Current General Studies Magazine (April 2017)

General Studies - II "Debate based Article" (Proposal to tax agricultural income)

Amnesia and ignorance don’t facilitate discourse, especially when indulged in by people who catapult themselves into it, without being aware of the present policy or its past evolution. This piece is not meant to stir the pot on agricultural income taxation further, but it will state some facts. First, Section 2 (1A) of the Income Tax Act defines agricultural income as rent/revenue from land, income derived from this land through agriculture and income derived from buildings on that land. Second, Section 10 (1) of the Income Tax Act excludes agricultural income from a computation of total income. Neither of these sections is dispute-free and chartered accountants and lawyers have been enriched via these. But broadly, these propositions are true.

Third, conditions on the sale of agricultural land vary from state to state. In some states, there is a requirement that land can only be sold to “farmers”. But not every state requires this. When there is a stipulation, there are no credible checks on “farmer’s certificates”, in addition to circumvention through the leasing route. Fourth, in the Seventh Schedule, Entry 82 in the Union List mentions taxes other than agricultural income, while Entry 46 in the State List mentions taxes on agricultural income. Therefore, arguing that this is in the State List is valid. But, if I have apoplexy at the mention of an agricultural income tax, there can be only two conclusions: I don’t know that some states tax agricultural income, or I am denying state legislatures their right to tax agricultural income.

Fifth, long before the Income Tax Act of 1961, there was the Income Tax Act of 1860, now forgotten. This was the introduction of income tax in India (in a modern sense) and it was meant to be temporary. Wonder of wonders, it taxed agricultural income till 1886. What changed in 1886, or between 1860 and 1886? The answer had more to do with general resentment against colonial rule, and less to do with agricultural income taxation directly. Sixth, in 1932, there was the Federal Finance Committee of the Round Table Conference and its report. If we have the present constitutional structure, that’s because of this report and the Government of India Act (1935).

Seventh, we have had Agricultural Income Tax Acts in Bihar (1938), Assam (1939), Bengal (1944), Orissa (1948), Uttar Pradesh (1948), Hyderabad (1950), Travancore and Cochin (1951) and Madras and Old Mysore State (1955). Eighth, this isn’t entirely history — we still have the Assam Agricultural Income Tax Act (1939), the Bihar Agricultural Income Tax (1939), the Kerala Agricultural Income Tax Act (1991), the Tamil Nadu Agricultural Income Tax Act (1955), the Orissa Agricultural Income Tax Act (1947), the Maharashtra Agricultural Income Tax (1962) and the Bengal Agricultural Income Tax Act (1944), or so I think.

Unlike the Karnataka Agricultural Income Tax Act (1957), repealed in 2016, I am not aware of these statutes having been repealed. Therefore, it isn’t true that states don’t tax agricultural income, though it’s true that they tax some kinds of agricultural income, such as plantations. Ninth, it isn’t as if this issue was discovered yesterday. The issue of taxing agricultural income (and wealth) goes back to the 1960s. There must be a unified system of taxation across states. Agricultural income taxation must be integrated with non-agricultural income taxation. Land revenue tax hasn’t quite worked and must be replaced.

Current General Studies Magazine (April 2017)

General Studies - II "Polity Based Article" (Lokpal delay)

The Supreme Court has asked the Union government to appoint the Lokpal without the Leader of Opposition being a part of the selection panel. There is no Leader of Opposition recognised as such by the Speaker in the present Lok Sabha. This is often cited as the reason for not appointing the Lokpal. It is surprising that the SC did not ask the government why the position is vacant in the first place.

There is a lot of disinformation surrounding the Leader of Opposition. It is a statutory office provided for in the Salary and Allowances of Leaders of Opposition in the Parliament Act, 1977. Section 2 of this act states: “‘Leader of the Opposition’, in relation to either House of Parliament, means that [a] member of the Council of States or the House of the People… who is, for the time being, the Leader in that House of the party in opposition to the Government having the greatest numerical strength and recognised as such by the Chairman of the Council of States or the Speaker of the House of the People…”

Two things are made clear by the act: One, the leader of the party in opposition to the government which has the greatest number becomes the Leader of Opposition. Two, the Speaker needs to recognise him/her as the Leader of Opposition. The law is clear that the Speaker is required to recognise the leader of the numerically largest party in opposition as the leader of opposition. The option of not recognising him/her is just not available.

Since it is a statutory position, why is there no Leader of Opposition when the numerically largest party has 44 members? Under the law, even if the party in opposition has a single member, he/she is entitled to be recognised. In the Delhi assembly where there is a similar law in force, the BJP — which had only three members in a House of 70 (now four) — proposed one of its members as the Leader of Opposition. The Speaker recognised him as such. By doing so, the Speaker was not obliging the BJP, he was performing a duty imposed by the statute.

Udaypur Declaration : Environment for UPSC Exams

• At the 2nd meeting of BRICS Ministers on Disaster Management adopted of the Udaipur Declaration.
• They decided to set up a dedicated Joint Task Force for Disaster Risk Management for regular dialogue, exchange, mutual support and collaboration among BRICS Countries.
• The roadmap for implementation of the three-year Joint Action Plan (JAP) for BRICS emergency services (2016-18) was also finalised.
• The JAP was agreed upon at the first meeting of BRICS Ministers for Disaster Management at St. Petersburg in Russia in 2016.
• BRICS nations have made a clear move from relief-centric to a holistic approach to disasters with a greater emphasis on prevention, mitigation and preparedness.

Portable kit by BARC : Environment for UPSC Exams

• Bhabha Atomic Research Centre (BARC) has developed a portable kit for detection of Chromium contamination of water.

• Chromium, which is widely used in industries such as leather, steel, chrome plating, paint manufacturing and wood preservation, is one of the major effluents found in water in several parts of the country.

• Hexavalent Chromium Cr (VI) is toxic and the World Health Organisation has classified it as carcinogenic, adding that its presence in water can cause stomach ulcers and cancers and severe damage to kidneys and liver.

• While the existing imported kit for on-site detection of chromium (VI) costs about Rs. 100/sample, analysis using the BARC kit will cost Rs16/sample.

• The portable kit involves adding a specified amount of specific reagents to the water sample and identifying the developed colour. The colour develops within 5 minutes and the distinction can be made with the naked eye. For ease of comparison, a colour chart is provided with the kit.

• According to IS10500 standards for drinking water, the maximum permissible concentration of Cr(VI) in drinking water is 50 microgram per litre. The Environment Protection Agency (EPA) recommends a lower permissible concentration of 10 microgram per litre.

:: Atal Pension Yojana (APY) Modified to Increase the Acceptability ::

AMRIT Scheme : Important Topics for UPSC Exams​

Star Rating of Mines : Environment for UPSC Exams

• A ‘Star Rating’ system has been instituted by the Ministry of Mines through Indian Bureau of Mines (IBM), in which star rating will be awarded to the mining leases for their efforts and initiatives taken for implementation of the Sustainable Development Framework (SDF).

• Rating of one to five stars would be given to the mines by IBM.
• Under this system, a provisional ‘Star Rating’ would be awarded on self-certification basis of the evaluation template, filed by the mining lessee.
• A web-portal has been developed for online filing of the evaluation template for Star Rating of Mines.
• IBM felicitated 19 mines who were given rating of 4/5 stars, during the National Conclave for Mines and Minerals held at Raipur on 4th July, 2016.
• Those states are: Jharkhand, Rajasthan, Maharashtra, Tamil Nadu, Telangana, Karnataka, Chhattisgarh, and Orissa.

Swachhta Pakhwada Campaign : Environment for UPSC Exams

• It is an environment awareness campaign under Swachh Bharat Mission.
• It is for achieving total sanitization and cleanliness by October 2, 2019 under Swacchh Bharat Mission.
• Under the campaign a theme wise “Swachh Bharat Fortnight” is being organised by different Ministries.
• It is a voluntary exercise and objective is to create awareness, target programmes, invite pledges, spending of CSR etc.
• It has also been followed by private institutions and corporates groups.

Steps for Protection of endangered species : Environment for UPSC Exams

• Legal protection: Under Wild Life (Protection) Act, 1972, Protection has been provided to wild animals against hunting and commercial exploitation.

• The punishment for offences under the Act has been enhanced. The Act also provides for forfeiture of any equipment, vehicle or weapon that is used for committing wildlife offence(s).

• Protected Areas:  National Parks, Sanctuaries, Conservation Reserves and Community Reserves covering important wildlife habitats have been created all over the country under the provisions of the Wild Life (Protection) Act, 1972 to conserve wild animals and their habitats.

• ‘Project Tiger’ and ‘Project Elephant’ for providing better protection to wildlife, and improvement of its habitat.

• Financial and technical assistance by centre under:

• ‘Integrated Development of Wildlife Habitats' -- Recovery programs for sixteen species have been prioritized for taking up such recovery programs which include:

• Birds: Edible-nest Swiftlets, Nicobar Megapode, , Vultures, and Jerdon’sCourser

• Mammals:  Snow Leopard, Bustards (including Floricans), Hangul, Nilgiri Tahr, , Asian Wild Buffalo,  Manipur Brow-antlered, Malabar civet, the great one-horned rhinoceros, Asiatic Lion, Swamp deer

• Aquatic:  River Dolphin, Marine Turtles, Dugongs and coral reefs,

Government Plan Programme Policies for UPSC Exam

:: The Income Declaration Scheme 2016 ::

The Income Declaration Scheme, 2016 incorporated as Chapter IX of the Finance Act 2016 provides an opportunity to all persons who have not declared income correctly in earlier years to come forward and declare such undisclosed income(s).

Under the Scheme, such income as declared by the eligible persons, would be taxed at the rate of 30% plus a ‘Krishi Kalyan Cess’ of 25% on the taxes payable and a penalty at the rate of 25% of the taxes payable, thereby totalling to 45% of the income declared under the scheme.

The scheme shall remain in force for a period of 4 months from 1st June, 2016 to 30th September, 2016 for filing of declarations and payments towards taxes, surcharge & penalty must be made latest by 30th November, 2016. Declarations can be filed online or with the jurisdictional Pr. Commissioners of Income-tax across the country.

Smart Ganga City : Important Topics for UPSC Exams

What is it?

DMH-11 : Environment for UPSC Exams

• Dhara Mustard Hybrid-11 or DMH-11 is a genetically modified variety of mustard developed by the Delhi University's Centre for Genetic Manipulation of Crop Plants.

• If approved by the Centre, this will be the second GM crop, after Bt Cotton, and the first transgenic food crop to be allowed for cultivation in the country.

• The Genetic Engineering Appraisal Committee (GEAC), the regulator under the Ministry of Environment, Forest and Climate Change (MoEF) can clear the GM mustard for commercial use in India.

• As per expert committee reports, the introduced proteins i.e. Barnase and Barstar are expressed at negligible to non-detectable levels in the edible parts and have been derived from commonly occurring non-pathogenic bacteria and are not toxic or allergenic.

• Bt-Cotton is the only GM(Genetically Modified) crop being commercially cultivated in India.

Waste Recycle using Nanotechnology : Environment for UPSC Exams

• Traditional methods for the treatment of industrial dyes are expensive and do not completely break them down to non-toxic constituents but merely concentrate them.

• Reseachers have developed a photo-catalytic degradation agent using titanium dioxide nano-particles doped with sulphur and carbon by treating it with red seaweed polymer carrageenan.

• The energy required to activate the catalyst is less when it is doped, making the dye degradation faster than the traditionally available ones.

• The researchers have been able to totally degrade three industrial dyes - methyl orange, methylene blue and reactive black-5 - in the presence of sunlight.

• Visible light is mainly responsible for the degradation.

• Further advantage is that the nano-composites are thermally stable and can be reused up to six times with the degradation efficiency remaining at over 97 per cent.

Government Plan Programme Policies for UPSC Exam

:: Insolvency and Bankruptcy Code, 2016 ::

With the passing of ‘Insolvency and Bankruptcy Code,2016’, India has crossed an important milestone in becoming a world class economy. The Lok Sabha had already passed the Bill on 5th May, 2016.

Hitherto India was lacking the legal and institutional machinery for dealing with debt defaults as per the global standards. The recovery proceedings by creditors, either through the Contract Act or through special laws such as the Recovery of Debts due to Banks and Financial Institutions Act, 1993 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, has not had desired outcomes. Similarly, action through the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) and the winding up provisions of the Companies Act, 1956 have neither been able to aid recovery for lenders nor restructuring of firms. Laws dealing with individual insolvency, the Presidency Towns Insolvency Act, 1909 and the Provincial Insolvency Act, 1920, were almost a century old. This has hampered the confidence of the lender and development of the credit markets in India. Resultantly, credit by banks is the largest component of the credit market in India and corporate bond market has not yet developed to the desired level.

SCRAMJET: Important Topics for UPSC Exams​

What is it?

• India successfully tests its own scramjet engine in flight on board an Advanced Technology Vehicle rocket.
• Two scramjet engines were tested during the flight from Sriharikota.
• It uses oxygen from the atmosphere as fuel therefore weight of the system is less and their efficiency is more.
• Scramjet engines designed by ISRO uses hydrogen as fuel and the oxygen from the atmospheric air as the oxidiser.
• Similar systems are: Ramjet, Dual Mode Ramjet (DMRJ).
• It is also called Supersonic Combustion Ramjet.
• USA is the 1st country to test Scramjets in 2002. Thereafter Russia, European Agency, Japan and China have also tested this technology. India is the fourth country to demonstrate the flight testing of scramjet engine.

Ramjet vs. Scramjet

• Both scramjet and ramjet engines use the space craft’s forward motion to compress incoming air without an axial compressor.
• Since scramjets cannot produce thrust at zero airspeed, they cannot move a space craft from a standstill. A scramjet-powered vehicle, therefore, requires an assisted take off by a rocket to accelerate it to a speed where it begins to produce thrust.
• It has been found that scramjet engines work most efficiently at supersonic speeds between Mach 3 and Mach 6. A ramjet engine on the other hand can work at subsonic speed.
• Both ramjet and scramjet engines use atmospheric oxygen as oxidizer.
• While exit flow from the inlet of a ramjet engine is subsonic that from a scramjet engine is supersonic.

Save The Tiger : Environment for UPSC Exams

• As per World Wildlife Fund and the Global Tiger Forum (GTF) data, the number of wild tigers has gone up globally by 22 per cent to 3,890, from the earlier 2010 estimate of 3200.

• As per WWF, 100 years ago there were 100,000 wild tigers. By 2010, there were as few as 3,200.

• As per latest official count, India is home to 2,226 tigers, representing 70 per cent of the global population of the endangered big cat species.

• Therefore, in 2010, tiger range governments agreed to act to double wild tigers by the next Chinese Year of the Tiger in 2022. This goal is known as Tx2.

• The Government of India has taken a revolutionary initiative for protecting its national animal, the tiger, by launching the ‘Project Tiger’ in 1973.

• Project Tiger is an ongoing Centrally Sponsored Scheme of the Ministry of Environment, Forests and Climate Change providing central assistance to the tiger States for tiger conservation in designated tiger reserves.

• The National Tiger Conservation Authority (NTCA) is a statutory body of the Ministry, with an overarching supervisory / coordination role, performing functions as provided in the Wildlife (Protection) Act, 1972.

Green Rail Corridor : Environment for UPSC Exams

• The India’s 1st Green Rail Corridor is a 114-km long Rameswaram-Manamadurai stretch in Tamil Nadu.

• Trains in the segment have been equipped with bio-toilets to ensure zero discharge of human waste on the rail tracks.

• In these toilets, anaerobic bacteria – developed by DRDO and hence called ‘DRDO Bacteria’ – converts human waste into water and gas which is released through outlets. Water is subjected to chlorination and then discharged outside.

• In the long-term impact will be a clean and environmental- friendly track that also facilitates a healthy working condition for those working on railway tracks.

• Before end of March next year, the line to (from Jammu) Katra will also be human waste free.