Income Tax

Pranab Mukherjee expects the economy to grow at 8% in the current fiscal

Pranab-MukherjeeThe Finance Minister, Mr. Pranab Mukherjee has informed that the economy is expected to rise by 7.5 to 8 percent during the current financial year, while he expressed concern on the rising food prices in the country.

The Finance Minister presented a review in the parliament in the last week, which stated that economic growth rate during this year is expected to go beyond the 7.75 percent mark as compared to the 6.7 percent registered in the 2008-09 period.

Before the global recession started, Indian economy was growing at 9 percent, which decreased to 6.7 percent during 2008-09.

Direct tax collection rises by 3.7 percent

Direct tax collection rises by 3.7 percentThe Direct tax collections have been registered an increase of 3.7% to Rs 1,83,822 crore, as compared to Rs 1,77,251 crore in the first eight months of the current financial year.

Against the tax collection target of Rs 3,70,000 crore set by the government for this year, only half has been attained. In order to reach this target, the revenue department will have to collect the same amount of tax in the next four months.

India's Fiscal Deficit Rises To INR 2.45 Trillion

India's Fiscal Deficit Rises To INR 2.45 Trillion

Indian fiscal deficit, according to the Controller General of Accounts, stood at 2.45 trillion rupees for the period between April to October against 1.17 trillion rupees in the corresponding period last year. It accounts for 61 percent of the full-year target by the Government of India.

Net tax collection during the period was not encouraging and declined 8.1% to 2.14 trillion rupees from 2.32 trillion rupees. It represents decline in tax payer’s earnings due to global slowdown.

Government to thoroughly examine tax code

Government to thoroughly examine tax code

Government is not in hurry to implement new tax regime and it will thoroughly examine the tax structure and its impacts before introducing it in 2011.

The statement was made by Union Finance Minister Pranab Mukherjee while discussing the matter with a group of industry representatives. He said that provisions of capital gains tax on NRIs, double taxation avoidance agreements, taxation of foreign firms and charitable organizations would be scrutinized to address all grievances.

Direct Tax Code to discourage asset creation

Direct Tax Code to discourage asset creationThe new Direct Tax Code, unveiled last week, proposes drastic changes in the structure of Minimum Alternate Tax (MAT), the minimum amount of tax to be paid by any company if its tax liability on total taxable income falls short of 15 per cent.

Under new norms, MAT will be charged on the company's gross assets including fixed assets, capital work-in-progress and book value of all other assets, instead of the book profits while there will be no provision of MAT credit.

Direct tax collection grows 3.65% in Q1

Income of NPS Trust to be exempt from income taxIndia reported 3.65 per cent increase in its direct tax collection for the first quarter of current financial year ended June30, 2009; driven by high base effect of significant growth in April-June 2008. The country's direct tax kitty grew over 38% in the first quarter of 2008-09.

A press release maintains, "Lower growth in net tax collection was mainly on account of higher tax refund outgo of 52.01 per cent at Rs 17,600 crore in the present quarter, against Rs 11,578 crore in the first quarter last fiscal."

Finance Ministry statement: India's direct tax receipts climb 8.3% in 2008-09

Finance Ministry statement: India's direct tax receipts climb 8.3% in 2008-09 In its Thursday statement, India's Finance Ministry said that the country's net direct tax receipts climbed 8.33 percent to reach Rs 3.38 lakh crore in 2008-09, as compared to the 2007-87 fiscal figures of Rs 3.12 lakh crore.

The Ministry noted: "Despite economic slow-down and substantial relief to non-corporate taxpayers, direct tax collections exceeded the previous year's collection by about Rs 26,000 crore."

I-T Department issues directive to DLF about additional Rs 1,200 crore taxable income

DLF IndiaAfter the special investigation, pertaining to the FY 2006 account books of India's real estate giant, DLF Limited, the Income-Tax (I-T) Department found an additional Rs 1,200 crore taxable income, and issued the company a directive in this regard on Wednesday.

Though the realty major intends challenging the I-T department's order, by approaching appellate authorities within 90 days, it still may have to shell out Rs 300-400 crore as added income tax for the 2005-06 financial year.

Income tax collection grows 15% in Guj

Income tax collection grows 15% in GujState surpasses national growth rate of 11.89%

Despite slowdown in the Indian economy, revenue collections by income tax in Gujarat have registered a growth of 15% in the first 11 months of the financial year 2008-09 over the corresponding period last year. While nationally, income tax revenue has registered a growth of 11.89% in the same period.

Government to shortly launch ‘Biometric Smart PAN Cards’ for Tax Payers

Finance Minister P. Chidambaram has informed that soon biometric smart Permanent Account Number (PAN) cards may be issued to reduce chances of duplication and to ensure better tax compliance.

The move to introduce new PAN cards has been prompted not just by recent incidents of issue of fake cards but also terrorism threat.

The Indian government fears that PAN cards could be an easy tool for terrorists to open bank accounts to finance their activities.

According to estimates, around 15 lakh of the total four crore PAN cards issued are duplicated by providing wrong information about their home address or even by furnishing ‘different names in the column of father’s name’ to get two or three PAN cards.

Diamond traders seek tax turnover

Surat, Feb 19: DiamondDiamond traders are demanding a higher turnover tax and a special package in the upcoming budget.

India's overseas sales of gems and jewellery represent the country's second-largest export industry, after computer software.

"We have a few expectations from Finance Minister P. Chidambaram in the forthcoming budget this time. We had made a representation-seeking introduction of a turnover tax. If the government fixes the turnover tax at three percent, then it will benefit the industry enormously," said Rohit Mehta, Joint Secretary, Surat Diamond Association.

Indian Industry Seeks Tax Cut In Upcoming Budget

In order to maintain high economic growth, India has to slash personal as well as business tax rates, and lower excise duty rates on manufacturing commodities in the future budget.

In a pre-budget conference with Finance Minister P. Chidambaram, businessmen also asked to eradicate minimum alternate tax (MAT) and dividend distribution tax (DDT), and a cut in excise tax on the majority of manufactured goods to 14% from 16%.

Habil Khorakiwala, Federation of Indian Chamber of Commerce and Industry president and chairman of Wockhardt said that business tax rate should be abbreviated to support manufacturing business houses.

Direct Tax Collections Surge 42.9% Till Nov 15

direct_taxNew Delhi: Direct tax collections have continued their run regardless of a decrease in the manufacturing segment.

From April 1 to November 15, 2007, the direct tax collections rose 42.9 percent to Rs 140373 crore, as compared to Rs 98,216 crore in the same period of the last year (2006).

For the same period, the corporate tax collections grew 45.74 percent to Rs 83,934 crore from Rs 57,593 crore during the previous fiscal.

Personal income tax, which includes FBT, STT and BCTT, has shown a development of 39.96 percent at Rs 56,212 crore, up from Rs 40,453 crore during the last year.

Govt. Frees Exporters From Tax On Transport Services

New Delhi: Providing ease to exporters affected by the rupee appreciation in the exchange market, the administration declared they would be relieved from the tax on services rendered by road transport, ports and railways.

Up to now, the administration has been collecting 12 per cent service tax together with 3 per cent education cess on services availed.

Exporters already get a refund of service tax paid by them on input services relating to exports. The duty drawback scheme also factors in the service tax paid on input services intended for exporting goods and services.

Exporters get relief from Service Taxes

The finance ministry has announced exemption for exporters from services taxes by ports, railways and road transport. Many exporters have been hit badly due to recent downtrend in US dollar. The rupee value has appreciated recently and has hit the net profits of many companies.

The statement issued by Finance Ministry said, "Government has issued a notification providing refund of service tax paid by exporters on four taxable services, which are not in the nature of input services but could be linked to export goods."

Direct Tax Collection Surges 42% In Apr-Aug Period

Direct tax collection registered increase of 42% for the five-month period ended August 2007.
Net tax collection was Rs 610.30 billion, which was up from Rs 429.80 billion in the corresponding period last fiscal.

Corporate tax filed expansion of 49.49% at Rs 337.66 billion, up from Rs 225.87 billion, during the last fiscal.

Personal income tax comprising FBT, STT and BCTT arose 33.76% at Rs 272.06 billion, against Rs 203.40 billion in 2006.

The development in Securities Transaction Tax (STT) stood at 35.16% and Banking Cash Transaction Tax (BCTT) was 79.73%.

Chidambaram Finds Biometric Solution To Avoid PAN Cards Duplication

Finance Minister P ChidambaramNew Delhi: The government is expected to bring in biometric PAN cards shortly to tackle the problem of increasing misuse of Permanent Account Number (PAN) cards.

Finance Minister, P Chidambaram said in Lok Sabha that a combined Working Group in the Finance Ministry has given its statement after getting technical and commercial propositions from top biometric solution providers.

Transfer Pricing Provisions Ruled Out, If Tax Liability Absent

Authority for Advance Rulings has decided that the income-tax department cannot apply transfer pricing provisions, if a foreign company does not have a liability to pay tax. This ruling would give relief to the Netherlands-based Vanenburg Group BV which had shifted the entire shareholding of its Indian subsidiary Cordys R&D (India) Pvt Ltd to its Cordys Holdings BV (Netherlands).
Vanenburg Group had asked a judgment from the AAR on whether the relocation would draw capital gains tax and the transfer pricing provisions under Sections 92-92F of the Income-Tax Act, 1961.

Tax Levied On State-Owned Companies

The Constitution and List I in the seventh schedule says that tax on income is imposed by the Union government. The Constitution concedes exempt to state governments from charging income tax, also, state’s property and income is exempted from union taxation.

The exemption provided is for government as well as non-government activities of a state. But, state-owned companies or corporations claimed that their trade or business is carried on behalf of the state government and in reality, it is the state government which carries on business through them. The surplus generated by such activities belongs to the state government. Hence, they are entitled to be treated as state.

ITAT Directs IT Dept To Refund Recovery From Skol

The Income-Tax Appellate Tribunal (ITAT) has directed the IT department to refund the amount it has recovered from Mumbai-based brewing company, Skol Breweries.
Rs 2.68 crore was recovered from Skol while an interim stay order passed by ITAT was in operation. ITAT, the quasi-judicial body for settling tax disputes, determined that IT department’s action was beyond its jurisdiction. The extraordinary order was approved by vice-president of ITAT, G E Veerabhadrappa, and its judicial member, Madhavi Devi.
As per case facts, on March 27, 2007, Skol Brewery requested the Tribunal, by moving an emergency stay petition, to intervene as the department had attached all its bank accounts after the I-T Commissioner rejected its stay petition.

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