• Registered Users :
  • 156898
  • Current Active Users :
  • 98710

News Direct Tax-Misc. Direct Tax

  • Apr 20, 2019
  • MNCs in India may face higher taxes

    The rules for attributing profits to multinational enterprises having a permanent establishment (PE) or business connection in India are set to significantly change if the draft report issued on Thursday night by a committee — appointed by the Central Board of Direct Taxes (CBDT) — is adopted. According to tax experts, MNCs carrying offshore operations in India, which also have sales revenue from the country, may find that higher profits that are attributed to Indian operations — under the prescribed formula-driven approach — will result in a higher tax outgo.

  • Apr 04, 2019
  • With Rs.3.52 lakh cr, Mumbai tops in tax collection for FY19

    Mumbai has once again emerged as the top contributor to the exchequer and accounted for 32 per cent of the overall tax collection in the financial year ended March. Shrugging aside concern over slower economic growth, the cumulative tax remittance under various heads, including corporate tax, income tax, fringe benefit tax and securities transaction tax, was up 17 per cent in FY19 at Rs.10.95 lakh crore against Rs.9.36 lakh crore logged in FY18. But this is lower than the targeted amount.

  • Apr 01, 2019
  • DPIIT working on definition of Accredited Investors for Angel Tax exemption

    The Department for Promotion of Industry and Internal Trade (DPIIT) is working on a definition of 'accredited investors', who could be provided tax incentives for investments in startups, an official said. The department, under the commerce and industry ministry, has already prepared a draft definition and is now seeking views of stakeholders. The official said these accredited investors, which can include trusts, individuals, family member of a startup and unlisted companies, may get exemption from angel tax under Section 56(2)(viib) of Income Tax Act, 1961, beyond the Rs 25 crore limit.

  • Apr 01, 2019
  • FY19 direct tax collections fall short by Rs 50k cr

    Direct tax collections have fallen short by Rs 50,000 crore thereby failing to meet the revised target of Rs 12 lakh crore for 2018-19 fiscal on account of poor personal income tax collections. "We will get close to most likely the earlier target of Rs 11.5 lakh crore for 2018-19 as calculations are at the final stage not beyond that... We will not meet upward revised target of Rs 12 lakh crore," an official source said.

  • Mar 29, 2019
  • CBDT asks I-T Department to probe about 3 lakh de-registered firms for money laundering

    The CBDT has issued directions to Income Tax offices across the country to probe financial transactions of about three lakh firms, de-registered by the government for their dubious financial credentials, for tax evasion and money laundering, especially during demonetisation. The board has asked the tax offices to undertake this special task and bring under their ambit the time period (over the last two years) when these companies were struck off from the records of the Ministry of Corporate Affairs (MCA).

  • Mar 22, 2019
  • CBDT gives 90 startups immunity from Angel Tax

    In what will give relief to 90 startups from taxman’s questioning their valuation during fund raising rounds and slapping angel tax, the Central Board of Direct Taxes (CBDT) has given them a written assurance and registered them for Startup India Action Plan, according to two people with direct knowledge of the matter. Under the Startup India Action Plan, a Department of Industrial Policy and Promotion (DIPP) initiative, the startups were asked to submit all details related to capital raising and promoters, and if accepted, they get an immunity from future tax demands under section 56(2)viib of the Income Tax Act.

  • Mar 19, 2019
  • Net direct tax collection crosses Rs 10 lakh crore mark

    The net direct tax collection figure has crossed the Rs 10 lakh crore mark as on March 16, helped by the fourth and final instalment of tax payment, sources said. The entire advance tax data from across the country has not come yet, the sources said. However, the preliminary assessment indicates that the net direct tax collection has crossed Rs 10 lakh crore, they said.

  • Mar 16, 2019
  • MNCs now won't have to file CbC report in India

    Indian arms of US MNCs will not have to file country by country or CbC report here. India has finalized bilateral competent authority arrangement for exchange of CbC reports with US. These companies would have had to file these here with Indian revenue authorities by March 31, 2019 in absence of such an agreement. They will now need to merely intimate them of such CbC reports having been filed by their respective parent entities in the USA.

  • Mar 11, 2019
  • CBDT allows offshore fund managers to operate from India

    The seeds that were sown by the government in ‘the 2015-16 Budget are starting to bear fruit. The Central Board of Direct Taxes (CBDT) has started paving the way for offshore fund managers to relocate to India for managing their offshore funds without having to face any adverse tax consequences. This is being done for the public markets space, mainly foreign portfolio investors (FPI) structures. Several fund managers have, in recent days, finally made the cut and got the pre-approvals from the CBDT (under Section 9A of the Income Tax Act). Approvals were given three days back for a set of FPI fund managers, said industry experts.

  • Mar 08, 2019
  • Finance Ministry stares at direct tax revenue shortfall by Rs 70,000 crore to Rs 1 lakh crore

    The government may be staring at higher-than-projected deficit for the current fiscal with country's direct tax revenue expected to fall short by Rs 60,000 to 70,000 crore over the revised target of Rs 12 lakh crore for FY19, officials privy to the numbers said. Direct tax revenue has totalled to Rs 8.4 lakh crore so far this fiscal and it is doubted if the target could be reached in the next three weeks even though collections pick up in the last few months of the fiscal.

  • Mar 08, 2019
  • Tax lens on 87,000 for failing to comply with demonetisation notices

    The Central Board of Direct Taxes (CBDT) has ordered “best judgment assessment” of individuals who failed to comply with the income tax department’s repeated alerts on bank deposits made soon after demonetisation. The income tax department had sent out SMSes, emails and also issued notices to around 300,000 individuals, who made substantial cash deposits after the November 2016 demonetisation, to furnish income-tax returns for the assessment year 2017-18. But, around 87,000 taxpayers failed to comply with those notices.

  • Mar 07, 2019
  • Angel tax: CBDT follows up on DPIIT relief, some concerns stay

    The Central Board of Direct Taxes (CBDT) On Wednesday gave effect to the conditional relief from angel tax to start-ups as notified by the Department for Promotion of Industry and Internal Trade (DPIIT) on February 19 by making the necessary changes in the Income Tax Act. In a substantial breather to thousands of start-ups, the DPIIT had raised the cap of funding by unlisted firms or individuals in a start-up that would be exempted from the angel tax to Rs 25 crore from Rs 10 crore and also relaxed a clutch of rules to ease investment flow into these. Investments by listed firms having a net worth above Rs 100 crore or annual turnover of Rs 250 crore will be exempted from any such limit, which will enable them to invest more without fears of the angel tax.

  • Mar 06, 2019
  • Corporate tax cut hinges on GST revenue: Arun Jaitley

    Stating that the NDA government, if voted back to power, would consider reducing the corporate tax rate for all firms to 25% provided the goods and service tax (GST) collections improve, finance minister Arun Jaitley on Tuesday told industry captains to pass on the benefits of recent GST cuts to consumers by lowering prices. Presenting a paper ‘Agenda for Growth and Shared Prosperity’ before the minister, industry chamber FICCI’s president Sandip Somany sought reduction of the corporate tax rate for all companies irrespective of their turnovers. In Budget for FY16, the government had unveiled a plan to reduce the corporate tax rate from 30% to 25% “in four years” to make India’s tax rates globally competitive. However, its implementation has been partial due to concerns on revenue front. It has since cut the corporate tax rate to 25% for those companies which reported a total turnover of up to `250 crore, largely benefiting MSMEs.

  • Feb 20, 2019
  • Angel tax exemption cap hiked, definition of startup widened

    In a two-pronged move to improve the fledgling startup eco-system, India on Tuesday raised the limit of angel tax exemption for startups, while revising the definition of such an enterprise. Angel tax, the focus of a recent controversy, which has come to be called so since it largely impacts angel investments in startups, refers to income tax payable on capital raised by unlisted companies via issue of shares, where the share price is seen in excess of the fair market value. Section 56(2)(viib) of the Income Tax Act provides that the amount raised by a startup in excess of its fair market value is taxable at over 30 per cent.

  • Feb 19, 2019
  • Breather for startups: Govt raises investment cap for angel tax concession

    Giving a major relief to startups, the government has decided to relax angel tax norms for startups, including increasing the investment limit to Rs 25 crore for availing income tax concessions by startups, an official said Tuesday.Currently, startups avail tax concession only if total investment, including funding from angel investors, does not exceed Rs 10 crore.A notification regarding simplifying the process for startups to get exemptions on investments under section 56(2)(viib) of Income Tax Act, 1961, will be issued shortly, the official said.

  • 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).

12345678910...