Remedial English Test Series 61

      Remedial English Test Series 61

      Identify  the ONE mistake in each line and make corrections    (1 mark for each correct answer. Total score   ___ )

 

01 The amendments to the Income Tax law passed by the Lok Sabha now offers  those with unaccounted cash a last
02 shot at amnesty. They can pay half their cashes  as tax and deposit a quarter into a new Pradhan Mantri Garib
03 Kalyan Yojana. Those who fail to do this voluntary  for bank deposits made since November 8 would end up
04 retaining about 15 per cent of the total amount if they cannot established  a legitimate source for the funds. There is
05 a Robinhood-esque edge to the PMGKY approach, direct  linking the war on black money to welfare of the poor.
06 Essentially a extension of the recent Income Disclosure Scheme that cleaned up about Rs.65,000 crore of
07 Undeclared  income by levying 45 per cent tax, the December 30 deadline for bank deposits in demonetised notes
08 give  a more purposeful push to the effort to clean out all the cash in the grey economy. The scheme for
09 disclosing foreign assets last year has yielded just about Rs.2,400 crore in taxes, so a tougher approach was
10 perhaps  necessary to instil real fear among habitual tax evaders. Since the demonetisation of currency notes
11 worth an estimate  Rs.14.18 lakh crore, nearly Rs.8.45 lakh crore has been brought back into the system. If the
12 proportion of notes deposited or exchange  is in line with their circulation prior to November 8, about Rs.2.56
13 lakh crore in Rs.1,000 notes and Rs.3.17 lakh crore worth of Rs.500 notes (that can be spend on exempted
14 categories till December 15) is still out there. Many clever ploy  have been attempted to subvert this drive and
15 converted  black money into white: hiring people to exchange currency; tapping cash-in-hand entries of firms to
16 launder illicit cash; pumping funds into bank accounts for the poor; purchase  goods in bulk where old notes
17 are still allowed; even tipping off the taxman to conduct search-and-seizure operations on ones own premises
18 to avail of a provision that allow individuals to pay a mere 10 per cent penalty on such income if they admit to it.
19 The government is trying to close the door on such ingenuity, and the latest tax law changes should be see  in
20 this context. By early January, it will be clear how much money has been mop  up by the demonetisation
21 operation. There is, however, no doubt that this tax manoeuvre is a neater way of gain  fiscal headroom than
22 extinguishing the Reserve Bank of India’s liabilities to the extent of unreturn old Rs.500 and Rs.1,000 notes,
23 and turn that into a special dividend to the exchequer (The Hindu, 30 Nov 16).

 KEY TO Remedial English Test Series 61   Note the correct answers below

01 The amendments to the Income Tax law passed by the Lok Sabha now offer   those with unaccounted cash a last
02 shot at amnesty. They can pay half their cash as tax and deposit a quarter into a new Pradhan Mantri Garib
03 Kalyan Yojana. Those who fail to do this voluntarily for bank deposits made since November 8 would end up
04 retaining about 15 per cent of the total amount if they cannot establish a legitimate source for the funds. There is
05 a Robinhood-esque edge to the PMGKY approach, directly linking the war on black money to welfare of the poor.
06 Essentially an extension of the recent Income Disclosure Scheme that cleaned up about Rs.65,000 crore of
07 undeclared income by levying 45 per cent tax, the December 30 deadline for bank deposits in demonetised notes
08 gives a more purposeful push to the effort to clean out all the cash in the grey economy. The scheme for
09 disclosing foreign assets last year had yielded just about Rs.2,400 crore in taxes, so a tougher approach was
10 perhaps necessary to instil real fear among habitual tax evaders. Since the demonetisation of currency notes
11 worth an estimated Rs.14.18 lakh crore, nearly Rs.8.45 lakh crore has been brought back into the system. If the
12 proportion of notes deposited or exchanged is in line with their circulation prior to November 8, about Rs.2.56
13 lakh crore in Rs.1,000 notes and Rs.3.17 lakh crore worth of Rs.500 notes (that can be spent on exempted
14 categories till December 15) is still out there. Many clever ploys have been attempted to subvert this drive and
15 convert black money into white: hiring people to exchange currency; tapping cash-in-hand entries of firms to
16 launder illicit cash; pumping funds into bank accounts for the poor; purchasing goods in bulk where old notes
17 are still allowed; even tipping off the taxman to conduct search-and-seizure operations on one’s own premises
18 to avail of a provision that allows individuals to pay a mere 10 per cent penalty on such income if they admit to it.
19 The government is trying to close the door on such ingenuity, and the latest tax law changes should be seen in
20 this context. By early January, it will be clear how much money has been mopped up by the demonetisation
21 operation. There is, however, no doubt that this tax manoeuvre is a neater way of gaining fiscal headroom than
22 extinguishing the Reserve Bank of India’s liabilities to the extent of unreturned old Rs.500 and Rs.1,000 notes,
23 and turning that into a special dividend to the exchequer (The Hindu, 30 Nov 16).