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LS passes Taxation Bill amid doubts raised on transparency of 2 PM funds

Thakur also alleged that televangelist Zakir Naik donated Rs 50 lakh into Sonia Gandhi-led Rajiv Gandhi Foundation in 2011

Sunday September 20, 2020 8:30 AM, ummid.com with inputs from Agencies

New Delhi: The Lok Sabha on Saturday passed Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 amid counter allegations levelled by both the BJP and the Congress members on their top party leadership.

Linking the present government's PM CARES Fund and Prime Minister National Relief Fund (PMNRF) set up by India's first Prime Minister Jawaharlal Nehru in 1948, both the parties raised suspicion over transparency of both the funds.

The cross allegations created uproar for the second consecutive day in the lower House when Union Minister of State Anurag Thakur on Saturday again raised question on the transparency of PMNRF alleging Congress of utilising the money received in the fund for the benefit of Nehru-Gandhi family while participating in the debate over the Bill which was moved by Finance Minister Nirmala Sitharamn on Saturday for consideration and passage.

Zakir Naik's donation to Rajiv Gandhi Foundation

The Minister made allegation against Congress' interim President Sonia Gandhi and her family of utilising the fund of PMNRF being members of the trust.

He also alleged that funds received in PMNRF were transferred in Rajiv Gandhi Foundation and from their it was transferred into various other trusts.

Thakur also alleged that televangelist Zakir Naik donated Rs 50 lakh into Sonia Gandhi-led Rajiv Gandhi Foundation in 2011.

"Though the amount was returned in 2014 it clarified links of the party with Naik", Thakur alleged.

However, the Congress raised questions on creation of PM CARES when PMNRF was already present and it was used to help states during various disasters from 2015 to till now.

Congress leaders Adhir Ranjan Chowdhury and Gaurav Gogoi alleged that there are many "loopholes" in Prime Minister's Citizen Assistance and Relief in Emergency Situations (PM-CARES) fund.

Chinese companies' donation to PM CARES fund

Congress MP Gaurav Gogoi attacked the BJP's ideological mentor Rashtriya Swayamsevak Sangh (RSS) and asked whether the money donated to PM CARES fund by Chinese companies like TikTok money would be returned since Indian soldiers were fighting on the borders against China's incursions.

Other opposition parties too raised questions about the fund set up to tackle national emergencies like the COVID-19 crisis.

"I can't understand the logic to have a separate fund. What is the difference between the Prime Minister's National Relief Fund and the PM CARES Fund... The question of transparency and accountability is the main issue I want to highlight," said N K Premachandran of the Revolutionary Socialist Party (RSP).

Mahua Moitra of the Trinamool Congress also asked why the PM CARES Fund is not answerable to parliament even though it collects funds from the public. She said that 38 public sector companies contributed ₹ 2,100 crore to the fund which is 70 per cent of the total corpus.

The party also sought details of Vivekanand Foundation and some other trusts related to the BJP.

Speaking on the Bill, Sitharaman said we are raising questions on Rajiv Gandhi Foundation because Congress gave money to the trust from PMNRF.

Countering Congress allegations, the Minister said what names the party has taken are not given money from PM-CARES fund on which the opposition has raised question on several occasions earlier after it was set up to undertake and support relief or assistance of any kind relating to a public health emergency during the Covid-19 pandemic.

The Bill was later passed with voice vote during over four hour long counter allegations by both the parties on each other.

The Bill seeks to amend the Income-tax Act, 1961

The Bill was introduced in the Lok Sabha on Friday to replace the Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 which was promulgated on March 31 this year.

The government came with the Bill which seeks to amend the Income-tax Act, 1961, the Central Goods and Services Tax Act, 2017; the Finance Act, 2019; the Direct Tax Vivad se Vishwas Act, 2020 and the Finance Act, 2020 which are administered by the Department of Revenue through two boards, namely, the Central Board of Direct Taxes and the Central Board of Indirect Taxes. Thus, no additional expenditure is contemplated on the enactment of the Bill.

The Bill provides for extension of various time limits for completion or compliance of actions under the specified Acts and reduction in interest, waiver of penalty and prosecution for delay in payment of certain taxes or levies during the specified period.

The Finance Act, 2020 is also proposed to be amended to clarify regarding capping of surcharge at 15 per cent on dividend income of the Foreign Portfolio Investor.

The Bill also proposes to empower the Central government to remove any difficulty up to a period of two years and provide for repeal and savings of the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020.

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