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KEVIN

As I draw near to the end of my sixth decade on this earth, I find myself approaching that point in life where I suspect many will arrive eventually—I am just about ready to stop trying to keep up with technology inspired innovations.  This is particularly true of communication advancements.  Just as I begin to discover platforms such as Facebook, my children alert me to the fact that Facebook is for old people and there are now three or four new and better ways to keep in touch with others. You know what? I am OK with being old and declaring that Facebook is the end of my social media journey.  I have to admit that my becoming a curmudgeon on social media has been a long time coming.

Years ago, just as I was retiring, I recall the younger marketing folks advising that, if our company wanted to be successful in the future, we were going to have to embrace this new wave of communication called ‘social media.’ The thought was that our markets were becoming saturated and our messages to consumers stale, so shifting our communication resources to social media would surely bring new life and growth to our aging brand. Frankly, I didn’t believe that merely changing how we said what we had always been saying was going to make that much difference in how people reacted to our efforts to attract more customers. However, being in Communications at the time, I was aware that there were times when different methods of communicating could make a big difference on how receptive a given audience might be.

“The medium is the message”

At the time I came to reflect on the words of a Canadian born Catholic communications guru by the name of Marshall McLuhan.  In the 1960’s, while writing on the power of the emerging medium of television, he coined the aphorism, “the medium is the message.” By that McLuhan meant that the medium chosen to convey messages shaped human behavior more than the messages themselves. Eventually, I became convinced of the truth of this, as I lamented how the advent of email had reshaped relationships between coworkers. Colleagues who for years had communicated frequently via telephone conversations were now more and more regularly communicating using the impersonal medium of emails.  While it was great to be able to communicate at any hour of the day or night, this cold and impersonal vehicle became its own form of tyranny. The spirit of team work and the culture of accountability became one of finger-pointing and blame laying, as the email streams recorded the journey of work from one desk to another. People were no longer team members; camps were formed.   I remembered lamenting the loss of a collegial culture and wondered if this new social media was going to become a positive force if it took hold.

Well, it would be hard to argue that social media has not taken hold in our world. I would venture to say that there are few individuals under the age of sixty who don’t have more than a few internet based social media tools that they use on a regular basis. I myself (well over sixty) have to admit to having five different applications on my cellular phone and two more on my computer. Is that a good thing? For me, the answer is probably yes. The applications I use help me to actually be better connected with family and friends than I would be if I had to rely on the telephone or letters and postcards. Many of the applications bring me information and insights that I wouldn’t otherwise have access to because I am too lazy to read and research on my own.

The Ugly and the Beautiful

Sure, there is bad that goes along with the good. The impersonal and inconsequential nature of social media emboldens many to share mean-spirited and divisive thoughts and opinions with alarming frequency.  I might even be willing to agree that, on the whole, much of the social media and many people’s addiction to it is not really a favorable development for society. Recently, I am becoming inclined to join that school of thought. The rampant, bitter and downright nasty commentaries on social media in a lead up to the November elections in the United States prompted me to swear off Facebook for several weeks. And when I came back after the elections were over, the tone and bitterness that has prevailed has me seriously considering a permanent departure.

However, as fate would have it, just a couple of days ago I happened upon a posting of a brief video message from Pope Francis on which he was encouraging Christians to use all means possible to spread the loving and compassionate message of the Gospel. I heard him saying “don’t let the medium get in the way of the message” because getting the message out is our primary responsibility. The Pope’s message helped me to remember that it is important to not let the medium become a distraction or to let it detract from the Good News we are called to share. As I reflected on the Popes’ encouragement, I began to appreciate the importance of focusing on what is important. Social media is neither good nor bad, just as communication itself is neither good nor bad. It is what gets communicated that can be judged to be good or bad.  In other words, social media is not the issue; it is merely a tool, one of many and one which can be very effective when used the right way with the right audience.

Permanent Challenge

Sharing the beauty and truth of our Catholic faith is a huge communications challenge in this day and age. Of course, there were different challenges in Christ’s time and throughout our Church’s history. The challenge can only be met by more fully understanding and appreciating the reality of what it means to be a child of God and then being empathetic and compassionate enough to help others understand what it would mean to them in their life. As we come to better understand the individuals or groups that could benefit from the Gospel, we will come to identify the communication or teaching method they will be most receptive to. Throughout the history of the Catholic faith—from the verbal sharing of the gospels, the use of sacred art, the distribution of the written word, to radio and television broadcasts and yes, even social media—our Church and its members have been finding ways to respond to the call to go forth and make disciples of all nations. While the Pope did not express it directly, his advice to us might be: ‘Whether you embrace social media or not, don’t forget there are lots of different ways we have used over the years to get the reality of God’s love into the hearts of the faithful. Listen to the needs of others and use whatever medium they are most likely to respond to.’  God’s message of love for all of His children will come through loud and clear to those whose ears are open and whose hearts are so inclined if we care enough to share in ways that most readily engage their souls.

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CRYTAL AND KEVIN SULLIVAN

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Tax deducted at source (TDS) is something that every trust will have to go through unavoidably every year.  In most cases, TDS is deducted on the income of the trust. But it is also equally applicable on its expenses.  Hence, it is very important to know what TDS is and how it affects the trusts.

The government has different ways of collecting tax from the public.  One is direct tax and the other is indirect tax.  Income tax, for example, is a direct tax collected by the government. So also, Goods and Services Tax (GST), for example, is an indirect tax collected by the government.  Normally the government collects the income tax directly from the taxable persons while they file the income tax returns. One of the mechanisms used to collect income tax directly is through TDS.

What is TDS?

TDS is a mechanism to collect income tax; it forces people and companies to disclose their income.  It is to be deducted by an employer or company on the payment made to the employee or contractor or customer.  It is based on the principle, “pay tax as you earn,” which is beneficial to the employer as well as the employee.  It is not a tax, but an amount adjustable against the tax payable or refundable if there are no tax dues.  An employer or company/trust deducts the applicable TDS while making a payment.  The TDS thus deducted has to be deposited in the income tax account of the government, quoting the deductor’s PAN and TAN as well as the deductee’s PAN.  All TDS deductions (from various sources) of a particular PAN get credited to the income tax account of the deductee, who, while filing his income tax returns, calculates the income tax payable by him and either claims refund if his income tax is overpaid or pay the shortfall in other cases.  Thus, TDS is the income tax paid by the individuals and organizations and it is adjustable against the tax payable or claimed as refundable.

What is PAN?

Every trust must have a Permanent Account Number (PAN), which needs to be quoted for all financial dealings and filing returns. PAN is a ten digit alpha numeric id, unique for every person/entity.  It is to be noted that the fourth character, which determines the percentage of TDS to be deducted, has to be noted.  The fourth character of the PAN may be one of the following:

“T” for Trust

“S” for Society

“P” for Individual

“C” for Companies

“F” for Firm/limited liability partnership

“A” for Association of persons

“H” for HUF (Hindu Undivided Family)

In every PAN, the fourth character is a letter which shows the status of the person or organization (as shown above) and the fifth character is a letter denoting the first letter of the name of the organization. For example, AAATJ0723H is the PAN for Jnana Deepa Vidyapeeth, a registered public trust.  Note that the fourth letter “T” denotes that the entity is a trust and the fifth character is “J”, standing for the first letter of the name of the trust.  Any individual or organization whose income crosses the basic exempt income (currently Rs 2.5 lakhs per annum), is supposed to apply for and get a PAN. Here it is to be noted that no individual person or entity may have more than one PAN.  Having multiple PAN is a crime.

Where applicable:

Here we try to spell out the instances where TDS is applicable to the trusts.  For Trusts, TDS is applicable on the following payments:

2. Under Section 192B of the income tax act , TDS is deductible on salaries if the income of the individual is beyond the basic exempt level of Rs 2.5 lakhs. TDS in such a case is deducted on the average rate of tax payable for the financial year.
3. Under Section 194C, TDS has to be deducted on the payments to the contractors or sub-contractors, if the single payment is beyond Rs 30,000 or the amount crosses Rs 1 lakh on multiple payments.

[This is the most important section applicable to the trusts.   TDS deduction depends on the fourth letter of the payee.  If the fourth letter is “P,” very common, it stands for the individual and TDS is deducted at 1%. If the fourth letter is “C” or “F”, then TDS is deductible at 2%.  If the payee does not have a PAN, then TDS is deducted at 20%.  Hence, we should find out before allotting the work if the person has a PAN or not.  If no PAN, no contract work can be given.]

1. Under Section 194J, TDS of 10% is applicable on any fees paid for professional consultation or Professional or Technical fees, if the amount goes beyond Rs 30,000/annum. [This section is highly applicable to the trusts. Kindly note that, if the payee is a professional,  like an advocate, engineer, architect, doctor, auditor, etc., then, TDS is to be deducted at 10%.]
2. Under Section 194A, TDS is deductible if the interest income is more than Rs

10,000/annum, at 10%.

1. Under Section 194H, TDS is applicable on the commission or brokerage at

 the rate of 10% if the amount is above 5000.00.

1. Under Section 194I(a), TDS is applicable at the rate of 1% on the purchase of an immovable property, if the value of the property crosses Rs 50,00,000 as lumpsum or in installment.
2. Under Section 194I(b), TDS at the rate of 10% is deductible on the rent, if it is more than Rs 1,80,000/year (15,000/month). TDS is 5% if no audit is necessary for the payee.  TDS of 10% is deductible on land, building & furniture; on plant & machinery, 2% TDS is applicable.

If the deductee has no PAN, then TDS deductible is 20% u/s 206AA of the ITA, 1961. If no TDS is deducted, 30% of the amount on which TDS is deductible and not deducted, will be disallowed for the deductor as application of income u/s 40(a)(ia) (new explanation to Sec 11)

TDS has to be deducted from taxable salary and on every single contract bill exceeding Rs 30,000 or on multiple payments if the amount exceeds Rs 1,00,000 per annum.  It has to be deposited in the IT Account by the 7^th of the next month. In addition, quarterly TDS returns are to be filed electronically within thirty days of every quarter end.

Besides PAN, a deductor should have a Tax deduction Account Number (TAN). Every trust should apply for TAN within one month from the end of the month in which tax is deducted. A trust having various branches and maintaining individual accounting should obtain a separate TAN for each branch other than that of the main trust.  Not having a TAN will attract a penalty of Rs 10,000/-

197 CERTIFICATE (for exemption from TDS deduction):

TDS is deducted on receipts such as interest on investments, rent, professional fees, commission, etc.  U/S 197, the trust can apply to the Assessing Officer of the TDS department for certificate authorizing the payer not to deduct TDS.

 

Penalties:

A penalty is applicable if TDS norms are not followed

• There is an interest charged for the late payment of TDS [Sec 201 (1A)].

1. a) If TDS was deducted and not paid: 1.5 % per month on the amount of such tax from the date on which tax was deducted to the date on which such tax is actually paid.
2. b) If TDS was not deducted and not paid: Up to 100 % of the amount of TDS not paid.

• Interest on interest (Sec 220): Any amount specified as payable in notice of demand u/s 156 shall be paid within 30 days of notice served or else the assessee shall be liable to pay simple interest @ 1% per month.
• Penalty for late filing of TDS Returns (Sec 234E): Rs 200 per day or an amount equal to TDS amount in the quarter, whichever is lower.
• Prosecution u/s 276B: if a person defaults, imprisonment from 3 months to 7 years.

Other Norms:

• TDS certificate: The deductor gives the deductee the TDS certificate in (a) Form 16 for salaries and (b) Form 16A for income other than salary. The deductee files this TDS certificates along with the tax returns.
• Forms 26Q and 27A: The deductor files quarterly returns with all details of the TDS deducted. Form 26Q is used for non-salary income. Quarterly returns in Form 27A is a control chart of quarterly TDS/TCS statements to be filed by deductors/collectors along with quarterly statements. It is a summary of TDS/TCS returns which contains control totals of ‘amount paid’ and ‘income tax deducted at source’. A separate Form No. 27A is to be filed for each TDS/TCS return.
• Form 26AS: It is an annual tax credit statement. It indicates that the tax that has been deducted has been deposited with the Govt. Form 26AS contains details of tax deducted on behalf of the taxpayer (you) by deductors (employer, bank etc.). So, TDS deductions that are given in Form 16  or 16 A can be cross-checked using Form 26AS.

Following all the above procedures will require sufficient knowledge of the way TDS functions.

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Fr Alex Gnanapragasam SJ

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Christmas is a time for giving, a time for thinking of others, of finding happiness by reaching out to others. Here are true stories of people who reached out and made a difference—mostly in small, almost unnoticed ways. They show us that, instead of drowning in sweet words and generalities, or spreading bad news (as much of media seems to do), we can spread some love and joy around us, if we choose to.

1. Come for My Wedding

Years ago, while discussing with the managers of Pallavan Transport Company in Chennai on ways of helping drivers and conductors, I heard this touching story. Many of the conductors, a manager told me, were educated, but did this job for want of better opportunities. They feel people do not see them as human beings, but simply as someone selling them a ticket. In this connection, he told me that most of the 8000 drivers and conductors had gone to see a Tamil movie called Aval Oru Thodarkathai. Why? The reason was heart-warming. In it, a young woman comes to invite the driver and conductor of a particular bus for her wedding. They ask her why. They do not know her. She tells them, “You may not know me. But I know you. I have been taking this bus every day, and seeing both of you every day. So, I want you to come for my wedding.” The drivers and conductors felt: “Here is someone who thinks of us as human beings, not just as drivers and conductors.”

Whatever a person’s job or status, income or education, all are human beings like ourselves, with the same feelings and the same desire to be recognized and treated as human beings. Is this the way I treat people?

2. An Angel for Patients Left Alone

I wrote about him years ago in The New Leader. Mr Devassy, a poor man with a very limited resources, would cycle fifty kilometres every day to go three times a day to the  government hospital in Alleppey with food for those who did not have. Seeing what he was doing, others, especially those from his parish, started giving him food for the patients. He would care for patients who had no one with them, especially those from other states. He would take them to the right doctor, dress their wounds, help with their toilet, look for blood, and take them to his small house if they had nowhere to go after they were discharged. Among such patients was Perumal from Tamilnadu, paralyzed after a fall; Ranjit Kumar from Bihar whose wounds he would dress; Latif from Karnataka who had his leg amputated; 69-year-old Narayananan with head injuries and fractured legs whose relatives did not want him back; Navaneen, 68, abandoned by his sons.

Asked how got into this, Devassy replied, “I was once hospitalized. I noticed that an old man next to me had no one to look after him. I started with him. Later,  I thought: Why not help more people?” His outlook: “to see others’ bodies as our own body.”

May such GOOD people prod us, lethargic and often self-centred “followers of Christ” to move from a worldly Christmas of cards, cakes, paper stars and special meals to welcoming Jesus. Do we take Him in? How? How often?

3. A Top Surgeon’s Humanity

Dr T. J. Cherian MD was certainly a legend in his life time. I heard from other doctors that he was perhaps the most admired medical professional in Chennai—extremely competent, a wizard at diagnosis and very caring towards his patients. He could have minted money if he wanted. But that was not what he was after. One day, a Class IV railway employee from North India was brought for heart surgery to Railway Hospital, Perambur, Chennai. After the surgery, Dr Cherian asked him how he was. The man told him that he was alone and scared. He had no one with him, since he was from North India. Can you guess what this great doctor (who was then director of this famous hospital) did? After supper, he took a mat and slept near the patient!

I have heard many stories about this doctor’s unusual skills and competence. This story and others about his human side are part of what made him a legend.

4. “I want to be the first to help!”

A parish priest told me this story. He was working in a poor part of Tamilnadu, where most of the parishioners were landless Dalits. The church was old and small. A decision was made to build a new church. How would they find the funds for it? Most of the people were poor. Struggling for money, the priest had this touching experience. A poor woman selling groundnuts on the roadside came to him. She said, “Father, I heard that we are going to have a new church, and that you are looking for help. I want to be the first to help.” She gave him one hundred Rupees—a huge sum for her.

That brings me to the next story.

5. “What struck you most in India?”

I asked a young American called John Stasio who came to India some years ago, travelled around, did some voluntary work and went back, “John, what struck you most in India?” His answer was as unexpected as it was beautiful. He said, “The generosity of the poor. I had never seen such poverty before that. But I also saw how generous the poor are. They have so little in their hut; they are ready to share that with you. I had never seen such generosity before.”

6. “They need help. They have no money.”

A Sister Lawyer I know did so much to help a rape victim. The victim was poor, and the rapist was rich and well-connected. There is hardly any chance for a poor woman to win such a case and get justice. So, this Sister used her legal skills to help the woman get justice. (Name withheld for reasons of privacy.) There are a number of Sisters, Priests and other good people who are lawyers, and take up the cases of poor people who cannot afford to pay legal fees. In most countries, jails are crowded with poor people. The rich can use money and influence to stay out of prison, and win cases. The poor cannot.

7. A Child’s Savings for Flood Victims

Many of us will have read this story.

Anupriya, an eight-year-old girl from Villupuram in Tamilnadu, saw the plight of flood victims in Kerala. She had collected Rs 9000 over four years to buy a cycle. She donated the whole amount to help those affected by the flood.

As in Jesus’ words about the widow’s mite, a poor girl’s gift of 9000 will mean more to God than 9000 crores from a rich business or government.

8. Fasting Instead of Finding Fault

This touching story was told to me last week in Pune. A young Catholic woman told me how good her in-laws are. As an example, she said: On hearing people criticizing priests and religious, her father-in-law decided that it is better to pray for someone than to talk ill of them. So, now, he fasts one day a week, and offers it for priests and religious. Is this out attitude when we hear of someone’s failures? Do we do something about it or simply spread the bad news?

9. Their First Christmas as a Couple

Bernard and Angela (names changed) were a newly married couple. This is how they spent their first Christmas as a couple. They decided, instead of going out for a grand meal or buying presents for each other, to spend Christmas helping the Missionaries of Charity to serve meals to the poor. They prayed with them, helped the Sisters to serve the poor, and shared the meal the poor had.

Isn’t this a much more beautiful Christmas meal than an expensive dinner in a swanky place? Or exchanging beautifully wrapped gifts that people really do not need?

10. A Christmas Tree with Names of People

A parish priest I know put up a lovely Christmas tree near the Church. On that tree he hung (or stapled) names of poor families in the parish. He then invited the better off people in the parish to pick up a name from the tree, and invite that family to share a Christmas meal. A number of parishioners did.

11. “We Feel Honoured to be Here”

Sr Celine Vas, our associate editor, shared with me something beautiful she and her colleagues at St. Aloysius College in Mangalore did once. There were many drivers idling away near the college. Sr Celine suggested to the principal to invite them to the college and conduct a half-day programme for them. This was done—with a talk and items by the students. The principal presided, and gave away prizes to the drivers. As snacks were being served to them, one elderly drive went to the mike and said, “I was outside this college for forty years. I had no chance to get in. Today is a great day in my life. I feel these students and the Sister recognized us as human beings.” Another driver said, “Countless students and parents have travelled in my taxi, but I never felt I was part of this college. Today I feel great to sit here where so many students have sat and made a name. My poverty prevented me from getting an education, but today I feel I am part of this great institute. Thank you for treating us like your family.”

12. A Proud Father, a Great Son

A good lay Catholic, whom I have long admired for his integrity and compassion, told me of an experience that thrilled him. While travelling in a crowded train, his teenage son had packed his sleeping bag—a gift from someone overseas—carefully in its case so it would not get dirty. At night, when his father went to the toilet, he noticed that a young couple who had no berth, were lying on the floor on a sleeping bag. He recognized the sleeping bag as his son’s. His son had got up at night, and, without telling anyone, unpacked his brand new sleeping bag and told the couple sleeping on the bare floor, “You can use this.” The man told me, moved: “I feel so happy that my son has a character like this.”

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There are many, many good people around us. There is much good being done. Unfortunately, evil is more sensational and gets more publicity. We can either simply repeat the scandalous stories we hear, or look around, see the good, learn from it, and tell others about it.

Jesus’ birth was not a huge public event noticed by any media. It was simply the birth of an ordinary woman’s child. But that birth changed history.

We too can do our part to make the world better if we spread a bit of goodness around us when we can. The opportunities are endless, the good examples are many, and our own possibilities are more than we think.

What are you doing with the gifts you have?

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Fr Joe Mannath SDB

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“Each of you should give what you have decided in your heart to give, not reluctantly or under compulsion, for God loves a cheerful giver.” (2 Cor 9:7)

This article looks at the practice of gift-giving on special occasions like Christmas, the motives behind our giving, and the best gifts we can give.

CRYSTAL

What does it mean to us when we hear that we are to be “cheerful givers?”  It seems there are many answers to that question, which all come down to the attitude behind the gift-giving. Are our gifts given with a sense of obligation, or so that we can be admired and considered generous, or out of a sincere desire to show our love and appreciation?

One aspect of giving which Kevin touched on lightly in last month’s article, is that it is putting gratitude into action through generous sharing. This can, of course, take many different forms. For example, back in 1990, our young marriage was going through a difficult patch and we attended a Worldwide Marriage Encounter retreat to get back on track. The retreat was so life-changing that we spent the next eleven years actively helping to be part of the organization’s presentation team, lead a local community of married couples and contribute financially to ensure that retreats would continue for others.  There was nothing that we would not do to show our gratitude to God and the ministry for the gift we had received. For us, as for many others, our gratitude led us to give of our time, talent and treasure. The attitude of gratitude can be a very profound impetus for giving.

Gratitude, of course, is not always the motivation. Unfortunately, there are times when we make obligatory purchases out of a sense of duty. Christmas gift-giving can sometimes fall into this category. The shops are filled ahead of time—especially in Western countries—encouraging the purchase of all types of options for lightening our wallets.  Every holiday partygoer is expected to bring a gift to the hosts. Every family member or friend attending a Christmas celebration receives a gift of some kind, whether or not they need or even want anything.  In the early years of our marriage, we would drive back to Kevin’s large immediate family with the trunk of our car bursting with gifts for each of his eight siblings, their spouses and their children.  No one who knew me at the time would say that my attitude toward the preparation it took to purchase and wrap the items would say, “Oh, isn’t she a cheerful giver?” I was stressed and most often just happy to find something that might possibly please the recipient. Over the years, gifts I have received from others have often been just as generic. Last year, frustrated with the obligatory aspect of Christmas gift-giving, I proposed a  “No gifts policy” which almost started a civil war between those family members who love giving gifts as a way to show their love for each other, and the other family members who were insisting that we all have too much stuff and let’s donate to a charity instead. It really brought out to me that for some people gifts are truly an important and meaningful way to express their love.  And I must admit that, on certain occasions, the gifts that I have received have been extremely touching and meaningful. I suppose the difference is that the person truly entered into the purest form of anticipating what I would enjoy and appreciate. Two examples pop to mind immediately: several years ago, my sister made a cookbook of all of our family’s favorite recipes beginning with our grandmother’s; the second was when my sister made me a bag to hold my sewing projects, made out of leftover material of outfits my mom had used to make our dresses when we were young. Both of these gifts are priceless and bring a smile to my face every time I use them.  The effort and the thoughtfulness are inherent in these examples. These gifts truly say “My sister loves me.”

At the opposite extreme is the person who gives a gift in order to be seen as generous and important. Unfortunately, this can be true whether the person is conscious of their motivations or not. This came to light last spring, at the wedding of the son of my dear friend Karen who had died a month earlier. Family and friends were still grieving and there was sadness over Karen’s absence in the festivities. Karen’s sister, who seems to frequently feel unappreciated, wanted to gift the young couple a framed picture of some local sports hero, and wanted to do so with a microphone and have it presented to them in front of all the wedding attendees. When the other family members prevented her from doing so, she was devastated and angry. It was sad to see how much she needed to be appreciated for her gift rather than focus on what was best for these newlyweds. I suppose the same could apply to a philanthropist who gives large sums of money to a hospital in order to have a wing of the building named after him, or to those who give only if it is possible to enjoy a tax benefit as a result. As generous as the monetary value of the gift might be, they are somehow tainted by the impurity of the motivation behind them.

Of course, not all gifts have a purchase price attached to them. There are times when our presence is the present. Whether it’s listening to a friend who is struggling with relationship issues, or babysitting so that a young mother can run errands without three children in tow, or sitting with a friend in the doctor’s office to help allay her fears, the gift of being present to another in their time of need is invaluable.  I remember fondly all the ‘gifts’ I received when I was undergoing cancer treatment. There were phone calls to cheer me, cards sent to encourage me and meals made to free me from the work of cooking. My beloved husband brought me the Eucharist on the days when my immune system was compromised, which was the greatest gift of all. As a result, all of memories of this time seemed to land on the blessings rather than the struggle of treatment.  It truly was adding God’s love to the actions of others and making them a divine gift.

KEVIN

As I read Crystal’s insights on gift-giving, it strikes me that growing in gift-giving can be a little bit like growing in holiness.  As a young boy I can remember wanting to give gifts that I liked without concern for whether the receiver would enjoy or need it. After going through periods of seeing gifts as an obligation when I had no money to buy them, I came to understand that giving might require sacrifice. Eventually  (perhaps after receiving the sixth or seventh coffee cup with pictures of our grandchildren printed on the outside) I have come to understand that the greatest gift-giving is that which is all about the recipient. What are his or her desires or needs? We don’t need to spend a lot of money if we know what is truly important to the ones we care about. And, finally, worth considering is that most meaningful gift which is not what might be given but in what we might have been withholding from a friend, family member or colleague. Reaching out to reconcile with someone who may have hurt us or slighted us and offering our desire to reestablish relationship can be a most powerful gift that costs us nothing other than a little swallowed pride.  May we always be on the lookout for ways we can share the gift of God’s love with family, friends and enemies alike.

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CRYSTAL AND KEVIN SULLIVAN

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I am writing this piece while directing a retreat at the Pedro Arrupe Institute, Raja, Goa. Ever since I arrived here, I saw people peering  at a black statue right in front of the chapel. The statue was of a man dressed apparently in traditional Japanese dress, who was praying in a squatting posture.

The Sisters who had come for the retreat asked me  whose statue it was, and I was very happy to tell them: “Pedro Arrupe!”

I am writing this column on him on his 111st birthday and the day he, as the Superior General of the Society of Jesus, founded the JRS (Jesuit Refugee Service) that works now in 52 countries, serving about -640,000 refugees from across the world.

Pedro Arrupe was born on 14 November 1907 in Bilbao in the Basque region of Spain. He studied medicine, butbefore he could complete his studies and become a doctor, he was called to become a Jesuit. He joined the Jesuits in 1927. Five years later, the Spanish government expelled all the Jesuits, and Arrupe had to complete his Jesuit formation in Belgium, Holland and the U.S. He was ordained a priest on 30 July 1936.

In 1938 he was sent to Japan. He hoped he would be allowed to serve in Japan till the end of his life. But the Second World War broke out. On 07 December 1941 the Japanese bombed Pearl Harbor. In Japan it was already 08 December, the feast day of the Immaculate Conception of the Blessed Virgin Mary. While Father Arrupe was celebrating the Eucharist, he was arrested by the Japanese Security forces on suspicion of espionage and placed in solitary confinement.

He was released after thirty-three days. He moved to Nagatsuka, outside Hiroshima, to resume his duties as the Master of Novices. On 06 August 1945, he heard the wailing sirens as an American B 29 bomber flew over Hiroshima. Very soon he heard a deafening explosion and felt the deadly impact of the atomic bomb. He was one of the eight Jesuits who were within the blast zone, but all of them miraculously survived.

Arrupe opened the Jesuit Novitiate and welcomed about 150 shocked, suffering victims and treated them using his medical training. He and his Jesuit companions managed to save all of them – except a boy.

In 1958 he was appointed the Provincial of the Japanese Jesuit province and seven years later he was elected the 28^th Superior General of the Jesuits. He had to guide the Jesuits through the momentous changes that Vatican II brought.

Eager to get the Jesuits committed to addressing the needs of the poor, he convened a General Congregation that defined the Jesuits’ mission as “service of the faith and the promotion of justice.”

As his heart was always with the poor,  he emphasized that we need to strive constantly to win justice for them. One of the most quoted statements of this modern day prophet was about the objective of Jesuit education. It must be to form ‘men and women for others,’ he said.

In 1981 he suffered a stroke. In a move that annoyed some Jesuits and saddened many, Pope John Paul II appointed an elderly Italian Jesuit to administer the Society. In 1983, Father Arrupe was asked to resign. A General Congregation was called to elect his successor. He was brought to the opening session in a wheelchair and his statement was read out. The delegates were moved to tears when they heard his words: “More than ever I find myself in the hands of God…It is indeed a profound spiritual experience to feel myself so totally in God’s hands.” Later he slipped into a coma from which he never recovered. In 1987, when I visited Rome, Fr Michael Amaladoss SJ, who was then a General Assistant, took me to the room where Father Arrupe lay unconscious. Fighting back tears, I bent down and touched his feet and sought his blessings. He died on 05 February 1991 at the age of 83.

As I was writing this column, I chanced to see a letter from the present Jesuit General, informing the Jesuits that the cause of Fr Pedro Arrupe’s beatification has begun and so, technically from now on he is a ‘Servant of God.’ A servant of God who fell in love with his Master. Revealing the secret of living a life of commitment, Arrupe said, “Fall in love (with God) and stay in love and it will decide everything.”

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M A Joe Antony SJ

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This article explains the challenges that 12A holders face at present from the income tax point of view. Administrators needs to keep these legal points in mind.

Until a few years ago the focus of the Assessing Officers of the Income Tax Department was on the 85% application of the annual income, but now the demands go much broader. Earlier, the officers would just check if the concerned Trust has fulfilled its obligation of applying 85% of its annual income on the objects of the Society and, if this requirement was met, then the assessment would go through.  But now the situation is totally different. Now the Assessing Officers check many details, which are spelt out below:

TAXED INCOMES

1. Capitation Fee or “Donation”:

It is the extra amount the institutions take for admission, besides the fees shown in the prospectus. Recently, the Income Tax Appellate Tribunal has ruled that, since the capitation fee or “donation” cannot be considered voluntary in nature, the same cannot be allowed exemption under sections 11 and 12 of the Income Tax Act.  It should be noted that only voluntary donations to registered charitable societies are exempt from income tax.  So the Assessing Officer takes the amount collected as capitation fee as income from other sources and taxes the same at the usual 30%.  Refer to the judgment of the Income Tax Appellate Tribunal, ITA Nos 1492 & 1493/Bang/2010 for AYs2006-07 & 2007-08 and ITA No. 675/Bang/2014 for Ay 2010-11.  In its judgment on May 2^nd, 2016, the Supreme Court of India has termed Capitation Fee as “Illegal.”

2. Anonymous Donations:

Any amount of voluntary donations to registered charitable societies are exempt from income tax in the hands of the receiver. However, sometimes there are anonymous donations too.  Sometimes we find credits in our bank accounts, whose source we do not know. The Income Tax Act has set an upper limit for such anonymous donations.  It cannot exceed 5% of the total annual income or Rs one lakh, whichever is higher.  As per the provisions of section 115BBC of the Income Tax Act, anonymous donations too shall be  taxed at 30%.  It is to be noted that this provision is not applicable to religious trusts.

3. Religious Expenses of a charitable society:

The benefits of a charitable society, by its very nature, are open to all, irrespective of class, creed, culture, sex or religion.  When a charitable trust spends its money for the function of a particular religion, it loses its charitable nature.  Secondly, religious expenses are not one of the approved expenses for a charitable society.  Hence, if a charitable society were to spend more than 5% of its total annual income for a religious purpose, then the same shall be disallowed as application of income.  Reference can be made to the judgment of the Hon’ble Rajasthan High Court on the Umaid Charitable Trust vs The Union of India (UoI) And Ors. on 2 May, 2008.

4. Business Income:

The next important thing to consider is the income a charitable society gets from its business-like activities.  Some of them, such as, canteen, bus service, bookstore, pharmacy, etc., may be incidental to attainment of the main objects of the charitable society.  They are there to support the main activities of the society.  The income tax department has no problems regarding such activities.  But the department has a great reservation when it comes to other business-like activities, though we may be using the entire income for the objects of the charitable society.   These income-generating activities are not related to the objects of the society.  They are there purely to generate income.  Activities such as farming, animal husbandry, dairy, poultry, handcrafts/ handicrafts, sale of religious articles and other media-related materials, sale of books, rental activities for commercial purposes (shopping complex, hoarding, playground, etc.) come under this type. The income tax laws are clear that only those activities mentioned under section 2(15) of the Income Tax Act are considered charitable in nature. The relevant paragraph of definition of Charitable purpose can be read as follows: “Charitable purpose includes relief of the poor, education, medical relief, preservation of environment (including watersheds, forests and wildlife) and preservation of monuments or places or objects of artistic or historic interest, and the advancement of any other object of general public utility. Provided that the advancement of any other object of general public utility shall not be a charitable purpose, if it involves the carrying on of any activity in the nature of trade, commerce or business, or any activity of rendering any service in relation to any trade, commerce or business, for a cess or fee or any other consideration, irrespective of the nature of use or application, or retention, of the income from such activity”.  Thus the amended income tax law under section 2(15) clearly says that, irrespective of the purpose for which the income is used, any commercial or business activity for a fee or charge or any other consideration cannot be considered as charitable and hence is taxable, if the income from such activities go beyond 20% of the total income of the society.  Thus, the earlier limit of Rs 25 lakhs from such business-like activities has been replaced by 20% of the total income.  Hence, societies running such activities are asked to maintain a separate books of accounts.

PURELY CHARITABLE ACTIVITIES

I foresee in the coming years only the so-called purely charitable activities may qualify for tax exemption.  We have to be prepared for it. This calls for a shift in the activities of our charitable societies, a shift from the well-established institutions to the more demanding needs at present, such as:

• Non-formal education in the tribal areas.
• Education and eradication of leprosy.
• Immunization against common diseases.
• Reconstructive surgery for leprosy and polio-affected children.
• Cataract surgery for the elderly.
• Farming: Activities to promote self-sufficiency in agriculture, growing vegetables and fruits, dairy milk, kitchen garden, etc.
• Hospice care for children and mothers affected by AIDS.
• Vocational training for disabled, disadvantaged, deprived and rural children.
• Non-formal education.
• Safe delivery kits and first aid kits in rural areas.
• Savings and credit scheme for the rural population.
• Reforestation by tree plantation and alternative crop seeds.
• Education of girls to reduce infant mortality rates.
• New Hope Charity Activities India has been involved in rural women’s rights and development.
• Eradication of poverty and exploitation through education
• Cataract surgery for the afflicted poor in the rural areas.
• Mentally and physically handicapped Children.
• Caring for the orphans and street children.
• Food, shelter and sponsorship for children living, working, begging and surviving on railway station platforms.
• Children of leprosy patients.
• HIV/AIDS hospice.
• Vocational training for the jobless.
• Old age homes for those who have nobody to care for them
• Working for the welfare of the sex workers
• Working for the welfare of the slum dwellers
• Education and vocational training for the slum children and rural children
• Working for the child labour and unorganized labour.
• Education for the deprived class of society.

Some of these activities may be incorporated in our existing institutional set up or freshly initiated so that they become truly charitable.

PROPOSALS:

Based on the legal requirements explained above, I want to make the following proposals:

1)     Bifurcate the Charitable and Religious Activities:  It may be better to start a religious trust, which is also tax-exempt, for purely religious activities.

2)     Bifurcate the Charitable and the Business Activities: It is advisable to delink the business activities from the charitable societies.  These business activities can be run by the AOPs (Association of Persons) and  income tax can be paid for such income.

3)     Bring all accounts of the institution, without any exception, into the accounts of the society and get the same audited.

4)     Keep the members of the society/trustees and donors, who have contributed Rs 50,000 and more to the charitable society away from taking direct benefits of the activities of the society.

5)     Avoid situations where certain expenses will be disallowed, such as, cash expenses of more than Rs 10,000, non-compliance of TDS deductions, etc.

6)     Take up only those activities which are in line with the objects of the society.

The time has perhaps come for us to review our activities and do the needful to safeguard the tax-exempt status of our societies and trusts.  It will also be an occasion for us to do real charitable activities worth the name.

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Fr Alex Gnanapragasam SJ

KEVIN

As I write to you this month from the northern half of the United States, our autumn season is in full swing. The temperatures are dropping and daylight hours are shrinking.  As one drives through the countryside, farmers are gathering their harvest of corn and soybeans. Farm stands selling apples, pumpkins and squash seem to appear around every corner. The new life of Spring and the explosive growth of Summer are now manifested in the abundance that one cannot help but notice.  This season is marked by harvest festivals in many states throughout the region, much as it is in agricultural regions throughout the world.  We celebrate the grace of abundant food that should be adequate to sustain us through the long, cold winter ahead.

Thanksgiving Celebration in the US

In the United States, our harvest season culminates on the fourth Thursday of the month with the national holiday of Thanksgiving. The holiday has its roots in the earliest years of the settlement of what has become the United States. It commemorates the feast celebrated after the European pilgrims’ first harvest in the New World.  Fifty-three Pilgrims who survived difficult conditions feasted with some 90 Native Americans responsible for helping the foreigners to adapt their ways to their new surroundings.  The colonists were not only thankful to God for an abundant harvest but also grateful to the natives who generously shared their knowledge of the land and its ways, knowledge without which the colonists may not have survived their second winter in the New World.  Some nearly 400 years later, families, whether rich or poor, gather in homes all across the country to commemorate the first Thanksgiving and give thanks for the abundance they enjoy.

The Thanksgiving holiday is centered around the family meal, with a large roasted turkey as the star of the show.  The grand bird is surrounded by side dishes of all kinds and more than one delicious dessert. As the designated chef for the big day, my responsibility is to make sure that no one leaves hungry and that everyone gets the chance to enjoy one of his or her favorite dishes. The whole celebration cries out “Abundance!” (perhaps even over-indulgence.)  For many, Thanksgiving remains the favorite holiday of the year. For most of us it is permeated with a genuine and profound sense of gratitude for the blessings of family and friends. It is a day when we can deeply appreciate that which we have and not focus on what we might still want. The sense of gratitude is real and palpable. Invariably, no matter who leads it, the opening prayer asks for blessings on those who do not have adequate food or shelter.

We easily forget the poor

While the poor are with us in our prayers and in the spirit of gratitude that permeates our Thanksgiving celebration, I have come to realize that we can sometimes leave our concerns for them at the dinner table.  In the United States, the day after Thanksgiving has become the biggest shopping day of the year, contributing to the sense that we should continue to celebrate the privilege of excess.  In contrast, as I reflect on the gospel message, the appropriate response to blessing and grace, beyond mere gratitude, is to share with others who are in need.  I must not only feel grateful, I must act generously.  But for me, like for many, gratitude comes easily, but generosity is a lot more difficult. In fact our feelings of gratitude can even lead us into a place of comfort and complacency.  I can become content with regularly thanking God for my many blessings and forget those who are in need of my generosity.  I feel good about loving God but don’t feel compelled to show love of neighbour.  I am almost embarrassed as I reflect on how in our early years of marriage Crystal and I were often looking for soldiers, sailors or others who were far from home to be part of our family’s holiday celebrations. It seems that, as we prospered, our concern for those in need of a family dinner experience diminished.  Now we might contribute to dinners or other events for the hungry and the homeless, but we don’t invite them to our table. It strikes me that generosity with our excess is no substitute for sharing our blessed lives with others.

How about sharing our spiritual blessings?

It further strikes me that this notion of putting gratitude into action through generous sharing doesn’t apply only to material blessings.  As I have been blessed to grow in my faith, I am ever more grateful but ever more conscious of my responsibility to share the gift of faith with others.  The call of Jesus to go forth and make disciples of all nations is a personal mission I know I must actively live out.  As I come to appreciate the abundance of joy and peace promised to those who follow Christ, the more compelled I am to get to work.  It is not hard in this day and age to recognize spiritual poverty in our world.  I know God has richly blessed me with a wonderful Catholic faith and a dynamic and holy wife who shares that faith. Yet, I remain reticent to share that faith with others, even with my own family.  I judge that I don’t know enough and that I don’t practice what I might preach.  I let myself be comfortable with committing to get better at prayer, more regular in daily Mass attendance and seeking reconciliation. I allow myself the space to imagine that if I will spend more time in front of the Blessed Sacrament in adoration and commit to a regular morning prayer routine, then I will be ready to evangelize.  If I get holier, maybe then I will get more generous.  I suspect it is fear that keeps me from sharing what is perhaps the greatest gift I have to give anyone.  If I have come to understand about how deeply God loves me and how He desires to be united with all of His children, how can I remain silent?  If by voicing my faith I can draw even one soul closer to Christ, why would I shy away? Yet I do. So my prayer this Thanksgiving is for myself and for all of us to be thankful to God for all of the many gifts, material or spiritual, that He has so abundantly bestowed on us and to have the strength and the courage to generously share them with those we encounter who are in need of His loving goodness.

 

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CRYSTAL AND KEVIN SULLIVAN

Thousands of poor people – of all creeds and castes – in three districts of Tamil Nadu, India and hundreds of men and women in U.K. and U.S. consider him a true hero, and a saint.

Brother James Kimpton was born in a presbytery! Poverty forced his parents to take shelter in the parish presbytery in Conway, in Northern Wales, England, where he was born on 23 May 1925. When their fortunes improved, the family shifted to a rented house. Then, in 1937, his father, Charles Kimpton, bought a small house for his family. James had to walk to his school four miles away.

He felt close to his mother, Doris Kimpton, and imbibed her qualities of simplicity, frugality, punctuality and a spirit of generous service. When he was fourteen, he decided to become a De La Salle Brother and made his first profession in 1945 and five years later his final profession. In 1952 he was sent to work in a college at Wattala, Sri Lanka. Apart from teaching art and coaching the students in sports, Brother Kimpton started a printing press and a school for visually challenged children.

In 1964 the Sri Lankan government ordered all foreigners to leave and that turned out to be a blessing for India, especially the southern State of Tamil Nadu. He established a 120-acre ‘Boys’ Town’ near Nagamalai, Madurai, where boys from very poor families learnt farming and other trades, like carpentry and welding. In 1966, hearing the sad news of his mother’s serious illness, he rushed to England and managed to see her in her last moments and say, “Mother, I am here!”

In 1974, he started ‘Boys’ Village’ near Batlagundu and soon started working in surrounding villages. In 1976, his parish priest, a good friend, brought him four orphaned children. But Brother Kimpton told him that, as a matter of policy, the Boys’ Village did not admit girls or boys under seven. But a persistent inner voice kept reminding him of the orphaned children. He brought the children and asked the widow who was working as a gardener to be a mother to the children. When more and more destitute children came, he came up with a unique way of caring for them. He trained ‘mothers’ to care for seven or eight children in a homely, loving atmosphere, as if they were their own children.

A registered society called ‘Reaching the Unreached (RTU)’ was started in 1978. Its office in a village called G. Kallupatti in Theni district of Tamil Nadu became his home. The services RTU offered to the poor in a number of villages were so many and so well-planned that those who came to know about them were awe-struck. Four Children’s Villages, schools, bore-wells, day-care centres for working women, drinking water projects, balwadis, hostels for girl students, nutritious food schemes, low-cost houses, clinics, home for HIV-affected children, mobile tailoring unit, mobile science labs…. His friends who admired his amazing achievements formed RTU-UK and RTU-USA to raise funds for his projects.

Kimpton woke up at 4.30 am to pray. He prayed the Rosary every evening. He deeply believed that ‘where God guides, God provides.’ When lack of rain caused problems, he filled a bottle with water and placed it before a statue of St Joseph and prayed. Soon, there was a heavy downpour! When a ten-year old girl’s condition became critical, after a sudden attack of fits, he stuck her photo on a picture of Mother Teresa and asked everyone to pray. The girl miraculously recovered! One who never believed in religious conversions, Kimpton advised all those who worked for him to remain true to their faith. He joined the festival celebrations in local temples and attended Muslims’ iftar ceremonies. Festivals of all religions were celebrated joyfully in all Children’s Villages.

Apart from his inspiring and practical love for the poor, Brother James was a gifted artist and architect. His drawings of village children are works of art. He designed and constructed hundreds of houses for the poor.

Bro James Kimpton died peacefully on October 5, 2017, at the age of 92. The Englishman who left his mother and motherland to work here continues to live in the grateful hearts of the thousands of poor Indian children and adults he reached out to.

 

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Fr M A Joe Antony SJ

This article shows how service of the poor should be at the heart of any organization that claims to be a charitable trust. If not, we should have another look at the very purpose of these institutions.

The mere word ‘charitable’ denotes service of the poor and the mere fact that we have chosen to form a charitable society or trust shows that we have opted to serve the poor through such a charitable society or trust.  If we have opted to serve the poor, then all the properties and funds that we hold  are also meant for the same purpose.  Thus service of the poor becomes the reason and purpose of the very existence of any charitable society or trust. Understood thus, the statement that all that the Church owns is the property of our Lord Jesus Christ and the patrimony of His poor makes sense.

Need of Radical Questioning

Our charitable societies and trusts are involved in very many activities, like running parishes, schools, colleges, hospitals, social service centres, youth animation centres, community centres, research centres, rural training programmes, etc. All the institutions that run such activities also hold properties and funds meant to support these activities.  If all these institutions with their properties, funds and various activities are meant for the poor, then definitely they should have made some impact on the lives of the poor. By impact, we mean effecting a positive change in their lives. Thus, we can say that all our institutions exist to bring about a positive change in the lives of the poor around us.  If not, we should relook at the purpose of the existence of these entities.

Any positive change in the lives of the poor is possible to the extent that the poor  have access to our institutions and their programmes.  Giving such an access would mean having a preferential option for the poor.  Here are some of the ways in which we can concretely show our preferential option for the poor:

Twelve Steps that Benefit the Poor

1. When our charitable trust was begun, it was begun with the specific purpose of serving the poor. But over the years it is possible that the trust has lost this original purpose due to the pressure of maintaining a standard in order to compete with the fast-changing environment.  Hence, we can now re-examine the priorities and activities of our institutions and re-focus our attention in providing sufficient opportunities for the poor to get the benefit of our charitable activities.
2. One of the concrete ways in which we can show our commitment to the poor is to choose those activities that would directly benefit the poor. Thus the choice of the activity matters a lot, but that is not enough. Even the choice of the place for such activities matters.  Thus a school of a medium standard near the rural or slum dwellers will benefit them a lot more than a high-fi school well established in a posh area of the city.
3. Having decided on the choice and place of the activities the next important step would be to allocate a budget, for, if there are no funds, nothing much can be done for the benefit of the poor. There may be many willing to serve the poor, but due to lack of funds they are not able to do anything in this regard.  Here is where the allotment of funds matters.
4. Serving the poor does not mean much if we try to look for the poor in some far away location. We have heard the saying that charity begins at home. Hence, it would make much sense if we first attend to the poor within the campus, namely our own employees, students of the school or patients of the hospital.  This makes it an obligation for us to pay decent salaries to our employees, salaries that would be reasonably sufficient to take care of the members of their families and their basic needs, such as, education, health, food, shelter, etc.  Concern for the poor can also be concretely expressed through our concern for the employees in times of need for some salary advance, loan, etc.
5. Similarly it makes us to be on the lookout for the poor in our institutions and help them with scholarships or fee concessions in their school, college or hospital fees.
6. Option for the poor would also mean having preferential option for the poor in admissions, in employment and in the choice of the beneficiaries of all our activities. It would mean giving job opportunities to the poor on a priority basis. Here we should seriously consider the jobless and the poor for the contract works, like maintenance, gardening, other labour work, etc.
7. The other area through which we can express our option for the poor, unlike the rest of the world, is to narrow the gap between the rich and poor of our institutions. This can be shown by raising the salary of those attached to the lower grades of the pay scale, which can be done by paying them all uniform allowances across the grades of the pay scale system.
8. Having a reservation policy for the poor can be another concrete way of showing our preferential option for the poor so that they also become beneficiaries of our charitable activities.
9. The other area of concern for the poor can be in our marketing. Every institution has to do a lot of marketing for its daily provisions and other needs. If the poor are our concern, then we would certainly do the purchases from shops run by the poor, be it vegetables, groceries, stationery, clothing, construction materials,

• Our option for the poor should also mean that we lead a life of the poor, both in our personal and community life. It would also mean opting for simplicity that will have an apostolic witness value in our institutions.
• Our option for the poor would also mean making the facilities of our institutions, like the playground, hall, classroom, etc., available to the poor and the underprivileged. It would also mean organizing some programmes for them like games, sports, cultural programmes, camps, seminars, etc., which would be educative and motivating.
• Another concrete way of reaching out the poor is by adoption for a long term. It can be adopting a village or a school in a remote area or a backward village that may need our intervention or at least some poor families which may need our support for education or health. The institution as a whole may opt to reach out to the selected group through their periodic visits, regular activities like coaching, financial support for the education of the children, financial help to repair the houses or the community centre, school building, etc.

The last can be a very important and concrete way of getting our institution and all its people like the staff, students, management, etc., involved on a regular basis. This is a direct approach and it will certainly bring about a positive change in the lives of those people.  Such an institutional approach will have not only a long term impact on the beneficiaries but also on the donors, i.e., the institution as a whole.  Here, our Lord’s saying “whatever you do unto the least, you do unto me” will become very real, concrete and perceptible.

 

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Fr Alex Gnanapragasam SJ

Freedom from Poverty and Solidarity with the Poor

In this article, an expert explains the crucial issues involved in poverty—what it is, what causes it, who and how many are affected, the many forms of poverty around us and ways of tackling this central human problem.

Continuing poverty is one of the most pressing problems faced by humanity today. The magnitude of human deprivation is still alarming. As per global poverty update from the World Bank, almost half the world — over three billion people — live on less than $2.50 a day. More than 80 per cent of the world’s population lives in countries where income differentials are widening.

The International Day for the Eradication of Poverty (IDEP) is dedicated to focus our attention on the issue of poverty and the dignity of the poor. Every year, October 17^th is observed as IDEP. The 2018 theme is “Coming together with those furthest behind to build an inclusive world of universal respect for human rights and dignity.”

Since 1992, United Nation has observed October 17^th  as the World Day for Overcoming Extreme Poverty. The International Day for the Eradication of Poverty promotes dialogue and understanding between people living in poverty and their communities, and society at large. “It represents an opportunity to acknowledge the efforts and struggles of people living in poverty, a chance for them to make their concerns heard and a moment to recognise that poor people are in the forefront in the fight against poverty.” (UNSG 2015)

Sustainable Developmental Goals

Poverty eradication is the central theme for many of UN deliberations. Sustainable Development Goals (SDG) are a collection of 17 global goals set by the United Nations General Assembly in its 70th session on October 2015. Of these seventeen goals,  Goal 1 is to end poverty in all its forms everywhere, and Goal 2 is to end hunger, achieve food security and improved nutrition and promote sustainable agriculture. All other goals are collectively to contribute to ending poverty.

The global community has agreed to eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 (roughly Rs 90) a day by 2030.  According to their agreement, ‘by 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions’.

To reach the goals of poverty eradication, the global community has agreed to implement nationally appropriate social protection systems and measures for all poor and the vulnerable. So, too, to ensure that all men and women, in particular, the poor and the vulnerable, have equitable rights to resources, as well as access to essential social and health services, ownership and control over land and other forms of property, natural resources, appropriate new technology and financial services.

UN policies and Plans

The UN member states have promised to build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters.

The UN member states also have promised to ensure significant mobilisation of resources from a variety of sources, including through enhanced development cooperation, to provide adequate and predictable means for developing countries, especially the least developed countries, to implement programmes and policies to end poverty in all its dimensions.

Further, the global community has agreed to create sound policy frameworks at the national, regional and international levels, based on pro-poor and gender-sensitive development strategies, to support accelerated investment in poverty eradication actions.

Pope Francis: World Day of the Poor

In addition to the UN system, other state actors, such as the Holy See,  observe the Day of the Poor. The Holy see declared 18 November 2018 as the day of the poor and ‘called all to make a serious examination of conscience, to see if we are truly capable of hearing the cry of the poor.’ According to Pope Francis, ‘We are so trapped in a culture that induces us to look in the mirror and pamper ourselves, that we think that an altruistic gesture is enough, without the need to get directly involved.’

The persistence of poverty, including extreme poverty, is a significant concern for the global community, reflected through the deliberations of the United Nations. In its 72nd session, the General Assembly launched the Third United Nations Decade for the Eradication of Poverty (2018–2027), under the theme “Accelerating global actions for a world without poverty.”

Involvement of people living in poverty is essential for the eradication of poverty. The International Day for the Eradication of Poverty aims to ensure that the active participation of people living in extreme poverty and those who are left behind is a critical force in all efforts made to overcome poverty, including in the design and implementation of programmes and policies which affect them.

Creating and nurturing a genuine partnership, based on human rights, and respect for the  dignity people living in poverty are essential to building an inclusive world where all people can enjoy their full human rights and lead lives with self-respect—a necessary step towards poverty eradication.

How do we understand “poverty”?

The World Development Report (1982) defined poverty as “a condition of life so characterised by malnutrition, illiteracy and disease as to be beneath any reasonable definition of human decency.” Being poor is more than just material deprivation. Poverty is a multi-layered issue that concerns a person’s range of survival issues such as access to health care, the ability to influence the determinants of health, available educational opportunities and quality of life.

Poverty is a complex concept which may include social, economic, and political elements. Absolute poverty, extreme poverty, or destitution refers to the complete lack of the means necessary to meet essential personal needs such as food, clothing and shelter.

The Oxford Poverty and Human Development Initiative (OPHI)  has created a Global Multidimensional Poverty Index, which enables us a better understanding of the causes of poverty, an essential step in addressing the issue. The index offers a more in-depth measure of poverty through a checklist of “deprivations.”

The OPHI classifies poverty at an individual level.  The ten indicators of poverty are subdivided into three dimensions, Health, Education and Living Standard.  ‘For the health dimension, the measures are nutrition and child mortality, while, for education, the indicators are the years of schooling and school attendance. The standard living dimension includes access to cooking fuel, sanitation, drinking water, electricity, living space and assets.’ 

According to the OPHI report, more than a fifth (22 per cent)—or 1.6 billion people!—are considered to be poor, and 40 per cent of them live in India.

About 85 per cent of the poor are from the rural areas, where development progress remains elusive. More than half are deprived of health, education and standard of living. They are the ones living in households where educational attainment is less than five years, at least one member of the family is undernourished, and at least one child has died. Access to adequate sanitation presents challenges to 81 per cent of the poor.

Though poverty has been reducing in many countries, through the improvement in sanitation, education and health, the challenges remain for the global community in tackling poverty. It is evident that higher income does not always translate to a reduction in multidimensional poverty.

Connection between Poverty and Human Rights

This year marks the 70th anniversary of the proclamation of the Universal Declaration of Human Rights (UDHR). In this context, it is essential to acknowledge the connection between extreme poverty and human rights. People living in poverty are disproportionately subjected to many human rights violations.

 “Wherever men and women are condemned to live in extreme poverty, and human rights are violated, to come together to ensure that these rights be respected is our solemn duty.”

Facilitating social inclusion is fundamental in assisting those left behind and enable them to overcome poverty in all its dimensions.

The commemoration of October 17 each year is an opportunity for people living in poverty to take the floor, share their experiences and expertise on how we can achieve greater social inclusion and poverty reduction, to respect the human rights and dignity of people living in poverty.

The International Day for the Eradication of Poverty underscores the importance of reaching out to people living in poverty and building an alliance around their priorities and concerns to end extreme poverty. It recognises the critical mutual roles and relationships we have with each other based on our collective and equal dignity and shared rights.

Poverty remains as one of the most pressing problems faced by India. The World Bank, in 2011 based on the 2005 Purchasing Power Parity (PPP) International Comparison Program, estimated that 23.6% of the Indian population, or about 276 million people, lived in poverty, that is, spending below $1.25 (Rs 90) per day, based on purchasing power parity.

We cannot simply blame a high population for poverty. When living standards and literary rates go up, people tend to plan their families. This has happened in the more educated parts of the country. To ask a couple to limit their number of children when they are not even sure of the next meal, is a cruel thing. We need to provide a basic minimum before people can feel they have control over their health and their future.

Caste-based social segregation and stigma, and unequal distribution of income and resources is another reason for persistent poverty in India.

Groups Most Affected in India

Older destitute women, women and children from marginalised communities,  indigenous population, members of certain traditional occupations, the urban poor, migrant workers in the informal sector—these groups do experience severe poverty in India. Traditionally oppressed classes, those who belong to Scheduled Castes and Scheduled Tribes who continue to be subject to pervasive discrimination, e.g., Dalits and Adivasis, are disproportionally affected by poverty. With 104 million people, 47% of the rural tribal population lives below the national poverty line, compared to the national average for rural areas of 28 %. The level of poverty and malnutrition of the tribal people continues to be a significant issue. Though there are multiple programs for poverty reduction, they are seldom consulted on what is right for them, and their voice is hardly heard in any forums.

Poverty, including its extreme forms, is all around us every day, but receives little attention.  The desensitisation of society to poverty is a real scandal in India.  The destitute older widow on the road begging for survival, the orphan children who do odd jobs on the street, the pregnant mother who lost her child for lack of access to health care, the rickshaw puller whose only asset is his labour power and who is beaten up by the passenger because he insisted on the ten-rupee minimum charge for the trip he just completed—such pathetic human tragedies are all around us everyday.

The face of a traditional fisherman who laboured all night and returns home empty-handed and faces his hungry children, the face of the women waiting for their daily wages after they worked under the guaranteed employment scheme of the government, the face of the ‘Adivasi’ child waiting eagerly for the mid-day meal at the school,  the face of the  girl child who is struggling to cook a meal for her siblings with the fire from the twigs and leaves she collected,  the non-smiling flower girl at the traffic signals of major intersections in the city,  the face of the street sleeper—all these of part of our daily experiences. They are the human face of poverty.

 The poor in India disproportionally experience the violation of their citizenship rights, the impact of environmental change, urban pollution, lack of safe housing, violence, depletion of clean water, lack of access to sanitation and life-saving medicines and health care. Poverty in India particularly impacts children in a variety of different ways:  high infant and neonatal mortality, severe malnutrition, child labour, lack of education and child marriage.

The Way Out

Mass poverty and associated degradation of human dignity is not a product of fate, nor a justifiable social phenomenon. It is a product of specific structural-social arrangements, fuelled by inequitable distribution of opportunities. What is needed is the political will to introduce and execute policies and programs that will increase economic security and expand equitable opportunities for the poor and marginalised. A range of policy options is available to address acute poverty.  Creating jobs and reducing unemployment, raising the minimum wages, supporting equity in pay and benefits, providing paid leave and paid sick days, reforming work schedules that accommodate specific needs of women and vulnerable populations, increasing investment  in affordable, high-quality child care and early and primary education, ensuring and expanding  Universal Access to Health Care, ensuring that  economic growth is equitable, supporting agricultural growth and farm employment, increasing  investment in the development of infrastructure, accelerating overall human resource development, promoting decentralised non-farm employment, increasing social support benefits to the poor, promoting access to assets and credit, strengthening and expanding access to the Public Distribution System (PDS) and promoting increasing involvement of  local governments in poverty reduction and supporting the organizations of the poor and marginalised.

Poverty will remain a question of the political morality of the ruling class and of society in general. The demand for poverty eradication is not a call for charity; it is a fundamental human right. The legitimacy of any ruler should be assessed against his or her willingness and their sense of urgency to address poverty and developing poverty eradication programmes.

QUESTIONS FOR REFLECTION AND SHARING IN COMMUNITIES:

• Do I try to understand why so many people are poor, although the world is rich in resources?
• Am I truly interested in making a difference?
• What do I do in concrete for at least a few poor persons?
• If I am an employer, do I treat my employees justly?
• Have I become indifferent to the poor I see around me everyday—or do I do something about it?
• How shall we—as a family, religious community, parish or institution—observe the Day of the Poor (Sunday, November 18^th) in a meaningful way?

 

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Dr Joe Thomas is the executive director of an intergovernmental organisation of 26 governments-partners in Population and Development. He has hosted high profile bilateral meetings in Kampala, Geneva, New York, Beijing, Dhaka, Jakarta and Senegal. He has been active for 25 years in the field of global health, population and development. He is a technical advisor to WHO in Geneva. He was the Secretary General of the 12^th International Congress of AIDS in Asia and the Pacific (ICAAP). As the Director of UNAIDS-Technical Support Facility (TSF) for South Asia, he coordinated the work of nearly 250 consultants in ten countries. Twitter @joethomasIN   web   www.joethomas.in