DailyBrief: Polls in Pakistan after a year of turmoil; I-T's increased scrutiny on your investment declarations; and Civilians allege torture in J&K

Market Watch

• Indian benchmark indices ended the day in the green with the Sensex closing at 71,336.80, while the Nifty closed at 21,441.30
• Sector-wise, Nifty Metal, Pharma, and Healthcare indices gained over 1%, but the Nifty IT sector shed 0.4%.

Pakistan’s elections: From terrorist Hafiz Saeed’s proxy party to first Hindu woman candidate and Nawaz Sharif’s return, what these elections mean

Pakistan heads to polls on 8 February a year after political turmoil which saw former Prime Minister Imran Khan going to jail for taking on the army and mass protests. The country is also facing the worst economic crisis with its rupee hitting an all-time low and debt levels rising to an all-time high.

While India has adopted a tough stance that talks and terror cannot go hand in hand, National Conference Chief Farooq Abdullah today said India would face the same situation as Gaza if it does not hold talks with Kashmir. The upcoming elections will have an impact on their relations.

Hafiz Saeed’s proxy party: Pakistan Markazi Muslim League (PMML), a party linked to Hafiz Saeed, is contesting in the upcoming general elections in Pakistan, raising concerns due to Saeed's background as a UN-designated terrorist and the mastermind of the 26/11 Mumbai attacks.

• Son of Hafiz Saeed, the mastermind behind the Mumbai attacks, Talha Saeed, is entering the political fray in Pakistan by contesting from NA-127 Lahore.
• Indian intelligence views Talha Saeed's candidacy as evidence of Pakistan's endorsement of terrorist groups and notes that the PMML, a terror group-backed party, has been officially recognized and allotted a symbol by Pakistani electoral authorities.

The first Hindu woman candidate: In a historic move, Dr Saveera Parkash became the first Hindu woman to contest for a general seat in Pakistan's national elections. She is a recent medical graduate and currently holds the position of general secretary in the Pakistan People's Party (PPP) women's wing in Buner.

• In Pakistan, non-muslims are not allowed to hold office of either the President or the Prime Minister. It is stipulated in Article 41 (2) of the Constitution.?

Nawaz Sharif’s return: Despite a ‘life-long ban’ handed down by the apex court, his political nomination to contest from Lahore was accepted today. With Imran Khan locked away for taking an anti-army stance, Nawaz Sharif’s return from self-imposed exile in the UK and his emphasis on normalizing ties with India needs to be taken with a pinch of salt. Known for his dovish stance on India, Sharif is a product of Pakistan’s military and was replaced when his overtures of diplomacy towards India didn’t toe the military’s line.

Clip du jour

A tiger which escaped from the Tiger Reserve forest in Pilibhit takes a nap on a wall and becomes a muse to the villagers.

Hi, I’m Gaurav Jeyaraman, the editor of this newsletter. We’d like to hear some feedback on our newsletter: what works and what doesn’t work? WhatsApp me directly and tell me what you think.

Your investment declaration, HRA, Section 80C investments may come under I-T department lens

The Income Tax department is intensifying its scrutiny on TDS mismatches involving investment declarations, HRA, and Section 80C investments, potentially affecting employers and employees alike.

Why this matters:?This scrutiny could potentially trigger a comprehensive review of all employee records.

The details: Notices under Section 133C are currently being dispatched to various companies, compelling them to validate or rectify the information provided regarding TDS calculations and employee claims.

• Recent developments in cities like Mumbai and Delhi highlight the meticulous scrutiny employed by the Income Tax department, aiming to identify potential cases of underreported tax.
• The IT?department is leveraging technology for a thorough examination, employing a system-driven verification approach to efficiently pinpoint discrepancies between employer withholdings and employee declarations.
• While any disparities between employer-reported TDS and employee claims may not be immediately apparent in the tax office system, a closer inspection is likely to reveal differences.

Of note, Rajesh P Shah from Jayantilal Thakkar and Company emphasized the significance of complying with these notices, considering the penalty provisions for non-response and the tool's effectiveness in identifying erroneous claims.

Chilli powder on wounds, beaten with iron rods: Civilians recount horror of torture during Poonch attack investigation

Following the death of four Indian Army soldiers in an ambush, several civilians were detained for questioning, leading to allegations of severe torture and the death of three individuals.

A purported video of alleged torture of civilians: Graphic visuals show uniformed men torturing civilians in a video that’s gone viral on social media. One of the survivors has confirmed the video according to Indian Express and said “I am the person in the viral video that shows a man being beaten with iron rods and lathis by Army personnel,”?

The details: Civilians subjected to alleged torture during the Poonch terror attack investigation have shared harrowing accounts of their ordeal.

• A survivor, Mohammad Ashraf, recounted being stripped, beaten with rods, and having chilli powder applied to wounds, causing extreme trauma and inability to sleep.
• Army Chief General Manoj Pande conducting a security review has urged ground commanders to execute operations with 'utmost professionalism'? indicating the seriousness of the incident.?
• The Indian Army has initiated a Court of Inquiry and transferred a brigadier-level officer while considering action against other officers involved after the death of three civilians in custodial interrogation.
• Jammu and Kashmir Police have registered a murder case under section 302 of the Indian Penal Code against unidentified army personnel.
• Political parties demanded an impartial probe into the matter.?

ICYMI

• Centre, ULFA peace deal likely to be signed on 29 December.
• PayTM CEO shares 2024 to-do with AI focus after company issues pink slip to over 1,000 employees.
• Israeli air strikes kill Iranian general in Syria.
• The Narcotics Bureau is alarmed over the rising sale of anxiety pill Alprazolam in Telangana.
• RBI received a bomb threat which demanded the RBI governor and finance minister to step down.