Lok Sabha Question No. 2470 (UNSTARRED), answered on 2019-12-03
Subject: Economy of Valley
Ministry: HOME AFFAIRS
Asked by: Kotagiri Sridhar, Durga Prasad Rao Balli

## GOVERNMENT OF INDIA MINISTRY OF HOME AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 2470

TO BE ANSWERED ON THE 3 RD  DECEMBER, 2019/ AGRAHAYANA 12, 1941 (SAKA)

## ECONOMY OF VALLEY

2470.    SHRI SRIDHAR KOTAGIRI: SHRI BALLI DURGA PRASAD RAO:

Will the Minister of HOME AFFAIRS be pleased to state:

(a)  whether  it  is  a  fact  that  the  shutdown  in  the  valley,  since  the  last  three months or so has crippled the valley's economy;

(b) if so, the details thereof;

(c) the total amount of money which the business community in the valley has suffered losses;

(d)  whether  the  Government  proposes  to  provide  incentive  by  way  of  relaxing income tax to these business people; and

(e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS (SHRI G. KISHAN REDDY)

(a) to (c): Full  potential  and  economy  in  Jammu,  Kashmir  and  Ladakh  regions could not be realized  for the last 70 years as the people of Jammu and Kashmir have suffered from terrorist violence and separatism supported from across the border for the past many decades.  On account of article 35A and certain other constitutional  ambiguities,  the  people  of  this  region  were  denied  full  rights enshrined in the Constitution of India and other benefits of various Central Laws that were being enjoyed by other citizens of the country.

After  the  Declaration  issued  by  the  President  under  article  370,  based  on recommendation of the Parliament,  and  reorganisation  of the erstwhile State of

Jammu  and  Kashmir  into  Union  Territory  of  Jammu  and  Kashmir  and  Union Territory  of  Ladakh,  all  such  aspects  have  been  addressed.  The  people  and business community of these regions can now realize full potential in all sectors of economy and businesses like in other parts of the country.

Due  to  these  recent  decisions,  certain  precautionary  measures  taken  initially have been substantially relaxed.  There is no specific report received from the Government of Jammu and Kashmir or Administration of Ladakh regarding any new financial implications for businesses and economy in Jammu, Kashmir and Ladakh  regions  on  account  of  such  preventive  steps  taken  as  short  term measure.

Under  the Rs.80,068 Crores Prime Minister's  package  announced  on  7th November 2015, 63 major development projects in Road, Power, Health, Tourism, Agriculture,  Horticulture,  Skill  Development  sectors  are  already  under  various stages of implementation.

In  addition  to  the  above  steps,  many  flagship  schemes  of  the  Government  of India including the individual beneficiary centric schemes are being proactively implemented by the Government.

(d) & (e): New Income Tax incentives are not given specifically on the basis of area.  However, the Central Board of Direct Taxes (CBDT) had extended the duedate of filing of returns of income tax in respect of all categories of Income Tax assessee  in  the  Union  Territory  of  Jammu  &  Kashmir  and  Union  Territory  of Ladakh till 30 th  November, 2019.

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