Direct tax mop-up may beat budget estimate by 30%

• Oct 22, 2022
  The Centre’s direct tax revenues may rise 25-30% on year, allowing it to net an additional Rs 2.5 trillion over the budget estimate (BE) after the mandatory devolution to states, a senior finance ministry official told FE. The extra receipts would give a cushion to the government, which is looking at an additional subsidy expenditure of Rs 2.8 trillion over the budgeted level, the official said.The indirect tax collections will also see a marginal increase over the BE, despite the excise duty cuts on petrol and diesel announced in May.

Income Tax

Govt likely to surpass FY23 tax collection goal by over $24 billion

• Oct 29, 2022

  India is expected to surpass its tax collection goal by more than Rs 2 lakh crore ($24.3 billion) in the current fiscal year, according to two officials with knowledge on the matter.Strong revenue receipts is giving Prime Minister Narendra Modi’s government leeway to contain the budget deficit within 6.4% of gross domestic product amid a ballooning subsidy bill, said the two officials. A finance ministry spokesperson declined to comment on the matter.

• Steady collections and measures to reduce tax evasion are helping bolster revenue against a target of Rs 19.34 lakh crore rupees, they said. The government will likely collect this financial year an additional Rs 300 billion-400 billion rupees from windfall tax imposed on export of some fuels and local production of crude oil from July, the officials said.

General

I-T dept committees on high-pitched assessments to submit report in about 2 months: CBDT

• Nov 14, 2022

• New Delhi, The 'local committees' formed to deal with taxpayers' grievances arising out of 'high-pitched' scrutiny assessments shall submit their report within about two months, the CBDT has reiterated in a public communication. A set of "revised" guidelines were issued by the Board in this context in April and these were applicable for cases being scrutinised under both the faceless and non-faceless assessment system.The local committees have been created in each region of the income tax department, that are headed by a principal chief commissioner rank officer (Pr. CCIT), and will comprise three officials of the I-T department in the rank of principal commissioner or commissioner.

Income Tax

Tax-Authorities Tighten Noose Around Under-Invoicing of Chinese Imports

Nov 15, 2022

Tax authorities in India are investigating under-invoicing of goods imported from China after the trade data highlighted a glaring difference of around $12 billion in the data sourced from China and India, the Economic Times reported.

On comparison, the trade data from the two countries show invoiced imports into the country are far less than exports from China to India. Taking cognizance of the same, the customs authorities have issued tax-evasion notices to 32 importers since September. Tax authorities suspect a tax evasion of more than Rs 16,000 crore through under-invoicing by businesses from April 2019 to December 2020. And more such notices are likely to be issued by the tax authorities in the coming days, the report said.

International Tax

Large Educational Trusts at Risk of Losing Tax Exemption

Oct 29, 2022

Several high net worth charities and trusts run the risk of losing their tax-exempt status, owing to two recent Supreme Court (SC) rulings, unless they undertake suitable internal restructuring, tax experts said. However, since the rulings are prospective in operation, these entities won’t need to pay higher amounts as taxes, for this reason, for past periods.
In a ruling on October 19,2022 the SC held that educational institutions or trusts can claim benefits of tax exemptions only if they ‘solely’ engage in education and not in any other activity of profit. For this, they cannot even have objects unrelated to education, the apex court ruled, adding that if the objective of an institution appeared to be profit-oriented, such institutions could not get approval under Section 10(23C) of the Income Tax Act.

Income Tax

Taxman Wants More Data to Drive Voluntary Compliance

Nov 12, 2022  The tax compliance requirements for companies are changing as the tax department wants more information. It will, therefore, be the responsibility of companies to provide all necessary data including detailed information on partners and suppliers. In such a scenario, reporting will increasingly be driven by technology. “The tax compliance processes have to be embedded in the internal business processes for each taxpayer. The degree of integration will depend on the size of business or the specific sectors,” said Sanjeev Singh, Principal Commissioner of Income Tax, Bangalore.

Income Tax

ICAI to Conduct First Placement Program for Women, Registration Date upto 15th October,2022

Oct 12, 2022
ICAI to conduct first placement program for women CAs, registration ends Oct 15,2022. ICAI will conduct the first placement program for women CAs across the country. The registration process will end on October 15, 2022. The Institute of Chartered Accountants of India, ICAI will conduct first placement program for women Chartered Accountants in India. All women Chartered Accountants (not holding full time COP) having obtained membership as on September 30, 2021 or prior to that are eligible to participate. The registration will end on October 15, 2022 at cmib.icai.org. This is the first ever placement program which is specially designed for women members in industry by ICAI through its Committee for Members in Industry & Business (CMI&B) and Women Members Empowerment Committee (WMEC). With this placement drive, women will be able to explore opportunities to work on flexi-time/ part-time/ work from home.
The registration process was started on October 6, 2022 and the online psychometric and written test will be conducted on October 27. The interview will be conducted on October 31 at Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Jaipur, Kolkata, Mumbai & Pune and on November 1, 2022 at Bhubaneswar, Chandigarh, Coimbatore, Durgapur, Ernakulum, Indore, Kanpur, Nagpur, Noida, Rajkot, Thane & Visakhapatnam. Interested candidates can register for the placement by paying ₹1000 plus 18 percent GST as registration cum participation fee which is non refundable. 

General

Extension of the Last Date for submission of application for Empanelment of Chartered Accountants firms/LLPs for the year 2022-23

14th February, 2022
Considering the difficulties faced by Chartered Accountant firms/LLPs in submitting the online empanelment for audit of PSUs for the year 2022-23, the O/o C&AG on the request of ICAI has extended the last date for submission of online application from 15th February, 2022 to 22nd February, 2022 as a onetime relief. Further, the last date for submission of hard copies of the documents remains unchanged i.e. 28th February, 2022. 

Professional Development Committee
The Institute of Chartered Accountants of India

General