Dimapur Archives - Nagaland PCS Free Notes

Nagaland tax and economic reforms

The Commissionerate of Taxes, Nagaland was created in August 1964 with the appointment of the then Commissioner, Nagaland because the ex-officio Commissioner of Taxes. The department started functioning with a Superintendent of Taxes and an Inspector deputed from Assam Taxation Service. A fully fledged post of Commissioner of Taxes, Nagaland was created on August 20, 1976, with its Headquarter at Kohima. Later on, the Headquarter was shifted right down to Dimapur in November, 1976, for higher tax administration. Presently, the commissionerate workplace is found opposite to the workplace of the Deputy Commissioner, Dimapur. The Department functions underneath the executive management of the Finance Commissioner through the Revenue Branch of Finance Department, Kohima. The department is headed by the Commissioner of Taxes who is typically from the I.A.S. cadre. He is assisted by 2 further and 2 Deputy Commissioners of Taxes. For higher tax administration the department is split into 3 Zones of Dimapur, Kohima and Mokokchung. The Zonal offices area unit headed by Assistant Commissioners of Taxes. All the Districts Tax offices area unit manned by Superintendent of Taxes. The Department of Taxes is that the highest revenue generating department within the State. the whole revenue assortment throughout the year 2011-2012 was Rs 258.36 crores.

The Finance Department is chargeable for all matters regarding money administration of the government, together with preparation of the States’ Annual Budget. It exercises management and supervising over the Receipts and Expenditure of the govt. and initiates numerous measures for improvement in financial management, further resources mobilisation, economy and potency in Government expenditures etc. It conjointly formulates policies regarding levy and assortment of varied taxes like price additional Tax, oil Tax, Central nuisance tax, Professions Tax, recreation Tax etc. The Department exercises body management and supervising over the 3 Directorates of Treasuries and Accounts, Nagaland State Lotteries and Taxes.

Till attainment of Statehood, the then Naga Hills District was an administrative body underneath Assam. Among others, sales tax Law of Assam was extended to Naga Hills effective from 2-2-1948. However, it’s not obtainable on record, to determine whether or not any revenue was collected from the Naga Hills District.

(i) Year of Establishment: The Department of Taxes, Nagaland was established in August 1964, with the appointment of the Commissioner, Nagaland because the ex-officio Commissioner of Taxes vide Government Notification NO.SGN.182/63/29 (a) 14-6-63

(ii) Structure set-up at the time of inception: A full fledged Commissioner of Taxes was created on 20th August 1976, with its Headquarters at Kohima. Within the same year, the Headquarter was shifted right down to Dimapur, the business hub of the State, for higher tax administration. A post of Superintendent of Taxes was conjointly created and an official from Assam Taxation Service was brought on deputation to start out the functioning of the Department beside skeleton workers.

(iii) Activities of the department at the beginning: With the establishment of the Department, the question of adoption of the prevailing Taxation Laws of Assam as applied to the erstwhile Naga Hills District to the freshly formed State by the Nagaland Adoption of Laws Order, 1965 were examined however owing to some confusion the provisions of Taxation Laws couldn’t be enforced by adoption/modification. Meanwhile, the govt. took a call to own its own Laws that crystal rectifier to the enactment of the subsequent Taxation Laws.

The Nagaland sales tax Act, 1967.
The Nagaland Finance (Sales Tax) Act, 1967.
The Nagaland Profession, Trade, Callings and Employment Taxation Act, 1968.
The Nagaland (Sales of petroleum & petroleum products, together with Motor spirit and Lubricants) Taxation Act, 1967.
The Nagaland passenger and goods Taxation Act, 1967.

District Tax Offices: All the District Tax offices perform underneath the superintendence of the Zonal Assistant Commissioners of Taxes. Every District Tax office is headed by a Superintendent of Taxes. Dealers register their business and file tax returns within the District Tax workplace. Tax is directly deposited within the several Government heads of account by the tax remunerator through the District Treasury workplace. Nagaland Taxation Check Gates: The department has erected four Check Gates at the strategic entry points specifically Zubza and Tsutapela underneath Kohima and Mokokchung severally and Dillai Road and New Field Gate at Dimapur with a read to forestall evasion of tax. These Check Gates monitor the movement of merchandise – each coming into and going out of dutiable goods through the State. The Nagaland Taxation Check Gates at Dillai Road and Gologhat Road, Dimapur, perform underneath the management of the Assistant Commissioner of Taxes, Mobile Squad. The Zubza and therefore the Tsutapela Check Gates perform underneath the direct management and supervision of the Assistant Commissioners of Taxes Kohima and Mokokchung Zones respectively.

One of the strengths of Nagaland lies in her natural resources however presently natural resources that can not be replaced particularly the non-renewable resources are empty at can greatly. Sadly the policies relating to the extraction of natural resources area unit inadequate thereby the economic performance stay not solely poor however has opened the window towards way reaching harmful consequences. On another level, sound of natural resources ought to be backed by policies that might enhance revenue generation. The pattern of development ought to be such; it ought to scrutinize diversifying the revenue to different sectors to reinforce development. This needs correct investment policies particularly on revenue generation with target shifting the pattern of economic development towards producing and service sectors.

Industrialization of each little and massive industries is another major concern for economic development. Today, of the 2 major industries, one is within the ‘processes of revival and therefore the different is detected no additional. The revival of Tuli manufactory is an imperative necessity if Nagaland is to revive economy. Further, having a pulp centre for the paper mill in every district will certainly cause work potency, employment generation and inflated production. to the current finish of end of industry, power and electricity is another major concern.

Goods and Services Tax (GST) is a comprehensive indirect tax on manufacture, sale, and consumption of goods and services throughout India. GST would replace respective taxes levied by the central and state governments.

What is GST?

It is a destination-based taxation system.
It has been established by the 101st Constitutional Amendment Act.
It is an indirect tax for the whole country on the lines of “One Nation One Tax” to make India a unified market.
It is a single tax on supply of Goods and Services in its entire product cycle or life cycle i.e. from manufacturer to the consumer.
It is calculated only in the “Value addition” at any stage of a goods or services.
The final consumer will pay only his part of the tax and not the entire supply chain which was the case earlier.
There is a provision of GST Council to decide upon any matter related to GST whose chairman in the finance minister of India.

What taxes at center and state level are incorporated into the GST?

At the State Level

State Value Added Tax/Sales Tax
Entertainment Tax (Other than the tax levied by the local bodies)
Octroi and Entry Tax
Purchase Tax
Luxury Tax
Taxes on lottery, betting, and gambling

At the Central level

Central Excise Duty
Additional Excise Duty
Service Tax
Additional Customs Duty (Countervailing Duty)
Special Additional Duty of Customs

Benefits of GST

For Central and State Governments

Simple and Easy to administer: Because multiple indirect taxes at the central and state levels are being replaced by a single tax “GST”. Moreover, backed with a robust end to end IT system, it would be easier to administer.
Better control on leakage: Because of better tax compliance, reduction of rent seeking, transparency in taxation due to IT use, an inbuilt mechanism in the design of GST that would incentivize tax compliance by traders.
Higher revenue efficiency: Since the cost of collection will decrease along with an increase in the ease of compliance, it will lead to higher tax revenue.

For the Consumer

The single and transparent tax will provide a lowering of inflation.
Relief in overall tax burden.
Tax democracy that is luxury items will be taxed more and basic goods will be tax-free.

For the Business Class

Ease of doing business will increase due to easy tax compliance.
Uniformity of tax rate and structure, therefore, better future business decision making and investments by the corporates.
Removal of cascading effects of taxes.
Reduction in transactional cost will lead to improved competitiveness.
Gain to the manufacturer and exporters.
It is expected to raise the country GDP by 2% points.

GST Council

It is the 1st Federal Institution of India, as per the Finance minister.
It will approve all decision related to taxation in the country.
It consists of Centre, 29 states, Delhi and Puducherry.
Centre has 1/3rd voting rights and states have 2/3rd voting rights.
Decisions are taken after a majority in the council.

Supporting Laws to implement GST

For the implementation of GST, apart from the Constitution Amendment Act, some other statutes are also necessary. Recently 5 supporting laws to the GST were recommended by the council. 4 for the bills should be passed by the parliament, while the 5th one should be passed by respective state legislatures. The details are given below.

The Central Goods and Services Tax Bill 2017 (The CGST Bill).
The Integrated Goods and Services Tax Bill 2017 (The IGST Bill).
The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill).
The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill).
And a state GST will be passed by the respective state legislative assemblies.
Tax slabs are decided as 0%, 5%, 12%, 18%, 28% along with categories of exempted and zero rated goods for different types of goods and services.
Further, a cess would be levied on certain goods such as luxury cars, aerated drinks, pan masala and tobacco products, over and above the rate of 28% for payment of compensation to the States.
However, which goods and services fall into which bracket is still an enormous task to be completed by the GST council.
Highest tax slab is pegged at 40%.

Another massive challenge to economic development comes from road and connectivity. Roads and property area unit important to economic development, however the condition of the roads is hampering the economic and social progress of the state. Proper roads and a viable transport system could be a lifeline. It will effectively bring multiple socio-economic reforms in terms of economic transformation particularly within the rural areas through accrued social mobility, booming market, production of commodity, reduced impoverishment which is able to end in a reworked means of life. These area unit incentives to reinforce socio-economic development and a property growth. On the full, the ‘lack’ of correct roads in Nagaland could be a real presentation of a serious ‘stumbling block’ within the emergence of Nagaland as associate economic powerhouse. The pattern of development particularly within the rural sector ought to essentially address the issues related to fast urbanization. To the present finish, improved roads and property, a system of agriculture that encourages farming and faculty education can go a protracted manner in solving the issues of urbanization.

Nagaland Human Development Index

Nagaland Human Development Index

The first Human Development Report for the State of Nagaland was brought get in the year 2004. It provided a perceptive glimpse into the administrative and developmental attribute of the State in addition as a exposure of the human development indices for the districts and also the State as a full. A decade later, a requirement was felt to bring out this standing of social and economic development within the State in terms of the human development indices leading to the second Human Development Report for Nagaland.

The HDI may be an outline measure of the income, education and health achievements of the State. HDI (2011) of Nagaland was 0.63 as compared to 0.61 (2014) for the country as a full. The general performance, however, hides the very fact that there have been massive inter-district disparities in performance. at intervals Nagaland, the HDI was highest in Dimapur with zero.81, followed by Kohima and Wokha each with zero.66 and Mokokchung at 0.61. On the opposite hand, Mon district had all-time low HDI with 0.50. This bury district inequality appears to own modified very little since 2001 with districts like Tuensang and Mon still at the lowest in 2011 along side districts like Zunheboto and also the new district of Longleng. These eastern districts also are the worst playing in terms of indicators like unfold of rural roads, employee participation, instructional attainments, urbanisation etc. Nagaland Human Development Index

The HDI combines convenience of basic amenities like toilets and pucca homes, immunisation at birth, poverty levels with education facilities and illiteracy levels. The HDI for the State is at concerning 29 % that additionally shows a transparent improvement over the figure of forty % in 2001. Once again, the districts of Dimapur, Mokokchung and Kohima area unit clear leaders. additional crucial, the eastern districts of Tuensang and Mon continue at the lowest in terms of changes within the HPI index between 2001 and 2011.

Human Development Index (HDI) has 3 important dimensions —longevity, measured by life expectancy at birth; instructional attainment, measured by adult attainment rate and gross ingress ratio; and normal of living or command over resources, measured by per capita GDP. A healthy life, free from unhealthiest, is important within the notion of well being. Education is very important for realising one’s highest potentials and enlarging the accessible set of opportunities and decisions. Adequate financial gain, for a good normal of living, is important for all dimensions of human development, as well as health and education. Financial gain may be a part of HDI as a proxy/surrogate for all dimensions of human development not mirrored in an exceedingly long and healthy life and in information.

The HDI (2001) of Nagaland was 0.62, as compared to 0.472 (2001) for India. The State’s sensible performance and ranking are often best understood by staring at the constituents of the indices and also the factors that influence them, as well as attainment, health standing and income levels. The per capita financial gain of Nagaland throughout 2000–2001 is nearly up to the national average. The 2001 State attainment rate is 67 % as against the national average of 65.2 percent. The social framework of Nagaland has placed education as a valued quality since its introduction nearly 130 years alongside the entry of Christianity. The distinctive framework of care and provision of Naga society finds expression within the higher performance of the State, as against the national average, in terms of longevity/mortality standing.

Within Nagaland, the HDI was highest in Dimapur (0.73), followed by Mokokchung (0.71). Mon district had all-time low HDI (0.45). However, only 1 district, Mon, had HDI but 0.47, the national HDI. The ranking of districts is directly associated with the position of the districts with DDP, and with the academic attainments. this means a positive relationship between the income levels, the academic attainments and human development within the State. Tuensang and Mon are consistent underachievers altogether the symptoms of the HDI, except within the case of infant mortality rate (IMR) in Mon , reinforcing the necessity for special focus and policy intervention in these remote districts.

The first Nagaland State Human Development Report (NSHDR) was brought get in 2004, and afterwards the government signed a multilateral agreement with the govt. of India and also the global organization Development Programme (UNDP) to undertake the project to strengthen state plans for human development, that the DHDR may be a section. The DHDR project is being handled by the state department of coming up with and Coordination.

Nagaland has created a distinction within the country by turning into the primary state to bring out the sub-national HDR, the 2004 NSHDR and consequently the sub-sub-national HDRs for the districts of Mon, Kohima and Phek in 2011, additionally another 1st within the country. He expressed enthusiasm that if all went well, Nagaland is about to become the primary state to bring out the HDR of all its districts once the reports for Peren and Zunheboto, that area unit probably to be out at intervals a month’s time, area unit released. He expressed that the previous reports were well received by the UNDP and also the planning commission.

In forty years of statehood, Nagaland has created important progress. The executive reach has extended to the way corners of the State that is a way of addressing the matter of ‘remoteness’. Necessary infrastructure has been arranged and property at intervals the State has improved. Nagaland has conjointly created tremendous progress altogether major sectors of human development. Its attainment rate has reached 67.11 % from a mere 20.40 % in 1961. Its sex quantitative relation, CBR, CDR, IMR and MMR rates area unit higher than the national average. Life is seventy three.4 years. The per capita income has conjointly climbed higher than the national average as per 2001. However, the foremost challenges that confronted the State within the starting still stay. Attributable to this, in most cases, the figures and statistics, although spectacular, don’t reveal the whole image. For example, whereas the attainment rate is encouraging, the standard of education has suffered and therefore the state rates, particularly of educated youth, area unit a true cause for concern. Issues associated with infrastructure stay. There’s conjointly the question of mobilisation of internal resources, particularly through exploitation of the State’s natural resources. Strategic coming up with and intelligent investments are as necessary as finding sources of funding.

The State is at an important stage in its trajectory of growth. The wealthy social capital of Kamarupan communities, the final resilience of the society, the numerous and wealthy environmental capital and therefore the mineral wealth area unit the inherent strengths to create upon for a quicker and property progress. Through numerous innovative policy interventions, the regime is creating efforts to faucet into this wealthy social capital and to bring the folks back to the centre of decision-making. One among them is that the Nagaland Communitisation of Public establishments and Services Act, 2002, wherever management of state assets is being turned over to the village communities. The folks have responded favourably though the initiative continues to be in its infancy. As Nagaland appearance forward, the subsequent areas need to be addressed:

Conditions to beat the immediate impacts of violence.
Development initiatives to enhance infrastructure, living and dealing conditions.
Special attention for the youth of Nagaland within the fields of technical education, recreation and paid employment.
New ways for a ‘Developed Nagaland’.
A purposeful model of interaction between the people, administrators and political leadership should accomplish this vision of a ‘Developed Nagaland’.

Human development and economic process area unit interlinked. By focusing on economic process, Nagaland will expect to reap edges through increased levels of financial gain, employment generation and reduction in economic disparities at intervals the various regions of the State and therefore the people. The requirement to create on the out there resources and opportunities has been emphatic throughout this chapter. Harnessing of the resources and potentials—mineral, forest, agriculture, land, trade —and the opportunities in trade, the new sectors of IT or biotechnology need not solely investments however conjointly policy interventions to encourage such investments. Government’s role in creating the investments can not be unpretentious however the restricted handiness of economic resources with the govt necessitates that personal investment, each from at intervals and out of doors the State, area unit inspired. The caution to be exercised whereas embarking on the trail of economic development is to confirm that the resources available are used with efficiency and in a very property and planned manner for equitable economic process at intervals an affordable timeframe.

Nagaland’s Human Development Indices In line with the country’s National Human Development Report, 2001 the subsequent 3 indices are made for Nagaland:

Human Development Index (HDI)
Gender-related Development Index (GDI)
Human poorness Index (HPI) one among the foremost issues within the estimation of those indices was the non-availability of information on district domestic product (DDP).

Therefore, a sample survey was conducted to assemble the required data at the district level.

The HDI (2001) of Nagaland was 0.62, as compared to 0.472 (2001) for India. The State’s sensible performance and ranking are often best understood by staring at the constituents of the indices and therefore the factors that influence them, as well as attainment, health standing and financial gain levels. The per capita financial gain of Nagaland throughout 2000–2001 is sort of capable the national average. The 2001 State attainment rate is 67 % as against the national average of 65.2 percent. The social framework of Nagaland has placed education as a valued plus since its introduction nearly 130 years along side the launching of Christianity.

GDI for the State is 0.42 as against an HDI of 0.62. Adjusted for gender difference, Kohima’s performance is healthier than all different districts in human development indicators, followed by Dimapur, Mokokchung and Phek districts. The primary 3 districts even have higher HDI than the opposite districts of the State. Zunheboto, Tuensang and Mon kind the lower finish of the spectrum. These districts have had lower financial gain levels, attainment rates and entrance than the remainder of the State. The health infrastructure in these districts is additionally inadequate, impacting the health standing and longevity of the people.

The HPI for the State is 35.58 percent. The index has return down from 42.07 % in 1991 and 49.37 % in 1981, as calculable for the State within the National Human Development Report, 2001. The worth of HPI is lowest in Mokokchung, indicating lowest level of deprivation standing among all the districts, followed by Zunheboto, Wokha. The bigger, a lot of cosmopolitan, regions of Dimapur and Kohima area unit hierarchical fourth and fifth severally, indicating that a lot of poor persons reside in these ‘better’ districts of the State. This is often indicative of the pull and push factors of urbanisation, inability of the urban infrastructure to supply the essential wants and demand of specific poor-oriented ways in these districts.

Nagaland Food Security

Nagaland, was born on 1st December 1963 and among the farthest lying state in northeast. The state is split into seven districts: Kohima, Phek, Mokokchung, Wokha, Zunheloto, Twensang and Mon. It is a mostly mountainous state with most area covered by forest. Agriculture is that the most essential economic activity in Nagaland. Principal crops embody rice, corn, millets, pulses, tobacco, oilseeds, sugarcane, potatoes and fibres. Alternative economy boosters are forestry, cottage industries, Insurance, real estate and tourism. Nagaland Food Security

The state is found between the 93°20′ E and 95°15′ E Longitudes and 25°6′ and 27°4′ N Latitudes. The entire space lined by the state is 16,579 sq. kilometer. Nagaland was declared the sixteenth state of the country of India on 1 December 1963. Before this, Nagaland accustomed could be a union territory. The other attention-grabbing knowledge concerning Nagaland is that it homes as many as sixteen entirely completely different ethnic groups. These groups of people have their own separate cultural identities that embrace customs, dresses and languages. Nearly 90% of the population of Nagaland is devout Christians. The state put together options a considerable Hindu people. Kohima, the capital town of the state, options a variety of sites that ought to be visited by the tourists as a result of it will facilitate them in getting an insight of the rich history place. The name ‘Kohima’ has been derived from the name of a plant referred to as ‘Kew Hi’ that thrives inside the mountainous region. Kohima could be a fascinating place, endowed many natural beauty.

Nagaland has created tremendous progress throughout the last forty seven years of its Statehood. Our ability level, these days standing on top of 70th, is on top of the Indian national average. Our growth in agriculture sector, significantly inside the previous couple of years, has even shocked United States. A quick examine the gross domestic product of the State show that the State’s economy has been registered a healthy growth of relating to 15 August 1945. Such tremendous growth in agriculture sector desires corresponding entrepreneurial intervention to want advantage of the potentials, and switch them into economic opportunities.

Meaning of Food security

It is an act to produce for food and organic process security in human life cycle approach , by guaranteeing access to adequate amount of quality food at reasonable costs to individuals to measure a life with dignity and for matters connected with that or incidental to it.

The ‘National Food Security Act, 2013’ was introduced by the govt. to produce quality and nutrient food to the folk, poor and pregnant ladies. the most aim of this Act is – to produce food and organic process security in human life cycle approach, by guaranteeing access to essential and adequate amount of quality food at reasonable costs to folks to measure a life with dignity and for matters connected with that or incidental to it.

The connected provisions and mechanism for providing food and organic process security to common men of this country square measure arranged down within the Act, that square measure as follows:

Fair value search
Food grains
Food Security
Rural space
Targeted Public Distribution System

Three years after adoption of the National Food Security Act (NFSA) in 2013, the state of Nagaland is finally set to implement the Act once abundant talks with the Centre on the financial facet.

The Act is enforced in Dimapur and Kohima districts with result from July 1, 2016 and by August next, the NFSA can cover the remaining nine districts. The Nagaland regime can begin execution the NFSA coverage phase-wise from June 1 beginning with Kohima and Dimapur districts. NFSA 2013 was a landmark event within the State’s history. delay in implementation of the Food Security Act in Nagaland was owing to unfavourable funding pattern and varied supplying problems like lack of infrastructure, lack of godowns in most districts of the State, lack of power backup, conversion method and constitution of State Food Commission, vigilance committees, and grievances redress mechanism at the district level.

Under the Act, beneficiaries of Priority Household (PHH) would be provided five metric weight units of backed food grains per head at Rs three per metric weight unit for rice and Rs 2 for wheat within the ratio of 4:1. NFSA 2013 would additionally cover 78.83 per cent of the agricultural people and 61.98 per cent of the urban people within the State.

Department, from high to bottom, was totally mobilized to realize the target of providing extremely backed food grains to the beneficiaries. Informing that each on top of poverty line (APL) and Below poverty line (BPL) beneficiaries are amalgamated beneath the name of Priority home as per the Act, the department had 2,37,434 households with a rise of 44,464 households with feminine members as head of family within the PHH card covering 11,93,922 individual beneficiaries. alongside 2,12,034 Antyodaya Anna Yojana (AAY) beneficiaries, the department would cover 14,05,956 beneficiaries.

Three years once adoption of the National Food Security Act (NFSA) in 2013, the state of Nagaland is finally set to implement the Act once abundant talks with the Centre on the monetary facet.

The Act are enforced in Dimapur and Kohima districts with result from 1st of July, 2016 and by August next, the NFSA can cover the remaining nine districts.

In pursuance of National Food Security Act 2013, the Govt. Of Nagaland has approved for the implementation of the NFSA,2013 within the state. The eligible priority households shall be entitled to receive 5(five) kgs of Foodgrains per person per month either @Rs.3/- per kilogram of rice or Rs.2/- per kilogram of wheat. The implementation shall begin solely once completion of identification of eligible households within the state.

There will be no additional ABL/BPL beneficiaries beneath NFSA solely Priority households. The AAY (Antyodaya Anna Yojana) beneficiaries can still receive their monthly allocation as per the theme. The District Administration, native bodies and village Councils square measure requested to help the Department of F&CS to spot eligible priority beneficiaries. Any false declarations by candidates are mechanically rejected and no additional appeal is thought of.

The Criteria For Identification Of Priority Households Under The National Food Security Act, 2013 Are As Under:-

Inclusion Criteria:

Households having an annual family income of Rs. 1.5 lakh or less and falling underneath the subsequent class are considered for inclusion beneath priority households.
Vulnerable and marginalised section of the individuals infected with HIV+ and punctually registered by Nagaland State Aids control Society (NSACS).
Households with a disable person as head of the households (as outlined in persons with Disabilities Act ‘1995) subjected to submission of prescribed certified by a competent medical Authority.
Single women (including widows, unmarried, divorced and deserted women).
Homeless and indigent households.
Occupationally vulnerable teams like Casual Domestic staff, Unskilled staff, Casual Labourers, rickshaw and Cart-pullers, Marginal Farmers, Vegetables Vendors, Rag-pickers etc. also will be enclosed underneath Priority Households.
He/She ought to be a bonafide subject of India and apermanent resident of Nagaland.
Salaried workers (Public/Private Sectors) falling below the financial gain bar as mentioned on top of.

Exclusion Criteria:

Any member of households possessing a four wheeler.
Households receiving Ration/Food grant underneath the other
Any member of the house who is a worker of
Central/State Govt. With an annual income of over Rs.1.5 lakh