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News Direct Tax-Misc. Direct Tax

  • Feb 16, 2019
  • CBDT issues guidelines for defending cases at CIT (appeals)

    The Central Board of Direct Taxes (CBDT) has issued guidelines for the department to properly defend cases at the CIT (appeals) level, since a recourse would not be available for a further appeal in the tribunal in case of a loss, given the threshold for the revenue consideration has been raised to Rs 20 lakh by the government last year. In a bid to unclog judicial forums of pending tax cases, the government last year raised the monetary threshold for further appeals in tax cases. The department can now appeal in tribunal against a CIT(A) order only if the revenue consideration is above Rs 20 lakh. It was earlier Rs10 lakh.

  • Feb 14, 2019
  • Centre collects Rs 550 crore from equalisation levy in FY18

    The Centre has collected more than Rs 550 crore in FY18 from the equalisation levy, MoS for finance Shiv Pratap Shukla said in in Parliament on Tuesday. Currently, a 6% tax is charged on consideration exceeding Rs 1 lakh in a year for digital services provided to Indian resident by a firm not having permanent establishment (PE) in the country. “Further, the introduction of taxation based on significant economic presence is also expected to increase tax collection as it seeks to widen the tax base in India by establishing business connection and charging to tax income earned by digital businesses which operate out of jurisdictions with which India has not entered into a Double Taxation Avoidance Agreement (DTAA),” he said.

  • Feb 09, 2019
  • Govt raises limit beyond which employees need to show stock, MF investments

    The Centre has increased the over 26-year-old monetary limit on disclosure of investment in shares and mutual funds by employees to six months of their basic pay, according to an order issued by the Personnel Ministry. According to the earlier rules, Group 'A' and 'B' officers were to disclose such details if the total transaction in shares, securities, debentures or mutual fund schemes etc. exceeded Rs 50,000 during the calendar year. The upper limit was Rs 25,000 for those working in Group 'C' and 'D'.

  • Feb 09, 2019
  • Direct tax collection during April-January stands at Rs 7.89 trn: Govt

    Net direct tax collection during the April-January period of current financial year stood at Rs 7.89 trillion, Parliament was informed on Friday. In a written reply to a question in the Lok Sabha, Minister of State for Finance Shiv Pratap Shukla said there were 9.92 crore direct taxpayers in Assessment Year 2016-17, which increased to 7.41 crore in 2017-18. A taxpayer is a person who either files a return of income or in whose case tax has been deducted or paid.

  • Feb 08, 2019
  • 27-year-old rule changed: Disclosure limit on MF, stock investment up for bureaucrats

    The government on Thursday revised a 27-year-old cap on investment in the stock markets by bureaucrats to six months of basic pay. Under the 1992 rule, Group A and B officials had to intimate the government in a form if the total transaction in shares, debentures or mutual funds exceeded Rs 50,000 in a financial year. The limit has now been raised to over five-six times, considering the salary structure of government executives. The limit was Rs 25,000 for Group C and D officers. New orders have revised these limits, saying the intimation should be sent to the prescribed authority by government servants if the total transactions in shares, securities, debentures and mutual funds exceeds six months of basic pay of the government servant in a calendar year (to be submitted by January 31 of the subsequent calendar year).

  • Feb 07, 2019
  • Relief for startups: Angel tax exemption limit may be hiked to Rs 25 crore

    In a move aimed at providing succour to start-ups, most of which have been slapped with tax notices, the government is considering raising the funding limit in a start-up that would be exempted from the so-called angel tax to Rs 25 crore from the current Rs 10 crore. Sources told FE that the department for promotion of industry and internal trade (DPIIT) could also recognise companies that are in operation for up to 10 years as start-ups (instead of the current seven years), if they fulfil other criteria on innovation and turnover.

  • Feb 05, 2019
  • Worry lines for Modi govt: Direct tax collection could fall short by Rs 65,000 crore

    While the Interim Budget estimate of 13.5% growth in gross tax revenue for FY20 — this is to come on a robust base of 17.2% growth in FY19 (revised estimate or RE) — appears a bit too optimistic, the collection this year could turn out to be Rs 65,000 crore or 5.45% less than the RE, on account of the possible shortfalls in direct taxes alone. If the historical mop-up trend serves any guidance, some 65% of the annual direct taxes get collected in the first nine months of a fiscal year and the balance in the fourth quarter.

  • Feb 02, 2019
  • Government allows reinvestment of capital gains in two homes

    Among a slew of tax concessions announced in the Interim Budget 2019 that will help home owners is the one where income tax that is levied on notional rent accruing from a second self-occupied house will be done away with. “Considering the difficulty of the middle-class having to maintain families at two locations on account of their job, children’s education, care of parents, etc., I am proposing to exempt levy of income tax on notional rent on a second self-occupied house,” finance minister Piyush Goyal said.

  • Feb 02, 2019
  • TDS limit on interest from deposits hiked to Rs 40,000

    Depositors have been given some relief in the Union Budget 2019, which proposed to increase the TDS threshold on interest earned on the deposits with banks and post office to Rs 40,000. The Budget tabled before the Parliament on Friday calls for quadrupling the TDS limit on interest from deposits from Rs 10,000 to Rs 40,000. In case of senior citizens, the limit has been increased to Rs 50,000. The proposal will cover interest earned on savings deposits, fixed deposits, as well as other deposit schemes in banks and post offices.

  • Feb 02, 2019
  • Budget 2019: Piyush Goyal hikes tax-free gratuity limit to Rs 30 lakh

    Interim Finance Minister Piyush Goyal announced that the tax-free gratuity limit will be increased to Rs 30 lakh during his budget speech on Friday. Presenting the Union Budget for FY20, Goyal said that the gratuity limit will be hiked from Rs 20 lakh to 30 lakh. The government had doubled the limit for tax-free gratuity to Rs 20 lakh in the private sector back in March last year.

  • Feb 02, 2019
  • Direct tax collection exceeds target in FY19, pegged at Rs 13.80 lakh crore in FY20

    Direct tax collection for current fiscal exceeded the budgeted target by Rs 50,000 crore to Rs 12 lakh crore, while FY20 fiscal the mop-up has been pegged at Rs 13.80 lakh crore. The government had originally budgeted to collect Rs 11.50 lakh crore in current financial year from direct taxes, which include corporate tax and personal income tax (PIT).

  • Jan 19, 2019
  • Government to further ease framework to exorcise angel tax demons

    The government is open to further easing the simplified framework that will allow startups to seek exemption from the so-called angel tax to address concerns that entrepreneurs and other stakeholders have raised. Besides, the Central Board of Direct Taxes (CBDT) will soon set up a dedicated unit for processing requests from startups and angel investors for exemption to expedite the process, a government official said.

  • Jan 10, 2019
  • No TDS for long-term property lease premium, says Mumbai’s Income-tax Appellate Tribunal

    In a huge relief to corporates in Mumbai’s Bandra Kurla Complex (BKC), Mumbai’s Income-tax Appellate Tribunal (ITAT) has ruled that lease premium — a one-time amount paid upfront to acquire long-term lease rights — will not attract any TDS. Long-term leases, usually ranging from 60 to 99 years, involve a hefty one-time ‘lease premium’ payment. Tax officials are known to have issued notices claiming TDS for such payments in a large number of cases.

  • Jan 08, 2019
  • Direct tax collection rises 13.6% to Rs 7.43 trn in Apr-Dec, refunds up 17%

    The government collected income tax revenue amounting to Rs 7.43 trillion in April to December 2018-19, 13.6 per cent higher than that collected in the same period of the previous financial year, the Central Board of Direct Taxes (CBDT) said in a release on Monday. Gross collection grew faster at 14.1 per cent, the reason, officials said, being faster payout of refunds. Refunds worth Rs 1.3 trillion were paid in April-December, 17 per cent higher than the previous year. As for advance tax, its collections grew 14.5 per cent over previous year to touch Rs 3.64 trillion.

  • Jan 07, 2019
  • HomeBIZ WRAPEconomy and PoliticsStory Direct tax mop up rises 14.1% to Rs 8.74 lakh crore in Apr-Dec 2018

    Direct tax mop up grew 14.1 per cent to Rs 8.74 lakh crore during April-December 2018, Finance Ministry said Monday. Refunds amounting to Rs 1.30 lakh crore have been issued during April to December, 2018, which is 17 per cent higher than refunds issued during the same period in the preceding year. As much as Rs 3.64 lakh crore has been collected as advance tax, which is 14.5 per cent higher than the advance tax collections during the same period last year.

  • Jan 05, 2019
  • CBDT chief cautions I-T officials about direct tax collection growth rate

    Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra has cautioned income-tax (I-T) officials about the direct tax collection growth rate, and said it can adversely affect the Budget estimate of Rs 11.5 trillion for the current financial year.In an internal communication to principal chief commissioners of income-tax on January 4, the apex body for direct taxes asked its field officers to step up efforts and put more focus on recovering tax arrears and the current demand.

  • Dec 29, 2018
  • FY19 direct tax mop-up rises 14% till Dec 20

    The government on Friday said the net direct tax collection till December 20 this fiscal amounted to Rs 7.36 lakh crore, a growth of 14% over the same period a year ago. This is 64% of the Budget estimate for direct tax collection in the current fiscal.“The growth rate of gross direct tax collection and net direct tax collection for the current financial year 2018-19 as on 20.12.2018 is 14.6% and 14.0%, respectively,” the government said.The number of income tax e-returns filed till December 6 stood at 6.09 crore, which is 47% higher than last year.

  • Dec 26, 2018
  • Hospitals, universities abroad receiving huge endowments due to inheritance tax

    Finance Minister Arun Jaitley on Tuesday said that various hospitals, universities and other institutions abroad have been receiving huge endowments due to inheritance tax, adding that it is not the same scenario in India. Addressing an event at AIIMS here, Jaitley said: "In most hospitals and educational institutions in developed countries, they have some of the largest endowments. Those endowments come to educational institutions from their alumni which has strengthened the quality of these institutions. Once they are successful in life, they keep supporting institutions with those endowments.

  • Dec 21, 2018
  • Relief for startup ecosystem: Angel tax recoveries put on hold

    Amid widespread concerns over ‘angel tax’ notices being slapped on start-ups, the Central Board of Direct Taxes (CBDT) in the finance ministry has asked field officials to desist from taking any coercive action or recovery of demands of completed assessments from these firms till a policy decision is taken.The department of industrial policy and promotion (DIPP) would soon constitute a committee of experts drawn from reputed institutions like IITs and IIMs to consider grant of tax exemptions to start-ups, and the issue of premiums among other related matters, sources said.

  • Dec 20, 2018
  • Removal of tax incentives: Start-ups may continue to get sops

    Phasing out the residual tax incentives is important but start-ups and some others might still need these sops, Akhilesh Ranjan, member, Central Board of Direct Taxes (CBDT) said on Wednesday. The government, he said, was following a road map to abolish various profit-linked incentives to the corporate sector. Ranjan is also chairman of the task force on Direct Taxes Code which is redrafting the 50-year old Income Tax Act. The task force is likely to submit its report by February 28, 2019 and some of its recommendations of the panel is expected to be included in the final Budget for 2019-20 which will be presented after the general elections due in May next year.