INDIAN TAX SOURCE

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.