Union Budget: 2023-2024 – Income Tax Rates – Analysis

Union Budget: 2023-2024 – Income Tax Rates – Analysis -Dr. S. Vijay Kumar Highlights: Revised New Tax Regime: • The basic exemption limit has been hiked to Rs 3 lakh from 2.5 lakh under the new tax regime. • New tax regime to become the default tax regime. However, citizens can opt for the old tax regime. • No tax on income up to Rs 7.5 lakh a year in new tax regime (with inclusion of standard deduction). • To attract more number of tax payers (employees) Rs 50,000 standard deduction has been introduced under the new regime. Hence, an individual having gross income of Rs 7.5 lakh can claim standard deduction and bring the taxable income to Rs 7 lakh in order to pay nil tax under the revised new tax regime. • Govt proposes to reduce highest surcharge rate from 37% to 25% in new tax regime income in case of 5 crore INR in the new tax regime. • Those earning up to INR 7 lakh annually are entitled to a rebate, , which was Rs. 5 lakh earlier under Section 87A. • An individual or HUF taxpayer may opt for the new tax regime based on their specific situation and sources of income. Switching to the new tax regime can be done either on a year-on-year basis or only once. However, the frequency mostly depends on the source of income during the year. • In the case where an individual or HUF has income from a business or profession, once the option to avail new tax rates for a financial year has been exercised, the new rates shall apply for subsequent years. However, the law provides such taxpayers’ one single option of switching back to the old tax regime. This switch-back option is available only once in a lifetime unless the taxpayer ceases to have any income from a business or profession.

Deductions/exemptions to be forgone while opting for new tax regime: • Leave travel allowance (LTA) • House rent allowance (HRA) • Children education allowance • Standard deduction on salary • Deduction for professional tax • Interest on housing loan • Deduction for specified investments or expenses under Chapter VI-A such as: – deduction under Section 80C towards contribution to public provident fund, repayment of principal on housing loan, children’s school fees, life insurance premium, etc. – other deductions towards medical insurance premium, interest on education loan, etc. Old Tax Regime: • No changes in the Slab Rates. • For individuals below the age of 60 years, the basic exemption limit is Rs.2.5 lakh. • For senior citizens (between 60 and 80 years), the basic exemption limit is Rs.3 lakh. • For super senior citizens (80 years or more), the basic exemption limit is Rs 5 lakh. Standard Deduction up to Rs. 50,000 is allowed. • 5% tax rebate u/s 87A is available. • Senior Citizens now can save up to 30 lakh (Which was earlier 15 lakh only) to avail exemption of 1.5 lakh in the year of saving. Deductions/exemptions Allowed Under Old System: Tax exemption removed in insurance policies with premium over Rs 5 lakh. • Leave travel allowance (LTA) • House rent allowance (HRA) • Children education allowance • Standard deduction on salary • Deduction for professional tax • Interest on housing loan • Deduction for specified investments or expenses under Chapter VI-A such as: – deduction under Section 80 C up to 1.5 lakh towards contribution to public provident fund, repayment of principal on housing loan, children’s school fees, life insurance premium, Tax Saving Mutual Funds etc. – other deductions towards medical insurance premium, interest on education loan, etc. General Rules: • If an individual or HUF does not possess income from a business or profession, the selection can be made on a year-on-year basis. • For individuals with salaries, the employer is required to withhold tax before the payment of the salaries. • The employee is, however, required to inform the employer regarding their preferred tax rates. • An employee may choose between old and new tax regimes at the beginning of the year and intimate the employer, or at the time of joining new employment during the year. However, at the time of filling the personal tax return, the employee can change the tax regime. For example, at the beginning of the year, an employee opts for the new tax regime and the employer deducts tax based on slab rates under the new tax regime. However, during the year they make certain tax-deductible investments like contribution to provident fund, payment of medical insurance premium, etc., and at the time of filing the income tax returns (ITR), they realize the old tax regime is more beneficial to them. In such a situation, they have the choice to opt for the old tax regime while filing the tax return though the employer had withheld taxes based on the new tax regime. Conclusion: Since the eligible deductions, sources and quantum of income differs individual to individual, one rule cannot be applied to all. Taxpayers will need to evaluate and compare the tax liability under both regimes and then decide on which to opt for. In case a taxpayer has investments in tax-saving instruments, pays premiums on life or a medical insurance policy, children’s school fee, home loan principal repayment, etc., and avails the benefit of the deduction for HRA, LTA, etc. it may be more beneficial to opt for old tax regime since the benefit of deduction/exemption can be availed in the old tax regime. -------------------

HIGHLIGHTS OF THE UNION BUDGET 2023-24

-Dr. S. Vijay Kumar The Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Union Budget 2023-24 in Parliament on 1- 02 - 2023. The highlights of the Budget are as follows: PART A • Per capita income has more than doubled to ₹1.97 lakh in around nine years. • Indian economy has increased in size from being 10th to 5th largest in the world in the past nine years. • EPFO membership has more than doubled to 27 crore. • 7,400 crore digital payments of ₹126 lakh crore has taken place through UPI in 2022. • 11.7 crore household toilets constructed under Swachh Bharat Mission. • 9.6 crore LPG connections provided under Ujjwala. • 220 crore covid vaccination of 102 crore persons. • 47.8 crore PM Jan Dhan bank accounts. • Insurance cover for 44.6 crore persons under PM Suraksha Bima and PM Jeevan Jyoti Yojana. • Cash transfer of ₹2.2 lakh crore to over 11.4 crore farmers under PM Kisan Samman Nidhi. • Seven priorities of the budget ‘Saptarishi’ are inclusive development, reaching the last mile, infrastructure, and investment, unleashing the potential, green growth, youth power and financial sector. • Atmanirbhar Clean Plant Program with an outlay of ₹2200 crore to be launched to boost availability of disease-free, quality planting material for high value horticultural crops. • 157 new nursing colleges to be established in co-location with the existing 157 medical colleges established since 2014. • Centre to recruit 38,800 teachers and support staff for the 740 Eklavya Model Residential Schools, serving 3.5 lakh tribal students over the next three years. • Outlay for PM Awas Yojana is being enhanced by 66% to over Rs. 79,000 crore. • Capital outlay of Rs. 2.40 lakh crore has been provided for the Railways, which is the highest ever outlay and about nine times the outlay made in 2013-14. • Urban Infrastructure Development Fund (UIDF) will be established through use of priority Sector Lending shortfall, which will be managed by the national Housing Bank, and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities. • Entity DigiLocker to be setup for use by MSMEs, large business and charitable trusts to store and share documents online securely. • 100 labs to be setup for 5G services based application development to realize a new range of opportunities, business models, and employment potential. • 500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme to be established for promoting circular economy at total investment of Rs 10,000 crore. 5 per cent compressed biogas mandate to be introduced for all organizations marketing natural and bio gas. • Centre to facilitate one crore farmers to adopt natural farming over the next three years. For this, 10,000 Bio-Input Resource Centres to be set-up, creating a national-level distributed micro-fertilizer and pesticide manufacturing network. • Pradhan Mantri Kaushal Vikas Yojana 4.0, to be launched to skill lakhs of youth within the next three years covering new age courses for Industry 4.0 like coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and soft skills. • 30 Skill India International Centres to be set up across different States to skill youth for international opportunities. • Revamped credit guarantee scheme for MSMEs to take effect from 1st April 2023 through infusion of Rs 9,000 crore in the corpus. This scheme would enable additional collateral-free guaranteed credit of Rs 2 lakh crore and also reduce the cost of the credit by about 1 per cent. • Central Processing Centre to be setup for faster response to companies through centralized handling of various forms filed with field offices under the Companies Act. • The maximum deposit limit for Senior Citizen Savings Scheme to be enhanced from Rs 15 lakh to Rs 30 lakh. • Targeted Fiscal Deficit to be below 4.5% by 2025-26. • Agriculture Accelerator Fund to be set-up to encourage agri-startups by young entrepreneurs in rural areas. • To make India a global hub for 'Shree Anna', the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence for sharing best practices, research, and technologies at the international level. • ₹20 lakh crore agricultural credit targeted at animal husbandry, dairy, and fisheries • A new sub-scheme of PM Matsya Sampada Yojana with targeted investment of ₹6,000 crore to be launched to further enable activities of fishermen, fish vendors, and micro & small enterprises, improve value chain efficiencies, and expand the market. • Digital public infrastructure for agriculture to be built as an open source, open standard and inter operable public good to enable inclusive farmer centric solutions and support for growth of agri-tech industry and start-ups. • Computerization of 63,000 Primary Agricultural Credit Societies (PACS) with an investment of ₹2,516 crore initiated. • Massive decentralised storage capacity to be set up to help farmers store their produce and realize remunerative prices through sale at appropriate times. • Sickle Cell Anaemia elimination mission to be launched. • Joint public and Private Medical research to be encouraged via select ICMR labs for encouraging collaborative research and innovation. • New Programme to promote research in Pharmaceuticals to be launched. • Rs. 10 lakh crore capital investment, a steep increase of 33% for third year in a row, to enhance growth potential and job creation, crowd-in private investments, and provide a cushion against global headwinds. • Aspirational Blocks Programme covering 500 blocks launched for saturation of essential government services across multiple domains such as health, nutrition, education, agriculture, water resources, financial inclusion, skill development, and basic infrastructure. • Rs. 15,000 crore for implementation of Pradhan Mantri PVTG Development Mission over the next three years under the Development Action Plan for the Scheduled Tribes. • Investment of Rs. 75,000 crore, including Rs. 15,000 crore from private sources, for one hundred critical transport infrastructure projects, for last and first mile connectivity for ports, coal, steel, fertilizer, and food grains sectors. • New Infrastructure Finance Secretariat established to enhance opportunities for private investment in infrastructure. • District Institutes of Education and Training to be developed as vibrant institutes of excellence for Teachers’ Training. • A National Digital Library for Children and Adolescents to be set-up for facilitating availability of quality books across geographies, languages, genres and levels, and device agnostic accessibility. • Rs. 5,300 crore to be given as central assistance to Upper Bhadra Project to provide sustainable micro irrigation and filling up of surface tanks for drinking water. • ‘Bharat Shared Repository of Inscriptions’ to be set up in a digital epigraphy museum, with digitization of one lakh ancient inscriptions in the first stage. • ‘Effective Capital Expenditure’ of Centre to be Rs. 13.7 lakh crore. • Continuation of 50-year interest free loan to state governments for one more year to spur investment in infrastructure and to incentivize them for complementary policy actions. • Encouragement to states and cities to undertake urban planning reforms and actions to transform our cities into ‘sustainable cities of tomorrow’. • Transition from manhole to machine-hole mode by enabling all cities and towns to undertake 100 percent mechanical desludging of septic tanks and sewers. • iGOT Karmayogi, an integrated online training platform, launched to provide continuous learning opportunities for lakhs of government employees to upgrade their skills and facilitate people-centric approach. • More than 39,000 compliances reduced, and more than 3,400 legal provisions decriminalized to enhance Ease Of Doing Business. • Jan Vishwas Bill to amend 42 Central Acts have been introduced to further trust-based governance. • Three centres of excellence for Artificial Intelligence to be set-up in top educational institutions to realise the vision of “Make AI in India and Make AI work for India”. • National Data Governance Policy to be brought out to unleash innovation and research by start-ups and academia. • One stop solution for reconciliation and updation of identity and address of individuals to be established using DigiLocker service and Aadhaar as foundational identity. • PAN will be used as the common identifier for all digital systems of specified government agencies to bring in Ease of Doing Business. • 95 per cent of the forfeited amount relating to bid or performance security, will be returned to MSME’s by government and government undertakings in cases the MSME’s failed to execute contracts during Covid period. • Result Based Financing to better allocate scarce resources for competing development needs. • Phase-3 of the E-Courts project to be launched with an outlay of Rs. 7,000 crore for efficient administration of justice. • R & D grant for Lab Grown Diamonds (LGD) sector to encourage indigenous production of LGD seeds and machines and to reduce import dependency. • Annual production of 5 MMT under Green Hydrogen Mission to be targeted by 2030 to facilitate transition of the economy to low carbon intensity and to reduce dependence on fossil fuel imports. • ₹35000 crore outlay for energy security, energy transition and net zero objectives. • Battery energy storage systems to be promoted to steer the economy on the sustainable development path. • 20,700 crore outlay provided for renewable energy grid integration and evacuation from Ladakh. • “PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth” (PM-PRANAM) to be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers. • ‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’, MISHTI, to be taken up for mangrove plantation along the coastline and on salt pan lands, through convergence between MGNREGS, CAMPA Fund and other sources. • Green Credit Programme to be notified under the Environment (Protection) Act to incentivize and mobilize additional resources for environmentally sustainable and responsive actions. • Amrit Dharohar Scheme to be implemented over the next three years to encourage optimal use of wetlands, enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities. • A unified Skill India Digital platform to be launched for enabling demand-based formal skilling, linking with employers including MSMEs, and facilitating access to entrepreneurship schemes. • Direct Benefit Transfer under a pan-India National Apprenticeship Promotion Scheme to be rolled out to provide stipend support to 47 lakh youth in three years. • At least 50 tourist destinations to be selected through challenge mode; to be developed as a complete package for domestic and foreign tourists. • Sector specific skilling and entrepreneurship development to be dovetailed to achieve the objectives of the ‘Dekho Apna Desh’ initiative. • Tourism infrastructure and amenities to be facilitated in border villages through the Vibrant Villages Programme. • States to be encouraged to set up a Unity Mall for promotion and sale of their own and also all others states’ ODOPs (One District, One Product), GI products and handicrafts. • National Financial Information Registry to be set up to serve as the central repository of financial and ancillary information for facilitating efficient flow of credit, promoting financial inclusion, and fostering financial stability. A new legislative framework to be designed in consultation with RBI to govern this credit public infrastructure. • Financial sector regulators to carry out a comprehensive review of existing regulations in consultation with public and regulated entities. Time limits to decide the applications under various regulations would also be laid down. • To enhance business activities in GIFT IFSC, the following measures to be taken. • Delegating powers under the SEZ Act to IFSCA to avoid dual regulation. • Setting up a single window IT system for registration and approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI. • Permitting acquisition financing by IFSC Banking Units of foreign bank. • Establishing a subsidiary of EXIM Bank for trade re-financing. • Amending IFSCA Act for statutory provisions for arbitration, ancillary services, and avoiding dual regulation under SEZ Act • Recognizing offshore derivative instruments as valid contracts. • Amendments proposed to the Banking Regulation Act, the Banking Companies Act and the Reserve of India Act to improve bank governance and enhance investors’ protection. • Countries looking for digital continuity solutions would be facilitated for setting up of their Data Embassies in GIFT IFSC. • SEBI to be empowered to develop, regulate, maintain, and enforce norms and standards for education in the National Institute of Securities Markets and to recognize award of degrees, diplomas and certificates. • Integrated IT portal to be established to enable investors to easily reclaim the unclaimed shares and unpaid dividends from the Investor Education and Protection Fund Authority. • To commemorate Azadi Ka Amrit Mahotsav, a one-time new small savings scheme, Mahila Samman Savings Certificate to be launched. It will offer deposit facility up to Rs 2 lakh in the name of women or girls for tenure of 2 years (up to March 2025) at fixed interest rate of 7.5 per cent with partial withdrawal option. • The maximum deposit limit for Monthly Income Account Scheme to be enhanced from Rs 4.5 lakh to Rs 9 lakh for single account and from Rs 9 lakh to Rs 15 lakh for joint account. • The entire fifty-year interest free loan to states to be spent on capital expenditure within 2023-24. Part of the loan is conditional on States increasing actual Capital expenditure and parts of outlay will be linked to States undertaking specific loans. • Fiscal Deficit of 3.5% of GSDP allowed for States of which 0.5% is tied to Power sector reforms. Revised Estimates 2022-23: • The total receipts other than borrowings is Rs 24.3 lakh crore, of which the net tax receipts are Rs 20.9 lakh crore. • The total expenditure is Rs 41.9 lakh crore, of which the capital expenditure is about Rs 7.3 lakh crore. • The fiscal deficit is 6.4 per cent of GDP, adhering to the Budget Estimate. Budget Estimates 2023-24: • The total receipts other than borrowings is estimated at Rs 27.2 lakh crore and the total expenditure is estimated at Rs 45 lakh crore. • The net tax receipts are estimated at Rs 23.3 lakh crore. • The fiscal deficit is estimated to be 5.9 per cent of GDP. • To finance the fiscal deficit in 2023-24, the net market borrowings from dated securities are estimated at Rs 11.8 lakh crore. • The gross market borrowings are estimated at Rs 15.4 lakh crore. PART – B DIRECT TAXES • Direct Tax proposals aim to maintain continuity and stability of taxation, further simplify and rationalize various provisions to reduce the compliance burden, promote the entrepreneurial spirit and provide tax relief to citizens. • Constant endeavour of the Income Tax Department to improve Tax Payers Services by making compliance easy and smooth. • To further improve tax payer services, proposal to roll out a next-generation Common IT Return Form for tax payer convenience, along with plans to strengthen the grievance redressal mechanism. • Rebate limit of Personal Income Tax to be increased to Rs. 7 lakh from the current Rs. 5 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to Rs. 7 lakh to not pay any tax. • Tax structure in new personal income tax regime, introduced in 2020 with six income slabs, to change by reducing the number of slabs to five and increasing the tax exemption limit to Rs. 3 lakh. Change to provide major relief to all tax payers in the new regime. New tax rates Total Income (Rs) Rate (per cent) Up to 3,00,000 Nil From 3,00,001 to 6,00,000 5 From 6,00,001 to 9,00,000 10 From 9,00,001 to 12,00,000 15 From 12,00,001 to 15,00,000 20 Above 15,00,000 30 • Proposal to extend the benefit of standard deduction of Rs. 50,000 to salaried individual, and deduction from family pension up to Rs. 15,000, in the new tax regime. • Highest surcharge rate to reduce from 37 per cent to 25 per cent in the new tax regime. This to further result in reduction of the maximum personal income tax rate to 39 per cent. • The limit for tax exemption on leave encashment on retirement of non-government salaried employees to increase to Rs. 25 lakh. • The new income tax regime to be made the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax regime. • Enhanced limits for micro enterprises and certain professionals for availing the benefit of presumptive taxation proposed. Increased limit to apply only in case the amount or aggregate of the amounts received during the year, in cash, does not exceed five per cent of the total gross receipts/turnover. • Deduction for expenditure incurred on payments made to MSMEs to be allowed only when payment is actually made in order to support MSMEs in timely receipt of payments. • New co-operatives that commence manufacturing activities till 31.3.2024 to get the benefit of a lower tax rate of 15 per cent, as presently available to new manufacturing companies. • Opportunity provided to sugar co-operatives to claim payments made to sugarcane farmers for the period prior to assessment year 2016-17 as expenditure. This expected to provide them a relief of almost Rs. 10,000 crore. • Provision of a higher limit of Rs. 2 lakh per member for cash deposits to and loans in cash by Primary Agricultural Co-operative Societies (PACS) and Primary Co-operative Agriculture and Rural Development Banks (PCARDBs). • A higher limit of Rs. 3 crore for TDS on cash withdrawal to be provided to co-operative societies. • Date of incorporation for income tax benefits to start-ups to be extended from 31.03.23 to 31.3.24. • Proposal to provide the benefit of carry forward of losses on change of shareholding of start-ups from seven years of incorporation to ten years. • Deduction from capital gains on investment in residential house under sections 54 and 54F to be capped at Rs. 10 crore for better targeting of tax concessions and exemptions. • Proposal to limit income tax exemption from proceeds of insurance policies with very high value. Where aggregate of premium for life insurance policies (other than ULIP) issued on or after 1st April, 2023 is above Rs. 5 lakh, income from only those policies with aggregate premium up to Rs. 5 lakh shall be exempt. • Income of authorities, boards and commissions set up by statutes of the Union or State for the purpose of housing, development of cities, towns, and villages, and regulating, or regulating and developing an activity or matter, proposed to be exempted from income tax. • Minimum threshold of Rs. 10,000/- for TDS to be removed and taxability relating to online gaming to be clarified. Proposal to provide for TDS and taxability on net winnings at the time of withdrawal or at the end of the financial year. • Conversion of gold into electronic gold receipt and vice versa not to be treated as capital gain. • TDS rate to be reduced from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases. • Income from Market Linked Debentures to be taxed. • Deployment of about 100 Joint Commissioners for disposal of small appeals in order to reduce the pendency of appeals at Commissioner level. • Increased selectivity in taking up appeal cases for scrutiny of returns already received this year. • Period of tax benefits to funds relocating to IFSC, GIFT City extended till 31.03.2025. • Certain acts of omission of liquidators under section 276A of the Income Tax Act to be decriminalized with effect from 1st April, 2023. • Carry forward of losses on strategic disinvestment including that of IDBI Bank to be allowed. • Agniveer Fund to be provided EEE status. The payment received from the Agniveer Corpus Fund by the Agniveers enrolled in Agnipath Scheme, 2022 proposed to be exempt from taxes. Deduction in the computation of total income is proposed to be allowed to the Agniveer on the contribution made by him or the Central Government to his Seva Nidhi account. INDIRECT TAXES • Number of basic customs duty rates on goods, other than textiles and agriculture, reduced to 13 from 21. • Minor changes in the basic custom duties, cesses and surcharges on some items including toys, bicycles, automobiles, and naphtha. • Excise duty exempted on GST-paid compressed bio gas contained in blended compressed natural gas. • Customs Duty on specified capital goods/machinery for manufacture of lithium-ion cell for use in battery of electrically operated vehicle (EVs) extended to 31.03.2024 • Customs duty exempted on vehicles, specified automobile parts/components, sub-systems and tyres when imported by notified testing agencies, for the purpose of testing and/ or certification, subject to conditions. • Customs duty on camera lens and its inputs/parts for use in manufacture of camera module of cellular mobile phone reduced to zero and concessional duty on lithium-ion cells for batteries extended for another year. • Basic customs duty reduced on parts of open cells of TV panels to 2.5 per cent. • Basic customs duty on electric kitchen chimney increased to 15 per cent from 7.5 per cent. • Basic customs duty on heat coil for manufacture of electric kitchen chimneys reduced to 15 per cent from 20 per cent. • Denatured ethyl alcohol used in chemical industry exempted from basic customs duty. • Basic customs duty reduced on acid grade fluorspar (containing by weight more than 97 per cent of calcium fluoride) to 2.5 per cent from 5 per cent. • Basic customs duty on crude glycerin for use in manufacture of epicholorhydrin reduced to 2.5 per cent from 7.5 per cent. • Duty reduced on key inputs for domestic manufacture of shrimp feed. • Basic customs duty reduced on seeds used in the manufacture of lab grown diamonds. • Duties on articles made from dore and bars of gold and platinum increased. • Import duty on silver dore, bars and articles increased. • Basic Customs Duty exemption on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode continued. • Concessional BCD of 2.5 per cent on copper scrap is continued. • Basic customs duty rate on compounded rubber increased to 25 per cent from 10 per cent or 30 per kg whichever is lower. • National Calamity Contingent Duty (NCCD) on specified cigarettes revised upwards by about 16 per cent. Legislative Changes in Customs Laws • Customs Act, 1962 to be amended to specify a time limit of nine months from date of filing application for passing final order by Settlement Commission. • Customs Tariff Act to be amended to clarify the intent and scope of provisions relating to Anti-Dumping Duty (ADD), Countervailing Duty (CVD), and Safeguard Measures. • CGST Act to be amended o to raise the minimum threshold of tax amount for launching prosecution under GST from one crore to two crore; o to reduce the compounding amount from the present range of 50 to 150 per cent of tax amount to the range of 25 to 100 per cent; o decriminalise certain offences; o to restrict filing of returns/statements to a maximum period of three years from the due date of filing of the relevant return/statement; and o to enable unregistered suppliers and composition taxpayers to make intra-state supply of goods through E-Commerce Operators (ECOs). -------------------

Raja Ram Mohan Roy– A Great Reformer –Analysis

-*Dr. S. Vijay Kumar Raja Ram Mohan Roy was a great son of India who paved the way for various reforms for the development of our country. He was a multifaceted social, religious, political, economic, and educational reformer renowned for his pioneering role in opposing practices like Sati, child marriages, social Divisions and for advocating education. Raja Ram Mohan Roy founded Brahmo Sabha in 1828, which was one of the first Indian socio-religious reform movements. Main aim Brahmo Samaj was the worship of the eternal God. It was against priesthood, rituals, and sacrifices. It focused on prayers, meditation and reading of the scriptures. It believed in the unity of all religions. He was also a great scholar and an independent thinker. Ram Mohan Roy was greatly influenced by western modern thought and stressed on rationalism and modern scientific approach. He was against the perceived polytheism of Hinduism. He advocated monotheism as given in the scriptures. Gopal Krishna Gokhale called Roy the ‘Father of Modern India’. He was considered as the “Father of Indian Renaissance”. Raja Ram Mohan Roy was born on May 22, 1772 in a village Radhanagar in the District of Hooghly in Bengal to Ramkanto Roy and Tarini. His father was a rich Brahmin and orthodox. Despite his father Ramakanto’s strict religious beliefs, he encouraged his son to seek higher education. From the village school, he learned Bengali and Sanskrit Ram Mohan was then sent to Patna to learn Persian and Arabic in a Madrasa. Persian and Arabic were in high demand at that time as it was the court language of the Mughal Emperors. He read the Quran and other Islamic texts. After finishing his studies in Patna, he went to Banaras (Kashi) to study Sanskrit. He learned Vedas and Upanishads. He learnt English much later at the age of 22. He read the works of philosophers such as Euclid and Aristotle, which influenced his spiritual and theological beliefs. Ram Mohan joined the East India Company as a clerk and promoted to the rank of Dewan, which denoted a native officer tasked with revenue collection. He estimated that around half of the total revenue collected in India was sent to England. Between 1810 and 1820, he published numerous works on a wide range of subjects including religion and politics. In 1830, Ram Mohan Roy travelled to the United Kingdom as an ambassador of the Mughal Empire to ensure that Lord William Bentinck’s Bengal Sati Regulation, banning the practice of Sati, was not overturned. As a result of his hard work in fighting Sati, the governor of the Bengal Presidency, Lord William Bentinck, formally banned the Sati practice on December 4, in 1829. He persuaded the British government to increase the Mughal Emperor’s stipend by £30,000. In 1831, the Mughal Emperor Akbar II conferred the title ‘Raja’ on him. Raja Ram Mohan Roy’s name will be remembered in the history of India as a great social reformer and benefactor of women, not only for helping to end the tradition of Sati but also for speaking out against child marriage and polygamy, as well as for urging equal inheritance rights for women. He was also a fierce opponent of his generation’s rigid caste distinctions. Now, in this Paper I will try to analyze in detail Raja Ram Mohan Roy’s various facets of his life as a socio, economic, political, religious, journalist and educational reformer. *Professor (Associate) & Head of the Department of Economics (Retd.), Kakatiya Government NAAC “A” Grade College, Former Member of Board of Studies, Kakatiya University, Warangal, Telangana State. Raja Ram Mohan Roy - Social Reformer: • Raja Ram Mohan Roy was influenced by western modern thought and stressed on rationalism and modern scientific approach. • He believed that religious orthodoxies have become causes of injury and detrimental to social life and sources of trouble and bewilderment to the people, instead of tending to the amelioration of the condition of society. • He believed that each sinner must make restitution for his sins, and it is to be done through self-purification and repentance and not through sacrifices and rituals. • He was attracted to monotheism. He said that monotheism is the fundamental message of Vedanta. • His idea of single, unitarian god was a corrective to the polytheism of orthodox Hinduism and to Christian trinitarianism. He believed that monotheism supported one universal model for humanity. • He campaigned against untouchability, superstitions, and use of intoxicants. • He was well known for his pioneering thought and action on the emancipation of women and especially on the abolition of sati and supported widow remarriages. He also struggled for the empowerment of women. • He attacked illiteracy of women and the degraded state of widows and demanded the right of inheritance and property for women. • He opposed customs such as Sati, polygamy, child marriage, and purdah. He believed in social equality of all human beings and thus was a strong opposer of the rigidity of the caste system and its excesses. As a result of his arduous work in fighting Sati, the governor of the Bengal Presidency, Lord William Bentinck, formally banned the practice on December 4, in 1829. Raja Ram Mohan Roy conceived reformist religious associations as instruments of social and political transformation. Raja Ram Mohan Roy – Religious Reformer: • He opined religious reform is both social reform and political modernization. • Raja Ram Mohan Roy founded the Atmiya Sabha in 1815 to campaign against idolatry, caste rigidities, meaningless rituals, and other social ills. The Calcutta Unitarian Association in 1821, and the Brahmo Sabha in 1828, which later became the Brahmo Samaj. First reformist movement of the Hindu religion that aimed at fighting social evils that were prevalent in those days in the society. The following are the salient features of Brahmo Samaj: • It was the forerunner of all social, religious, and political movements of modern India. It split into two in 1866, namely Brahmo Samaj of India led by Keshub Chandra Sen and Adi Brahmo Samaj led by Debendranath Tagore. • Its chief aim was the worship of the only one eternal God. It was against idol, priesthood, rituals, and sacrifices. • It focused on prayers, meditation and reading of the scriptures. It believed in the unity of all religions. • It was the first intellectual reform movement in modern India. It led to the emergence of rationalism and enlightenment in India which indirectly contributed to the nationalist movement. Other Religious Reforms: • He translated the Vedas and five of the Upanishads into Bengali. • He opposed idolatry, dowry, and corrupt practices of the Hindus as the belief in revelations, prophets, miracles etc. • He had learned holy scriptures from various faiths and argued that Hindu Scriptures such as the Upanishads supported the concept of monotheism. • His Brahma Samaj emerged as a powerful progressive force driving for religious and social reforms in Bengal, especially women’s education. • He was against the perceived polytheism of Hinduism. He advocated monotheism as given in the scriptures. • He criticized the ritualism of Christianity and rejected Christ as the incarnation of God. In Precepts of Jesus (1820), he tried to separate the moral and philosophical message of the New Testament, which he praised, from its miracle stories. • Raja Ram Mohan Roy’s first published work Tuhfat-ul-Muwahhiddin (a gift to deists) published in 1803 exposed irrational religious beliefs. • Raja Ram Mohan Roy and his Brahmo Samaj played a vital role in awakening Indian society to the pressing issues plaguing society at that time. It was the forerunner of all social, religious, and political movements of modern India. Raja Ram Mohan Roy – Political Reformer: • Raja Ram Mohan Roy was impressed and admired the civil liberties given to people under the British System of Constitutional Government. He wanted to extend the benefits of that system of government to the Indian people. • He spoke against the unjust policies of the British government especially the restrictions on press freedom. Through his writings and activities, he supported the movement for free press in India. When press censorship was relaxed by Lord Hastings in 1819, Ram Mohan found three journals- The Brahmanical Magazine (1821); The Bengali weekly, Samvad Kaumudi (1821); and the Persian weekly, Mirat-ul-Akbar. • He demanded equality between Indians and Europeans. He wanted the Indianization of superior services and separation of the executive from the judiciary. Raja Ram Mohan Roy – Economic Reformer: Reforms for Taxes – • He condemned the oppressive practices of Bengali Zamindars. • He demanded fixation of minimum rents. • He called for a reduction of export duties on Indian goods abroad and demanded the abolition of taxes on tax-free lands. • He raised his voice for the abolition of the East India Company’s trading rights. • He wanted modern economics and industry to be introduced into the country. Raja Ram Mohan Roy - Educational Reformer: • Raja Ram Mohan Roy made remarkable efforts in the field of education system of India. To modernize the education system, he established many English schools to educate Indians in Western scientific education and also promoted technology, and western medicine. • He strived hard for women emancipation and for their legitimate rights and against the illiteracy, especially of women. He believed that English-language education was superior to the traditional Indian education system and called for the introduction of English Education System to teach scientific subjects such as Mathematics, Physics, Chemistry. • He paved the way for revolutionizing Indian Education System and supported the efforts of David Hare’s to establish Hindu College in 1817 in Calcutta, while Roy’s English school taught mechanics and Voltaire’s philosophy which became one of the finest educational Institutions in the world. • In order to mix traditional philosophical teachings with modern rational classes, he founded the Anglo-Vedic School in 1822. • In 1826, he established Vedanta college to spread his teachings of Hindu monotheism and also courses were offered in social and physical sciences. • He promoted the pure ethical Vedanta school of philosophy. Coming at a time when the government had opened Sanskrit schools, his step was also aimed at promoting subjects like Mathematics, Geography and Latin which, he felt, were necessary to help the Indians keep pace with the rest of the world. Raja Ram Mohan Roy – Journalism – Literary and Published Works: Raja Ram Mohan Roy was a pioneer in the field of Indian Journalism. It was because of his efforts that in 1835 all the restrictions imposed on Press were removed by Charles Metcalfe. For his honorary work as a journalist, every year ‘Raja Ram Mohan Roy National Award for excellence in Journalism’ is given to a journalist for their contributions in the field of journalism. The award contains a cash price of 1 Lakh rupees. Raja Ram Mohan Roy was a democrat and a humanist at heart. He was a voracious reader. He studied eastern languages such as Arabic, Persian, and Sanskrit, as well as European languages such as English, French, Latin, Greek, and Hebrew. Ram Mohan Roy was a strong advocate of free expression and free speech. He was an outspoken supporter of press freedom. He advocated for the freedom of the vernacular press. To educate people politically and, socially Raja Ram Mohan Roy published magazines in different languages including English, Hindi, Persian, and Bengali. He was the founder and editor of the Bengali periodical Samvadkaumudi, which was one of the first Indian newspapers. He was a brilliant linguist and stylist. He was an independent thinker and a person who brought changes to society during the 18th and 19th centuries. He is regarded as one of the founding fathers of modern Bengali writing. Noticeable magazines published by him were the Brahmanical Magazine, the Sambad Kaumudi, and Mirat-ul-Akbar. His most popular journals covered socio-political issues in India which helped Indians to rise above their current state. Raja Ram Mohan Roy inspired the people across the world with his Journalism, Literary and Published Works. His noted works are: • Tuhfat-ul-Muwahhidin (1804). • Vedanta Gantha (1815). • Translation of an abridgement of the Vedanta Sara (1816) • Kenopanishads (1816). • Ishopanishad (1816). • Kathopanishad (1817). • A Conference between the Advocate for, and an Opponent of Practice of Burning Widows Alive (Bengali and English) (1818). • Mundaka Upanishad (1819). • A Defence of Hindu Theism (1820). • The Precepts of Jesus- The Guide to Peace and Happiness (1820). • Bengali Grammar (1826). • The Universal Religion (1829). • History of Indian Philosophy (1829). • Gaudiya Vyakaran (1833). • Petitions against the Press Regulation to Supreme Court and to King-in Council. • Letter to Lord Amherst on English education. • A tract on the Religious Toleration. • Rights of Hindus over ancestral property according to the Law of Bengal. • Remarks on Settlement in India by Europeans. • An Exposition of the Revenue and Judicial System of India. To conclude, Raja Ram Mohan Roy was a renowned historical person who worked tirelessly to develop India and declared that he would violate Hindu tradition. The contributions of Raja Ram Mohan Roy to modern India are worthy, hence he is considered as the first great leader and father of modern India. To change the society, he conducted a lot of social, religious reforms and strove to improve the status of women in India. He attempted to propagate the monotheistic doctrine in religion. He knew that the ideal of human civilization does not lie in isolation of independence, but in the brotherhood of inter-dependence of individuals as well as nations. He was a staunch opponent of social ills like Sati, Child marriage, Caste rigidity. The eradication of Sati is one of the most significant turning points in modern India's social history. Raja Ram Mohan Roy died with a disease “Meningitis” on September 27, 1833, in Bristol. The British government has named a street in Bristol as ‘Raja Rammohan Way’ in his memory. He is eternal and always will be remembered in the history India for his great ideologies, religious, social, political, economic reforms, journalism, literary and published works. References: Das, PijushKanti - Rammohun Roy and Brahmoism - University of Calcutta. Fisch, Jörg. “Dying for the Dead: Sati in Universal Context.” Journal of World History, vol. 16. Fatima, Tausif, and Tousif Fatima. “WOMEN'S RIGHTS AND HINDU LAW OF INHERITANCE: THE APPROACH OF RAMMOHUN ROY.” Proceedings of the Indian History Congress, vol. 70, 2009. Kapadia, K. M.“A Perspective Necessary for the Study of Social Change in India”. Sociological Bulletin, vol. 6. Majumdar, J. K. “RAJA RAM MOHAN ROY AND HIS ‘TIMOUR MISSION.’” Proceedings of the Indian History Congress, vol. 3. Patel, Tanvi (22 May 2018). “Google Honours ‘Maker of Modern India’: Remembering Raja Ram Mohan Roy”. Robertson Bruce C. (1995). 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