Archive · 15 Aug 2026
Swoop on Badal Group; Direct Tax Reforms Proposed
On August 15, 1986, India was celebrating its Independence Day.
Just before the celebrations, police arrested more than 100 workers of a political party called the Akali Dal.
The party was led by Parkash Singh Badal.
The arrests took place all over the state of Punjab.
The police said the arrests were made to keep the peace during the Independence Day celebrations.
On the same day, the Finance Ministry proposed new ideas to make tax rules simpler.
One idea was to accept income-tax returns that people fill out themselves.
Another was to raise the wealth tax exemption limit from Rs 2.5 lakh to Rs 5 lakh.
They also suggested giving tax benefits to people paying for new homes and removing tax on profits from selling farmland.
The goal was to make taxes simpler and to remove rules that counted income people did not really get.
Police arrested more than 100 workers of the Akali Dal, led by Parkash Singh Badal, on the eve of the party's protest day.
The arrests were made throughout Punjab to ensure peace during Independence Day celebrations, official sources said.
The Finance Ministry proposed acceptance of self-assessed income-tax returns as part of simplifying and rationalising direct tax laws.
Proposed changes included raising the wealth tax basic general exemption from Rs 2.5 lakh to Rs 5 lakh and extending deductions for payments toward new residential property.
The Ministry also proposed exempting capital gains on agricultural land transfers, easing taxes on industrial shifting from congested areas, and deleting provisions creating notional income.
- Who
- More than 100 Akali Dal workers led by Parkash Singh Badal, and the Finance Ministry proposing tax reforms.
- What
- Police arrested Akali Dal workers on the eve of the party's protest day, while the Finance Ministry proposed reforms to direct tax laws.
- When
- August 15, 1986, with arrests made on the eve of the party's protest day.
- Where
- Throughout Punjab, India.
- Why
- The arrests were made to ensure peace during Independence Day celebrations; the tax proposals aimed to simplify and rationalise direct tax laws.
- Date
- August 15, 1986
- Arrests
- More than 100 Akali Dal workers
- Party leader
- Parkash Singh Badal
- Arrest location
- Throughout Punjab
- Reason for arrests
- Ensure peace during Independence Day celebrations
- Wealth tax exemption (proposed)
- Raised from Rs 2.5 lakh to Rs 5 lakh
- Key tax proposal
- Acceptance of self-assessed income-tax returns
- Capital gains proposal
- Exemption on transfer of agricultural land