The Central Board of Direct Taxes (CBDT) has fixed the maximum ceiling limit as Rs 1 lakh for waiving eligible income tax demands. However, in an order dated February 13, 2024, CBDT said that future interest will not make part of this calculation of the overall amount of income tax demand. CBDT said in the order, "Consequent to the aforesaid remission and extinguishment of entries of outstanding demand, there shall not be requirement of calculation of interest on account of delay in payment of demand under sub-section (2) of section 220 of the Income-tax Act, 1961 or corresponding provisions of Wealth-tax Act, 1957 and Gift-tax Act, 1958 and therefore, the same shall not be considered for the purpose of determining the ceiling of Rs 1,00,000 (Rupees one lakh)."
Read More →The Income Tax department has prescribed a ceiling of Rs 1 lakh per assessee for withdrawal of small tax demands till Assessment Year 2015-16, in accordance with a scheme announced in Budget.The Central Board of Direct Taxes (CBDT) has issued an order giving effect to the 2024-25 Budget announcement by Finance Minister Nirmala Sitharaman. The Budget had announced that tax demands for AY 2010-11 of up to Rs 25,000 and for AY 2011-12 to 2015-16 of up to Rs 10,000 will be withdrawn. Tax demands totalling about Rs 3,500 crore will be withdrawn following the announcement.The CBDT order said that such outstanding tax demands pertaining to income tax, wealth tax and gift tax as on January 31, 2024, shall be remitted and extinguished “subject to the maximum ceiling of Rs 1 lakh for any specific taxpayer/assesseeâ€.The limit of Rs 1 lakh would include principal component of tax demand, interest, penalty or fee, cess, surcharge.However, the remission shall not be applicable on the demands raised against the tax deductors or tax collectors under TDS or TCS provisions of the I-T Act.Nangia Andersen India Partner Maneesh Bawa said the directive further specifies that this waiver or cancellation does not entitle taxpayers to any claims for credit or refunds.
Read More →How ITR's Automated Reconciliation Works The income-tax department is set to launch a screen-based automated reconciliation system for plugging mismatches between returns filed by taxpayers and information processed by the department. In some select cases, people who did not file I-T returns (ITR) can use the automated reconciliation facility. In the first phase, information mismatches related to financial years 2021-2022 and 2022-2023 will be considered. Sources said no notice needed to be issued for this, and the I-T department would send alerts through SMS and e-mail to taxpayers where mismatches were identified.
Read More →A tax tribunal has ruled that Oravel Stays Private Limited, the company which runs OYO Rooms, is not required to pay the tax deducted at source (TDS) on the minimum guarantee payments made to hotels.
The Delhi-based Income Tax Appellate Tribunal (ITAT) observed that hotels conduct their operations in terms of providing lodging and accommodation services whereas OYO Rooms provides technology, sales, and marketing services through its platformOYO Rooms assures minimum benchmarks, occupancy of hotels and in case such benchmark is exceeded, the service fee is payable by the hotel and in case of shortfall, the former is required to meet the same.
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The income-tax department is set to launch a screen-based automated reconciliation system for plugging mismatches between returns filed by taxpayers and information processed by the department.
In some select cases, people who did not file I-T returns (ITR) can use the automated reconciliation facility.
In the first phase, information mismatches related to financial years 2021-2022 and 2022-2023 will be considered.
Sources said no notice needed to be issued for this, and the I-T department would send alerts through SMS and e-mail to taxpayers where mismatches were identified.
The Income Tax Appellate Tribunal (ITAT) has come to the rescue of a salaried individual who was deputed to work outside India, by holding that the salary income (which includes allowances) of a 'non-resident' for services rendered overseas cannot be taxed in India.
In this case, which was heard by the ITAT Delhi bench, Devi Dayal was deputed by his employer - an Indian company engaged in digital technologies - to work on a project in Austria.
Net direct tax collection so far in current fiscal grew 20 per cent year-on-year to Rs 15.60 trillion, which is 80 per cent of revised budget estimates for full fiscal year.
"The provisional figures of direct tax collections continue to register steady growth. Direct tax collections up to 10th February, 2024 show that gross collections are at Rs 18.38 trillion, which is 17.30 per cent higher than the gross collections for the corresponding period of last year," Central Board of Direct Taxes (CBDT) said in a statement.This collection is 80.23 per cent of the total revised estimates of direct taxes for 2023-24.
Refunds amounting to Rs 2.77 trillion have been issued during April 1, 2023 to February 10, 2024.
Gross revenue collections for Corporate Income Tax (CIT) and Personal Income Tax (PIT) also showed a steady growth.
Growth rate for CIT was 9.16 per cent while for PIT, it was 25.67 per cent (PIT only).
After adjustment of refunds, the net growth in CIT collections was 13.57 per cent and that in PIT was 26.91 per cent (PIT only), it added.