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News INCOME TAX

  • Feb 23, 2024
  • Tax demand waiver: Income tax dept can waive off demand above Rs 1 lakh in these cases

    The Central Board of Direct Taxes (CBDT) has fixed the maximum ceiling limit as Rs 1 lakh for waiving eligible income tax demands. However, in an order dated February 13, 2024, CBDT said that future interest will not make part of this calculation of the overall amount of income tax demand.

    CBDT said in the order, "Consequent to the aforesaid remission and extinguishment of entries of outstanding demand, there shall not be requirement of calculation of interest on account of delay in payment of demand under sub-section (2) of section 220 of the Income-tax Act, 1961 or corresponding provisions of Wealth-tax Act, 1957 and Gift-tax Act, 1958 and therefore, the same shall not be considered for the purpose of determining the ceiling of Rs 1,00,000 (Rupees one lakh)."

  • Feb 20, 2024
  • CBDT sets Rs 1 lakh threshold per assessee for withdrawal of old tax demands

    The Income Tax department has prescribed a ceiling of Rs 1 lakh per assessee for withdrawal of small tax demands till Assessment Year 2015-16, in accordance with a scheme announced in Budget.The Central Board of Direct Taxes (CBDT) has issued an order giving effect to the 2024-25 Budget announcement by Finance Minister Nirmala Sitharaman.

    The Budget had announced that tax demands for AY 2010-11 of up to Rs 25,000 and for AY 2011-12 to 2015-16 of up to Rs 10,000 will be withdrawn. Tax demands totalling about Rs 3,500 crore will be withdrawn following the announcement.The CBDT order said that such outstanding tax demands pertaining to income tax, wealth tax and gift tax as on January 31, 2024, shall be remitted and extinguished “subject to the maximum ceiling of Rs 1 lakh for any specific taxpayer/assessee”.The limit of Rs 1 lakh would include principal component of tax demand, interest, penalty or fee, cess, surcharge.However, the remission shall not be applicable on the demands raised against the tax deductors or tax collectors under TDS or TCS provisions of the I-T Act.Nangia Andersen India Partner Maneesh Bawa said the directive further specifies that this waiver or cancellation does not entitle taxpayers to any claims for credit or refunds.

  • Feb 17, 2024
  • How ITR's Automated Reconciliation Works

    The income-tax department is set to launch a screen-based automated reconciliation system for plugging mismatches between returns filed by taxpayers and information processed by the department.

    In some select cases, people who did not file I-T returns (ITR) can use the automated reconciliation facility.

    In the first phase, information mismatches related to financial years 2021-2022 and 2022-2023 will be considered.

    Sources said no notice needed to be issued for this, and the I-T department would send alerts through SMS and e-mail to taxpayers where mismatches were identified.

  • Feb 16, 2024
  • No TDS on minimum guarantee paid by OYO Rooms to hotels: ITAT

    A tax tribunal has ruled that Oravel Stays Private Limited, the company which runs OYO Rooms, is not required to pay the tax deducted at source (TDS) on the minimum guarantee payments made to hotels.
    The Delhi-based Income Tax Appellate Tribunal (ITAT) observed that hotels conduct their operations in terms of providing lodging and accommodation services whereas OYO Rooms provides technology, sales, and marketing services through its platformOYO Rooms assures minimum benchmarks, occupancy of hotels and in case such benchmark is exceeded, the service fee is payable by the hotel and in case of shortfall, the former is required to meet the same.

  • Feb 14, 2024
  • 'Non-resident' gets tax relief on overseas income

    The Income Tax Appellate Tribunal (ITAT) has come to the rescue of a salaried individual who was deputed to work outside India, by holding that the salary income (which includes allowances) of a 'non-resident' for services rendered overseas cannot be taxed in India.
    In this case, which was heard by the ITAT Delhi bench, Devi Dayal was deputed by his employer - an Indian company engaged in digital technologies - to work on a project in Austria.

  • Feb 12, 2024
  • Direct tax collection reaches 80% of revised FY24 target at Rs 15.60 trn

    Net direct tax collection so far in current fiscal grew 20 per cent year-on-year to Rs 15.60 trillion, which is 80 per cent of revised budget estimates for full fiscal year.
    "The provisional figures of direct tax collections continue to register steady growth. Direct tax collections up to 10th February, 2024 show that gross collections are at Rs 18.38 trillion, which is 17.30 per cent higher than the gross collections for the corresponding period of last year," Central Board of Direct Taxes (CBDT) said in a statement.This collection is 80.23 per cent of the total revised estimates of direct taxes for 2023-24.
    Refunds amounting to Rs 2.77 trillion have been issued during April 1, 2023 to February 10, 2024.
    Gross revenue collections for Corporate Income Tax (CIT) and Personal Income Tax (PIT) also showed a steady growth.
    Growth rate for CIT was 9.16 per cent while for PIT, it was 25.67 per cent (PIT only).
    After adjustment of refunds, the net growth in CIT collections was 13.57 per cent and that in PIT was 26.91 per cent (PIT only), it added.

  • Feb 09, 2024
  • ITAT upholds cap-gain exemption to Mauritius entity, for shares acquired prior to April 1, 2017

    The Income-tax Appellate Tribunal (ITAT), Mumbai bench, in the case of Comstar-Mauritius has upheld the exemption of long-term capital gains (available under Article 13 of the India-Mauritius tax treaty) on sale of equity shares of an Indian company, which were acquired prior to April 1, 2017. It has overturned a revisionary order passed by the Commissioner of Income-tax (Appeals).

  • Feb 07, 2024
  • SC slams IT department for filing cases after time limit

    Coming down heavily on the revenue authorities for their tendency to file petitions "belatedly" in courts and tribunals, the Supreme Court on Tuesday asked the income-tax department to put a proper litigation policy in place since it is the "biggest litigant" in the country.

    The court rejected an I-T department plea against Bharti Airtel Ltd after noting that there has been a delay of more than four years in filing an appeal...

  • Feb 06, 2024
  • 11.48 crore PAN cards are still not linked with Aadhaar: Govt

    The government has collected over Rs 600 crore as penalty for delay in linking PAN with Aadhaar, and about 11.48 crore Permanent Account Numbers are still not linked with biometric identity, Parliament was informed on Monday.

    “Number of PANs not linked with Aadhaar, excluding exempted categories, is 11.48 crore as on January 29, 2024,” Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha.

    To a question regarding the details of government earning through late penalty of Rs 1,000 from the persons who have not linked their PAN and Aadhaar after the last date of June 30, 2023, Chaudhary said “the total collection of fee from persons who have not linked their PAN with Aadhaar is Rs 601.97 crore from July 1, 2023 to January 31,2024”.

  • Feb 06, 2024
  • A lot of effort has been made by the department to develop taxpayer confidence: CBDT Chairman

    The income tax department has made a lot of effort to build the confidence of taxpayers through initiatives and the use of technology. This has led to higher compliance and increase in the direct tax collection as well as widening of the taxpayer base, believes Nitin Gupta, Chairman, Central Board of Direct Taxes. In a post Budget interview to BT, Gupta also says that about 60% of taxpayers may move to the new income tax regime. Edited excerpts:

    The direct tax-to-GDP ratio rose to the highest level in 15 years last fiscal and tax collection trends have been robust. What do you attribute this increase to?

    In FY24, the target vis à vis the actual collections of 2022-23 is 16.95% or Rs 19.45 lakh crore in absolute numbers, which is the highest ever target given to us by the government.

  • Feb 05, 2024
  • Wait for unprocessed income tax refund to get longer; deadline extended by 3 months

    The Central Board of Direct Taxes (CBDT) has said that all income tax returns (ITR) that are validly filed electronically up to AY 2020-21 with refund claims under section 143 (1) would now be processed by April 30, 2024, unless otherwise prescribed.

    CBDT in the circular dated January 31, 2024, said, "The matter has been re-considered by the Board in view of pending taxpayer grievances related to the issue of refund. To mitigate the genuine hardship being faced by the taxpayers on this issue, Board hereby further extends the time till 30.04.2024 in respect of returns of income validly filed electronically up to AY 2020-21.

  • Feb 05, 2024
  • TDS deducted, but not filed ITRs? You may soon get income tax notice

    The Income Tax Department will soon send notices to individuals who have not filed income tax returns (ITRs). The notices will be sent to even those whose income tax has been deducted at source, The Economic Times reported on Sunday.

    Central Board of Direct Taxes (CBDT) chairman Nitin Gupta said that the department will be sending notices to only those taxpayers for which it had definitive information. He said the department's focus was on improving taxpayer services, from bringing down the period of refund to updated returns or solving a large tax dispute.

  • Feb 05, 2024
  • Existing taxation structure for corporates very reasonable: Revenue secy

    The existing taxation structure for corporates with a 22 per cent tax is "very reasonable" when compared to an economy of the size of India and hence the concessional tax regime which was in force for four years for new manufacturing units was not extended beyond March 2024, Revenue Secretary Sanjay Malhotra said.
    In an interview with PTI, Malhotra said the Interim Budget 2024-25 provides for continuity in taxation regime and the benefits given to taxpayers in the last years are showing results in the form of huge buoyancy in personal income tax.

  • Feb 03, 2024
  • Rich taxpayers will now need to give more details, ITR-2, ITR-3 for FY 2023-24 notified by CBDT

    Taxpayers who earn more than Rs 50 lakh or have more than one house need to share extra information when they file their income tax return (ITR).

    The Central Board of Direct Taxes (CBDT) has notified the income tax return (ITR) forms, ITR-2 and ITR-3. Many entities, including individuals, whose income iexceeds Rs 50 lakh are required to file their ITR using these forms for FY 2023-24 (AY 2024-25). The last date to file ITR-2 and ITR-3 is July 31, 2024. Whereas taxpayers who are required to conduct income tax audit and have business income must file ITR-3 by October 31, 2024

  • Feb 03, 2024
  • CBDT chief hints 15 per cent tax for new units may stay longer

    The government may take a “fresh call” on extending the sunset date for the concessional 15% corporate tax for new manufacturing units beyond March 31, after the general election, Central Board of Direct Taxes Chairman Nitin Gupta told FE on Friday.

    “Anything can happen (on the concessional tax). If there are demands for the extension of the sunset date, it could be considered after the polls. But as of now, this is the position of the government,” Gupta said.

  • Feb 03, 2024
  • Finance Minister assures stability in capital gains tax regime

    Assuring the market participants stability in the capital gains tax regime, Finance Minister Nirmala Sitharaman said that Prime Minister Narendra Modi is never in favour of quick twists and turns in policy.

    “Policy stability is one thing, which Prime Minister lays a lot of emphasis on. He doesn't like periodic tweaking; he would tell you it's only two years or three years, and let it play out, let it settle down and so on. He's never in favour of quick twists and turns. And this is not me saying. People who have observed him since his tenure as chief minister will know that the biggest strength under Prime Minister Modi is stability in policy,” the finance minister said on February 2 in a post-Budget interview with Network 18 with Editor-in-Chief Rahul Joshi.

  • Feb 03, 2024
  • CBDT says 56 lakh updated ITRs filed, Rs 4,600 cr taxes mopped up in 2 years

    The income tax department has garnered about Rs 4,600 crore in taxes from 56 lakh updated I-T returns filed by taxpayers in the past two years, Central Board of Direct Taxes (CBDT) chief Nitin Gupta said.

    In a post budget interview to PTI TV, Gupta also said the I-T department has set up a demand management centre at Mysuru, Karnataka, which is focusing on disputed pending large tax demands of above Rs 1 crore.

  • Feb 02, 2024
  • Govt to give up on Rs 3,500 crore-worth disputed direct tax demands: Revenue Secretary

    The government has decided to drop some controversial and minor tax claims totalling Rs 3,500 crore, as mentioned by Revenue Secretary Sanjay Malhotra during the press conference after the interim Budget. These tax demands were linked to a total of 2.1 crore demand notices entailing amounts less than Rs 25,000.

    In order to reduce tax litigations and disputes, which were stuck due to inadequate data or dispute, the finance minister proposed to waive off trivial outstanding tax demands of up to Rs 25,000 for the period up to 2009-10. Additionally, outstanding disputes related to amounts up to Rs 10,000 for the years 2010-11 to 2014-15 will be waived off.

  • Feb 02, 2024
  • Manufacturing companies face uncertainty as Budget mentions no extension of beneficial tax rate

    Several manufacturing companies will face uncertainty following the interim Union Budget 2024 as the government has not specified any provision to extend the special tax rate of 15 percent applicable to new manufacturing units that begin production before March 31, 2024.

    This could potentially increase the tax outgo of some manufacturing by 7 percent, say tax experts.

    According to tax experts, the budget documents are silent about extending the applicability of the Section 115BAB of the Income Tax Act. The section provides a beneficial tax rate of 15 percent to companies incorporated post 2019 and who begin their manufacturing before March 31, 2024.

  • Feb 02, 2024
  • ITR-2, ITR-3 for FY 2023-24 notified by CBDT; More details required from certain taxpayers

    The Central Board of Direct Taxes (CBDT) has notified the income tax return (ITR) forms, ITR-2 and ITR-3. Many entities, including individuals, who have certain specific types of income are required to file their ITR using these forms for FY 2023-24 (AY 2024-25). The last date to file ITR-2 and ITR-3 is July 31, 2024. Whereas taxpayers who are required to conduct income tax audit and have business income must file ITR-3 by October 31, 2024