Baba Ramdev to end fast before noon
NEW DELHI: The government is giving final touches to a two-volume report prepared by the income tax department on Baba Ramdev's trusts and ayurvedic ventures, possibly making a case for tax evasion against the yoga guru who on Monday launched an offensive against the Congress on the issue of black money.
A senior finance ministry official said the report was the outcome of an ongoing scrutiny of accounts of Ramdev's trusts which began some time ago and its completion should not be construed as vendetta for his belligerent approach towards the government.
On Monday, Ramdev called off his fast and launched an anti-Congress campaign, calling his supporters to mobilize people and oust the party in the next parliamentary polls, which he predicted would be advanced by a year.
What Congress managers had not anticipated was the support Ramdev would garner in his call for "Congress hatao desh bachao". Not only did the BJP and its ally JD(U) share the yoga guru's platform but even some of Congress allies such as Samajwadi Party and BSP came out in support, giving jitters to the UPA.
The I-T report on Ramdev, sources said, could lead to withdrawal of tax exemptions granted to his trusts, terming their activities as non-charitable and of commercial nature. Once exemption is withdrawn, Ramdev will not only be liable to pay tax but he may be slapped with punitive action akin to those initiated against tax evaders and money launderers.
The tax liability being made out against the trusts, which can always be contested by the yoga guru, is likely to be in the range of Rs 250 crore to Rs 300 crore which include interest and penalty for the six year period for which all transactions have been scrutinized, sources said.
Some of the transactions of Ramdev's ayurvedic companies and shifting of profit have been questioned in the report, sources said. The report is believed to have held his Patanjali Yogpeeth responsible for all profit making in the name of charity, and evading taxes.
The report has analyzed balance sheets of these trusts and gone into finer details such as expenditure made on chartered aircraft and earnings made from several yoga camps and donations and how they have been used. However, the government is waiting for Ramdev's response before any action is initiated.
A senior finance ministry official said the report was the outcome of an ongoing scrutiny of accounts of Ramdev's trusts which began some time ago and its completion should not be construed as vendetta for his belligerent approach towards the government.
On Monday, Ramdev called off his fast and launched an anti-Congress campaign, calling his supporters to mobilize people and oust the party in the next parliamentary polls, which he predicted would be advanced by a year.
What Congress managers had not anticipated was the support Ramdev would garner in his call for "Congress hatao desh bachao". Not only did the BJP and its ally JD(U) share the yoga guru's platform but even some of Congress allies such as Samajwadi Party and BSP came out in support, giving jitters to the UPA.
The I-T report on Ramdev, sources said, could lead to withdrawal of tax exemptions granted to his trusts, terming their activities as non-charitable and of commercial nature. Once exemption is withdrawn, Ramdev will not only be liable to pay tax but he may be slapped with punitive action akin to those initiated against tax evaders and money launderers.
The tax liability being made out against the trusts, which can always be contested by the yoga guru, is likely to be in the range of Rs 250 crore to Rs 300 crore which include interest and penalty for the six year period for which all transactions have been scrutinized, sources said.
Some of the transactions of Ramdev's ayurvedic companies and shifting of profit have been questioned in the report, sources said. The report is believed to have held his Patanjali Yogpeeth responsible for all profit making in the name of charity, and evading taxes.
The report has analyzed balance sheets of these trusts and gone into finer details such as expenditure made on chartered aircraft and earnings made from several yoga camps and donations and how they have been used. However, the government is waiting for Ramdev's response before any action is initiated.
From http://timesofindia.indiatimes.com
