- Understatement of production
- Inflation of expenses
- Understatement of Sale Price/export proceeds
- Collusive Arrangements
- Illegal Mining
- Diversion of illegally mined ore for domestic production
- Under-invoicing of exports
- Large ScaleCorruption
Income tax officials unearthed underinvoicing and tax evasion of around Rs. 860 million by
a company in Bellary, Karnataka.Typically, mining companies get permission from the
environmental ministry to mine up to a particular quantity. However, it is common practice
to over-extract the natural resource and under report it.
According to an investigative report byThe Hindu, the loss to Karnataka’s exchequer
due to illegal mining was Rs.1 trillion between 2006 and 2010[15].The Lokayukta report
in 2011 claims that nearly 30 million metric tonnes of iron-ore was illicitly exported
during this period, which amounts to Rs. 122.28 billion[16].
Estimates suggest that loss to the exchequer due to
illegal mining in India is around Rs. 160 billion over 4
sample years.
Estimates of overall leakages in the mining sector
amounts to 10.2% of GDP contribution from this
sector[14].
Processes
[14] Source: A Study on Unaccounted Income in India, NationalInstitute of Public Finance and Policy (NIPFP), 2012
[15] Karnataka lost Rs. 1 lakh crore from 2006-2010, Sudipto Mondal, The Hindu, 17 June 2013.
[16] Report on the reference made by the Government of Karnataka under section 7(2-a) of the Karnataka Lokayukta Act, 1984, 27 July, 2011
Rs. 40 billion
22. 22|
Agriculture
Most of the agricultural income in India is not subject to tax.While agriculture accounts for
about 12.3% of GDP in 2009-10, its contribution to taxation is limited toVAT paid on some
of the products and income tax paid on few of the plantation crops such as tea.
Since an entire stream of income is exempt, it invites avenues to launder black money,
where tainted income gets treated as agricultural income.This is witnessed by agricultural
incomes growing exponentially, when there is no visible growth in productivity in
agriculture.
A growing trend is that of corporates reporting agricultural income.Total agricultural
income reported by corporates amount to Rs. 313.13 billion in 2009-10. Not all these
companies specialise in agricultural products.Taxes foregone due to this amount up to Rs.
114.18 billion in 2009-10[18].
A large part of the problem arises from the loosely defined term of “agricultural income”,
which is currently broad enough to invite people claiming tax exemptions for a wide array of
activities. Multinationals involved in growing hybrid seeds also claim that their profits are a
part of agricultural income and thus should be tax exempt.
According to an estimate by NIPFP, Rs.500 billion is
the revenue foregone by not taxing agricultural
income in 2007-08.This amounts to 1.2% of GDP. It
would also add about 19% to the revenue of the
states[17].
In 2011, according to an RTI, the agricultural
income declared was Rs. 2,000 trillion by 657,000
assessees, giving an average income of Rs. 304
million[19].
The problem with agricultural
income
[17, 18] Source: A Study on Unaccounted Income in India, National Institute of Public Finance and Policy (NIPFP), 2012
[19] Farms grow massive income for select few, D K Pandey and S Raghavan, The Hindu, 19 March 2016
Rs. 500 billion
24. 24|
Government Contracts
The CentralVigilanceCommission (CVC) received 7,227 complaints (including 1,696 cases
from the previous year) of corruption (including kickbacks) against government employees
in 2012. In 2011, the CVC received as many as 8,805 complaints against railway employees,
followed by 8,430 against bank employees and 5,026 against income tax officers.
Kickbacks follow every government department that carries out transactions with private
parties.The amount of money siphoned off depends on the size of the original transaction.
There are kickbacks in natural resources, energy, telecom, defense, public works, irrigation,
roads, and any other sector that calls for a tender/government contract.The process is
strikingly similar across departments.There are rules which mandate all government
contracts to be made through tenders, but the tender process is more often than not rigged.
The minister introduces his chosen contractor to the superintending engineer.The terms and
conditions of the tender are fixed in consultation with this contractor to his/her favour.This
contractor then submits three tenders - two of them from bogus companies - to make it
appear like a competitive, transparent process and finally walks away with the contract.
In the process, the contractor pays 6% of contract cost to the minister as down-payment;
another 6% to relevant officials after winning the contract, 3% for project clearance,
pollution control and subsidy clearance. An additional 6% goes to the minister each time
the project cost increases.
Real estate and gold are also preferred forms of paying kickbacks.
The estimated percentage of kickbacks on
most government contracts, as admitted by
government officials.
Of the 1048 cases registered with the CBI in
2012, over 75% involved kickbacks received
by government officials[20].
Processes
[20] Source: Kickback Nation, Veena Sandhu and TE Narasimhan, Business Standard, 8 June 2013
10% - 20%
25. 25|
Defence Procurement
According toTransparency International, there has been massive expansion in India’s
military capabilities, and consequently there has been a similar increase in kickbacks for
defence procurement and corruption in other related activities.
Apart from the AgustaWestland scandal, there have been several big ticket scams in
defence procurement recently. Investigation into the Barak Missile procurement revealed
that about 3.5% of procurement cost was paid as bribe to concerned government officials.
Sudipta Ghosh, Kargil coffins,Tatra trucks and Assam Riflex cases are some of the high
profile scandals plaguing the Indian defence sector.
Transparency International also reports that, in 2013, the Indian Army was found to be
running golf courses illegally on government land. Air Force officials have used defence
land for unauthorised use like building shopping malls and cinema halls. India’s defence
institutions have also been involved in the exploitation of natural resources.
There are kickbacks at all levels in the Military Engineering Services responsible for
providing accessory services like military roads, water and electricity supply, drainage,
furniture etc.
Though the CAG and PAC have provided active oversight on defence procurement, the
absence of a coherent defence policy weakens the quality of oversight. Further, there was
no legislative oversight of India’s intelligence agencies.
The alleged bribe given to government and
air force officials by AgustaWestland for
securing the Rs.36 billion deal[21].
Transparency International rated India in
the ‘D’ or ‘high’ risk bracket for corruption
in government defence [22].
Processes
[21] Source: CBI seeks Italian Court’s order on AgustaWestland Graft, NDTV, 27 April 2016
[22] Government Defence Anti-Corruption Index, Regional results: Asia, Transparency International, 2015
Rs. 3.60 billion
26. 26|
Election Funding
1. High percentages of voters are paid in cash and drugs to lure their votes.
2. Accepting cash donations of amounts over Rs. 20,000; keeping names and details
of the donors private, etc. causes a lot of opacity in the election funding system.
3. Election candidates and political parties do not honestly declare their estimated
and actual election spending.The ElectionCommission has found significant
discrepancies in the expenditure declared and the expenditure estimated to have
actually been incurred.
4. The IncomeTax Act does not have sufficient conditions or political parties to fulfill,
in order to avail tax exemption.
5. Lack of communication between IncomeTax Department and the Election
Commission is a disadvantage.The present system does not allow for the Election
Commission to share each party’s election candidate’s election affidavit and
expenditure sheet with the income tax department. Enabling this would assist the
income tax department which can then be allowed to scrutinize cases as
appropriate.
Estimated proportion of election funding that comes
from unaccounted sources is 75%.
A 2001 committee report found that a candidate’s
campaign expenditure was 20 times more than the
permissible limit.
Statistically, candidates with declared assets of over Rs.
50 million are more likely to emerge victorious than
others[23].
Processes
[23] Source: A Study on Unaccounted Income in India, NationalInstitute of Public Finance and Policy (NIPFP), 2012
75% of election
funding
27. 27|
Irrigation, Roads, PWD,
National Highways
1. Due to an opaque tendering process, sub-par contractors engaged.Therefore, quality is
compromised and funds misappropriated.
2. Kickbacks at all levels – from engineers, to contractors, to politicians. Approximately
22% of the tender costs in irrigation are political kickbacks – paid to everyone from the
clerk to the minister in charge. Numerous such scattered incidents of corruption are
found across India.These instances are symptoms of a larger problem – that of laxity in
governance[26].
3. Collusive relations between concessionaries and implementation agencies;
4. Institutional failure and laxity. Compromised quality of irrigation systems because of
political and contractors’ kickbacks
5. Contractors procuring construction contracts collusively show poor performance.
Malpractices and Reasons
The estimated sudden suspicious increase in
the cost of irrigation projects in
Maharashtra[24]
The biggest Public Works Department (“PWD”)
scam unearthed in Karnataka[25].
Big contractors have hijacked the entire process, and the lack of transparency in publicly available data
makes it more difficult to gauge the extent of corruption.
[24] Source: Irrigation Scam, a Drain on Maharashtra’s Exchequer , The Hindu, 26 September 2012
[25] Source: Magadi Sub-division Scam: PWD Secretary named in charge sheet, The Hindu, 29 July 2014
[26] Source: Source: A Study on Unaccounted Income in India, National Institute of Public Finance and Policy (NIPFP), 2012
433%
Rs. 563 million
28. 28|
Irrigation, Roads, PWD,
National Highways
1. Complicated regulatory structures and approval processes lend the sector prone to
bribery and corruption.
2. Poorly implemented and monitored administrative tasks (eg: detailed project reports)
leads to lesser accountability.
3. Lax redressal mechanism for aggrieved farmers, consumers.
4. No standardization of unit costs of construction.
5. Due to non mobilization and non replacement of key personnel, quality of supervision is
also compromised.
Additional Challenges
[27] ‘Hand over road repairs scam probe to CBI, dissolve BMC’, The Times of India (Mumbai Edition), 29 July 2016
The estimate of corruption in road
repairs in Mumbai over the last 3
years[27].
Rs. 90 billion
29. 29|
Government Schemes
1. Large bribes paid by beneficiaries to avail essential PDS services;
2. Payment system is unregulated. Beneficiaries are required to pay much higher than
mandated;
3. Wastage of essential PDS goods due to lack of supervision over trucks;
unavailability of goods due to callous supervision / vigilance;
4. Reselling of goods procured through the PDS system in the open market;
5. NREGS workers are paid by contractors and middle men, who make the most of
this opacity and appropriate funds to themselves and other government officials;
6. Corruption and funds derailed at every bureaucratic rung of the NREG system; and
7. Inadequate worksite facilities to the NREGS workers, assets of bad quality
contribute to overall failure of the system.
Rampant corruption at every rung of
bureaucracy contributes to the
prevalence of black money[28].
The total unaccounted money in the Public
Distribution System (“PDS”)
Processes
Or, 24% of the total amount of funds
misappropriated from the National Rural
Employment Guarantee Scheme (“NREGS”).
[28] Source: A Study on Unaccounted Income in India, National Institute of Public Finance and Policy (NIPFP), 2012
Rs. 141.55 billion
Rs. 91.69 billion