Something About The Law

Since beginning in early January this year, we’ve had a fantastic response to our posts, events and online discussions. 2009 has been a happening year for the world and India, and that holds for us too. The graduation fromThe Social Blog has been phenomenally well-received by our readers, and thanks to you, Something About The Law can now boast of an extensive network among Indian law schools. We have a number of events/ideas in mind for 2010, and look forward to your encouragement and support. From the editors at SATL, here’s wishing you a fabulous year ahead!

Here’s a year-end compilation of some of our best (most-read, commented and appreciated) posts in 2009. They are in no specific order, and clicking on the title will take you to the full post.

1. The Socio-Legal Debates

Academic circles across premier law schools of the world have been characterized by the presence of an intellectual and interactive atmosphere among students and faculty members. In India, however, we are yet to see the inception of a platform that promotes stimulating, real-time legal discourse outside classrooms. In an attempt to bridge this scholastic divide, Something About The Law has sought to conceptualize a monthly debate-cum-discourse among legal practitioners, academia and experts on a host of socio-legal topics.

2. Attacks on Students: Reflections from Australia

The recent spate of attacks against members of the Indian community in Australia has spawned numerous allegations of racial abuse and discriminatory practice; the Australian Government is currently under immense pressure to bring such perpetrators to justice. The Indian media has whipped up a storm, devoting several hours of airtime to the matter; quite understandably, the nation is quite concerned with such disturbing developments Down Under. Amrita Khemka (a student from NALSAR who is currently at the University of New South Wales, Sydney on an Exchange Program) expresses her views on the matter. In addition, she has garnered diverse views from Indians who are currently studying/employed in Australia. Read on

3.  J.M Lyngdoh on Electoral Reforms in India

We are a nation of sorts; created out of the fundamentalist and acrimonious partition of the   continent’ Against this backdrop, India chose a democracy and have everyone participate in governance.

In the last 60 years, the constitution has had remarkable success. Significant is the involvement of the underprivileged in politics.

4. Musings on the Death Sentence

In 1994 Narayan Chetnam Choudhary committed the crime of murdering five women, one of whom was pregnant and two were children with a tender age of two and a half and one and a half years. In 2000 the Supreme Court confirmed his death sentence. Nine years hence, he lies in the jail at Pune wondering of the morning on which he would be executed.

5.  Child Sexual Abuse in India

The Children We Sacrifice, a documentary by Grace Poore, a South Asian feminist writer and activist of the Voices Unheard Sisters Unseen fame, deals exclusively with child sexual abuse (CSA). Though I haven’t watched the documentary, the message it seems to be sending across is this: CSA is an everyday reality for about half of India’s children, however, somehow, it remains the least undocumented offences in the country. It, therefore, is not surprising that no legislation specifically deals with the issue which can rightly be categorised as one of the darkest and most worrisome blots on the Indian society.

6.  Why Telengana is a terrible, terrible idea.

Much of this post has been the result of sudden and unsettling change – but I’ve tried to abandon my confessed status-quoism in discussing the future of a territory where I have spent a lion’s share of the last 5 years. It was rather unfortunate to be stuck in a train, far from live coverage, when news of a purported Telengana broke out. It was even more frustrating not to be in Hyderabad, when the exhibition of democratic dissent surfaced.

7.  The Collegium, Judges’ Assets and Justice Dinakaran’s Case

Below is a short version of my Speech for the Constitutional Law Society’s debate on The Collegium, Judges Assets and Justice Dinakaran. It was a laudable effort on the part of the CLS to organise the same and kudos to them.

8. Implications of a New Direct Tax Code

Neha Pathakji, Lecturer in Taxation Laws at NALSAR, writes on the proposed Direct Tax Code, and its impact on the society.) The nation is witnessing winds of change these days, especially in the age old Tax system. Just when a new indirect tax regime is round the corner in the form of GST(Goods and service tax), likely to be implemented in April 2010; the release of brand new Direct Tax Code has leased a fresh life in the Direct Tax system.

9. The Downs – and Ups – of Free Distribution

Why are text messages limited to 160 characters? Why not more – surely we seem to have a lot to say to each other – or less? Why not 200, or even 150? A recently published article in the Los Angeles Times reveals a fascinating, yet somewhat disturbing, story.

(Neha Pathakji, Lecturer in Taxation Laws at NALSAR, writes on the proposed Direct Tax Code, and its impact on the society.)

The nation is witnessing winds of change these days, especially in the age old Tax system. Just when a new indirect tax regime is round the corner in the form of GST(Goods and service tax), likely to be implemented in April 2010; the release of brand new Direct Tax Code has leased a fresh life in the Direct Tax system. The government seems to be determined to overhaul the existing tax fabric, both direct and indirect and make it simple, transparent and broad based. This is a strong message from the government of its commitment to realign the domestic taxing architect    with internationally accepted taxing principles and practises.

The new Direct Tax Code, if passed in the Parliament, will bid adieu to more than four decade old Income Tax Act, 1961. It will become a law only in 2011, so that as a nation we still have sufficient time to deliberate upon the new Code. The Income Tax Act, 1961; often considered to be one of the most complicated piece of legislature, has given rise to lots of confusion and complexities. Thankfully the new Code has aimed to remove the ambiguity by giving a go bye to redundant provisions, organising and grouping the provisions, ensures easy language for better understanding and transparency in the administration; thereby trying to promote better compliance and understanding of the statute. It has proposed to slash down rates, both for individuals as well as India Inc., replaced the concepts of ‘assessment year’ and ‘previous year’ with a single term ‘financial year’, scrapped the exemptions and distinction between long term capital gains and short term capital gains, raise deductions levels from current 1 lac to 3 lac. For individual tax payers, the Code proposes Rs.1.6 lac tax free income, income up to Rs.10 lac taxable at the rate of 10%, up to Rs.25 lac at 20% and at 30% above Rs. 25 lac whereas corporate taxes are down from 30% to 25%.

Taking a bird’s eye view, the new Code seems to promise the aspiring individuals and middle class and at the same time woo the corporate world. While the raising of deductions from current Rs.1 lac to 3 lac will stimulate savings, interests on savings have been made taxable. However, the Code will prove to be a mix bag for salaried class. In a major departure from current position, the draft Direct Tax Code envisages EET regime i.e. exempt-exempt-tax from exempt-exempt-exempt. In simple words it means that the Code proposes to introduce exemption on investment, exemption on returns but tax on withdrawal. This has raised concerns of the salaried class and small investors. EET will have a favourable impact on the New Pension Scheme; it makes withdrawals from the PPF, GPF, RPF and EPF taxable, hitting the most where it hurts. The idea mooted is to save on tax when in employment and pay tax at retirement. But it is the retirement time when any taxpayer would least want to part with his lifelong earnings. The ones who have already opted for annuity plans and pension funds from insurance companies are sceptic. This may require amends in the investment portfolio of the small investors. Also in a major jerk to the borrowers of housing loans, the exemptions on housing loans find no mention. It is suggested that there should be some provision for standard deductions for the salaried class.

Agricultural income still remains out of the purview of tax. The business losses will be allowed to be carried forward indefinitely which is again good news for the business sector. The capital gains tax and wealth tax are also imbibed in the same statute, thereby integrating different direct taxes like income tax, corporate tax, fringe benefit tax, wealth tax and capital gains tax under one umbrella.

The new Code promises the taxpayers happy days ahead once the proposal becomes law. However, the government needs to invite suggestions and take opinions and feedback from the financial experts, chartered accountants, jurists, the academia, experts and all the stakeholders before giving a final shape to the new tax system.