THE HINDU Editorial Vocabulary- October 4, 2016- Topic 1
The Centre’s move to mop up black money from the economy by giving
taxpayers amnesty to declare undisclosed past income by paying tax on it at an
effective, slightly high rate of 45 per cent has yielded a surprisingly
positive dividend. The four-month window granted for evaders to come clean
opened sluggishly, but eventually over 64,200 assessees disclosed undeclared
assets worth at least Rs.65,250 crore. Stern warnings from the Prime Minister
himself about tough action and possible jail terms for those who failed to
declare their ‘cartloads’ of black money may have added punch to the Finance
Ministry’s pitch. The haul is considerably higher than the Rs.4,164 crore in
assets and black money held abroad disclosed under a similar arrangement with a
higher tax rate in 2015. This time, the tax department rightly focussed on
demystifying and propagating the scheme, so potential beneficiaries were
reassured that they would not be persecuted. The almost Rs.30,000 crore in
taxes being raked in provides a cushion for the Centre on the fiscal deficit
management front since it hadn’t set any explicit revenue expectations from the
scheme.
The final stocktaking is still on, so the record collections under this
scheme, vis-Ã -vis similar endeavours in the
past, could rise further. The Centre, however, must not consider this the end
of its campaign on black money. To put things in context, the average
undisclosed income per taxpayer under the scheme stands at Rs.1.01 crore; and
though the disclosures are nearly double those in the last income amnesty
scheme (around Rs.33,700 crore), nearly two decades have passed since then,
making comparisons misleading. The tax department is aware that Rs.65,250 crore
is just the tip of the iceberg — it had sent seven lakh letters to suspected
evaders based on information on about 90 lakh high-value transactions that took
place without PAN card details. The tax department must crack down on such
evaders and spruce up its data-mining methods to expand the country’s shallow
tax base. While the department’s efforts have revealed undisclosed income of
over Rs.58,000 crore in the last two and half years, and more is being pursued
from tax havens where Indian holdings have come to light, all of this is akin
to treating the symptoms without addressing the root cause. If the Centre is
serious about attacking India’s thriving black economy, it needs to be bold
and, for starters, make electoral funding transparent, curb the misuse by the
wealthy of tax-free income sops for farmers, and encourage cashless
transactions.
Vocabulary
Mop: clean or soak up something by wiping.
Example: He was mopping his plate with a piece of bread
Synonyms: wash, clean, wipe, swab
Amnesty: an official pardon for people who have been convicted of
political offenses.
Example: An amnesty for political prisoners
Synonyms: pardon, pardoning, reprieve, grace, release, discharge
Haul: a quantity of something that was stolen or is possessed
illegally.
Example: They escaped with a haul of antiques
Synonyms: booty, loot, plunder, spoils, ill-gotten gains, swag, boodle.
stolen goods
Demystifying: make a difficult or esoteric
subject clearer and easier to understand.
Example: This book attempts to demystify technology
Persecuted: subject to hostility and
ill-treatment, especially because of their race or political or religious
beliefs.
Example: His followers were persecuted by the authorities
Synonyms: oppress, abuse, victimize, mistreat, maltreat, tyrannize, torment
Raked: collect, gather, or move with a rake or similar
implement.
Example: They started raking up hay
Synonyms: scrape up, collect, gather
Cushion: soften the effect of an impact on.
Example: The bag cushions equipment from inevitable knocks
Synonyms: protect, shield, shelter, cocoon
Vis-À-Vis: a person or group occupying a corresponding position to
that of another in a different sphere; a counterpart.
Example: His
admiration for the US armed services extends to their vis-Ã -vis, the Russian
military
Endeavour: an attempt to achieve a goal.
Example: An endeavor to reduce serious injury
Synonyms: attempt, try, bid, effort, venture, go, crack, shot, stab, essay
Spruce: neat in dress and appearance.
Example: He looked as spruce as if he were getting married
Synonyms: neat, well-groomed, well-turned-out, smart, trim, dapper
Pursued: follow someone or something in order to catch or attack them.
Example: The officer pursued the van
Synonyms: follow, run after, chase, hunt, stalk, track, trail, shadow, hound
Havens: a place of safety or refuge.
Example: A haven for wildlife
Synonyms: refuge, retreat, shelter, sanctuary, asylum, port
in a storm, oasis
