Most foreign jurisdictions reply to Pandora queries
Sep 02, 2022
The Financial Intelligence Unit (FIU), a key unit of the multi-agency probe into the 2021 global offshore investigation called the Pandora Papers, has received responses from its counterparts in over three-fourths of the requests it sent to 33 foreign jurisdictions.Officials said that using the network of FIUs in mostly the offshore havens mentioned in The Indian Express investigation (October 4-16, 2021), the FIU sent out 160 requests to foreign jurisdictions and has received responses in 125 cases so far.
International Tax
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Direct tax collections may exceed budget targets, CBDT chief says
- The Centre’s direct tax collection as on August 30 stood at Rs 4.8 trillion, which is 33 per cent more than the Rs 3.6 trillion collected in the same period last year, Nitin Gupta, chairman of the Central Board of Direct Taxes (CBDT), told Business Standard.Gupta said if the trend continued, direct tax collection for FY23 could exceed the Budget target of Rs 14.20 trillion
- “We have a healthy net collection after accounting for a higher refund outgo. There is a good buoyancy of tax collection so far,” Gupta said. “If this trend continues in the second instalment, we expect a fairly good tax collection over and above the targets laid down in the Budget,” he said.
Income Tax
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Income-Tax Department issues tax refunds worth Rs 1.14 lakh crore so far this fiscal
- The Income Tax Department has said that it has issued refunds worth over Rs 1.14 lakh crore to more than 1.97 crore taxpayers in the first five months of this fiscal year that started April 1, 2022.
- "Income tax refunds of Rs. 61,252 crore have been issued in 1,96,00,998 cases & corporate tax refunds of Rs. 53,158 crore have been issued in 1,46,871 cases," the Income Tax Department tweeted.
Income Tax
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Now pay convenience charges, GST on income tax payments if you choose this payment mode
- Next time if you pay your income tax via the new income tax portal website, then be aware that you will be liable to pay for convenience charges and Goods and Services Tax (GST) for using certain payment methods. For example, you can get charged Rs 300 for paying income tax of Rs 30,000 using some of the payment modes.The convenience charges and GST will be applicable if income tax is paid using the ‘payment gateway’ on the e-filing income tax website. If you pay using ‘Payment Gateway’ -which is one of the five payment options as shown below then transaction charges will be applicable for certain modes of payment.
GST
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Gross direct tax collections up 35.46% y/y to touch Rs 6.48 lakh crore till September 8
Sep 10, 2022
Gross direct tax collections in the ongoing fiscal year till September 8 totaled `6.48 lakh crore, up 35.46% compared with the tax collected in the same period of the last fiscal year. Net of refunds, direct tax collections since April 1 increased 30.17% to Rs 5.29 lakh crore, data showed.The net collection is 37.24% of the direct tax collection estimated in the budget for this fiscal year, the Central Board of Direct Taxes said in a statement.
"After adjustment of refunds, the net growth in corporate income tax collections is 32.73% and that in personal income tax collections (including securities transaction tax) is 28.32%," the statement said.
The Income Tax Department has issued refunds amounting to Ra 1.19 lakh crore, 65.29% higher than in the yearago period. The Centre expects its net direct tax collection to exceed the Rs 14.20 lakh crore target set in the budget for this fiscal. “As the economy continues to recover from the Covid downturn, the efforts at nudging taxpayers to better compliance through a combination of technology intervention and data reporting are paying off, and tax collections continue on their upward trajectory,” said Rohinton Sidhwa, partner, of Deloitte India.
Income Tax
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ITAT comes to rescue of taxpayer over filing error
- The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has frowned upon a “hyperpedantic approach” adopted by an I-T officer in denying a long-term capital gains (LTCG) exemption claimed by a non-resident taxpayer. The rejection was merely because she quoted a wrong section in her I-T returns against her claim.
Under the I-T Act, two key sections — section 54 and 54-F — provide for an exemption from long-term capital gains arising on sale of an asset (this original asset can be shares, tenancy rights or residential property) if an investment is made in a house property.
Income Tax
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Loan waiver not a benefit, banks exempt from 10% TDS for one-time settlement
Sep 14, 2022
- Banks will not be required to deduct 10% tax at source (TDS) on one-time settlement (OTS) or loan waivers, the Central Board of Direct Taxes said on Tuesday.
- CBDT said in a detailed clarification that OTS or loan waiver by a bank will not be treated as a benefit or a perquisite and not face Tax Deducted at Source as they would have to bear the additional cost of tax deduction besides the haircut. The exemption will be available to all public financial institutions, scheduled banks, cooperative banks, rural development banks, state financial corporations, and state industrial investment corporations.
Tax Deduction at Source
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Can you claim the new tax regime benefit while filing belated income tax returns?
Sep 16, 2022
Planned your taxes according to the new tax regime but missed filing your income tax returns (ITR) before the July 31, 2022 deadline, then there is some bad news. As per current income tax laws, you cannot claim the benefit of the new tax regime while filing belated ITR. Not only, you will have to pay taxes according to the old tax regime while filing belated ITR, but there may be chances of a higher income tax liability as well.What income tax laws say about filing ITR with new income tax regime
Once the deadline to file ITR is missed, then the individual can file a belated ITR using only the old income tax regime. The Finance Bill, 2020, introduced the new income tax regime and it came into effect from FY 2020-21 (April 1, 2020). The Finance Bill makes it clear that in order to avail benefits under the new regime, an individual has to file their ITR within the due date (usually July 31 unless extended by the government) under Section 139(1) of the Income-tax Act,1961. If the income tax returns are filed belatedly, the taxpayer will not be able to claim the benefit of the lower tax rates, as provided for in the new tax regime and the existing, old income tax rates would apply.
Income Tax
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