On 21st April, Prime Minister Narendra Modi lambasted Congress over ‘Wealth Redistribution’ after Rahul Gandhi promised the same in case the opposition parties form the government. Addressing a rally in Banswara, Rajasthan, PM Modi warned the voters that according to the Congress party’s announcement if they form the government, gold, silver, ornaments like Mangalsutra, property, etc of Indians will be surveyed.
He added that after doing the wealth survey they (opposition led by Congress) will distribute it to people who have more children, to illegal migrants, and to Muslims, for whom Manmohan Singh had said they had the first right over resources.
While PM’s critical remarks have led to a political furore with Congress claiming otherwise, it is pertinent to note that the Congress-led governments in the past had passed laws that forced Indians and made it mandatory to deposit a part of their salary for a lock-in period of about 3-5 years.
The Congress party enacted a law called the Compulsory Deposit Scheme Act in 1963 and 1974. The act applied to all taxpayers, property owners, and all government employees. It forced them to deposit a certain percentage of their salary, revenue generated from land use, urban property, etc. The 1974 act forced taxpayers to deposit up to 18% of their incomes under this scheme. The deposit was withheld for a period of 3 or 5 years.
Incidentally, Dr. Manmohan Singh was the Chief Economic Advisor of the Congress government in 1974 when one of these Deposit Schemes was enacted.
Strikingly, the act was brought in the interest of “economic development”. The Compulsory Deposit Scheme 1963 states, “An Act to provide in the interest of national economic development for compulsory deposit and for the framing of a scheme in relation thereto.”
It adds, “This Act shall apply to the following categories of persons,
namely:—
(a) persons liable to payment of land revenue
(b) persons liable to payment of tax under the Income-tax Act;
(c) holders of immovable properties situated in urban areas assessed to tax
(d) employees of—
(i) the Central and State Governments,
(ii) local authorities,
(iii) companies as defined in section 3 of the Companies Act, 1956 (1 of 1956), including foreign companies
(iv) any other corporation (including a cooperative society) established by or under a Central, Provincial, or State Acts,
(v) individuals or associations of persons or bodies of individuals liable to payment of tax under the Income-tax Act
(e) dealers …
(f) such other categories of persons whose annual income is one thousand five hundred rupees or more and who are not liable to payment of tax under the Income-tax Act, as may be specified by the Central Government by notification in the Official Gazette.
The act further lists Requirements that have to be maintained as per the compulsory deposit scheme and allows the government to frame subsequent CDS Acts which would specify the rates and tenure for which the amount could be withheld. It also allowed the government the power to suspend, reduce, or remit the amount of compulsory deposit as well as exempt persons/companies from the operation of all or any of the provisions of this Act, etc.
Likewise, the CDS Act 1974 specified the rates and tenure for making the compulsory deposits among other details of requirements and ambit of the law.
Highlighting the same, several netizens have slammed the Congress party for forcing people to deposit a significant part of their portion in a fund that was mandatorily withheld for years.
PM @NarendraModi ji is very right about Congress' plan restribution of wealth.
— Suresh Nakhua (Modi Ka Parivar) 🇮🇳 (@SureshNakhua) April 22, 2024
Congress has done it twice in past aand will do it again.
Remember THE COMPULSORY DEPOSIT SCHEME ACT, 1963 ?
It's the same party that FORCED people to part with substantial amount of their salaries… https://t.co/nAeN7d5Yvk pic.twitter.com/5MnBbYzslO
Beware! CONgress's wealth redistribution S̸c̸h̸e̸m̸e̸s̸ ̸Scams are nothing but daylight robbery! 💰🚫
— Arun Pudur (@arunpudur) April 22, 2024
Twice in history, they've snatched hard-earned money from Hard working Indians.
Many may not Remember the Compulsory Deposit Scheme Act, 1963? They forced citizens to… pic.twitter.com/VwAT4PSecx
Slamming the Congress, X user Arun Pudur wrote, “Beware! CONgress’s wealth redistribution Schemes/Scams are nothing but daylight robbery! Twice in history, they’ve snatched hard-earned money from hardworking Indians.”
Apart from attacking the Congress party for the past laws, netizens have claimed that if the grand old party forced Indians to do it in the past, they could do it again if they came to power.
