Govt collects Rs 9.5 lakh cr in taxes during Apr-Dec

The government has collected Rs 9.5 lakh crore in taxes during the April-December period of 2015-16, which is 66 per cent of the budget estimates (BE).
The government in the budget for 2015-16 pegged tax collection (direct and indirect) at Rs 14.45 lakh crore.
"The total tax revenue collected up to December this year is Rs 9.5 lakh crore, 66 per cent of the Budget Estimates," Revenue Secretary Hasmukh Adhia tweeted.
The government had budgeted to collect Rs 7.97 lakh crore from direct taxes and Rs 6.47 lakh crore in indirect taxes in the current fiscal.
Adhia said that the government collected Rs 2,428 crore in taxes under the black money disclosure window.

"The amount collected under black money disclosure is Rs 2,428 crore (97 per cent of amount due) by December 31, which was the last date of payment," Adhia said.

Another amendment was to effect the rollback of monetary
limit of Rs 1.5 lakh per annum provided for contribution by the employer in recognised Provident Fund for the purpose of tax benefit to the employee.
To provide relief to newly setup domestic manufacturing companies, the Budget for 2016-17 provided for an option at the hands of companies to pay tax at 25 per cent if it does not claim any exemption.

An amendment brought by Jaitley to this clarified that to avail of the benefit "the company should not be engaged in any business other than that of manufacture or production of any article or thing and the associated activities in the nature of research in relation to, or distribution of, any article or thing manufactured or produced by it."
Also, the option is to be exercised by the company on or before the due date of filing of first return of income. "The option once exercised cannot be changed in any subsequent year," the amendment said.
Another amendment provided for a person availing of 10 per cent flat tax on gross basis on income derived from royalty on patent developed and registered in India, will remain in the regime for five years.

"If the assessee opts out of the scheme before the expiry of the period of five years, he shall not be eligible to take the benefit of the provisions for a period of five subsequent years," it said.
It also provided that 75 per cent of the total expenses incurred for developing patent shall be incurred by the resident himself in India.
While the Finance Bill 2016 provided concessional 9 per cent MAT in case of units located in IFSC and incorporated on or after April 1, 2016, an amendment deleted the condition of being set up on or after April 1, 2016.

Another amendment provided that the processing of return shall not be necessary before expiry of the period provided for processing of return where a notice has been issued to the assessee. However, such return shall be processed before the issuance of the assessment order.
While the Budget provided for deduction of 10 per cent tax by Category - I & II Alternate Investment Fund (AIFs) on payments made to a resident investor and at the "rates in force" where the payee is a non-resident, an amendment provided for no deduction in case of a non-resident.
In order to bring high value transactions within the tax net, the Finance Bill, 2016 made it mandatory for seller to collect one per cent tax from the purchaser on sale of motor vehicle of the value exceeding Rs ten lakh.

One of the amendments clarified that retail sale of motor vehicle of over Rs 10 lakh is also liable to tax collected at source or TCS.
Yet another amendment extended the immunity in case assessee pays tax on under-reported income and does not file any appeal against the assessment order, to include exemption from initiation of proceedings. Earlier immunity was granted from levy of penalty for under reported income and prosecution.