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News Direct Tax-Income Tax

  • Jun 27, 2019
  • Direct tax code panel to curb tax lawsuits, modify faceless scrutiny

    The new draft report on the direct tax code will modify five major procedures pertaining to tax litigation, faceless scrutiny, exchange of information, compliance, and financial transactions. The Central Board of Direct Taxes (CBDT) on Wednesday expanded the terms of reference (ToR) of the expert panel constituted to rewrite direct tax legislation. The new ToR include faceless and anonymised scrutiny assessment, reduction of litigation, and expeditious disposal of appeals from the Commissioner Income-Tax (Appeals), right up to the Supreme Court (SC).

  • Jun 27, 2019
  • Income Tax dept to share data on defaulters’assets with PSU banks

    In what is likely to boost loan recovery efforts of public sector banks (PSBs), the Central Board of Direct Taxes (CBDT) has directed zonal heads of the income tax department (ITD) to share information related to assets and liabilities of defaulters with banks on their request. In a directive issued to principal chief commissioners of the IT department, the CBDT said an official of the commissioner rank and above can share such information with the applicant if the former is satisfied that it is in the public interest. I-T returns filed by individuals and Hindu Undivided Families (HUF) with total income in excess of Rs 50 lakh furnish particulars of assets and corresponding liabilities held at the end of the year. Amit Maheshwari, partner at Ashok Maheshwary & Associates, said: “This directive will only aid the public sector banks in their recovery efforts and not the private sector like Yes Bank, etc. Also, several defaulters may have already shifted their assets and may not hold significant assets in their name.”

  • Jun 27, 2019
  • CBDT expands scope of direct tax code committee

    The CBDT has expanded the scope of the panel constituted for re-writing the direct tax code by including five more items in the terms of reference (ToR) of the committee, sources said. The timeline for the panel to submit its recommendation remains unchanged to July 31. The new items in the ToR include faceless and anonymized scrutiny assessments, reduction of litigation and expeditious disposal of appeals at CIT(A) stage and going up to the Supreme Court. The issue of sharing of information between GST, customs and other government bodies that hold data on taxpayers has also been included. Additionally, simplification of the procedure to reduce compliance burden and system-based cross verification of financial transactions have also been included in the ambit of the panel.

  • Jun 26, 2019
  • Income tax trouble for Cognizant; HC upholds Rs 2,500 crore demand

    A single judge bench of the Madras High Court on Tuesday upheld the tax demand of over `2,500 crore as dividend distribution tax (DDT) raised by the income-tax department on the IT company Cognizant Technology Solutions (CTS) on account of share buy back undertaken by it. The case stems from the demand for payment of tax at the rate of 15% on the remittance of Rs 19,415 crore to its non-resident shareholders in the US and Mauritius, against buyback of 94 lakh of its equity shares in May 2016.

  • Jun 25, 2019
  • Effective tax base grows 13.5% in AY19, highest rate in 5 years

    The effective taxpayer base grew 13.5% for the assessment year (AY) 2018-19, recording the highest rate in the last five years, the finance ministry said in a reply in the Lok Sabha. The tax base, which includes assessees filing I-T returns along with those whose tax is deducted at source, rose to 8.44 crore in 2018-19, compared with 7.42 crore in FY18. Even though the direct tax collection missed the revised estimate by a whopping Rs 62,000 crore, it grew by 13.5% compared with FY18. It was the second-slowest growth in direct tax collection in the last five years.

  • Jun 25, 2019
  • Income Tax Dept made seizures of Rs 1,584 crore in FY 2019

    The value of seizures by the income tax department (ITD) was Rs 1,584 crore in FY19, up from Rs 993 crore in the year before, the finance ministry said in a reply in Parliament. The I-T department had seized Rs 1,469 crore during FY17, the year of demonestisation. A tax official said the FY19 seizure was substantial because of general elections which resulted in higher volume of information received by the department on the use of unaccounted money in the form of cash.

  • Jun 25, 2019
  • Income Tax dept issued Rs. 64,700 crore refund in current fiscal

    The Income Tax department has issued Rs.64,700 crore worth refunds in the current fiscal, and for full 2018-19 fiscal the amount released was over Rs.1.61 lakh crore, Finance Minister Nirmala Sitharaman said Monday. In a written reply to a question in the Lok Sabha, she said over 6.49 crore electronic returns were submitted for assessment year 2018-19 (financial year 2017-18), up 18.65% from over 5.47 crore in assessment year 2017-18.

  • Jun 24, 2019
  • Report on black money may be tabled in the House today

    The government is likely to table the report on black money, prepared by the Standing Committee on FinanceNSE 0.88 % of the previous Lok Sabha, in Parliament on Monday. The report, ‘status of unaccounted income/wealth both inside and outside the country — a critical analysis (a preliminary report), was presented to former Lok Sabha speaker Sumitra Mahajan on March 28. A copy of the report was also put up on the Lok Sabha website on the directions of the committee.

  • Jun 18, 2019
  • New income tax rules: No escape just by paying penalty

    Tightening the screw on tax evaders, the revised guidelines issued by the Income Tax (I-T) Department have made serious offences under black money and benami laws "generally" non-compoundable.This means that a person or entity would not be able to settle a case of tax evasion by just paying the tax demand, penalty and interest.The new guidelines kicked in from Monday and applies to all cases for compounding received on or after this date.Listing 13 cases, where the offences are not to be generally compounded, and also grouping the offences in two parts, the Central Board of Direct Taxes (CBDT) has directed its senior officers to circulate the revised guidelines for compliance by concerned authorities.

  • Jun 18, 2019
  • India Inc's advance tax mop-up surges 171% in Q1, Mumbai collection up 133%

    India Inc’s advance tax figures grew exponentially by 171 per cent during the first quarter of 2019-20, prompting the tax authorities to say that the economy may be back on track after witnessing lacklustre growth in earlier quarters. In overall direct tax collection, Mumbai has registered 133 per cent growth, collecting Rs 17,174 crore of advance taxes against Rs 7,356 crore in the same period last year, according to the data compiled by the tax department. Corporate tax collections stood at Rs 14,873 crore, against Rs 5,477 crore a year ago. Individuals paid Rs 2,301 crore, up 22.4 per cent over Rs 1,879 crore in Q1 of 2018-19 (FY19).

  • Jun 15, 2019
  • CBDT issues new guidelines for compounding

    India's direct taxes body has tightened framework for compounding of offences almost shutting the window for money laundering, non-disclosure of foreign assets or possession of a benami asset. The latest guidelines from the Central Board of Direct Taxes, which come into effect from June 17, clearly state offences in this category cannot normally be compounded. However, finance minister can relax restrictions on consideration of a report from CBDT.

  • Jun 11, 2019
  • G-20 ministers agree to redouble efforts to tax technology behemoths

    Finance Ministers from Group of 20 nations agreed they need to find a common method to tax technology giants, whose digital business models have grown exponentially faster than systems to tax them. “We agreed on a need to redouble our efforts to reach consensus by 2020,” Japanese Vice Minister for Finance Masatsugu Asakawa said on Saturday following a G-20 symposium on international taxation that brought together finance ministers from nations including the US, China and France.

  • Jun 10, 2019
  • G20 agrees to wrap up Big Tech tax rules by 2020

    Group of 20 finance ministers agreed on Sunday to compile common rules to close loopholes used by global tech giants such as Facebook to reduce their corporate taxes, a final communique issued by the bloc showed on Sunday. Facebook, Google, Amazon and other large technology companies face criticism for reducing their tax bills by booking profits in low-tax countries regardless of the location of the end customer. Such practices are seen by many as unfair.

  • Jun 10, 2019
  • Income tax evasion: How India’s crorepatis dodge tax system

    Few would contest that India’s tax system leaves a lot to be desired when it comes to checking evasion, but lo and behold: there could be some 68,000 individuals in the country earning above Rs 5 crore a year when the official I-T returns show only 5,000 people with such income. Similarly, the number of people with taxable income between Rs 1 crore and Rs 5 crore could actually be 10 times what the I-T database shows and in the Rs 50 lakh-Rs 1 crore income range, there could be 11 people tucking themselves away from the taxman’s gaze for every individual reporting such income. FE has juxtaposed the I-T data for FY16 with the Household Survey on India’s Citizen Environment & Consumer Economy (ICE 360° Survey), conducted by the People Research on India’s Consumer Economy (PRICE) for the reference period, April 2015 to March 2016, to bring to light these astounding facts.

  • Jun 05, 2019
  • I-T dept extends deadline for employers to issue Form 16 till July 10

    The Income Tax department Tuesday extended the deadline for employers to issue Form 16 TDS certificate for financial year 2018-19 to its employees by 25 days till July 10. However, the extension would leave the salaried taxpayers with a limited time-frame of just 20 days to file their income tax returns. Also the due date of filing of TDS (tax deducted at source) statement by employers to Income Tax department in Form 24Q for financial year 2018-19 has been extended by a month till June 30, 2019.

  • May 29, 2019
  • Income Tax Dept trains officers to detect tax evasion in shell companies

    The Income Tax Department continues to focus and enhance the skills of Assessing Officers (AO) to detect black money laundered through shell companies.At the Direct Taxes Regional Training Institutes, AOs have been asked to look closely at books of accounts and income tax returns for current liabilities, loans and advances, which could be used for tax evasion.

  • May 28, 2019
  • 541 startups have been granted angel tax exemption: DPIIT secretary

    DPIIT secretary Ramesh Abhishek took to Twitter to share an update: the Department of Promotion for Industry and Internal Trade (DPIIT) has granted exemptions to 541 startups from angel tax until now. In a notification in February, the DPIIT had allowed startups to be exempted from angel tax if they received certification from the Central Board of Direct Taxes (CBDT).

  • May 28, 2019
  • Income tax: Senior citizens to get higher TDS exemption on interest income

    In a major relief to senior citizens who pay tax deducted at source (TDS) and later seek refunds, the Central Board of Direct Taxes (CBDT) has notified that those aged 60 years and above with a taxable income of up to Rs 5 lakh can now submit Form 15H in banks and post offices to claim exemption from TDS on interest income from deposits. This amendment was done after the Interim Budget presented on February 1, 2019 gave tax rebate to individuals having a taxable annual income of up to Rs 5 lakh in a financial year. “Section 87A of the Income-Tax Act, 1961 has been amended vide Finance Act, 2018 which provided that a resident individual, having total income up to Rs 5 lakh, shall be entitled to a rebate of an amount being the amount of tax chargeable or Rs 12,500, whichever is less,” the CBDT press release says.

  • May 27, 2019
  • Curbing black money: Now, get ready to pay tax on cash transactions at bank

    The Narendra Modi government in its second term will put in place measures to further curb black money generation. According to sources, policymakers have started talks on the possibility of re-introducing the much-flayed instrument of the banking cash transaction tax (BCTT) to discourage cash transactions.Further, the tax authorities are considering levying the estate tax on inherited property in line with global practices. “We have received suggestions on taxing cash transactions. The departments concerned are examining the feasibility and effectiveness of the tax.

  • May 27, 2019
  • CBDT eyes 20% jump in tax kitty

    Close on heels of the Modi government winning a thumping victory in the Parliamentary elections, the Central Board of Direct Taxes (CBDT) sprang into activity on Friday and set a fresh income-tax revenue collection target for the current fiscal year, aiming to garner 20 per cent more than in the previous year. The target for the current fiscal has been set at Rs.13.80 lakh crore. For 2018-19, the target was Rs.11.50 lakh crore. The CBDT, in consultation with the Department of Revenue, North Block, has set the new target.

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