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Clues by NC Team • 19 Mar 2019, Tuesday

The net direct tax collection figure has crossed the Rs 10 lakh crore mark as on March 16, helped by the fourth and final installment of advance tax payment. The entire advance tax data from across the country has not come yet. The government has targeted direct tax collections of Rs 12 lakh crore for the entire fiscal of 2018-19. The net direct tax collection during April-January of this fiscal stood at Rs 7.89 lakh crore.

Read More at CNBC TV18
Clues by NC Team • 16 Mar 2019, Saturday

Grasim Industries on Saturday said it has received Rs 5,872.13 crore tax demand from the Income Tax department with respect to its merger with Aditya Birla Nuvo (ABNL). First, ABNL was merged into Grasim and then post merger, the financial services business was demerged into a new entity called Aditya Birla Financial Services Ltd (ABFSL), which was listed separately.  The Deputy CIT held that the demerger was not in compliance with Section 2(19AA), hence the value of shares allotted by Aditya Birla Capital Ltd (ABCL) to the shareholders Grasim Industries amounted to dividend on which dividend distribution tax is payable.

Read More at The Economic Times
Clues by NC Team • 15 Mar 2019, Friday

Finance secretary Subhash Garg on March 14 said the government may fall short of indirect tax collections target this financial year. However, the government is confident of meeting the direct tax collections. As per revised estimates, the government had pegged indirect tax collections at Rs 1.3 lakh crore and direct tax collections at Rs 12 lakh crore. He said the government should also be able to meet its 3.4% fiscal deficit target.

Read More at Moneycontrol
Clues by NC Team • 14 Mar 2019, Thursday

The Income Tax department recovered cash worth over Rs 1.64 crore, Mont Blanc pens of Rs 50 lakh, four luxury SUVs and documents indicating benami assets of Rs 300 crore during the raids on premises linked to NetRam, a retired IAS officer of Uttar Pradesh cadre. Net Ram was secretary to then Uttar Pradesh Chief Minister Mayawati during 2002-03. The search lasted for over 26 hours.

Read More at The Economic Times
Clues by NC Team • 13 Mar 2019, Wednesday

The number of income taxpayers in Madhya Pradesh and Chhattisgarh has crossed 20 lakh so far this fiscal year. The number of new taxpayers rose by 6.82 lakh in these two states since demonetization and GST. The government has targeted to collect Rs 27,431 crore direct tax collections from these two states this fiscal. So far the collection has been Rs 17,928 crore.

Read More at The Financial Express
Clues by NC Team • 12 Mar 2019, Tuesday

In September 2018, the Supreme Court confirmed that Aadhaar is compulsory for filing of income tax returns. The apex court maintained the validity of section 139AA of the Income Tax Act. This section was made effective from July 1, 2017. Section 139AA says that Aadhaar must be quoted in all PAN applications. It also says that every person who is eligible to obtain Aadhaar as per the Aadhaar Act, 2016, must mention Aadhaar while filing tax returns. PAN numbers without Aadhaar will be invalid. Therefore, every PAN holder who has an Aadhaar must link it on the income tax website.

Read More at Moneycontrol
Clues by NC Team • 12 Mar 2019, Tuesday

The Income Tax department on Tuesday carried out raids at the properties linked to BSP chief Mayawati's former secretary Netram. The searches were conducted on 12 locations in Delhi and Lucknow. The retired IAS officer is suspected of evading tax amounting to Rs 100 crores. Netram, a 1979 batch IAS officer, was believed to be close to Mayawati during her tenure as the Uttar Pradesh CM from 2007 and 2012 and also held key positions during the said time period. 

Read More at Times Now
Clues by NC Team • 12 Mar 2019, Tuesday

The Income tax department is the country’s largest tax litigant. As on March 31, 2017, over 90,000 cases are pending with the Income Tax Appellate Tribunal (ITAT). The corresponding disputed tax demand raised in these cases aggregate to Rs 2.01 lakh crore. 85% of these appeal cases have been filed by the Income Tax department with success rate of 30%. The ITAT is the second level appellate authority after the Commissioner (Appeals). The CBDT had raised the tax effect to Rs 20 lakh from Rs 10 lakh in July 2018 for I-T department to file an appeal with ITAT.

Read More at The Economic Times
Clues by NC Team • 10 Mar 2019, Sunday

A Surti salesman, Lalit Tholiya, received an unexpected tax demand notice of Rs 48 lakh from the income tax department after undisclosed transactions amounting to a whopping Rs 10.58 crore came to the notice of tax officials. Tholiya immediately filed a case of forgery and cheating against unidentified persons. He claimed complete ignorance about the transactions and the bank accounts through which they were routed. He alleged that the bank accounts were opened in his name using his documents without his knowledge. The department deducted Rs 2.35 lakh from his bank account for not paying up the tax demand.

Read More at The Economic Times
Clues by NC Team • 7 Mar 2019, Thursday

Direct tax collections for the full fiscal FY19 is expected to fall short by Rs 60,000-70,000 crore even after factoring the robust collection in the next three weeks to March 31. The government has set a revised target of Rs 12 lakh crore whereas only Rs 8.40 lakh crore have been collected so far. Direct tax revenues have grown at a slower pace of 12.2% as against the projected 19.8%. Any shortfall in collection will breach the government’s fiscal deficit target of 3.4%. Another source added that the direct tax shortfall is going to be over Rs 1 lakh crore.

Read More at The Economic Times
Clues by NC Team • 7 Mar 2019, Thursday

The Labour ministry on Thursday informed that the income tax exemption limit on gratuity u/s 10(10)(iii) has been doubled to Rs 20 lakh from the existing Rs 10 lakh. The move will benefit employees of public sector undertakings (PSUs) and other employees not covered by the Payment of Gratuity Act, 1972. 

Read More at The Economic Times
Clues by NC Team • 7 Mar 2019, Thursday

The CBDT has instructed tax officials to complete “best judgment assessment” of individuals who failed to comply with the department’s repeated alerts on bank deposits made soon after demonetization. The I-T department had sent out SMSes, emails and also issued notices to around 3,00,000 individuals, with substantial cash deposits after the November 2016 demonetization, to furnish income-tax returns for the assessment year 2017-18. However, around 87,000 taxpayers failed to comply with those notices. The CBDT has authorized the AO to assess the total income of the taxpayer to the best of his judgement and complete the proceedings by March 31. 

Read More at The Economic Times
Clues by NC Team • 7 Mar 2019, Thursday

The Supreme Court recently held that where an assessee receives share capital money against the issue of shares, the onus of proving the genuineness of transaction and creditworthiness of the investor lies with the assessee. The apex court held that PAN, proof of address, income tax returns and bank statements of the investor submitted by the assessee is not sufficient to substantiate the creditworthiness of the investor. It ruled that if the taxman is able to validate his claims of money laundering charges and tax evasion against the assessee, the assessee will be liable to pay tax on such amount.

Read More at The Economic Times
Clues by NC Team • 5 Mar 2019, Tuesday

The Income tax department is running against time to meet the collection targets for FY19. Direct tax collection till the third week of February was a little less than Rs 8 lakh crore as against a target of Rs 12 lakh crore. This can lead to delays in income tax refunds and an intense collection drive for the remaining period of the fiscal. Mumbai, which accounts for the largest I-T collection, recorded 7.4% increase year-on-year in the collection to Rs 2.39 lakh crore while Delhi, the second largest region, is up 27% y-o-y to Rs 1.2 lakh crore.

Read More at The Economic Times
Clues by NC Team • 28 Feb 2019, Thursday

P C Mody, the newly appointed chief of the CBDT, in his address to tax officials vide letter dated February 26, has asked them to exhibit impeccable conduct and work with greater transparency and accountability. He asked them to redress the grievances and issues faced by small taxpayers in a friendly way. He also directed the officials to maximize revenue collection and enlarge the taxpayer base without any harassment. Mody took charge of CBDT from February 15. The Union Budget has targeted to collect direct tax revenues of Rs 11.5 lakh crore for the financial year 2018-19.

Read More at The Economic Times
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