INDIAN TAX SOURCE

Report cash receipt over Rs 2 lakh in single transaction: CBDT The Income Tax department has clarified that businesses and traders receiving cash exceeding Rs 2 lakh in any single transaction for sale of goods and services are required to report it to the authorities. The clarification on the reporting guidelines under Rule 114E of Income Tax Rules, 1962, which came into force from April this year, has come amid doubts being expressed in certain quarters about reporting of cash transactions that aggregate to Rs 2 lakh. “The norms of aggregation contained in sub-rule 3 of Rule 114E have been amended vide CBDT notification dated October 6, 2016, clearly indicating that the said transactions did not require aggregation and the reporting requirement under SFT for this purpose is on receipt of cash payment exceeding rupees two lakh for sale of goods or services per transaction,” the CBDT said in a statement.

Govt gives tax break to small businesses on digital receipts of money Businesses with turnover up to Rs 2 crore will have to pay less tax on electronic payment receipts as compared to on receipts/payments received in cash. For businesses with turnover up to Rs 2 crore, it has been decided to reduce the existing rate of deemed profit of 8% under section 44AD of the Income Tax Act to 6% in respect of the amount of total turnover or gross receipts received through banking channel / digital means for the financial year 2016-17, according to a press release from the Central Board of Direct Taxes here today. However, the existing rate of deemed profit of 8% referred to in section 44AD of the Act, shall continue to apply in respect of total turnover or gross receipts received in cash, the release clarifies. Under the existing provisions of section 44AD of the Income-tax Act, 1961 (the Act), in case of certain assesses (i.e. an individual, HUF or a partnership firm other than

Government announces new income declaration scheme ‘PM Garib Kalyan Yojana’ The government offered a “last window” to people with unaccounted wealth to come clean or face stringent penalties while inviting others to blow the whistle on those suspected to be holding black money Pradhan Mantri Garib Kalyan Yojana (PMGKY), 2016, will start on December 17 and remain open until March 31 next year. Those who declare cash deposits under this will be levied a charge of 50%, which breaks down into 30% tax, 33% surcharge and 10% penalty. In addition to this, 25% of the amount declared will go into the noninterest-bearing Pradhan Mantri Garib Kalyan Deposit Scheme, 2016, for four years. PM Narendra Modi announced that Rs 500 and Rs 1,000 notes would cease to be legal tender on November 8. Later, the government said it would unveil one more window for black money holders after the Income Disclosure Scheme closed on September 30 Declarations under PMGKY will be confidential and th

No tax on jewellery/gold purchased  No tax will be imposed on jewellery/gold purchased out of disclosed income. The Amended I-T Act will also not apply to tax ancestral jewellery and gold . No seizure of gold jewellery up to 500 gm per married lady, 250 gm per unmarried lady and 100 gm per male in I.T. searches. The finance ministry  on Thursday said that the Amended I.T. Act will not apply to tax jewellery/ gold purchased out of disclosed income or exempted income or reasonable household savings Last month, the government had clarified that it was not considering any proposal to restrict holding of gold by individuals

Government Slaps Black Money Holders With 85% Taxes! The Modi-led Government on Monday sought to bring to tax all unaccounted money that was flowing into the banking system following the demonetisation announcement on November 8. Finance Minister Arun Jaitley introduced a Bill in Lok Sabha for this purpose. The Centre has now come out with Pradhan Mantri Garib Kalyan Yojana 2016 to enable people with undisclosed income to come clean. However, they would have to fork out a tax of 30 per cent and penalty of 10 per cent. A surcharge in the form of cess of 33 per cent will have to be paid on the tax. In addition to tax, surcharge and penalty, the declarant will have to deposit 25 per cent of undisclosed income in a deposit scheme to be notified by the Centre in consultation with the RBI. This amount is proposed to be utilised for programmes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood etc, so that there is justice and

Cabinet decides to 60% income tax to catch black money holders The Union Cabinet late on Thursday cleared a proposal to amend the Income Tax (I.T.) Act to levy close to 60% deduction on unaccounted deposits in banks above a threshold, said sources. The decision was purportedly prompted by a surge in deposits about 20,000 crore, according to some reports in Jan Dhan accounts since November 8, when the central government announced the demonetisation of Rs 500 and Rs 1,000 currency notes. The amount deposited in this period is almost 50% of the total deposits in these accounts in the two years since their launch. The move is also aimed at preventing black money holders from circumventing existing I.T. Act provisions. The Cabinet decision was called in the late evening. Its reported decision was also significant since the current provision of 30% tax and 200% penalty could be circumvented by those who may deposit black money but pay tax in advance.  In that case, impos

IT DEPART. STARTED ISSUING NOTICES FOR CASH DEPOSITED AS BLACK MONEY? Income tax department has started issuing Notices as cash deposited as old notes on after 09/11/2016 An image of notice was relaving on social media sites at the name of notice issued by the Director of income tax investigation department, Silguri Unit. Though ,We have no idea how many notices has been issued till date ? But it is sure ,that no one will be spared , so Keep ready yourself  with explanations. On the basis of above facts and point ,it can be concluded that Banks have not submitted any data to income tax department yet on the cash deposited during 09/11/2016 to 31/12/2016 as due date for filing return is 31.01.2017 . So ,in present case ,sources of information to Income tax department is not Bank but complaint/ survey by the department or Information collected from assessee  through any other notice sent earlier. At the end ,You should be more careful while depositing cash

BANK ACCOUNT MISUSE FOR BLACK MONEY WILL GIVES A SEVERE GOVERNMENT ACTION Government today cautioned Jan Dhan account holders, housewives and artisans that they will be prosecuted under the I-T Act for allowing misuse of their bank accounts through deposit of black money in Rs 500/1,000 notes during the 50-day window till December 30. The directive comes against the backdrop of reports that some are using other persons' bank accounts to convert their black money into new denomination notes. In some cases, even rewards are being given to account holders for allowing such misuse The ministry said "such tax evasion activities can be made subject to income tax and penalty if it is established that the amount deposited in the account was not of the account holder but of somebody else. Also, the person who allows his or her account to be misused for this purpose can be prosecuted for abetment under the Income Tax Act". The government had earlier said deposits up

Deposits Above  RS. s. 2.5 Lakh To Face Tax, 200% Penalty  Cash above  RS. s. 2.5 lakh deposited in banks following the scrapping of  R s. S.500 and  RS. s. 1,000 notes could attract a tax and a 200 per cent penalty in case it is disproportionate to the account owner's income The banks have been asking to keep the details of PAN card of people depositing such large amounts over the 50-day window till December 30.   Similarly, jewellers have been told to keep PAN details of people buying jewellery on cash. Action will be taken against them in case of non-compliance. The government's move is the sequel to the scrapping of high denomination notes, meant to flush out black money and counterfeit currency. Income Tax Department has been  getting reports of all cash deposited during the period of November 10 to December 30, 2016, above  RS. s. 2.5 lakh in every account. The Income Tax department will match this with the income tax returns filed by the d

Rs 500 and Rs 1000 notes cease to be legal tender from midnight Rs 500 and Rs 1000 notes will cease to be legal tender from November 8 midnight, Prime Minister Narendra Modi announced in a televised address to the nation. Here are highlights from his speech: - From midnight, the Rs 500 and Rs 1000 will cease to be legal tender. - The 500 and 1000 Rs notes can be submitted to the post offices and banks from 10th November to 30th December. - Those who can’t sumbit the notes within the deadline, can exchange it at Reserve Bank of India by providing a declaration. - On November 9 and in some places November 10, ATMs will not work. - For 72 hrs, until Nov 11 midnight special arrangements made. All government hospitals will accept old 500 & 1000 notes. - RBI’s proposal for new Rs 2000 note has been accepted. - On November 9, all banks will remain closed for public work. Notes of 500/1000 up to the value of 5000/- can be changed at airport. From 01.01.2017

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SMS alert service for TDS deductions s many as 2.5 crore salaried tax payers will now receive SMS alerts from the Income Tax department regarding their quarterly TDS deductions. tax payers will benefit if they receive information through use of technology. So they can match the office salary slip and the SMS and at the end of the fiscal he will be clear about any possible tax dues “The frequency of SMS alerts will be increased, once the process for filing TDS returns is stremlined to receive such information on a real time basis,” the CBDT said. CBDT Chairperson Rani Singh Nair said the tax department is encouraging people to register their mobile number on the e-filing website. She said tax payer will initially receive a welcome message from the CBDT informing him about the facility and after that each assessee would be sent messages informing them about their respective TDS deductions. The new step is an effort by the IT department to directly communicate dep

Tax Department To Appreciate Honest Tax Payers Central Board of Direct Taxes (CBDT) will be sending certificates of appreciation to individual tax payers by e-mail on the basis of the level of taxes paid by them for the current Assessment Year 2016-17.  Recently, Finance Minister, Shri Arun Jaitley handed over certificates of appreciation issued by CBDT honoring select tax payers for such contribution.  This step marks the first effort by the Government to directly communicate to the tax payer its appreciation for that contribution.  Individuals who have paid in full tax and have no outstanding tax liabilities and where the return is e-filed within the prescribed due date, will receive such certificates. The tax payers may display these certificates in their homes or offices. The categories for individual taxpayers and the number of certificates being issued in the first round are:  Platinum: Tax contributed Rs. 1 Crore and above  Gold: Tax contributed Rs

Last Day For  Filing In Income Declaration Scheme The government has ruled out any extension Till Now to the September 30 deadline for filing income disclosure under the black money compliance window. Under the IDS, people can disclose their undeclared income and escape prosecution. The scheme, which was launched on June 1 to uncover black money, closes on September 30. Those disclosing assets under the IDS will have to pay 45% tax plus penalty. Also the payments can be made in three instalments till November 2017.

Due date of Income Tax return filing was extended CBDT has extended the due date of return filing From 30th September 2016 to 17th October 2016. Due date of filing income tax returns and Submission of audit Reports for FY 2015-16(AY 2016-17) is 17th October 2016.

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Govt extends last date for filing I.T. returns to  5th August The last date for filing income-tax returns has been extended to 5 August. Tax returns for 2015-16 (assessment year 2016-17) were originally to be filed by 31 July. But in view of the day-long strike at public sector banks, the deadline has been extended to 5 August. For assessees across India liable to file I-T returns by 31 July, the deadline is extended up to 5 August,  “For assessees in Jammu & Kashmir, this date has been extended to 31 August,” 

Reminder to file tax returns The Income-Tax Department often sends out reminders to those who haven’t filed their income tax returns. These reminders can be sent out for 6 previous years by the department. There is a penalty of up to Rs 5,000 that the department can levy in case of delay in filing returns. If you receive such a reminder, file your returns immediately. It may be possible that you may not be required to file returns by law, which you should intimate the tax department.

8 things you must know about the Undisclosed Foreign Income & Assets Bill, 2015 The Undisclosed Foreign Income & Assets (Imposition of Tax) Bill, 2015 has been passed in both the houses and the bill now awaits the President’s assent to become a law. Here are the highlights of this bill – The bill proposes that starting financial year 2015-16 undisclosed foreign income & assets will be taxed under this new bill.  Such income & assets will no longer be covered under the existing Income Tax Act, 1961. The new bill only applies to the  Residents of India  (including their legal heirs). A flat tax rate of 30%  shall be charged on undisclosed foreign income and asset. A penalty of 90% of the undisclosed income will also be charged. No exemptions, deductions or set off of any carried forward losses  (as provided under the IT Act) would apply to such income & assets. A penalty of Rs 10lakhs  may be charged for failure to include details of foreign

New rules for investment proofs and tax declaration by employees The income tax department has specified some new rules for tax declaration by employees. A new Rule 26C has been inserted in the income tax act. Your tax declarations for FY 2015-16 must be provided as per the details listed below. This change is applicable from 1 st  June 2016. Employee have to submit declaration of investments, deductions and exemptions they want to claim in  Form 12BB  to the employer. On the basis of this form, employer will deduct TDS and pay monthly salary. Here is a format of the information you should provide to your employer- S No To claim Proofs to be provided 1. House Rent Allowance (HRA) Name, address and PAN of the landlord if the total rent paid in the financial year is more than Rs 1lakh. (If the property is jointly owned, provide PAN of all landlords) 2. LTA(Leave Travel Allowance) Travel bills, receipts, basically evidence of your expenses 3. Deduction for interest

Only 1 Per Cent Indians Pay Income Tax in 2012-13, Shows Government Data The government has made public the income tax data for last 16 years. If one looks at the 2014-15 figure, just about 4.87 crore people filed tax returns, making it less than 4 per cent of the population (considering population at 125 crore). In the years before that, the number of those who paid taxes is even less. In 2012-13, the figure was close to only about 1 percent of the population. To be sure, the number of those who filed returns does not necessarily indicate the the number of actual taxpayers, since many of them would be below the threshold. As part of a transparency drive, the government has made public direct tax data for last 15 years. Data for individuals has been published only for 2012-13 assessment year, which shows taxes for income in financial year ended March 31, 2012. There is a clear evidence here that a significant number of people who are  liable to pay taxes aren’t doing so.