THIRUVANANTHAPURAM l Wednesday l February 12, 2025 l `9.00 l PAGES 16 l LATE city EDITION Lottery distributors need not pay service tax to centre The Supreme Court dismissed pleas of the Centre and held service tax cannot be levied on promotion, marketing, or sale of lottery tickets File photo ‘no service being rendered by respondent’ ‘only states can impose tax on lottery’ A bench comprising Justices B V Nagarathna and N K Singh held, “At each stage, the amendments made to the Finance Act, 1994, in order to impose service tax on the sole distributor/purchaser of the lottery tickets have been unsuccessful... There being no service rendered by the respondents (lottery sellers in Sikkim) to Sikkim govt, hence service tax is not leviable” ■ ■ The Supreme Court upheld a recent Sikkim High Court order which had held that lottery comes within “betting and gambling” in Entry 62 of state list and only the state can impose any tax The Centre said it was entitled to impose service tax since the activity was an auxiliary service under Section 65(19) of Finance Act, ’94 2013 When the Centre moved SC on a plea filed by Future Gaming CHENNAI ■ MADURAI ■ VIJAYAWADA ■ BENGALURU ■ KOCHI ■ HYDERABAD ■ VISAKHAPATNAM ■ COIMBATORE ■ KOZHIKODE ■ THIRUVANANTHAPURAM ■ BELAGAVI ■ BHUBANESWAR ■ SHIVAMOgGA ■ MANGALURU ■ TIRUPATI ■ TIRUCHY ■ TIRUNELVELI ■ SAMBALPUR ■ HUBBALLI ■ DHARMAPURI ■ KOTTAYAM ■ KANNUR ■ VILLUPURAM ■ KOLLAM ■ TADEPALLIGUDEM ■ NAGAPATTINAM ■ THRISSUR ■ KALABURAGI Wild jumbos kill 3 in 24 hrs; min calls meet amid outrage 7 New, simplified tax Bill to be tabled in LS tomorrow M ano j V i s w anathan @ Kochi P R E E T H A N A I R & D I PA K M O N D A L @ New Delhi the New Income Tax Bill, which will be tabled in Parliament on Thursday, is longer than the existing one with 23 chapters, 536 sections and 16 schedules. The current Income Tax Act has 23 chapters, 298 sections and 14 schedules. The increase in number of sections reflects a more structured approach to tax administration, incorporating modern compliance mechanisms, digital governance, and streamlined provisions for businesses and individuals. The bill, a copy of which is in the possession of this paper, proposes a deduction for purchase of electric vehicles, revises donation rules, and updates medical and education related deduction. It proposes stronger regulations for crypto-assets and digital transactions, and a simplified refund process. The bill uses the term ‘tax year’ instead of ‘previous year’ to streamline the re por ting process. The bill has simplified legal terms to reduce litigation due to multiple interpretations. According to a chartered accountant who reviewed the bill, the new law is crisp and clear, and it includes past judicial decisions, bringing more clarity. “The new law is longer, but it has given straight-jacketed answers to a number of issues,” said the CA. Under the new bill, the Central Board of Direct Taxes and finance ministry get more powers to issue rules, notifications, and exemptions through delegated legislation. Rajat Mohan, senior partner, AMRG Associates, said businesses expect the bill to deliver a growth-friendly tax regime while ensuring policy stability . “Key demands include rationalised corporate tax rates, structured capital gains taxation, among others,” he said. 16 pages, including 4 pages of THIRUVANANTHAPURAM Express Prime Minister Narendra Modi with France President Emmanuel Macron and US Vice President J D Vance (R) in Paris | PTI new tech changes job types Stating that loss of jobs is AI’s “most feared disruption”, Modi said: “But, history has shown that work does not disappear due to technology. Its nature changes and new types of jobs are created. We need to invest in skilling and re-skilling for an AI-driven future.” Divergence among U.S, EU & china Trump’s actions show the growing differences in the strategies to regulate AI between the US, China and the EU. So far, the US and UK haven’t come around to sign a joint statement on the outcomes of the meeting We must democratise tech, create peoplecentric applications and address concerns on cyber security, disinformation etc Narendra Modi, PM Let’s build global AI framework to enhance trust: PM Says the new tech is writing code for humanity Jayanth Jaco b @ New Delhi Prime Minister Narendra Modi on Tuesday said artificial intelligence (AI) is writing the code for humanity in this century by transforming politics and society, and sought global cooperation to establish governance that addresses risks and fosters trust. His call came at a time when the European Union is moving towards a more relaxed AI regulatory approach to remain competitive, following US Presid e n t D o n a l d T r u m p ’s removal of previous safeguards to pave the way for a new technological race. Modi, who co-chaired the summit with French President Emmanuel Macron in Paris, said India would be happy to host the next edition of the Summit. “AI is writing the code for humanity in this century… AI is developing at an unprecedented scale and speed. And being adopted and deployed even faster. There is also a deep inter-dependence across borders. Therefore, there is a need for collective global efforts to estab- lish governance and standards, that uphold our shared values, address risks, and build trust,” Modi told the gathering of world leaders that inclued US vice president J D Vance and Chinese vice-premier Zhang Guoqing. “While the positive potential of AI is absolutely amazing, there are many biases that we need to think carefully about,” Modi said. Laying a roadmap of what should entail the governance of AI, Modi called for promoting innovation and deploying it for the global good. “So, we must think deeply and discuss openly about innovation and governance,” he said, adding: “Governance is also about ensuring access to all, especially in the Global South. It is where the capacities are most lacking — be it compute power, talent, data, or the financial resource.” Modi emphasised the need to create open-source systems that foster trust, build unbiased data sets, democratise tech, and develop people-centric applications, while also addressing cyber security . With protests raging in the high ranges following the death of three people in wild elephant attacks within a span of 24 hours, Forest Minister A K Saseendran has convened an urgent high-level meeting to explore ways to curb the rising human-wild animal conflict in the state. Head of Forest Force Ganga Singh, Chief Wildlife Warden Pramod G Krishnan and other principal chief conservators will deliberate over the prevailing situation at the meeting scheduled to be held at 2.30pm on Wednesday . Saseendran said the department will deploy the entire field staff, including social forestry officials, to strengthen patrolling in the conflict hotspots to avoid human casualty. This apart, primary response teams will be formed by recruiting local residents as volunteers to alert people about the presence of wild animals in their areas. On Tuesday, residents blockaded roads in Idukki and Wayanad districts, demanding protection from wild animals. As many as 11 people have died in wild jumbo attacks in Kerala between December 14, 2024, and February 11, 2025, indicating a rise in human-wildlife conflict. The body of Babu, 54, a resident of Venkolla near Palode, Thiruvananthapuram, was found around 8 km inside the forest on Monday evening. Babu, who had gone to visit his relatives on the other side of the forest, was trampled by a wild elephant. He was missing for the past five days. Manu, a 45-year-old tribal man, was killed by a wild elephant when he was returning after attending a temple festival at Kappad in Noolpuzha in Wayanad on Monday night. Both deaths occurred inside the forest. On Monday, Sofia Ismail of Peruvanthanam in Idukki was trampled to death by a wild elephant when she went to take bath in a nearby stream. The same day Prasad, a plan, tation worker, suffered rib fracture in a wild elephant attack at Ayyampuzha in Ernakulam. Apart from elephants, there has been an increase in incidents of other wild animals, including tiger and leopards, straying into human habita● More on P4 tions.  E X P R E SS N E WS S E R V I C E @Thrissur It (bringing pvt universities into the state) is not to turn education into mere business. It’s to bring development to Kerala’s education sector Pinarayi Vijayan, Chief Minister ‘Necessary move’ Minister R Bindu said the cabinet decision approving a draft bill on private varsities was a necessary move in accordance with the changing times. At pains to defend the Private Universities Bill, criticised as “anti-Left” by even ally CPI, Chief Minister Pinarayi Vijayan on Tuesday asserted that the move will be in line with the Kerala model of development, ensuring social justice. “We have stipulated that Kerala’s distinct characteristics should be taken into consideration... It (bringing private universities into the state) is not to turn education into mere business. It’s to bring development to Kerala’s education sector,” Pinarayi said, addressing the public meeting to mark the conclusion of the three-day Thrissur district conference of the CPM. The chief minister assured the gathering that social justice would be reflected in all spheres, including reservation and fee structure of the private universities. The government is trying to set the stage for a better higher education sector in Kerala, he said. “What was UDF’s approach to the public education system in Kerala during its rule from 2011 to 2016? About five lakh students dropped out of government and aided schools. Did the then government take any step to avoid closure of schools? When the LDF came to power in 2016, about 4,000 schools were found uneconomic. What is the situation now? About 10 lakh new students joined the public schools in Kerala,” he said. “When the LDF was reelected in 2021, we decided to transform higher education sector and ● More on P4 develop the institutions,” he said.  SEVEN banks have cut their repo-linked lending rates (EBLR) in response to the Reserve Bank of India’s 25 basispoint rate cut announced on Friday Over Monday and Tues. day, Bank of Baroda, Punjab National Bank, Bank of India, Indian Bank, UCO Bank, Karur Vysya Bank, and RBL Bank cut rates in the range of 15-25 bps for their existing customers. The move will reduce EMIs or the loan’s tenure—if one chooses to cut the tenure and not the EMI — on retail and small business loans. However, the two largest banks in the country—State Bank of India and HDFC Bank —are yet to pass on the rate-cut benefit to customers. Meanwhile, some lenders raised their marginal cost-based lending rates (MCLR), on which most corporate loans are priced, by 5-10 bps. MCLR is the minimum interest rate below which banks can’t lend money to borrowers. January 4: Mani, a 37-year-old tribal man, trampled to death in Karulai range of Nilambur forest while returning home at Poochapara in Malappuram January 8: Vishnu, 22, from Kutta in Karnataka, attacked and killed while returning to his village through forest road in Pulpally, Wayanad January 15: Sarojini, 52, of Uchakulam colony in Nilambur forest, trampled to death while collecting forest produce February 5: Vimalan, 57, of Champakkad tribal settlement, killed at Chinnar in Idukki February 10: Manu, 45, killed while returning from a temple festival in Noolpuzha, Wayanad Sofia Ismail, 45, of Idukki’s Peruvanthanam killed when she went to a stream to take bath Babu, 54, of Venkolla near Palode, T’Puram, who went to visit his relatives, trampled to death in the forest. Babu was missing for 5 days and his body was found on February 10 manipur Central rule buzz as no consensus yet on new CM F-35 Lightning II Fifth-generation  Single-seat, single-engine All-weather, multi-role  Stealth aircraft  P ra s anta M a z u mdar & P reetha nair @ Guwahati/New Delhi SHOWSTOPPER The Lockheed Martin-made fighter jet wowed spectators at Aero India as it took to skies on Monday 1 F-35s are designed to perform ground attack, aerial reconnaissance, and air defence 2 F-35 pilots wear helmetmounted display which helps strike a target simply by looking at it 3 CM defends opening 7 banks cut lending rates to give you quick relief doors to pvt varsities, asserts social justice ` B E N N K O C H U V E E D A N @ Mumbai KILLED IN JUMBO ATTACKS IN 2025 After a gap of five years, RBI last week cut the repo rate—the interest rate at which it lends money to commercial banks— to 6.25% from 6.50%. When RBI lowers the repo rate, the EBLRlinked loans get rep r i c e d p ro n t o bu t MCLR-linked loans take two quarters to reflect the change in rates. About 40% of the banking system’s loans are linked to the EBLR, and a similar percentage of loans are linked to the MCLR. While most retail loans are linked to an external benchmark, corporate loans are linked to the MCLR. PNB reduced its repo-linked lending rate by 25 bps to 9%, Bank of Baroda cut it to 8.9% from 9.15%. Bank of India, Indian Bank, and UCO Bank cut the lending rate by 15-25 bps. Private lenders RBL Bank and Karur Vysya Bank reduced their repo-linked lending rate by 25% to 11.35%. HDFC Bank, which is yet to announce EBLR rate cut, has increased its MCLR loan prices by 5 bps to 9.20%. THE leadership vacuum in Manipur deepened as the BJP failed to find a consensus candidate to succeed caretaker Chief Minister N Biren Singh, sparking speculation that the state may be placed under President’s rule. The party’s Northeast in-charge, Sambit Patra, met with Governor Ajay Kumar Bhalla Tuesday after separate closed-door huddles with BJP MLAs over the past two days. Earlier in the day, Congress leader Jairam Ramesh had flagged the possibility of Central rule. He said, Article 174 (1) stipulates that there cannot be more than a 6-month gap between the last sitting of an assembly session and the first sitting of the next session. And February 11 was the last day for a constitutionally-mandated sitting of assembly’s session, he said. Constitutional expert PDT Achary said: “What Jairam says is not correct. It is not a violation of Article 174 (1) as there is no government in office now. When government is not there, there is no question of convening assembly Hence, . the deadline of six months doesn’t operate here.’’ job scam tops list Keralites lost `1,021 crore to cyber fraud in past 3 years Shan A S @ T’Puram The collective loot from Kerala by cybercriminals over the past three years has exceeded `10 billion, data with the police revealed. Fraudsters swindled `1,021 crore between 2022 and 2024, of which `763 crore was siphoned off last year. While Keralites lost `48 crore to cyber fraud in 2022, the amount rose to `210 crore in 2023. A total of 41,426 complaints were registered in 2024, which roughly implies that as many people lost money to various cyber fraud activities. At `174 crore, Ernakulam topped the districts in terms of money lost in 2024, followed by Thiruvananthapuram with a loss of `114 crore. Wayanad was the least affected at `9.2 crore. Of the total amount lost since 2022, around `149 crore has been recovered. Most of the recovery was made in 2024. During this period, the cops froze 76,000 fraudulent transactions and recovered `107.44 crore. The recoveries made in 2022 and 2023 amounted to `4.38 crore and `37.16 crore, respectively According to the victims’ . demographics prepared by the cyber investigation division in 2024, one-fifth of the victims were employees of private companies (19.5 %), followed by pensioners (10.9 %), homemakers (10.37 %) and businessmen (10.25 %). Job scams preyed on the highest number of victims (35.34 %), followed by online trading fraud (34.96%), Fedextype scam (7.17%) and loan scams (3.36 %). Last year, the cyber cops blacklisted nearly 50,000 smart- phones/devices that were used for scamming. About 19,000 SIM cards, 31,000 websites and 23,000 social media accounts were also blocked after their involvement in cyber financial crimes were exposed. The surge in digital financial crimes had earlier prompted the state police chief to write to the Reserve Bank of India and the Ministry of Home Affairs seeking certain policy changes and technological intervention to ● More on P4 curb the menace.