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News INCOME TAX

  • Feb 14, 2019
  • CBDT forms panel to examine issues and suggestions for better litigation management

    The Central Board of Direct Taxes (CBDT) has constituted a five-member committee to examine the suggestions and issues on litigation management that emanated from a judicial conference held in January.The committee has been tasked with examining cases where the appellate tribunal (ITAT) has passed perverse or irregular orders. Additionally, it will also examine the feasibility of creating a separate bench of the ITAT for international tax in places where the pendency is high.

  • Feb 13, 2019
  • Outstanding tax demand rose 45% in last 4 years

    The total outstanding tax demand payable to exchequer has risen by nearly 45% to Rs 10.7 lakh crore in the April-December period of the current fiscal from the FY16 level, minister of state for finance Shiv Pratap Shukla said in a written reply in Parliament on Tuesday. The outstanding demand includes both direct and indirect taxes. The reply, however, cited a confidentiality clause in I-T Act to a deny information on outstanding liability of specific taxpayers in the corporate sector. “General disclosure of tax information of specific taxpayers is prohibited under section 138 of the I-T Act,” the minister said.

  • Feb 13, 2019
  • People with income up to Rs 9.5 lakhs can escape tax liability: Piyush Goyal

    Stressing that tax concessions have been provided with a view to help poor and middle class people living on a tight budget, Finance Minister Piyush Goyal on Tuesday said that now individuals earning up to Rs 9.5 lakh can escape liability by taking advantage of saving schemes. Replying to the debate on the Finance Bill in Lok Sabha, the Minister said he did not propose any change in the tax rate but only provided few rebates which will boost spending and help the economy.

  • Feb 13, 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 11, 2019
  • Taxman target indirect investments in overseas companies

    Many well-heeled Indians who own stocks and properties abroad or are beneficiaries of offshore trusts may come under the glare of the income tax (I-T) department for failing to spell out their ‘indirect investments’. Indirect investments are the next level investments — or, holdings in other overseas companies — by the entity in which the resident Indian is a stakeholder. Consider an individual holding 15% equity interest in an unlisted offshore firm (A) in Dubai, which in turn is a shareholder in three US companies (B, C and D).

  • Feb 06, 2019
  • Income tax returns filings rose over 37 per cent in April-January

    The income tax e-returns filed for the April-January period has risen over 37 per cent against the corresponding period in FY18. While over 6.3 crore taxpayers filed returns in the initial ten months of the fiscal, the government is expecting Rs 7.6 crore returns to be filed by the end of FY19 against Rs 6.9 crore in FY18.Between April to January period of the last two financial year, the growth was more subdued at 17 per cent and 20 per cent, respectively. At the end of FY14, merely an amount of Rs 3.8 crore e-returns was filed. The government has often categorised demonetisation as one of the primary reasons for doubling of I-T returns.

  • Feb 04, 2019
  • I-T assessments to be completely faceless in few years: CBDT chairman

    Income tax assessments will be “completely faceless”, without the taxpayer having to face the taxman, in about two years and assessees will be provided pre-filled return forms as part of the government’s initiative to simplify procedures, a senior government official said Sunday. Central Board of Direct Taxes Chairman Sushil Chandra told PTI in a post-Budget interview that about 2.06 lakh income tax assessment cases were handled online by the department last year, as part of the ‘nameless and faceless’ delivery of service to taxpayers . He added that the recent government sanction to create the advanced Centralised Processing Centre 2.0 in the I-T Department is a precursor to these futuristic proposals.

  • Feb 02, 2019
  • Good news! Income Tax rebate limit up at Rs 5 lakh, standard deduction at Rs 50,000

    Middle-CLASS households will have a little more to spend in 2019-20 with the tax rebate (Section 87A) threshold for the levy of income tax having been raised to Rs5 lakh. The change in the limit will save middle-class individual assessees Rs10,000 a year each; the total relief, across three crore individuals, is around Rs18,500 crore. That’s not all. Salaried individuals will now get the benefit of Rs50,000 per annum as standard deduction, higher by Rs10,000 than the earlier Rs40,000. Across three crore salary earners and pensioners, this amounts to a benefit of Rs4,700 crore.

  • Jan 23, 2019
  • Non-filers will have 21 days to file I-T returns, submit response: CBDT

    Individuals who have carried out high value transactions but have not filed their income tax returns for the assessment year 2018-19 would get 21 days time to submit their responses, the CBDT said on Tuesday. The 21-day time period would be from the date of receiving e-mail or SMS from the I-T Department regarding non-filing of tax returns. In cases where no return is filed or no response is received for Assessment Year (AY) 2018-19 within the stipulated time, the department would consider initiating proceedings under the Income Tax Act 1961. The Central Board of Direct Taxes (CBDT) said data analysis has identified "several potential non-filers" who have carried out high value transactions in 2017-18 but have still not filed returns for AY 2018-19.

  • Jan 23, 2019
  • Companies face action over TDS non-payment

    The government has cracked the whip on several large companies, which had either failed to deposit tax deducted at source (TDS) with the income tax (I-T) department or delayed the payment, with claims against top 10 such entities adding up to nearly Rs 350 crore. I-T authorities have gone ahead and launched prosecution action, while some of the companies have come forward to settle the cases. Under the law, individuals as well as companies have to deduct tax for several payments — ranging salaries to rent and payments to contractors above a specified threshold.

  • Jan 17, 2019
  • Angel Tax: A third of start-ups got tax notices in 2018

    Over 38% of the start-ups in the country — 39,000 at last count — have received one or more ‘angel tax’ notices in 2018, causing critical capital infusion in these firms at the seed stage to go down by 21% year-on-year. This was highlighted by iSPIRT, a think-tank for the Indian software products industry, in a recent letter to Prime Minister Narendra Modi seeking his immediate intervention to halt these tax notices. The Start-up India movement is under serious threat and will slide further if immediate structural policy measures are not taken to halt the tax notices, Nakul Saxena of iSPIRT wrote.

  • Jan 17, 2019
  • Get income tax refund in one day from 2020

    The Cabinet on Wednesday cleared an ambitious Rs 4,242 crore project for e-filling and centralised processing of income tax return, which will allow taxpayers to get a refund in one day through a pre-filled tax return form, the Times of India reported. Currently, the average time taken for return processing and giving a refund is 63 days, which will get reduced to one day, the daily quoted railway minister Piyush Goyal as saying.

  • Jan 16, 2019
  • Startups may soon get shield against angel tax demons

    India is likely to soon announce concessions to shield startups from the so-called ‘angel tax’, including relief from levies on past investments as well. The changes will be made to conditions specified for benefits under Section 56(2)(vii)(b) of the Income Tax Act, 1961, to remove any ambiguity and allow exemption for past as well as proposed investments that do not exceed Rs 10 crore, including paid-up share capital and premiums. The need for an inter-ministerial group to approve exemptions may also be scrapped on investments up to Rs 10 crore.

  • Jan 10, 2019
  • Deadline for public comments on draft IT rules extended to January 31

    The government has extended till January 31 the deadline for public comments on draft IT rules mainly focused on social media platforms. Earlier, the last date for public comments on Draft of Intermediary Guidelines 2018 was January 15. "The closing date for submission of comments/suggestions is now extended to January 31, 2019," the Ministry of Electronics and IT (Meity) said in a statement.

  • Jan 03, 2019
  • Companies may not face 30% tax bump over valuation premium

    Companies facing a 30-percent tax bill over valuation premium may not face the tax bump as the government has recently asked officials not to scrutinise such transactions, according to a report by The Economic Times. The clarification comes after many firms received tax demands after premiums were paid over the 'fair price' or 'fair market value' for fresh equity or preference shares. The demands could be withdrawn in the coming weeks, a source told the paper.

  • Dec 24, 2018
  • Start-ups accredited by DIPP will no longer be asked to pay angel tax

    Facing flak from start-ups, the government may announce modifications to the “angel tax” law in the coming weeks. All start-ups accredited by the Department of Industrial Policy and Promotion (DIPP) will no longer be asked to pay angel tax, sources involved in the inter-ministerial discussions said.Earlier, the rule said only those start-ups that have been given such an exemption by a government board will be excused. That is likely to change as the government is planning to exempt “any and all start-ups” (that qualify as start-ups according to prevailing.

  • Dec 22, 2018
  • MNC units, Indian firms get tax notices for receiving FDI

    After slapping ‘angel tax’ notices on startups, the taxman’s attention seems to have turned to foreign direct investment (FDI) in multinationals and Indian companies where a ‘premium’ was paid over and above the ‘fair market value’ of shares. The income tax department has started issuing notices to several companies that have received FDI, claiming that the ‘premiums’ they received on such transactions are ‘unexplained credits’ that can be held as income, people familiar with the development told ET.

  • Dec 22, 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 11, 2018
  • Direct tax receipts rise 15.7% in April-November

    The income tax department has collected Rs. 6.75 trillion in direct taxes this year up to November, accounting for close to half of its full-year target of Rs 11.5 trillion, an official statement said here. The April-November gross direct tax receipts show a 15.7% jump in revenue compared to the same time a year ago. During the first eight months of this fiscal, the department issued Rs.1.23 trillion of refunds, which is 20.8% more than the amount refunded during the same period a year ago. Net direct tax collections after refunds stood at Rs 5.51 trillion, a 14.7% jump from the year-ago period.

  • Dec 06, 2018
  • ITR forms will soon be pre-filled for you: CBDT’s Sushil Chandra

    The process of filing tax returns will soon become a lot easier, with the tax department planning to introduce pre-filled fields based on information already available with it, cutting out the tediousness of this annual chore.Data available from entities that deduct tax at source such as employers and banks would be used to offer pre-filled tax return forms to people, Sushil Chandra, chairman of Central Board of Direct Taxes (CBDT), said, adding that work on this project was on. A pre-filled return could be submitted directly or after modification, he said.The new form is aimed at encouraging people, who are daunted by the complexity of the process, to file their taxes. It’s also part of the department’s efforts to present a taxpayer-friendly interface and give officials fewer discretionary powers.

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