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 an...

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...

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 deposi...