Raoji's Corner

Have you no sense of Dharma, Mr.Jaitley?

One of the landmark achievements of Indian democracy was the integration of various princely states within it without much bloodshed.

In fact,once the Soviet Premier Khrushchev commented “It’s remarkable how India has managed to liquidate the Princely states without liquidating the Princes”

One of the main reasons why the Princes went quietly was the promise of the Privy Purse…a regular pension paid to them and their families by the Govt of India.

After some years,the Govt of India, under the leadership of Indira Gandhi went back on its word and abolised the Privy Purse.

The case went to Court and there the great Nani Palkhivala made the following argument:“The survival of our democracy and the unity and integrity of the nation depend upon the realisation that constitutional morality is no less essential than constitutional  legality.  Dharma (righteousness; sense of public duty or virtue) lives in the hearts of public men; when it dies there, no Constitution, no law, no amendment, can save it.”

Fast forward to the present.

In 2004,Chidambaram did away with LTCG in his budget stating the following:

Capital gains tax is another vexed issue. When applied to capital market transactions, the issue becomes more complex. Questions have been raised about the definitions of long-term and short-term, and the differential tax treatment meted to the two kinds of gains. There are no easy answers, but I have decided to make a beginning by revamping taxes on securities transactions. Our founding fathers had wisely included entry 90 in the Union List in the Seventh Schedule of the Constitution of India. Taking a
cue from that entry, I propose to abolish the tax on long-term capital gains from securities transactions altogether. Instead, I propose to levy a small tax on transactions in securities on stock exchanges

Note the word instead.It was both an implicit and explicit promise to the people of India.

Now,we have Arun Jaitley as the Finance Minister breaking this promise by bringing back the LTCG but not scrapping the STT !!

Have you no sense of Dharma, Mr.Jaitley?

7 replies on “Have you no sense of Dharma, Mr.Jaitley?”

Jaitley has no Dharma whatsoever. He believes the efforts of the hardworking Indian Citizen are his and his Govt stooges for the taking. He does this, ostensibly, for the benefit of all others, but in reality, he’s only filling his own and govt bureaucrats purses.
He’s increasing standard deduction, and at the same time increasing edu cess! What’s the point? Just play numbers game and the people will all run helter skelter believing all powerful govt. is giving them some ‘aadhar’?

Dharma has to be followed by king only or the citizen also ?
Avg tax paid by salaried person 75000
Avg tax paid by business man 25000
India’s tax to GDP ratio lower than Rwanda

If citizen has no dharma how do you think Arun Jaitley will follow Dharma?

It he coming from moon ?

Some of the mutual fund returns are as big as 70 % and above during the past twelve months. I understand that it is a rare event but definitely it is a quick money. With such big returns there should be no reason to feel that LTCG is bad. STT is a tax payable on all security transactions irrespective of short term or long term capital gains.
During every generation sense of Dharma changes.
India’s population growth is exponential ; who will provide for the health and educational needs of such a huge population. Is it not Sense of Dharma of govt.
I wish Mr. Jaitley may consider abolishing STT. If he doesn’t no regrets.

Hope this is the last year of this govt in office . As a CM for a long period our Feku Pm has no idea that health, education and we’ll bring of farmers is very important for Vikas
This learning has come quite late or may be it’s just for getting votes. Hope voters will not do get carried by new jumlas.

No long term capital gain tax was the biggest subsidy given to the affluent for the past decade. This was not done with keeping the interest of investors. It was done so that the money looted through 2g and coal and all scams can be deployed to stock market through p notes. This classic Indian corruption mentally some looting for politicians and some for select few in public. Market should move on its strengths, the 10% is one of the lowest in the world and its only fair. It had brought in a healthy correction too

Let us please understand that Chidambaram is the fountain head if market manipulation and corruption. His abolishing of LTCG tax benefited him and his coterie the most in the 2004-2007 bull run. FII channels and hawala made ill gotten wealth easy to stash abroad. If all our righteous anger on this tax is justified, then Chidambaram looting the country hollow is also justified.

Regarding RamInder’s comments I beg to differ. I have spent last 2 years in Gujarat. It is one of the few states where Health cover for families living in below poverty line (BPL) had been implemented successfully by our current PM Modi when he was CM of Gujarat. Many people understand him as Feku PM which is not true. Whether he wins 2019 elections are not he is not bothered ; but we are worried. He is doing what is good for common people. A similar scheme is also existing in Andhra and Telengana. If common man is not cared there will blood revolution in India

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