MODI UNVEILS TAXPAYERS' CHARTER: FACELESS ASSESSMENT AND APPEALS

Prime Minister Narendra Modi on Thursday launched a platform to provide

faceless assessment and appeal in income tax cases, which he said was part

of the process to overhaul colonial-era tax laws.

"The previous system, instead of expanding the taxpayer base, was harassing

honest businessmen, workers and those providing employment,'' observed the

PM while also launching the taxpayers' charter, first announced by Finance

Minister Nirmala Sitharaman during her Budget speech.

The Prime Minister said after Independence, the coercive and colonial system

of tax collection was only tinkered with. "But largely the system and the

character remained the same. As a result, the taxpayer, who is a strong

pillar of national development, was put in the dock."

"Reforms should be policy-based, holistic and one reform should form the

basis for further reforms,'' the PM observed while pointing out that earlier

regimes would label changes made under pressure as reforms.

"We've not done just one reform. There have been constant efforts over the

last few years,'" said the PM while pointing to the junking of 1,500

outdated laws, a huge improvement in the ease of doing business and major

changes in laws and rules. "Seeing this commitment the trust of foreign

investors has increased leading to record inflow of foreign direct

investment even during the Corona period," he underlined.

The PM said the changes were due to four reasons: policy-driven governance,

narrowing of grey areas of discretion, limiting human interface by use of

technology, and awarding efficiency in bureaucracy.

The PM said the taxpayer charter will balance between the responsibilities

and duties of a taxpayer and also fix the responsibilities of the

government.

TAXPAYERS' CHARTER: YOUR FIVE KEY RIGHTS AND OBLIGATIONS

Prime Minster Narendra Modi on Thursday unveiled the taxpayers' charter,

which spells out the Income Tax (I-T) department's commitments to taxpayers

as well as expectations from them. Finance Minister Nirmala Sitharaman had

announced that the charter was in the works during Union Budget 2020. Here

are your key rights and duties under charter.

Income tax department's commitments - and your rights:

-Treat taxpayers as honest individuals and entities, unless there is a

reason to suspect otherwise

-Provide fair and impartial mechanisms for review and appeal against (I-T

department's) decisions

-Collect the correct amount of taxes due

-Respect taxpayers' privacy and maintain confidentiality, refrain from

intrusive inquiries or action

-Provide mechanism to taxpayers to lodge complaints and ensure prompt

resolution

Tax-payers' obligations under the charter:

-Be honest and compliant, disclose complete information

-Be informed about tax rules and compliance requirements

-Maintain accurate records and documentation

-Respond in time to any queries raised

-Pay taxes and other dues on time

INDIA REJECTS 'LIES' ON J&K BY PAK ENVOY TO CHINA

In an Indo-Pak war of words that was played out in Beijing, India criticised

Pakistani Ambassador to China Moin-ul-Haque by putting up a statement on all

its social media handles, criticising his interview to "The Global Times".

The Indian Embassy also appended a note stating it was constrained to post

the rejoinder to the Pakistan envoy's interview on the social media because

"The Global Times" declined to carry the response.

The statement slammed the Pakistani envoy for his "lies and half-truths" in

an interview in "The Global Times" and said his observations hid a "blatant

and rapacious campaign of cross-border terrorism aimed at debilitating the

region".

INDIA-AIDED PROJECT TO DWARF CHINESE BRIDGE IN MALDIVES

India yesterday announced its participation in a mega connectivity project

in the Maldives that will overshadow the Maldives-China Friendship Bridge as

the most visible infrastructure project in the island nation.

The announcement accompanied by a financial package of $500 million was made

by External Affairs Minister S Jaishankar during a video-conference with his

Maldivian counterpart Abdullah Shahid.

Maldives will be the first neighbouring country "in keeping with our special

ties" to qualify for an air travel movement of people from both sides for

tourism and medical emergencies, Jaishankar said.

India also agreed to provide urgent financial assistance to Maldives, the

first such aid to another country to deal with the pandemic.

Jaishankar also said a cargo ferry service between India and Maldives will

begin shortly. India's total financial commitment in Maldives covering all

loan and grant projects is well over $2 billion, all of which have been

announced after the coming into power of President Solih in November 2018.

INTERNATIONAL AFFAIRS

======================

ISRAEL AND UAE STRIKE 'HISTORIC' DEAL TO NORMALISE RELATIONS, ANNOUNCES

TRUMP

US President Donald Trump said on Thursday that the United Arab Emirates and

Israel have agreed to establish full diplomatic ties as part of a deal to

halt the annexation of occupied land sought by the Palestinians for their

future state.

The announcement makes the UAE the first Gulf Arab state to do so and only

the third Arab nation to have active diplomatic ties with Israel. Only Egypt

and Jordan have active diplomatic ties with Israel. Egypt made a peace deal

with Israel in 1979, followed by Jordan in 1994.

The recognition grants a rare diplomatic win to Trump ahead of the November

election as his efforts to see an end to the war in Afghanistan have yet to

come to fruition while efforts to bring peace between Israel and the

Palestinians have made no headway.

For the UAE, it further burnishes its international campaign to be seen as a

beacon of tolerance in the Middle East despite being governed by autocratic

rulers.

And for the Palestinians, who long have relied on Arab backing in their

struggle for independence, the announcement marked both a win and setback.

While Thursday's deal halts Israeli annexation plans, the Palestinians have

repeatedly urged Arab governments not to normalize relations with Israel

until a peace agreement establishing an independent Palestinian state is

reached.

A joint statement from the US, the UAE and Israel was issued immediately

after Trump's tweet. It said delegations would meet in the coming weeks to

sign deals on direct flights, security, telecommunications, energy, tourism

and health care. The two countries also will partner on fighting the

coronavirus pandemic.

"Opening direct ties between two of the Middle East's most dynamic societies

and advanced economics will transform the region by spurring economic

growth, enhancing technological innovation and forging closer

people-to-people relations," said the statement by Trump, Netanyahu and Abu

Dhabi Crown Prince Mohammed bin Zayed Al Nahyan, the day-to-day ruler of the

UAE.

It said the leaders had a three-way call discussing the deal.

BIDEN HAILS THE PEACE DEAL

Joe Biden, the presumptive Democratic presidential nominee, called the

agreement a historic step to bridge the deep divides of the Middle East. The

former vice president issued a statement on Thursday, calling the agreement

that the UAE publicly recognize Israel "a welcome, brave, and badly-needed

act of statesmanship" and a "critical recognition that Israel is a vibrant,

integral part of the Middle East that is here to stay."

Israel Prime Minister Benjamin Netanyahu said Thursday that the US-brokered

deal between UAE and Israel represented a "historic day" for his country.

UAE ambassador to Washington said that the landmark peace deal with Israel

is a 'win for diplomacy' and hailed it as a 'significant advance' in

Arab-Israeli relations.

Palestinian Islamist political organisation Hamas slammed the announcement

saying the deal "does not serve Palestinian cause".

In a tweet, Egypt President Abdel Fatah Elsisi praised the US-brokered peace

deal and said on Twitter that he followed the statement with "great

interest" and appreciated the deal.

LIKE OBAMA IN 2016, TRUMP USES 'BIRTHER CONSPIRACY' TO TARGET KAMALA HARRIS

President Donald Trump on Thursday gave credence to a false and racist

conspiracy about Kamala Harris' eligibility to be vice president, fueling an

online misinformation campaign that parallels the one he used to power his

rise into politics.

Asked about the matter at the White House, Trump told reporters he had

"heard" rumors that Harris, a Black woman and US-born citizen whose parents

were immigrants, does not meet the requirement to serve in the White House.

The president said he considered the rumors "very serious."

Harris, who was tapped this week by Joe Biden to serve as his running mate

on the Democratic ticket, was born in Oakland, California, and is eligible

to be president under the constitutional requirements. The question is not

even considered complex, according to constitution lawyers.

Trump built his political career on questioning a political opponent's

legitimacy. He was a high-profile force behind the so-called "birther

movement" - the lie that questioned whether President Barack Obama, the

nation's first Black president, was eligible to serve. Only after mounting

pressure during his 2016 campaign did Trump disavow the claims.

THE REST

========

CORONAVIRUS: INDIA CONDUCTS 830,391 TESTS IN A DAY; POSITIVITY RATE 8%

The total number of confirmed coronavirus cases globally reached 20,807,726

on Thursday.. However, this number represents only the status of infection

as captured through testing, as only lab-confirmed infections are counted as

confirmed cases. This implies the true extent of the coronavirus pandemic's

spread could only be gauged by testing a lot.

The WHO chief had suggested on March 16 that testing was the only way to

understand the extent of the problem and find a solution. "You cannot fight

a fire blindfolded," he had said.

Today, we know that the US, with over 5.3 million cases, is the most

affected country. But it is also the country that has conducted most number

of tests after China, where the virus was first reported. The US has so far

conducted 67.55 million tests in total, or about 20% of the population.

By comparison, India has conducted 26.84 million tests in total, or just

about 2% of the population. On Wednesday, it conducted 830,391 tests.

RAJASTHAN TRUCE AHEAD OF TRUST VOTE TODAY

A handshake Thursday evening between Rajasthan Chief Minister Ashok Gehlot

and rival Sachin Pilot, removed as Deputy Chief Minister following a

rebellion last month, reaffirmed the truce secured by the Congress

leadership ahead of the Assembly session starting Friday.

Pilot and his rebel MLAs reached Gehlot's residence in Jaipur for a meeting

of the Congress Legislature Party where the leaders of the two camps shook

hands, raised victory signs and posed for cameras.

At the meeting, Gehlot said his government will go for a trust vote in the

House "and show the power of Congress".

I-T DEPT PLANS NEW LIST OF TRANSACTIONS UNDER SCANNER

To ostensibly widen the tax base, the Income-Tax Department plans to expand

the list of reportable financial transactions to include hotel payments over

Rs 20,000, life insurance premium payment over Rs 50,000 and health

insurance premium payment over Rs 20,000. Besides these, donations and

payment of school/ college fees over Rs 1 lakh a year, foreign travel,

domestic business class air travel, purchase of white goods, jewellery and

paintings over Rs 1 lakh, demat accounts and even bank lockers are proposed

to be included in the list of the Statement of Financial Transactions (SFT).

More transactional categories in the SFT imply an enhanced flow of

information to tax authorities, but will put the onus on taxpayers to comply

voluntarily. When implemented, it will also be reflected in Form 26AS, the

consolidated annual statement showing tax deductions/ collections and

advance tax against an individual's PAN.

Earlier, in July, the government had launched a revised Form 26AS which

included high-value transactions from SFTs from this assessment year.

RAM, BHUSHAN & SHOURIE WITHDRAW PIL CHALLENGING 'CRIMINAL CONTEMPT'

Senior journalist N Ram, former union minister Arun Shourie and

activist-lawyer Prashant Bhushan today withdrew from the Supreme Court their

PIL challenging the constitutional validity of "criminal contempt" with

regard to scandalising the judiciary.

When the PIL came up for hearing before a Bench headed by Justice Arun

Mishra, senior advocate Rajeev Dhavan pointed out on behalf of the

petitioners that they had already written to the SC Secretary General in

this regard. Dhavan said the petitioners wanted to withdraw the petition

with leave to file it again before an alternative forum.

The Bench allowed the withdrawal of the petition with liberty to file it

before a high court, but not in the Supreme Court.

OPTIONAL EXAMS TO IMPROVE PERFORMANCE IN CLASS 12 BOARDS TO BE HELD IN SEPT

The optional exams for improvement of performance in Class 12 board

examination are proposed to be held in September, the CBSE said on Thursday.

"Optional examination for Class 12 students whose result has been declared

based on the assessment scheme and wish to improve their performance, are

proposed to be conducted in September, along with the compartment

examination for both Class 10 and 12 students. Dates will be announced

soon," CBSE Examination Controller Sanyam Bhardwaj said.

"The marks obtained by a candidate in these optional examinations will be

treated as final for those who have opted to take these examinations," he

added.

RECONSIDER FLIGHT BAN DECISION, TRAVEL AGENTS URGE WEST BENGAL

Two travel agents' organisations have urged the West Bengal government to

reconsider the decision to suspend passenger flights to Kolkata from six

cities with a high number of Covid-19 cases.

The ban on the arrival of flights to Kolkata airport from Delhi, Mumbai,

Pune, Chennai, Nagpur and Ahmedabad was first imposed for a period of 14

days from July 6. It was initially extended till July 31 and then

subsequently to August 15. The restriction was further extended till August

31.

Chairman of Travel Agents Association of India (TAAI) of Eastern Region

Manav Soni wrote to Chief Minister Mamata Banerjee to reconsider the

decision on flight embargo, while Chairman of Travel Agents Federation of

India (TAFI) of Eastern Region Anil Panjabi wrote to Home Secretary Alapan

Bandyopadhyay.

The letter to the CM read, "We need your support towards restarting,

restructuring and restoring travel and tourism Industry."

EARNINGS OF NIFTY50 FIRMS SLUMP TO OVER 6-YEAR LOW

Even as the equity market recovers from the lows of March 20 on the hope of

a swift earnings recovery and benign liquidity, the Covid-19 pandemic is

continuing to erode the profits of India Inc. The underlying earnings per

share (EPS) of the Nifty 50 index, which tracks the combined net profit of

50 companies that are part of the index, has now declined to a

six-and-a-half year low of Rs360 per index unit.

This is the lowest level of earnings for the index since December 2013.

There was a mild dip in corporate earnings in the second half of 2013,

following the monetary tapering by the Federal Reserve earlier that year.

The index had closed the 2013 calendar year with an EPS of Rs337 - down by

about five per cent from its mid-year high of around Rs350. However, this

dip was followed by a sharp upswing in corporate earnings in 2014, led by a

decline in energy and commodity prices later that year.

This year, the combined net profit of 24 index companies, which have

declared their June-20 numbers, has declined by 37 per cent year on year

(YoY), while their revenues, including other income, is down by 21 per cent

YoY so far.

During the March 20 quarter, the combined net profit of these companies had

contracted by 44 per cent, while their revenues had declined by 4 per cent.

This contraction is unprecedented and much worse than the one witnessed in

the wake of the 2008 global financial crisis.

ATHLETES URGE IOC TO ALLOW PROTESTS AT OLYMPICS

Basketballers have become the latest to join the Black Lives Matter (BLM)

movement. When National Basketball Association (NBA) games restarted a

fortnight ago, Los Angeles Lakers star LeBron James was among those who took

part in pre-game mass demonstrations during the national anthem.

But at the Olympics, such protests aren't allowed. According to an update to

Rule 50 of the Olympic Charter in January, a hand gesture or kneeling would

constitute a protest at the Games. Following petitions for a rule change,

the International Olympic Committee's (IOC) Athletes' Commission is talking

to athletes around the world now.

From the 1970s, the Olympic Charter made it clear that "every kind of

demonstration or propaganda whether political, religious or racial is

forbidden in Olympic areas". This was prompted by the iconic protest at the

Mexico Games in 1968, by 200m winner Tommie Smith and bronze medallist John

Carlos, both African-Americans, who raised black-gloved fists on the podium

while the national anthem was being played. They were expelled.

In January this year, the IOC became very specific about Rule 50. Protests

and demonstrations were not permitted on the field of play, in the Olympic

Village, during medal ceremonies, and during the opening, closing and other

official ceremonies. Additionally, kneeling was not allowed.

John Carlos has forwarded a joint letter along with other US athletes to the

IOC, calling for a new policy in consultation with athletes. Organisations

calling for a relook at Rule 50 include the Canadian Centre for Ethics in

Sport and Global Athlete, which helps sportspeople's voices reach

administrators and decision-makers.

INDICATORS

Sensex 38,310 (-59), Nifty 11,300 (-8), Trading Value NSE ,(Rs.crores)

58,265

Nasdaq 11,043 (+30) Dow 27,897 (-80), S&P 3,373 (-7)

US$-Rs. 74.63 GBP-Rs. 97.57, Euro-Rs. 88.22, UAE Dhm-Rs.20.31, Can$-Rs.

56.42, Aus$- Rs. 53.45

GBP 0.76 /US$, Euro 0.84 /US$, Jap.Yen 106.83 /US$, Aus$ 1.39 /US$, Sing

1.37 /US$, Bang Taka 83.34 /US$, Can$ 1.32 /US$, Mal Ring 4.18 /US$,

Pak Re 167.53 /US$, Phil Peso 48.81 /US$, Russian Rouble 73.29 /US$, NZ$

1.52 /US$, Thai Baht 31.00 /US$, Ukraine Hryvnia 27.19 /US$, Norway NOK 8.89

/US$

Bitcoin - USD 11,730

Dollar Index 93.29 Brent Crude 44.24 BDI 1,540

Gold world Spot Price USD/aoz 1,951 India (Rs. per gm 24k/22k) 5,226 / 5,126

Silver (Rs. Per KG) 65,010

THOUGHT FOR THE DAY

Hindsight, usually looked down upon, is probably as valuable as foresight,

since it does include a few facts. - Grace Paley

OFF TRACK

On their first day at a resort a couple decided to hit the beach. When the

husband went back to their room to get something to drink, one of the hotel

maids was making the bed. He grabbed the cooler and was on his way out when

he paused and asked, "Can we drink beer on the beach?"

"Sure," she said, "but I have to finish the rest of the rooms first."