Income Tax Law

Wish I could bring down taxes to nil, says FM Nirmala Sitharaman

But there are challenges to overcome and the country needs money for that, says the finance minister

First draft of revised direct tax code in 6 months: Revenue secretary

Malhotra said that the exercise is not linked to bringing a new Direct Tax Code, but a comprehensive review of the income tax law

Union Budget 2024: Beginning of remarkable direct tax reforms by Modi 3.0

Income tax changes in Budget 2024: On the personal income-tax front, the tax slab rates have been rationalised only under the new tax regime

Budget 2024: Modi 3.0 govt simplifies taxes, fosters foreign investments

India Budget 2024 tax rules: In order to achieve the vision of simplifying taxes, FM Nirmala Sitharaman announced a comprehensive review of the Income Tax Act, 1961

Capital gains tax on share sale: Calculation, treatment, budget expectation

Long term capital gains (LTCG) tax on the sale of these asset classes stocks, mutual funds, real estate etc. is levied when the holding period of the asset is over one year

Vladimir Putin signs bill increasing income taxes for wealthy in Russia

Russian President Vladimir Putin on Friday endorsed a bill that raises income taxes for the rich, part of efforts to help fill government coffers during the fighting in Ukraine. Putin signed the bill into law two days after it was approved by both houses of parliament. The legislation, which envisages a progressive tax on personal income, is a major change from the flat-rate tax that was widely credited with improving revenue collections after it was introduced in 2001. The new law imposes a 13 per cent tax for incomes of up to 2.4 million rubles (USD 27,500) a year. For incomes over that amount, a steadily higher tax rate would apply, with the maximum rate of 22 per cent for incomes exceeding 50 million rubles (USD 573,000). Putin has said that the tax increase would affect no more than 3.2 per cent of Russia's taxpayers. The bill also calls for an increase in the company income tax rate from 20 per cent to 25 per cent. The tax reform is estimated to bring 2.6 trillion rubles (U

Govt may relax 45-day payment rule for MSMEs in Union Budget 2024

The government may relax the requirement of making payments to MSMEs within 45 days of buying goods and services to check large corporate from looking at other sourcing avenues, sources said. The announcement to this effect could be made in the Budget likely to be presented on July 23. The government is considering suggestions regarding changes to Section 43B(h) of the Income Tax Act made by MSMEs during pre-Budget consultations, sources said. The government in last year's Budget added a new clause under Section 43B of the Income Tax Act to address the challenge of delayed payments faced by MSMEs in the country. According to Section 43B(h) of the Income Tax Act, introduced through the Finance Act 2023, if a larger company does not pay an MSME on time -- within 45 days in case of written agreements -- it cannot deduct that expense from its taxable income, leading to potentially higher taxes. MSMEs fear that due to this provision, large buyers could cold-shoulder MSME suppliers and

Russian parliament approves proposal to raise income tax for the wealthy

Russia's parliament on Thursday gave preliminary approval to a bill that outlines higher income taxes for Russia's wealthy elite. The bill, which was passed in the first of three readings in the State Duma, Russia's lower parliament house, comes as Moscow continues to spend vast amounts of money on the military campaign in Ukraine. The proposal involves a progressive tax on personal incomes and represents a change of course from the current flat-rate tax that was credited with bringing order and improving tax collections after it was introduced in 2001. It envisages imposing a 13% tax for incomes of up to 2.4 million rubles ($27,500) a year. For incomes over that amount, a steadily higher tax rate would apply. The maximum tax rate would be 22% for annual incomes exceeding 50 million rubles ($573,000). The increased taxes would affect not more than 3.2% of Russia's taxpayers, Russian President Vladimir Putin said this week, citing calculations by the Finance Ministry. The proposed

I-T relief for those in lowest slab may be considered in Budget: CII

Income tax relief for the people in the lowest slab may need to be considered in the upcoming full Budget for 2024-25 considering the high levels of inflation, according to newly-elected CII President Sanjiv Puri. In an interview with PTI, he also suggested creation of an institutional platform for consensus building between the Centre and states to successfully carry out all reforms, including those related to land, labour, power and agriculture. The industry body also said it does not see compulsions of coalition politics hampering the reforms in the third term of Prime Minister Narendra Modi. In stead, it believes that the performance of Indian economy and the success of policies in the previous two stints would set the base to accelerate the process. "Broadly, I would say at this point of time it is public capex, adherence to fiscal glidepath, roadmap for investment in the social infrastructure, green fund and greater investment in the rural sector. These are the broad ...

Tax law on assets abroad; heat shield at home: Top personal finance stories

This week we write about how to file tax returns for investments or income in foreign countries

Is the Centre planning to decriminalise minor I-T offences in 100 days?

The industry has long suggested that minor Income Tax offences incur penalties rather than criminal prosecution. This would garner more trust and boost ease of doing business

Link PAN with Aadhaar by May 31 to avoid higher TDS deduction: I-T dept

The income tax department on Tuesday asked taxpayers to link PAN with Aadhaar by May 31 to avoid tax deduction at a higher rate. As per income tax rules, if a Permanent Account Number (PAN) is not linked with biometric Aadhaar, TDS is required to be deducted at double the applicable rate. Last month, the income tax department issued a circular stating that no action will be taken for short deduction of TDS in case the assessee links his/her PAN with Aadhaar by May 31. "Please link your PAN with Aadhaar before May 31, 2024, if you haven't already, in order to avoid tax deduction at a higher rate," the department posted on X. In a separate post, the I-T department asked reporting entities, including banks, forex dealers, to file SFT by May 31 to avoid penalties. "The deadline to file SFT (Statement of Specified Financial Transactions) is May 31, 2024. Avoid penalties by filing accurately and on time," the department said. The reporting entities which are required to file SFT return

PE funds partly behind the 62% drop in India's net FDI? Samir Arora's view

The ace fund manager was reacting on 'X' to a Business Standard story that quotes a Reserve Bank of India (RBI) data on gross FDI flows into the country in FY24

Zero electricity bill, tax tweaks: Govt's 100-day agenda, budget wish list

From a long-term perspective, however, the focus, Mirae Asset said, would be on infrastructure development, farm laws, skill development, and creating employment

WATCH: Sitharaman's viral reply on broker's tough question on tax burden

During a BSE event held in Mumbai on Tuesday, Finance Minister Nirmala Sitharaman faced tough questions from a stockbroker on the heavy taxation regime in India

SC to hear Serum's plea challenging amendment to IT Act on May 17

With this plea, it also challenged the Bombay High Court's order that dismissed its petition against a 2016 amendment to the Income Tax Act

CBDT issues FY25 interim action plan to ensure quick disposal of appeals

The income tax department has come out with an interim action plan for 2024-25 fiscal year, which include identification of potential cases of prosecution, wherein there is short-payment of TDS and faster disposal of appeals. The action plan also stipulates timeline for approval of refunds, identification of cases where seized assets are due for release and release the same by June 30, 2024. It also called for finalisation of compounding proposals pending as on March 31, 2024, and disposal of at least 150 appeals by June 30. Priority should be given to disposal of the appeals filed prior to April 1, 2020, followed by disposal of appeals filed after April 1, 2020, it said. AKM Global, Partner- Tax, Sandeep Sehgal said the Central Board of Direct Taxes (CBDT) has unveiled its interim action plan for FY 2024-25, marking a significant stride towards enhancing tax administration efficiency. Immediate measures have been initiated to address grievances through e-Nivaran and CPGRAM platfo

Income from shares gifted to minor child gets clubbed with donor's income

If the gift of shares is received from a relative, there is no tax implication for recipient

Explained: Rs 1 lakh limit per individual for withdrawal of old tax demands

The total waiver of up to a maximum of Rs. 1,00,000 would be waived off per taxpayer(PAN).

I-T dept searches premises linked to ex-Cong minister in Chhattisgarh

The Income Tax Department on Wednesday conducted searches at the locations linked to former Chhattisgarh minister Amarjeet Bhagat and others, including businessmen in the state, officials said. The reason behind the I-T department's action was not immediately known. The state's Economic Offences Wing/Anti-Corruption Bureau recently lodged an FIR in an alleged coal levy scam based on a complaint of the Enforcement Directorate which had launched a probe into the scam during the previous Congress government. Amarjeet Bhagat, who was a minister in the previous Bhupesh Baghel-led Congress government, is among the 35 accused named in the FIR. According to officials, the searches were underway since early Wednesday morning in different districts including Surguja, Raipur, Durg and Rajnandgaon. A team of a dozen I-T personnel reached the residence of Bhagat in Ambikapur city, the headquarters of Surguja district, early this morning, an official said. Police personnel were seen deployed .