EU adopts global minimum 15% tax on multinationals

EU adopts global minimum 15% tax on multinationals


16th December,2022

The European Union on 16th December,2022 adopted a plan for a global minimum 15% tax on multinational businesses, after leaders gave final approval following months of wrangling.The landmark agreement between nearly 140 countries is intended to stop governments racing to cut taxes to lure the world's richest firms to their territory."Today the European Union has taken a crucial step towards tax fairness and social justice," EU economy commissioner Paolo Gentiloni said."Minimum taxation is key to addressing the challenges a globalized economy creates."The plan was drawn up under the guidance of the Organization for Economic Cooperation and Development and already had the backing of Washington and several major EU economies.


International Tax

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FASB releases GAAP Taxonomy reports

FASB releases GAAP Taxonomy reports


17th December,2022

FASB on 17 Dec. 2022 released its Annual GAAP Taxonomy, which includes the 2023 GAAP Financial Reporting Taxonomy (GRT) and the 2023 SEC Reporting Taxonomy (SRT). The 2023 GRT contains updates for accounting standards and other improvements since the issuance of the 2022 Taxonomy as used by issuers filing with the SEC. According to a FASB news release, the 2023 SRT includes changes to SEC Staff Accounting Bulletin No. 121 on obligations to safeguard crypto assets that an entity holds for platform users.



US Accounting

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FASB amended transition guidance in Accounting Standards

FASB amended transition guidance in Accounting Standards


15th December,2022

The amendments to the ASU require that an insurance entity apply a retrospective transition method as of the beginning of the earliest period presented or the beginning of the prior fiscal year if early application is elected. In FASB's summary of the amended standard, the board said it received feedback from stakeholders "indicating that applying the LDTI guidance to contracts that were derecognized because of a sale or disposal of individual or a group of contracts or legal entities before the LDTI effective date likely would not provide decision-useful information to investors and other allocators of capital and may result in significant operability challenges for insurance entities to apply the guidance." The update was issued to reduce implementation costs and complexity related to the adoption of LDTI for contracts derecognized before the LDTI effective date.

US Accounting

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Cross-border tax cases outside faceless assessment scheme: CBDT

Cross-border tax cases outside faceless assessment scheme: CBDT


    10th December,2022

    The Central Board of Direct Taxes (CBDT) has said that information related to compulsory scrutiny of cases in “International Tax and Central Charges” will not be transmitted to the National Faceless Assessment Centre (NaFAC) unless the case itself is transferred. In a recent clarification on its guidelines for selection of returns for scrutiny, the CBDT has further said that communication to NaFAC for access and further action after selection for compulsory scrutiny will also not apply to these areas.

Income Tax

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Can you change income tax regimes while filing revised ITR?

Can you change income tax regimes while filing revised ITR?


  • Dec 06, 2022 

  • It is possible that after filing income tax return (ITR), you might realise that you have forgotten to report certain incomes or that the tax payable in the other tax regime is lower than what has been paid. The question then is can you switch your income tax regime (old to new or vice versa) while filing a revised income tax return? ET Wealth spoke to various tax experts and chartered accountants to shed more light on this issue. Read it, but also remember that the last date of filing revised ITRs is December 31, 2022, for FY 2021-22 (AY 2022-23). Do note that if you are filing or have filed belated income tax return, then you are not eligible to opt for new income tax regime as per income tax laws. Hence, if you revise your belated ITR, then also you cannot opt for new tax regime.

Income Tax

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Social security schemes in India and way forward for Government

Social security schemes in India and way forward for Government


8th December,2022

In the upcoming budget i.e. 2023-24, Salary Person have more expectation for taxes relief. It's really a major concern for salary Person. In India personal income tax... started from 5%  and goes about 42.74% (37% surcharge on net income >5 Crore along with surcharge and cess 4%. If we are comparing to other countries taxes then it feels like our India personal tax rate are very high...
Like: Personal tax rate of Hong Kong 15%, Sri Lanka 18%, Singapore 22%.
Revision in the Tax Slabs Rates:-

Now salaried person have the option to choose and Pay taxes either old tax regime or new tax regime. The old tax regime that comprises exemption and standard deduction but the new concessional tax system missing exemptions or standard deductions. These two system creates various issues and confusion among salary person.In the opinion of tax expert,  old taxation system is much better than the new one. The new tax regime requires revamping.
For example:- 
“Somebody with an income of Rs 7 lakh in the old regime does not have to pay any taxes, but in the new regime, you have to pay taxes once you cross the threshold of Rs 2.5 lakh,” So the latest tax regime should raising the limit for paying the taxes to Rs 7 lakh.
Providing Exemptions Would be Effective:-

As per our Indian personal tax system...a person or the businesses whose yearly income is Rs. 5 cr and exceeds then They should be liable to pay taxes at the highest rate i.e. 42.74%.   But if we are comparing with the overseas countries such as USA, Canada and other.. they encourage to save their taxes by investing in social security schemes such as medical and pension for every citizen. This system is missing in India. Tax experts mentioned that “Long life savings by contribution to Public Provident Fund and National Savings Certificates etc are the financial safety for the citizens. So, if the exemptions are withdrawn like in the new tax regime, then people will be left without social security. If there are no tax exemptions for life insurance policies then people will not buy and they won’t have security in case they land up in some difficulty,”
 Requirement for the Tax Simplification:
The taxation procedure would require to be simplified.  As the process of taxation becomes simpler,  tax compliance shall get increase. As per the confederation of Indian Industries (CII), confusion has been made by different TDS rates for the assesses which enhances the compliance load and various issues.
For example:-  The same would be hard to differentiate between fees for technical services 2% and the fees for professional services 10%.
  Way Forward:
 1. Hong Kong (15%), Sri Lanka(18%), Bangladesh (25%), and Singapore (22%) has lower personal tax rates compared to India.
2. The effective tax rate on a person who makes more than Rs 5 cr in India would be 42.74%.
3. If the exemptions are withdrawn like in the new tax regime, then people will be left without social security.
4. Old taxation system is much better than the new one. The new tax regime requires revamping.
5. There would be requirements for making the taxation process easier.

Income Tax

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Taxman Wants More Data to Drive Voluntary Compliance

Taxman Wants More Data to Drive Voluntary Compliance


  • Dec 06, 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.

Income Tax

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

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


  • Dec 06, 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

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