Taxation Schemes

I-T Act review: Govt to invite suggestions from industry next month

The government has proposed to invite suggestions on Income Tax Act, 1961, from the private sector and tax experts beginning October, as part of an exercise to simplify the direct tax law, sources said. In a meeting with industry chambers earlier this month, the government said that a functionality will be created in the Income Tax portal wherein suggestions could be made on different sections of the I-T Act with a view to simplifying the language and reducing litigation. Following the Budget announcement, the Central Board of Direct Taxes (CBDT) had set up an internal committee for a comprehensive review of the six- decade old direct tax law and make it concise, lucid, easy to read and understand. "In the meeting with industry associations, the revenue department suggested that the functionality be developed by the first week of October to give suggestions for reworking the income tax law," a source said. Another source said that the exercise is not to write a new tax law or a tax

GCCI seeks urgent review of Supreme Court's mineral taxation ruling

The Goa Chamber of Commerce and Industries (GCCI) has demanded an urgent review of the mineral taxation ruling by the Supreme Court, stating that the increased cost of mining will inevitably lead to higher prices for essential commodities, including steel, power and cement. The Supreme Court last month allowed states to collect past dues on royalty on minerals bearing land from the Centre and mining companies from April 1, 2005 onwards. "The imposition of further taxes/ cess/ levies, if any, as permitted by the ruling, will further impact the economics of mining operations possibly making it unviable with its natural consequences. Additionally, the increased cost of mining will inevitably lead to higher prices for essential commodities e.g., steel, power, cement, etc. further fuelling inflation and consequential impact on the nation's economy," GCCI said in a statement. The possible impact would be a change of goalpost particularly when the auction regime is in vogue post enactment

GST Council to deliberate on taxation of insurance premium, online gaming

The GST Council on Monday is expected to deliberate on a host of issues, including taxation of insurance premium, GoM's suggestions on rate rationalisation, and a status report on online gaming, sources said. Sources said the fitment committee, comprising Centre and state tax officials, will present a report on GST levied on life, health and reinsurance premiums and the revenue implications. The GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, will decide on whether to reduce the tax burden on health insurance from the current 18 per cent or exempt certain categories of individuals, like senior citizens. The deliberations will also happen with regard to the goods and services tax (GST) cut on life insurance premium. In 2023-24, the Centre and states collected Rs 8,262.94 crore through GST on health insurance premium, while Rs 1,484.36 crore was collected on account of GST on health reinsurance premium. The issue of taxation on insurance .

OCI income tax depends on person's residency status under I-T Act

Now, let's explore what the OCI status means, the investments OCIs can make in India, and how they are taxed

GST payers with no valid bank account barred from filing GSTR-1 from Sept 1

GST taxpayers who do not furnish bank account details to GST authorities will be barred from filing outward supply return GSTR-1 from September 1, GST Network (GSTN) has said in an advisory. As per GST Rule 10A, a taxpayer is required to furnish details of a valid bank account within a period of 30 days from the date of grant of registration, or before furnishing the details of outward supplies of goods or services or both in Form GSTR-1or using Invoice Furnishing Facility (IFF), whichever is earlier. "From 1st September, 2024 this rule is being enforced. Therefore, for the tax period August-2024 onwards, the taxpayer will not be able furnish GSTR-01/IFF as the case may be, without furnishing the details of a valid bank account in their registration details on GST portal," GSTN said in an advisory dated August 23. The GST Council in its meeting in July last year, had approved amendment to Rule 10A to strengthen the registration process and to effectively deal with the menace of fake

Pan masala makers to pay fine from Oct if machines unregistered with taxmen

The government has notified October 1 as the date for implementation of the penalty provision for manufacturers of pan masala and similar tobacco products, if they fail to register their packing machinery with GST authorities. The GST Network had earlier in May and June notified two forms GST SRM-I and II for registering machines used by such manufacturers and to report inputs procured and corresponding outputs with tax authorities. The Central Board of Indirect Taxes and Customs (CBIC) on August 6 notified October 1, 2024, as the date for levy of up to Rs 1 lakh penalty for failure to register their packing machines with GST authorities. In January, the Central Board of Indirect Taxes and Customs (CBIC) had announced the introduction of a new registration and monthly return filing procedure to improve GST compliance for manufacturers of pan masala and tobacco products effective April 1. The date was later extended till May 15. The move to overhaul the registration, record-keeping

Hyundai, others lobby UP against hybrid support as Toyota rivalry deepens

Four separate company letters to Uttar Pradesh highlight the rivalry between automakers in a country where taxation is skewed in favour of EVs

Fake ITC claims detection by GST officers up 51% at Rs 36,374 cr in FY24

Fake input tax credit (ITC) claims detection by central GST officers increased 51 per cent to Rs 36,374 crore in 2023-24, Parliament was informed on Monday. Minister of State for Finance Pankaj Chaudhary shared details of the fake input tax Credit (ITC) cases booked by Central Tax formations during the 2022-23 and 2023-24 fiscals in a written reply to the Lok Sabha. During 2023-24, 9,190 cases were booked by the central GST officers, involving fake ITC of Rs 36,374 crore. 182 persons were arrested and voluntary deposits of Rs 3,413 crore were made in the cases. During 2022-23, Rs 24,140 crore fake ITC were detected in 7,231 cases. 152 persons were arrested and Rs 2,484 crore taxes were deposited voluntarily. The Number of cases booked by central tax formation during 2021-22 was 5,966. Chaudhary said the challenges in tracking fake ITC fraudsters relate to masterminds, who operate the fake ITC generation through control and management of a complex web of entities created across ...

Bringing natural gas under GST will lead to faster adoption: Oil secy

The government is cautiously optimistic of solving the GST issue in 2024-25, he said

Explained: How to switch between old and new tax regimes

If the taxpayers forget to fill the Form 10IE before or at the time of filing of ITR, they will not be able to opt for the new tax regime.

US prez polls: Deep divide apparent in Biden, Trump's tax policies

Tax Day reveals a major split in how Joe Biden and Donald Trump would govern: The presidential candidates have conflicting ideas about how much to reveal about their own finances and the best ways to boost the economy through tax policy. Biden, the sitting Democratic president, plans to release his income tax returns on Monday, the IRS filing deadline. And on Tuesday, he is scheduled to deliver a speech in Scranton, Pennsylvania, about why the wealthy should pay more in taxes to reduce the federal deficit and help fund programs for the poor and middle class. Biden is proud to say that he was largely without money for much of his decades-long career in public service, unlike Trump, who inherited hundreds of millions of dollars from his father and used his billionaire status to launch a TV show and later a presidential campaign. For 36 years, I was listed as the poorest man in Congress, Biden told donors in California in February. Not a joke. In 2015, Trump declared as part of his ..

FPIs in Mauritius to face greater scrutiny after tax treaty revision

Legal experts divided on whether grandfathering will be available for investments before April 2017

Salaried vs consultant: What's a better option for high earners in India?

If your business expenses are a significant portion of your income (more than 50%), being a consultant and claiming those expenses can be beneficial

Not just 80C: You can claim Rs 75,000 as deductions with health insurance premiums too

In total, you can claim up to Rs. 1 lakh in deductions under Section 80D for health insurance premiums paid for yourself and your parents

Gratuity to conveyance allowance: Exemptions under New Tax Regime decoded

Reimbursements received from your employer for travel expenses related to your job are generally exempt from tax.

20% of Budget is towards capex, says Delhi Finance Minister Atishi

She tells that the Centre by treating the Union Territory unfairly in devolution of central taxes was killing the goose that lays golden eggs

Debt fund taxation change breathes life into equity savings scheme

Hybrid MF offering rakes in close to Rs 6,000 crore in FY 2024 so far

Simplify whole system of business taxation, says NITI Aayog member Virmani

NITI Aayog member Arvind Virmani has made a case for simplification of the whole system of business taxation as has been done in case of personal tax, saying faceless assessment may not work in all the cases. Virmani further said that he is hearing from large corporations that faceless assessment sometimes can mean a kind of ignorance, because business by itself requires judgments of every expenditure. "Business taxation is inherently problematic. And sometimes you need to explain it," he told PTI. Virmani noted that business taxation for business doesn't mean only corporate tax, it also means the business elements of personal taxation. "So, you can have a faceless assessment, it may work for 80 per cent cases but it may create more problems for 10 per cent. "My solution is, you got to simplify the whole tax system for business taxation," the eminent economist opined. In recent years, the government has simplified the income tax regime in India. Virmani also reiterated that si

India's gross tax revenue up 2.8% at Rs 8.9 trillion so far in FY24

India's fiscal deficit widens to 33.9% of FY24 BE; net tax revenue contracts nearly 13%

Opt for presumptive tax scheme only if you can adhere to its rules

Higher proposed limits are a positive, but remember you must stick to the scheme for five years