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News Direct Tax-Misc. Direct Tax

  • Oct 24, 2018
  • Direct tax collection falls in six states; UP, Rajasthan worst performers

    Direct tax collections declined from six states in 2017-18, latest data released by the income tax department shows. Among the larger states, the sharpest decline was seen in Uttar Pradesh, followed by Rajasthan and Bihar. Mizoram, Nagaland and Sikkim are the other states from where collections have fallen. Collections have also fallen from the Union Territory of Daman and Diu. At the aggregate level, total direct tax collections rose by 18 per cent in 2017-18, rising to Rs 10 trillion, up from Rs 8.49 trillion in 2016-17.

  • Oct 23, 2018
  • Net direct tax collection grows 15.7% to Rs 4.89-lakh crore: CBDT

    The net direct tax collection in the country grew by 15.7 per cent on year-on-year basis to reach Rs 4.89 lakh crore in the current fiscal till third week of October, a senior official on Monday quoting from the latest data. This marks over 42 per cent of the full-year direct tax collection target of Rs 11.5 lakh crore for the fiscal ending March 31, 2019. The CBDT official also the income tax department issued about 2 crore refunds for an amount of about Rs 1.09 lakh crore, till last week.

  • Oct 15, 2018
  • Direct taxes make up bigger share of GDP

    Despite the economy’s 25 percent contraction over the years of the economic crisis, the increase in the number of unemployed to 1 million, and the drop in pensions, state revenues from direct taxation remain at the same level in absolute figures. In fact, they are currently slightly higher than in 2010. The entire tax base has been battered by overtaxation in recent years, while the middle classes have all but vanished due to the ever increasing tax burden imposed on them by the government, particularly the current administration that has transferred the tax load onto taxpayers with annual incomes of around 25,000-30,000 euros.

  • Oct 05, 2018
  • Direct Tax Collection grows over 16.5%

    The Finance Ministry on Thursday announced that the direct tax collection has reached Rs.5.47 lakh crore during the first six months of the current fiscal. This is 16.7 per cent higher than corresponding period of previous fiscal. Direct tax comprises of Personal Income Tax (PIT), Corporate Income Tax (CIT) and Securities Transaction Tax (STT). The Ministry mentioned that the growth rate would have been higher as the gross collections of the corresponding period last year also included extraordinary collections under third and last instalment of the Income Declaration Scheme (IDS), 2016 which amounted to Rs.10,254 crore.

  • Oct 04, 2018
  • Gross direct tax collection grows 16.7% to Rs 5.47 lakh crore in April-September

    Gross direct tax collection in the first six months of the financial year grew 16.7 per cent to Rs 5.47 lakh crore, Finance Ministry said Thursday. Refunds amounting to Rs 1.03 lakh crore have been issued during April 2018 to September 2018, which is 30.4 per cent higher than refunds issued during the same period in the preceding year. “The provisional figures of direct tax collections up to September 2018 show that gross collections are at Rs 5.47 lakh crore which is 16.7 per cent higher than the gross collections for the corresponding period of last year,” the ministry said in a statement.

  • Sep 27, 2018
  • Tax law panel may look to drop dividend distribution tax

    Members of the task force set up to draft a new direct tax legislation appear to be in favour of abolishing the dividend distribution tax (DDT). The panel may revert to the classical method of taxing dividend in the hands of shareholders. One of the objectives is to boost investments from abroad, as DDT casts a heavy burden on foreign investors, sources close to the developments told TOI.Members of the task force set up to draft a new direct tax legislation appear to be in favour of abolishing the dividend distribution tax (DDT). The panel may revert to the classical method of taxing dividend in the hands of shareholders. One of the objectives is to boost investments from abroad, as DDT casts a heavy burden on foreign investors, sources close to the developments told TOI.Abolition of securities transaction tax (STT) to eliminate double taxation may also be on the cards, as Budget 2018 introduced tax on long-term capital gains exceeding Rs 1 lakh on sale of listed securities.

  • Sep 18, 2018
  • Hope to cross Rs 11.5 lakh cr direct tax collection target for FY19:CBDT chief

    CBDT Chairman Sushil Chandra Monday expressed confidence in exceeding Rs 11.5 lakh crore direct tax collection target in current fiscal. In 2018-19 budget, the government had projected a 14.3 per cent rise in direct tax collections to Rs 11.5 lakh crore. "We certainly hope to cross the Rs 11.5 lakh crore direct tax collection target for the current fiscal," Chandra told reporters. However, Controller General of Accounts data shows, the direct tax collections grew a paltry 4.2 per cent on year to Rs 1.54 lakh crore in April-June.

  • Sep 18, 2018
  • No withholding tax on interest payment of masala bonds

    The Central Board of Direct Taxes (CBDT) on Monday said no witholding tax will apply on interest payments made by an Indian company or a business trust to a non-resident in respect of offshore rupee denominated bonds issued between September 17, 2018 and March 31, 2019. The move is expected to incentivise foreign exchange inflows into India through low-cost offshore rupee denominated bonds, popularly referred to as masala bonds. Legislative amendments in this regard will be done in due course, an official release said.

  • Aug 29, 2018
  • Physical settlement in F&O to attract 0.10% STT: CBDT

    The Central Board of Direct Taxes (CBDT) today told the Bombay High Court that 0.10 per cent securities transactions tax (STT) would be levied on physical delivery of shares in the equity derivatives segment. A division bench of justices B R Gavai and M S Karnik had last week sought clarity from the CBDT on the STT rate after the Association of National Exchange Members of India (ANMI) filed a petition claiming anomalies on the issue.

  • Aug 20, 2018
  • CBDT defers till March 2019 GAAR, GST reporting under the new tax audit form

    The Central Board of Direct Taxes (CBDT) has put off till March 31, 2019, the proposed GST and GAAR reporting under the amended tax audit form. This dispensation would be available for tax audit reports to be furnished on or after August 20 but before April 1, 2019.In a circular issued on Friday, the CBDT said representations had been received by the Board that the implementation of the reporting requirement under the proposed Clause 30C (pertaining to General Anti-Avoidance Rules or GAAR) and the proposed Clause 44 (pertaining to Goods and Services Tax compliance) of the tax audit Form No 3CD may be deferred.

  • Aug 16, 2018
  • CBDT plan to incentivise ‘quality orders’ worries trade

    Trade and industry is increasingly concerned about the recent plans of the Income Tax Department to incentivise taxmen who pass “quality orders” by imposing a penalty or increasing the amount to be paid. While the move is yet to translate on the ground, trade associations have written to the Finance Secretary seeking relief. Experts warn that the move could impact recent government efforts to project a tax payer-friendly image.“This completely erodes their impartiality and independence, and creates a bias in favour of the IT Department in a quasi-judicial proceeding,” said a recent letter by trade associations to Finance Secretary Hasmukh Adhia.

  • Aug 07, 2018
  • Threat to plan to cut tax arrears

    While the stated policy and to a large extent the efforts of the tax administration are to reduce the mammoth tax arrears (outstanding tax demands), certain moves could frustrate the goal. The Central Board of Direct Taxes’ (CBDT) latest Central Action Plan, for instance, seeks to incentivise the CIT (Appeal), the first appellate forum, to pass ‘quality’ orders with additional credit of two units per order. Tax experts say this would undermine the CIT(A)’s ability to adjudicate the dispute, as the points that help his promotion could prejudice the body against the taxpayer.

  • Aug 02, 2018
  • CBDT signs 9 more unilateral APAs with taxpayers in July

    The Central Board of Direct Taxes (CBDT) has signed nine more unilateral advance pricing agreements (APAs) with Indian taxpayers in July as it looks to reduce litigation by providing certainty in transfer pricing.The nine APAs signed in the past one month pertain to sectors like telecom, healthcare, manufacturing, engineering, media and irrigation.With the signing of these Agreements, the total number of APAs entered into by the CBDT has gone up to 232, which includes 20 Bilateral Advance Pricing Agreements (BAPAs), the finance ministry said in a statement.

  • Jul 30, 2018
  • File all NCLT petitions on shell firms by August: CBDT to IT department

    The CBDT has directed the Income Tax Department to ensure filing all its petitions before the NCLT by next month to recover due taxes worth crores of rupees from a number of de-registered shell or dummy companies. The policy-making body of the tax department has issued the directive as part of the action plan unveiled recently. "A large number of companies have been struck off from the records of the ROC (registrar of companies) during last year. In several cases of such companies, petitions for restoration of registration are required to be filed before the NCLT so as to be able to pursue recovery of demands raised in their cases.

  • Jul 26, 2018
  • CBDT expands scope of tax audit process

    The Central Board Direct Taxes (CBDT) has revised the mandatory tax audit report, also known as Form 3CD, which is to be filed by certain taxpayers, to expand the scope of the exercise. An auditor will now have to furnish details related to GST sales, information on transactions covered by transfer pricing provisions, cash transactions and transaction involving tax deducted at source (TDS). According to income tax rules, non-salaried professionals reporting income of over Rs 50 lakh annually and businesses with a turnover of over Rs 1 crore – or `2 crore in case of presumptive taxation – will have to get their accounts audited.

  • Jul 23, 2018
  • CBDT asks taxman to dispose appeals of over Rs 50-crore by year-end

    Faced with litigation that has assumed “grave proportions”, the Central Board of Direct Taxes (CBDT) has directed the taxman to dispose of appeals cases where the tax demand is above Rs 50 crore on priority by the year-end. “Litigation is not only a cost on the credibility of a tax administration system but also an indicator of the robustness and fairness of a system of taxation. Litigation has been rising over the years and has now assumed grave proportions…,” the policy-making body for the tax department said in a recently released blueprint for the department.

  • Jul 19, 2018
  • CBDT directs tax sleuths to survey, inspect high value transactions

    Banking companies, co-operative banks, trustees of mutual funds (MFs), post offices, registrars, and others who are mandated to file the statement of financial transaction (SFT) report on high-value transactions have come under the income-tax department’s (I-T) scanner. The Central Board of Direct Taxes (CBDT) has directed tax sleuths to conduct quarterly ‘survey and inspection’ of these entities to determine the correctness of the statement filed by them. To track high-value cash transactions, the centre had in January 2017 put out a new rule wherein it had mandated all goods and services providers to report to the I-T department high-value cash transactions and cash receipts.

  • Jul 18, 2018
  • Withdraw by Aug 20 appeals pending before tribunals/courts exceeding threshold: CBDT

    The Income Tax department has directed its field offices to withdraw by August 20 the appeals pending before tribunals and courts that exceed the fixed monetary threshold. In a circular issued today, the Central Board of Direct Taxes (CBDT) said that the pending appeals or special leave petitions (SLPs) should be withdrawn "on priority" to enable the department to focus on high value litigations. In order to reduce litigation, the government had, last week, hiked the threshold limit for filing appeals in tribunals to Rs 20 lakh, while the same for high courts and the Supreme Court has been raised to Rs 50 lakh and Rs 1 crore, respectively.

  • Jul 14, 2018
  • Significant Economic Presence: CBDT invites suggestions on ‘revenue/user’ cap for NRIs

    Taking the next step in the ‘Significant Economic Presence’ (SEP) concept, the Central Board of Direct Taxes (CBDT) has invited suggestions on the quantum of ‘revenue’ and ‘user’ thresholds that need to be prescribed for determining the SEP of a non-resident in India. The suggested thresholds and comments should be electronically sent by August 10, the CBDT has said. It may be recalled that the concept of SEP was introduced by the Finance Act 2018, for taxation of non- residents in India by amplifying the scope of the definition of “business connection”.

  • Jul 12, 2018
  • Litigation management: Govt hikes monetary limits for tax appeals

    Seeking to reduce litigation pertaining to tax matters and facilitate ease of doing business, the government has increased the monetary threshold limits for departmental appeals at various levels — appellate tribunals, high courts, and the Supreme Court. This is the second time in two years that the threshold has been hiked for the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC). “Litigation cases have come down over the last two years and the move to further hike the threshold will cut that down further.