The 25 richest Americans paid relatively little — and sometimes nothing — in federal income taxes between 2014 and 2018, according to an analysis from the news organization ProPublica that was based on a trove of IRS tax filings.

The analysis showed that the nation’s richest executives paid just a fraction of their wealth in taxes — $13.6 billion in federal income taxes on $401 billion of their wealth.

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The documents reveal the stark inequity in the US tax system, as plutocrats such as Warren Buffett, Jeffrey Bezos, Michael Bloomberg and Elon Musk were able to benefit from a complex web of loopholes in the tax code and the fact that the United States puts its emphasis on taxing labor income versus wealth.

The rare window into the tactics of the nation’s top billionaires comes as President Joe Biden is trying to overhaul the tax code to raise taxes on corporations and the rich. Biden has proposed raising the top income tax rate to 39.6% from 37%.

But the documents and the conclusions of the analysis could renew calls for Biden to consider a wealth tax, like those championed by Sen. Elizabeth Warren, D-Mass. Warren’s plan would apply a 2% tax to an individual’s net worth — including the value of stocks, houses, boats and anything else a person owns, after subtracting any debts — above $50 million.

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Biden and his advisers have deemed the idea unworkable.

Warren said on Twitter that the report showed “our tax system is rigged for billionaires who don’t make their fortunes through income, like working families do.”

ProPublica did not reveal how it obtained the information, and it could not be independently verified by The New York Times. But the publication said the documents were provided to the outlet “in raw form, with no conditions or conclusions” and that it had run the information past every executive whose information was included in the article.

“Every person whose tax information is described in this story was asked to comment,” ProPublica said, adding that those who responded “all said they had paid the taxes they owed.”

In a separate editors’ note, the outlet said it was publishing the information “quite selectively and carefully — because we believe it serves the public interest in fundamental ways, allowing readers to see patterns that were until now hidden.”

The report highlights the techniques that the wealthy often use to reduce their tax bills, including taking advantage of a complex web of loopholes and deductions that are perfectly legal and can significantly reduce — or erase — tax liability. That includes borrowing huge sums of money backed by enormous stock holdings. Those loans are not taxed and the interest that the executives pay on the money can often be deducted from their tax bills.

In 2007, Bezos, the CEO of Amazon, paid nothing in federal income taxes even as his company’s stock price doubled. Four years later, as his wealth swelled to $18 billion, Bezos reported losses and received a tax credit of $4,000 for his children, according to ProPublica.

Buffett, the CEO of Berkshire Hathaway, has long said publicly that the tax code should hit the rich harder, but he paid just $23.7 million in taxes from 2014 to 2018, when his wealth rose by $24.3 billion.

The Treasury Department and the IRS did not immediately have a comment on the disclosures Tuesday, but Charles Rettig, the IRS commissioner, was scheduled to testify before the Senate Finance Committee on Tuesday.

At the hearing, Rettig said that he could not comment on the apparent breach at his agency but said that it was being scrutinized.

“I can confirm that there is an investigation with respect to the allegations that the source of the information in that article came from the Internal Revenue Service,” Rettig said. “The investigators will investigate.”

Sen. Ron Wyden, D-Ore., the chairman of the finance committee, told Rettig that he was concerned about the security of taxpayer data. He also emphasized that the disclosures made clear that the tax code needs to be rewritten.

“What this data reveals is that the country’s wealthiest, who profited immensely during the pandemic, have not been paying their fair share,” Wyden said, adding that he has proposals to fix that disparity.

Sen. Mike Crapo of Idaho, the top Republican on the committee, said that the disclosures added to his concern about a Biden administration proposal to give the IRS more access to the financial information of taxpayers. He suggested that the agency could not be trusted to keep the data secure.

The president said on Twitter on Tuesday that he was continuing to work with Republicans on infrastructure and jobs legislation and said that he would not seek a tax increase on anyone who earns less than $400,000.

“It’s long past time the wealthy and corporations pay their fair share,” Biden said.

The 25 richest Americans paid relatively little — and sometimes nothing — in federal income taxes between 2014 and 2018, according to an analysis from the news organization ProPublica that was based on a trove of IRS tax filings.

The 25 richest Americans paid relatively little — and sometimes nothing — in federal income taxes between 2014 and 2018, according to an analysis from the news organization ProPublica that was based on a trove of IRS tax filings. The analysis showed that the nation’s richest executives paid just a fraction of their wealth in taxes — $13.6 billion in federal income taxes on $401 billion of their wealth. Also read | Biden administration moves to unkink supply chain bottlenecks The documents reveal the stark inequity in the US tax system, as plutocrats such as Warren Buffett, Jeffrey Bezos, Michael Bloomberg and Elon Musk were able to benefit from a complex web of loopholes in the tax code and the fact that the United States puts its emphasis on taxing labor income versus wealth. The rare window into the tactics of the nation’s top billionaires comes as President Joe Biden is trying to overhaul the tax code to raise taxes on corporations and the rich. Biden has proposed raising the top income tax rate to 39.6% from 37%. But the documents and the conclusions of the analysis could renew calls for Biden to consider a wealth tax, like those championed by Sen. Elizabeth Warren, D-Mass. Warren’s plan would apply a 2% tax to an individual’s net worth — including the value of stocks, houses, boats and anything else a person owns, after subtracting any debts — above $50 million. Also read | First woman is named to run New York’s transit agency Biden and his advisers have deemed the idea unworkable. Warren said on Twitter that the report showed “our tax system is rigged for billionaires who don’t make their fortunes through income, like working families do.” ProPublica did not reveal how it obtained the information, and it could not be independently verified by The New York Times. But the publication said the documents were provided to the outlet “in raw form, with no conditions or conclusions” and that it had run the information past every executive whose information was included in the article. “Every person whose tax information is described in this story was asked to comment,” ProPublica said, adding that those who responded “all said they had paid the taxes they owed.” In a separate editors’ note, the outlet said it was publishing the information “quite selectively and carefully — because we believe it serves the public interest in fundamental ways, allowing readers to see patterns that were until now hidden.” The report highlights the techniques that the wealthy often use to reduce their tax bills, including taking advantage of a complex web of loopholes and deductions that are perfectly legal and can significantly reduce — or erase — tax liability. That includes borrowing huge sums of money backed by enormous stock holdings. Those loans are not taxed and the interest that the executives pay on the money can often be deducted from their tax bills. In 2007, Bezos, the CEO of Amazon, paid nothing in federal income taxes even as his company’s stock price doubled. Four years later, as his wealth swelled to $18 billion, Bezos reported losses and received a tax credit of $4,000 for his children, according to ProPublica. Buffett, the CEO of Berkshire Hathaway, has long said publicly that the tax code should hit the rich harder, but he paid just $23.7 million in taxes from 2014 to 2018, when his wealth rose by $24.3 billion. The Treasury Department and the IRS did not immediately have a comment on the disclosures Tuesday, but Charles Rettig, the IRS commissioner, was scheduled to testify before the Senate Finance Committee on Tuesday. At the hearing, Rettig said that he could not comment on the apparent breach at his agency but said that it was being scrutinized. “I can confirm that there is an investigation with respect to the allegations that the source of the information in that article came from the Internal Revenue Service,” Rettig said. “The investigators will investigate.” Sen. Ron Wyden, D-Ore., the chairman of the finance committee, told Rettig that he was concerned about the security of taxpayer data. He also emphasized that the disclosures made clear that the tax code needs to be rewritten. “What this data reveals is that the country’s wealthiest, who profited immensely during the pandemic, have not been paying their fair share,” Wyden said, adding that he has proposals to fix that disparity. Sen. Mike Crapo of Idaho, the top Republican on the committee, said that the disclosures added to his concern about a Biden administration proposal to give the IRS more access to the financial information of taxpayers. He suggested that the agency could not be trusted to keep the data secure. The president said on Twitter on Tuesday that he was continuing to work with Republicans on infrastructure and jobs legislation and said that he would not seek a tax increase on anyone who earns less than $400,000. “It’s long past time the wealthy and corporations pay their fair share,” Biden said.

Wealthiest executives paid little to nothing in federal income taxes, report says

Income Tax searches at the premises of a civil contractor for government works has led to the seizure of Rs.21 cr (about USD 3 million) unaccounted cash and detection fo Rs.700 cr (over USD 951 million) unaccounted income.&nbsp;

According to the department, the searches were carried out on December 14 and at 15 in Chennai and Erode premises. The searched group specialises in erecting seawall breaks along the coast and diversified into bus transport, running marriage halls and cooking masala business.&nbsp;

“It was found that the group indulges in inflation of purchases and other work contract expenses. Such inflated payments made to the suppliers and subcontractors are received back in cash regularly” read the statement from the Central Board of Direct taxes.&nbsp;

It also added that the Rs.700 crore unaccounted income is ploughed back into real estate investments and business expansion and that the assessee admitted to having an undisclosed income of Rs.150 cr (over 20 million) so far.&nbsp;

Income Tax searches at the premises of a civil contractor for government works has led to the seizure of Rs.21 cr (about USD 3 million) unaccounted cash and detection fo Rs.

Income Tax searches at the premises of a civil contractor for government works has led to the seizure of Rs.21 cr (about USD 3 million) unaccounted cash and detection fo Rs.700 cr (over USD 951 million) unaccounted income. According to the department, the searches were carried out on December 14 and at 15 in Chennai and Erode premises. The searched group specialises in erecting seawall breaks along the coast and diversified into bus transport, running marriage halls and cooking masala business. “It was found that the group indulges in inflation of purchases and other work contract expenses. Such inflated payments made to the suppliers and subcontractors are received back in cash regularly” read the statement from the Central Board of Direct taxes. It also added that the Rs.700 crore unaccounted income is ploughed back into real estate investments and business expansion and that the assessee admitted to having an undisclosed income of Rs.150 cr (over 20 million) so far.

Tamil Nadu: Over USD 950 million unaccounted income detected at govt contractor's premises

According to the United Nations (UN), the Arab economies could shrink by 5.7 per cent due to the coronavirus pandemic. At least a quarter of the Arab population could be pushed into poverty.

In Saudi Arabia, the government is considering all options to bolster its finances. One of these options include introducing income tax as&nbsp;Saudi Arabia is headed towards its deepest contraction in 30 years. It is set to shrink 6.8 per cent in 2020.

Instead of helping the citizens in this grave situation, Riyadh may ask its citizens to pay income tax, according to reports.

<a href="https://www.wionews.com/videos/healthcare-and-education-could-be-privatized-in-saudi-arabia-315301">Also watch: Healthcare and education could be privatized in Saudi Arabia</a>

The Saudis do not pay income tax. Expats and corporates pay a 20 per cent income tax, and there is a flat 20 per cent federal tax for all.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-saudi-arabia-to-introduce-income-tax-315553/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The world's biggest oil producing nation uses petroleum revenue to provide for its nationals. However, as the crude prices are sliding and exports are down 65 per cent because of coronavirus, there is a possibility that income tax may be introduced in the country.

Tax-free countries

United Arab Emirates (UAE) citizens also do not pay any taxes. The country is rich in natural resources, so it exempts its citizens from paying taxes. Corporate tax is levied only on foreign banks and oil companies.

Qata, Kuwait and Oman, too, do not charge personal income tax for individuals. In the Caribbean country of Bahamas, even corporates do not have to pay taxes. However, Panama is the one which offers the best deal as it does not even tax offshore companies.&nbsp;

High tax-rate countries

Sweden, on the other hand, has the world's highest income tax rate of 57.1 per cent. Potugal follows closely with&nbsp;a tax rate of 56.5 per cent, and Japan ranks third with a tax rate of&nbsp;55.95 per cent.&nbsp;

Denmark and Austria&nbsp;too join the list with 55.8 per cent and 55 per cent tax rates, respectively.&nbsp;India has a tax rate of 30 per cent, which seems considerate compared to these countries, but is still very high.

According to the United Nations (UN), the Arab economies could shrink by 5.7 per cent due to the coronavirus pandemic. At least a quarter of the Arab population could be pushed into poverty.

According to the United Nations (UN), the Arab economies could shrink by 5.7 per cent due to the coronavirus pandemic. At least a quarter of the Arab population could be pushed into poverty. In Saudi Arabia, the government is considering all options to bolster its finances. One of these options include introducing income tax as Saudi Arabia is headed towards its deepest contraction in 30 years. It is set to shrink 6.8 per cent in 2020. Instead of helping the citizens in this grave situation, Riyadh may ask its citizens to pay income tax, according to reports. Also watch: Healthcare and education could be privatized in Saudi Arabia The Saudis do not pay income tax. Expats and corporates pay a 20 per cent income tax, and there is a flat 20 per cent federal tax for all. The world's biggest oil producing nation uses petroleum revenue to provide for its nationals. However, as the crude prices are sliding and exports are down 65 per cent because of coronavirus, there is a possibility that income tax may be introduced in the country. Tax-free countries United Arab Emirates (UAE) citizens also do not pay any taxes. The country is rich in natural resources, so it exempts its citizens from paying taxes. Corporate tax is levied only on foreign banks and oil companies. Qata, Kuwait and Oman, too, do not charge personal income tax for individuals. In the Caribbean country of Bahamas, even corporates do not have to pay taxes. However, Panama is the one which offers the best deal as it does not even tax offshore companies. High tax-rate countries Sweden, on the other hand, has the world's highest income tax rate of 57.1 per cent. Potugal follows closely with a tax rate of 56.5 per cent, and Japan ranks third with a tax rate of 55.95 per cent. Denmark and Austria too join the list with 55.8 per cent and 55 per cent tax rates, respectively. India has a tax rate of 30 per cent, which seems considerate compared to these countries, but is still very high.

Saudi Arabia may introduce income tax as economy shrinks due to coronavirus

The Union Finance Minister Nirmala Sitharaman on Tuesday (March 24) said that last date for the income tax return for the financial year 18-19 has been extended to June 30, 2020. The finance minister also extended Aadhar-PAN linking date.

Indian Finance Minister extends deadlines to provide relief

Union Finance Minister Nirmala Sitharaman on Tuesday said that last date for the income tax return for the financial year 18-19 has been extended to June 30, 2020.

Union Finance Minister Nirmala Sitharaman on Tuesday said that last date for the income tax return for the financial year 18-19 has been extended to June 30, 2020. ''The last date for the income tax return for the financial year 18-19 is extended to June 30, 2020. For delayed payments interest rate has been reduced from 12% to 9%,'' she said. The finance minister also extended Aadhar-PAN linking date. ''Aadhar-PAN linking date and Vivad Se Vishwas Scheme (from April 1 to June 30, no additional 10 per cent payment),'' she said. ''Work is going on and we are very close to coming up with an economic package that will be announced sooner rather than later,'' she further said. The Finance Ministery also extended the last date for March, April, May 2020 GST returns and Composition returns to June 30th, 2020. ''For newly incorporated companies there is a requirement to file declaration for the commencement of business within 6 months of incorporation. Now we are giving them an additional time of 6 more months,'' Sitharaman added. She further said that debit cardholders who withdraw cash from any bank's ATM can do it free of charge for the next three months. There shall not be any minimum balance requirement fee (in bank accounts), she added.

Finance Minister announces slew of measures as country wages a war on coronavirus

finance Minister Nirmala Sitharaman has announced the budget for the upcoming fiscal starting April 1, 2020. Though budget brought joy to some sections, it has not really lived up to the expectations of the common man or market investors.

Annual Financial Statement and Common man

Taxpayers will now be able to avail a lower income tax rate on various slabs by foregoing certain deductions and exemptions, Sitharman announced in the budget. The new regime will be optional and those who want to stick to claiming deductions will be allowed to do so.

What will a taxpayers' charter mean?

India Budget 2020: Will personal tax bring substantial savings?

The Central Board of Direct Taxes (CBDT) on Tuesday compulsorily retired another 21 Group B officers of the rank of Income Tax officers, due to corruption and other charges, Finance Ministry sources said.

The action has been taken under Fundamental Rule 56 (J) in public interest.&nbsp;

The rule covers group 'A and B' officers who entered service before 35 years of age and have attained 50 years of age, who are facing serious allegations of corruption.&nbsp;

In case, the allegations are found to be true by the review committee, it recommends compulsory retirement. Later, the order is signed by the President.

The sacked officers were posted in Hyderabad, Rajkot, Mumbai, Thane, Sawai Madhopur, Nagpur, Hazaribagh, Jodhpur, Bikaner, Ujjain and Bhopal.

In Septemeber, the CBDT gave marching orders to 15 senior officers following an investigation into charges of corruption against them.

In June, 27 high-ranking Indian Revenue Service officers including 12 officers from the Central Board of Direct Taxes were compulsorily retired.

The Central Board of Direct Taxes (CBDT) on Tuesday compulsorily retired another 21 Group B officers of the rank of Income Tax officers, due to corruption and other charges, Finance Ministry sources said.

The Central Board of Direct Taxes (CBDT) on Tuesday compulsorily retired another 21 Group B officers of the rank of Income Tax officers, due to corruption and other charges, Finance Ministry sources said. The action has been taken under Fundamental Rule 56 (J) in public interest. The rule covers group 'A and B' officers who entered service before 35 years of age and have attained 50 years of age, who are facing serious allegations of corruption. In case, the allegations are found to be true by the review committee, it recommends compulsory retirement. Later, the order is signed by the President. The sacked officers were posted in Hyderabad, Rajkot, Mumbai, Thane, Sawai Madhopur, Nagpur, Hazaribagh, Jodhpur, Bikaner, Ujjain and Bhopal. In Septemeber, the CBDT gave marching orders to 15 senior officers following an investigation into charges of corruption against them. In June, 27 high-ranking Indian Revenue Service officers including 12 officers from the Central Board of Direct Taxes were compulsorily retired.

CBDT compulsorily retires 21 Income Tax officers for corruption, other charges: Sources

The Finance Minister (FM) last week announced a historic decision of reducing the corporate tax rate from 30 per cent to 22 per cent. For new manufacturing companies registered on October 1 or afterwards, tax rate has been reduced to 15 per cent.&nbsp;

These rates are exclusive of cess and surcharge. The companies availing of 22 per cent tax rate cannot benefit from any other exemption/incentives.

The step has been hailed as the second most landmark measure after the 1991 reforms announced by then Finance Minister Manmohan Singh. The Sensex was up nearly 2000 points, the highest rally in a day in a decade. Tax cuts have been a long pending demand of corporates.&nbsp;

This decision increases the competitiveness of industry and brings India’s tax structure on par with the countries with the lowest tax rates in the world. It is expected to activate the animal spirits of our entrepreneurs, resulting in investments and capacity additions, boosting GDP growth.

The whole exercise is expected to result in a loss of Rs 1.45 lakh crore loss to the exchequer. This is likely to push up fiscal deficit from 3.3% levels projected for 2019-20 to 3.6% levels if all other numbers projected are achieved (a big task, given the lag in tax collections this year).&nbsp;

The government has coughed up Rs. 86,000 crore extra from RBI, which will help absorb some of this loss. In the Budget presented in July this year, the Finance Minister had already extended the tax rate cut to 25 per cent for companies with a turnover of up to Rs 400 crore, representing 99.3 per cent of the entire universe.&nbsp;

This cut is expected to accrue to and benefit top 6,000 companies in India, which account for more than 80% of government’s corporate tax revenues.&nbsp;

The 15% tax rate for new manufacturing companies is likely to help India take advantage of the trade war between US and China. It is a big step to woo companies shifting their manufacturing base out of China and will give a boost to our exports while creating thousands of jobs.&nbsp;

Many commentators have hailed it as an early Diwali for corporate sector. It has given a boost to the investor sentiment. The government has fulfilled their wish and now the onus is on the corporates to take advantage of this step and create jobs and take the economy out of slowdown.&nbsp;

The demand for goods and services in the economy has taken a beating due to the liquidity crisis, post the IL&amp;FS default. The demand from biscuits, to shampoos, to automobiles to housing has been badly impacted. Unless this is revived and capacity utilisation ratio of companies goes up to 85%, corporates would tread with caution before investing. So, what do the companies do with this tax gain? Some of them are expected to pass a portion of the gains to the consumer by offering discounts in the hope of reviving demand. Some could even give their employees a Diwali bonus. This also could help putting a break on further job cuts.&nbsp;

Some would just keep the cash and build reserves in anticipation that global headwinds are likely to continue for some time, while others could pare their debt and improve their balance sheet health.&nbsp;

Then there are those who could pay higher dividends, specifically the public sector companies, thus helping government to recoup some of the tax forgone.&nbsp;

While investor sentiment has been restored, there is growing demand now to slash personal income taxes. Income above Rs. 10 lakh for individuals is taxed at 30 per cent. Only a relief would leave more money in the hands of individual taxpayers and give a boost to demand.&nbsp;

However, with the Model Code of Conduct now in place for Maharashtra and Haryana elections, it will be difficult for the government to take any such step. Further, there is not much fiscal room left this year after the bonanza to corporates. In the medium to long term, this step will prove to be a big positive and boost growth. However, this is not the steroid needed to provide immediate relief and improve consumer sentiment.&nbsp;

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-after-tax-boost-companies-need-to-stimulate-indian-economy-2791919">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) &nbsp; 
&nbsp;

The Finance Minister (FM) last week announced a historic decision of reducing the corporate tax rate from 30 per cent to 22 per cent. For new manufacturing companies registered on October 1 or afterwards, tax rate has been reduced to 15 per cent.

The Finance Minister (FM) last week announced a historic decision of reducing the corporate tax rate from 30 per cent to 22 per cent. For new manufacturing companies registered on October 1 or afterwards, tax rate has been reduced to 15 per cent. These rates are exclusive of cess and surcharge. The companies availing of 22 per cent tax rate cannot benefit from any other exemption/incentives. The step has been hailed as the second most landmark measure after the 1991 reforms announced by then Finance Minister Manmohan Singh. The Sensex was up nearly 2000 points, the highest rally in a day in a decade. Tax cuts have been a long pending demand of corporates. This decision increases the competitiveness of industry and brings India’s tax structure on par with the countries with the lowest tax rates in the world. It is expected to activate the animal spirits of our entrepreneurs, resulting in investments and capacity additions, boosting GDP growth. The whole exercise is expected to result in a loss of Rs 1.45 lakh crore loss to the exchequer. This is likely to push up fiscal deficit from 3.3% levels projected for 2019-20 to 3.6% levels if all other numbers projected are achieved (a big task, given the lag in tax collections this year). The government has coughed up Rs. 86,000 crore extra from RBI, which will help absorb some of this loss. In the Budget presented in July this year, the Finance Minister had already extended the tax rate cut to 25 per cent for companies with a turnover of up to Rs 400 crore, representing 99.3 per cent of the entire universe. This cut is expected to accrue to and benefit top 6,000 companies in India, which account for more than 80% of government’s corporate tax revenues. The 15% tax rate for new manufacturing companies is likely to help India take advantage of the trade war between US and China. It is a big step to woo companies shifting their manufacturing base out of China and will give a boost to our exports while creating thousands of jobs. Many commentators have hailed it as an early Diwali for corporate sector. It has given a boost to the investor sentiment. The government has fulfilled their wish and now the onus is on the corporates to take advantage of this step and create jobs and take the economy out of slowdown. The demand for goods and services in the economy has taken a beating due to the liquidity crisis, post the IL&FS default. The demand from biscuits, to shampoos, to automobiles to housing has been badly impacted. Unless this is revived and capacity utilisation ratio of companies goes up to 85%, corporates would tread with caution before investing. So, what do the companies do with this tax gain? Some of them are expected to pass a portion of the gains to the consumer by offering discounts in the hope of reviving demand. Some could even give their employees a Diwali bonus. This also could help putting a break on further job cuts. Some would just keep the cash and build reserves in anticipation that global headwinds are likely to continue for some time, while others could pare their debt and improve their balance sheet health. Then there are those who could pay higher dividends, specifically the public sector companies, thus helping government to recoup some of the tax forgone. While investor sentiment has been restored, there is growing demand now to slash personal income taxes. Income above Rs. 10 lakh for individuals is taxed at 30 per cent. Only a relief would leave more money in the hands of individual taxpayers and give a boost to demand. However, with the Model Code of Conduct now in place for Maharashtra and Haryana elections, it will be difficult for the government to take any such step. Further, there is not much fiscal room left this year after the bonanza to corporates. In the medium to long term, this step will prove to be a big positive and boost growth. However, this is not the steroid needed to provide immediate relief and improve consumer sentiment. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

After tax boost, companies need to stimulate Indian economy

Government on Friday slashed effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies.

Making the announcement, Finance Minister Nirmala Sitharaman said the new tax rate will be applicable from the current fiscal which began on April 1.

"We today propose to slash the corporate tax rates for domestic companies and also for new domestic manufacturing companies," Sitharaman told media here."

A new provision has been inserted in the Income Tax Act with effect from the fiscal year 2019-20, which allows any domestic company an option to pay income tax at the rate of 22 per cent subject to the condition that they will not avail any exemptions or incentive," she said.

She went on to highlight that "such companies shall not be required to pay any minimum alternative tax."

Moreover, to attract investment in manufacturing, local companies incorporated after October 2019 will pay tax at 15 per cent, Sitharaman said.

Sitharaman stated that the corporate tax rate will be 22 per cent without exemptions, inclusive of surcharge and cess. "No Minimum Alternate Tax (MAT) applicable to such companies," she said.

(With inputs from ANI)

Government on Friday slashed effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies. Making the announcement, Finance Minister Nirmala Sitharaman said the new tax rate will be applicable from the current fiscal which began on April 1.

Government on Friday slashed effective corporate tax to 25.17 per cent inclusive of all cess and surcharges for domestic companies. Making the announcement, Finance Minister Nirmala Sitharaman said the new tax rate will be applicable from the current fiscal which began on April 1. "We today propose to slash the corporate tax rates for domestic companies and also for new domestic manufacturing companies," Sitharaman told media here." A new provision has been inserted in the Income Tax Act with effect from the fiscal year 2019-20, which allows any domestic company an option to pay income tax at the rate of 22 per cent subject to the condition that they will not avail any exemptions or incentive," she said. She went on to highlight that "such companies shall not be required to pay any minimum alternative tax." Moreover, to attract investment in manufacturing, local companies incorporated after October 2019 will pay tax at 15 per cent, Sitharaman said. Sitharaman stated that the corporate tax rate will be 22 per cent without exemptions, inclusive of surcharge and cess. "No Minimum Alternate Tax (MAT) applicable to such companies," she said. (With inputs from ANI)

Government slashes corporate tax to 25.17% for domestic companies

The Income Tax (I-T) Department has made history with the highest ever jump in the e-filing of income-tax returns (ITRs).

An all-time high of 49,29,121 ITRs were filed in a single day on August 31, said the Central Board of Direct Taxes (CBDT) on Sunday.

CBDT said the peak filing rate per second on August 31 was at 196 ITRs and peak filing rate per minute was at 7,447 ITRs while peak filing rate per hour was at 3,87,571 ITRs.

The Information Security team of I-T Department thwarted over 2,205 malicious attacks on the website aimed at disrupting services in the peak period.

"This has perhaps created a history as the tax administration nowhere in the world has achieved such huge online e-filing ITRs in a single day and that too so smoothly; with the I-T Department actively interacting with taxpayers on social media to help them resolve their grievances and e-filing related queries and getting accolades in return," said the CBDT in a statement.

CBDT, which on Sunday released the data on e-filing of ITRs for which the last date of submission was August 31, 2019, said "this is a remarkable achievement as taxpayers are experiencing a whole new facet of the I-T Department, which is not only taxpayer-friendly but is also of a facilitator providing informational assistance with the pre-filled forms and handholding e-filers, besides being proactively responsive on social media to help and guide taxpayers."

The Income Tax (I-T) Department has made history with the highest ever jump in the e-filing of income-tax returns (ITRs). An all-time high of 49,29,121 ITRs were filed in a single day on August 31, said the Central Board of Direct Taxes (CBDT) on Sunday.

The Income Tax (I-T) Department has made history with the highest ever jump in the e-filing of income-tax returns (ITRs). An all-time high of 49,29,121 ITRs were filed in a single day on August 31, said the Central Board of Direct Taxes (CBDT) on Sunday. CBDT said the peak filing rate per second on August 31 was at 196 ITRs and peak filing rate per minute was at 7,447 ITRs while peak filing rate per hour was at 3,87,571 ITRs. The Information Security team of I-T Department thwarted over 2,205 malicious attacks on the website aimed at disrupting services in the peak period. "This has perhaps created a history as the tax administration nowhere in the world has achieved such huge online e-filing ITRs in a single day and that too so smoothly; with the I-T Department actively interacting with taxpayers on social media to help them resolve their grievances and e-filing related queries and getting accolades in return," said the CBDT in a statement. CBDT, which on Sunday released the data on e-filing of ITRs for which the last date of submission was August 31, 2019, said "this is a remarkable achievement as taxpayers are experiencing a whole new facet of the I-T Department, which is not only taxpayer-friendly but is also of a facilitator providing informational assistance with the pre-filled forms and handholding e-filers, besides being proactively responsive on social media to help and guide taxpayers."

Highest ever 49,29,121 income-tax returns filed in single day on August 31: Central Board of Direct Taxes

Polish teenager Franciszek Filipowski has just signed on for his first job at a vegetarian restaurant in Warsaw and thanks to a <a href="https://www.wionews.com/world/poland-scraps-income-tax-for-young-workers-239679">new government measure</a>, he will not be paying taxes.

"The current party in power has scrapped taxes for those under the age of 26," the 19-year-old told AFP.&nbsp;

"That way, they appear sympathetic towards young voters," he said, suggesting it could be a calculated political move ahead of a general election in October.

The tax break, which came into effect on August 1, could benefit around two million youths in the country of 38 million people, as it only applies to employees, not young entrepreneurs, according to Deputy Finance Minister Leszek Skiba.

He told AFP he hopes the legislation will encourage young people to quickly join the labour market, which is increasingly lacking in workers.&nbsp;

The under-26 workforce will now receive fatter paychecks since their employers no longer have to hold back 18 per cent of the salary to hand over to tax authorities.&nbsp;

'Magic wand'

The government is also hoping the measure will discourage young people from emigrating in search of higher wages.

"It's impossible to predict everything... but we think that any young people who are debating whether to stay or go work abroad will see that the gap between their net salary here and abroad is diminishing and that will motivate them to stay in Poland," Skiba said.&nbsp;

In addition, "some of those who are already in Western Europe -- in Germany, Britain, France or Ireland -- will see a reason to consider a return home," he said.&nbsp;

Skiba said the state could see around 2.5 billion zloty (580 million euros, $650 million) less in revenue, half of which would have gone to government coffers and half to local authorities.&nbsp;

'Populism'

Another young man interviewed by AFP, 23-year-old Jan Piotrowski, said he is sceptical regarding the whole initiative.&nbsp;

"The idea was floated just before the EU elections, so there's an element of populism," said Piotrowski, who had previously worked in commerce and at a bank and is now looking for a job in the logistics sector.&nbsp;

"I don't expect to receive a windfall. More something along the lines of an extra 100 to 200 zloty (23-46 euros, $26-52)" per month, he said.&nbsp;

There are no statistics for the average monthly wage specifically for young people, only for the working population as a whole, where it is a net 3,700 zloty (860 euros).&nbsp;

But to provide an idea of how marginal the increase in a young person's take-home pay might be: a burger costs around 25 zloty.

Piotrowski said he has been "considering moving abroad for work over the last couple years" and such a small amount extra will not sway him.&nbsp;

"I don't like the current government's policies and I don't expect them to change. A lot of my friends have the same view," he told AFP.

"Polish salaries won't skyrocket. Housing is expensive, the price of food is going up as well, slowly but surely,"

Some economists are also not convinced by the government plan.&nbsp;

"Eliminating this tax won't make much of a difference for the economy," said Andrzej Sadowski, president of the Adam Smith Centre, a Polish think-tank espousing free market views.

"For an employer, it's not the 18 per cent tax on income that's expensive, it's the social security charges of just over 40 per cent," he told AFP.&nbsp;

Employees pay about 24 per cent of their gross salary in social security contributions in Poland and employers around 18 per cent.

Like Sweden

Still, he believes that it is employers who will benefit the most from the programme.

"Now when they hire a young person, they'll be able to offer a salary on which they won't have to pay 18 per cent in taxes," he said.&nbsp;

Sadowski does not discount an electoral motivation for the legislation, saying that "in Poland, like in France, the government often gives voters gifts ahead of the election."

"In this particular case, the measure favouring youths is meant to offset the negative effect of higher social security charges for small businesses," which are to come into effect in January, he said.&nbsp;

Supporters of the new tax break see a precedent in Sweden, where in 2007 the centre-right government slashed employer charges in half for people under 26 years of age to ease their access to the job market.

The following centre-left administration scrapped the move in 2016, saying it was ineffective.&nbsp; 
&nbsp;

Polish teenager Franciszek Filipowski has just signed on for his first job at a vegetarian restaurant in Warsaw and thanks to a new government measure, he will not be paying taxes.

Polish teenager Franciszek Filipowski has just signed on for his first job at a vegetarian restaurant in Warsaw and thanks to a new government measure, he will not be paying taxes. "The current party in power has scrapped taxes for those under the age of 26," the 19-year-old told AFP. "That way, they appear sympathetic towards young voters," he said, suggesting it could be a calculated political move ahead of a general election in October. The tax break, which came into effect on August 1, could benefit around two million youths in the country of 38 million people, as it only applies to employees, not young entrepreneurs, according to Deputy Finance Minister Leszek Skiba. He told AFP he hopes the legislation will encourage young people to quickly join the labour market, which is increasingly lacking in workers. The under-26 workforce will now receive fatter paychecks since their employers no longer have to hold back 18 per cent of the salary to hand over to tax authorities. 'Magic wand' The government is also hoping the measure will discourage young people from emigrating in search of higher wages. "It's impossible to predict everything... but we think that any young people who are debating whether to stay or go work abroad will see that the gap between their net salary here and abroad is diminishing and that will motivate them to stay in Poland," Skiba said. In addition, "some of those who are already in Western Europe -- in Germany, Britain, France or Ireland -- will see a reason to consider a return home," he said. Skiba said the state could see around 2.5 billion zloty (580 million euros, $650 million) less in revenue, half of which would have gone to government coffers and half to local authorities. 'Populism' Another young man interviewed by AFP, 23-year-old Jan Piotrowski, said he is sceptical regarding the whole initiative. "The idea was floated just before the EU elections, so there's an element of populism," said Piotrowski, who had previously worked in commerce and at a bank and is now looking for a job in the logistics sector. "I don't expect to receive a windfall. More something along the lines of an extra 100 to 200 zloty (23-46 euros, $26-52)" per month, he said. There are no statistics for the average monthly wage specifically for young people, only for the working population as a whole, where it is a net 3,700 zloty (860 euros). But to provide an idea of how marginal the increase in a young person's take-home pay might be: a burger costs around 25 zloty. Piotrowski said he has been "considering moving abroad for work over the last couple years" and such a small amount extra will not sway him. "I don't like the current government's policies and I don't expect them to change. A lot of my friends have the same view," he told AFP. "Polish salaries won't skyrocket. Housing is expensive, the price of food is going up as well, slowly but surely," Some economists are also not convinced by the government plan. "Eliminating this tax won't make much of a difference for the economy," said Andrzej Sadowski, president of the Adam Smith Centre, a Polish think-tank espousing free market views. "For an employer, it's not the 18 per cent tax on income that's expensive, it's the social security charges of just over 40 per cent," he told AFP. Employees pay about 24 per cent of their gross salary in social security contributions in Poland and employers around 18 per cent. Like Sweden Still, he believes that it is employers who will benefit the most from the programme. "Now when they hire a young person, they'll be able to offer a salary on which they won't have to pay 18 per cent in taxes," he said. Sadowski does not discount an electoral motivation for the legislation, saying that "in Poland, like in France, the government often gives voters gifts ahead of the election." "In this particular case, the measure favouring youths is meant to offset the negative effect of higher social security charges for small businesses," which are to come into effect in January, he said. Supporters of the new tax break see a precedent in Sweden, where in 2007 the centre-right government slashed employer charges in half for people under 26 years of age to ease their access to the job market. The following centre-left administration scrapped the move in 2016, saying it was ineffective.

Poland scraps taxes for young adults to curb emigration

Polish lawmakers have approved a measure that would exonerate most workers under the age of 26 from income taxes as the country seeks to stem the flow of its young people to other EU nations in search of better-paying jobs.

The lower house of parliament approved the measure introduced by the ruling conservatives in a vote late Thursday by an overwhelming majority.

The bill would exonerate workers under the age of 26 from Poland's 18 per cent personal income tax for those whose gross earnings don't surpass 85,500 zlotys (20,000 euros, $22,500) per year.

That level is higher than Poland's average income, estimated to be around 60,000 zlotys per year before tax.

The approval of the measure by the upper house of parliament and its signature by the president is widely expected.

Some two million people could benefit from the measure, according to supporters of the legislation, which should enter into force from August 1.

Poland has long been haemorrhaging skilled workers to other EU states where they can find better-paying jobs, posing both a long-term demographic risk and short-term problem finding enough labourers to continue the country's streak of economic growth since the fall of communism in 1989.

The measure was one of the campaign promises made by the ruling Law and Justice party ahead of the European parliamentary elections in May, which it won, and legislative elections scheduled for later this year.

Polish lawmakers have approved a measure that would exonerate most workers under the age of 26 from income taxes as the country seeks to stem the flow of its young people to other EU nations in search of better-paying jobs.

Polish lawmakers have approved a measure that would exonerate most workers under the age of 26 from income taxes as the country seeks to stem the flow of its young people to other EU nations in search of better-paying jobs. The lower house of parliament approved the measure introduced by the ruling conservatives in a vote late Thursday by an overwhelming majority. The bill would exonerate workers under the age of 26 from Poland's 18 per cent personal income tax for those whose gross earnings don't surpass 85,500 zlotys (20,000 euros, $22,500) per year. That level is higher than Poland's average income, estimated to be around 60,000 zlotys per year before tax. The approval of the measure by the upper house of parliament and its signature by the president is widely expected. Some two million people could benefit from the measure, according to supporters of the legislation, which should enter into force from August 1. Poland has long been haemorrhaging skilled workers to other EU states where they can find better-paying jobs, posing both a long-term demographic risk and short-term problem finding enough labourers to continue the country's streak of economic growth since the fall of communism in 1989. The measure was one of the campaign promises made by the ruling Law and Justice party ahead of the European parliamentary elections in May, which it won, and legislative elections scheduled for later this year.

Poland moves to exempt young workers from income tax

The Income Tax department has issued Rs 64,700 crore worth refunds in the current fiscal, and for full 2018-19 fiscal the amount released was over Rs 1.61 lakh crore, Finance Minister Nirmala Sitharaman said Monday.

In a written reply to a question in the Lok Sabha, she said over 6.49 crore electronic returns were submitted for the assessment year 2018-19 (the financial year 2017-18), up 18.65 per cent from over 5.47 crore in the assessment year 2017-18.

"The government has accorded high priority to issue refunds for all taxpayers including small taxpayers. Less than 0.5 per cent of income tax returns (ITRs) are selected for scrutiny, the majority of ITRs are processed expeditiously and refunds are issued," Sitharaman said, adding that with the increased use of technology the time taken to process ITRs is constantly reducing.

Refunds amounting to Rs 64,700 crore have already been issued in this financial year till June 18, 2019, and the total amount of refund released in the Financial year 2018-19, was over Rs 1.61 lakh crore.

Sitharaman further said that 26.9 crore SMS and emails were sent to taxpayers in 2018-19, reminding them to file their ITRs on time.

In January 2019, the Government had approved integrated e-filing and Centralised Processing Centre (CPC) 2.0 project of the I-T department to process returns in a timely manner, the minister said.

The project envisages pre-filing of ITRs by the I-T department so as to improve the accuracy of the information contained in the return and drastically reduce the time taken to process returns and issue refunds.

The Income Tax department has issued Rs 64,700 crore worth refunds in the current fiscal, and for full 2018-19 fiscal the amount released was over Rs 1.61 lakh crore, Finance Minister Nirmala Sitharaman said Monday.

The Income Tax department has issued Rs 64,700 crore worth refunds in the current fiscal, and for full 2018-19 fiscal the amount released was over Rs 1.61 lakh crore, Finance Minister Nirmala Sitharaman said Monday. In a written reply to a question in the Lok Sabha, she said over 6.49 crore electronic returns were submitted for the assessment year 2018-19 (the financial year 2017-18), up 18.65 per cent from over 5.47 crore in the assessment year 2017-18. "The government has accorded high priority to issue refunds for all taxpayers including small taxpayers. Less than 0.5 per cent of income tax returns (ITRs) are selected for scrutiny, the majority of ITRs are processed expeditiously and refunds are issued," Sitharaman said, adding that with the increased use of technology the time taken to process ITRs is constantly reducing. Refunds amounting to Rs 64,700 crore have already been issued in this financial year till June 18, 2019, and the total amount of refund released in the Financial year 2018-19, was over Rs 1.61 lakh crore. Sitharaman further said that 26.9 crore SMS and emails were sent to taxpayers in 2018-19, reminding them to file their ITRs on time. In January 2019, the Government had approved integrated e-filing and Centralised Processing Centre (CPC) 2.0 project of the I-T department to process returns in a timely manner, the minister said. The project envisages pre-filing of ITRs by the I-T department so as to improve the accuracy of the information contained in the return and drastically reduce the time taken to process returns and issue refunds.

Income Tax department issued Rs 64,700 crore refund between April 1 and June 18: Nirmala Sitharaman

The government on Tuesday compulsorily retired 15 senior Customs officials in its ongoing drive against corruption. The comes more than a week after 12 senior income tax officers were dismissed from service on charges of corruption.

The list includes an ADG-rank officer against whom there are two CBI cases and faces charges of bribery.

It also includes Commissioners and Additional Commissioners, some of whom have already been suspended. Most of these case are of amassing of disproportionate assets.

In the crackdown on June 10, the list was topped by a Joint Commissioner rank officer against whom there are serious complaints of corruption and extortion from businessmen accused of helping self-styled godman Chandraswami.

Another IRS officer part of the list relased on June 10 had compulsorily retired and acquired movable and immovable assets worth over Rs 3.17 crore in the name of self and his family members. These movable and immovable properties had allegedly been acquired by abusing his official position and by corrupt and illegal means.

The government on Tuesday compulsorily retired 15 senior Customs officials in its ongoing drive against corruption. The comes more than a week after 12 senior income tax officers were dismissed from service on charges of corruption.

The government on Tuesday compulsorily retired 15 senior Customs officials in its ongoing drive against corruption. The comes more than a week after 12 senior income tax officers were dismissed from service on charges of corruption. The list includes an ADG-rank officer against whom there are two CBI cases and faces charges of bribery. It also includes Commissioners and Additional Commissioners, some of whom have already been suspended. Most of these case are of amassing of disproportionate assets. In the crackdown on June 10, the list was topped by a Joint Commissioner rank officer against whom there are serious complaints of corruption and extortion from businessmen accused of helping self-styled godman Chandraswami. Another IRS officer part of the list relased on June 10 had compulsorily retired and acquired movable and immovable assets worth over Rs 3.17 crore in the name of self and his family members. These movable and immovable properties had allegedly been acquired by abusing his official position and by corrupt and illegal means.

Government compulsorily retires 15 corrupt Customs officers

Unfazed by the <a href="https://www.wionews.com/india-news/just-a-couple-of-days-before-lok-sabha-polls-in-tamil-nadu-it-department-raids-dmk-leader-kanimozhis-house-210996">Income Tax (I-T) department</a> raids at her residence, DMK leader Kanimozhi on Wednesday said that the BJP cannot prevent her for winning in the ongoing elections.

She also dubbed the raids as "anti-democratic, deliberately planned and tested".

"BJP cannot prevent my success through this income tax raid. The raid is anti-democratic, deliberately planned and tested, and no documents have been seized," Kanimozhi told reporters here after completion of raids.

"They want to intimidate us through this. They have come to stop elections in Thoothukudi. DMK volunteers will be working with more enthusiasm," she added.

"On Tuesday evening, I-T department conducted raids at a house in which Kanimozhi is staying on the information shared by the local administration," sources added.

According to sources, Kanimozhi was present during the raids and cooperated with the team. However, "I-T dept found nothing but verification is on."

The raids have been completed.

Reportedly, it was alleged that "lots of cash" was stashed on the first floor of her house in Thoothukudi.

This comes two days before the Tamil Nadu votes on April 18 for 39 seats.

The DMK candidate from Thoothukudi Lok Sabha seat, Kanimozhi is the sister of party chief MK Stalin.

Even as the house was being searched a posse of DMK supporters gathered outside and staged a demonstration raising anti-Modi slogans.

Reacting to the raids, DMK president Stalin said: "I got a message that Kanimozhi's premises are being raided. BJP candidate Tamilisai Soundarajan's premises have crores and crores of rupees are kept there. Why no raids there? Who will take action? Modi used I-T department, Central Bureau of Investigation, Judiciary and latest in the row is Election Commission of India to interfere in the electoral process."

Stalin said," They are doing this because of the fear of losing."

"This is basically murder of democracy. Rs. 2000 note is being widely offered in the elections, will you report this? In Theni constituency, Rs. 1000 note is being offered to voters, what about that? Tamil Nadu minister Velumani is accused of distributing money, his close aide Sabesan's premises is raided, no one reported, no news on this," he added.

Unfazed by the Income Tax (I-T) department raids at her residence, DMK leader Kanimozhi on Wednesday said that the BJP cannot prevent her for winning in the ongoing elections.

Unfazed by the Income Tax (I-T) department raids at her residence, DMK leader Kanimozhi on Wednesday said that the BJP cannot prevent her for winning in the ongoing elections. She also dubbed the raids as "anti-democratic, deliberately planned and tested". "BJP cannot prevent my success through this income tax raid. The raid is anti-democratic, deliberately planned and tested, and no documents have been seized," Kanimozhi told reporters here after completion of raids. "They want to intimidate us through this. They have come to stop elections in Thoothukudi. DMK volunteers will be working with more enthusiasm," she added. "On Tuesday evening, I-T department conducted raids at a house in which Kanimozhi is staying on the information shared by the local administration," sources added. According to sources, Kanimozhi was present during the raids and cooperated with the team. However, "I-T dept found nothing but verification is on." The raids have been completed. Reportedly, it was alleged that "lots of cash" was stashed on the first floor of her house in Thoothukudi. This comes two days before the Tamil Nadu votes on April 18 for 39 seats. The DMK candidate from Thoothukudi Lok Sabha seat, Kanimozhi is the sister of party chief MK Stalin. Even as the house was being searched a posse of DMK supporters gathered outside and staged a demonstration raising anti-Modi slogans. Reacting to the raids, DMK president Stalin said: "I got a message that Kanimozhi's premises are being raided. BJP candidate Tamilisai Soundarajan's premises have crores and crores of rupees are kept there. Why no raids there? Who will take action? Modi used I-T department, Central Bureau of Investigation, Judiciary and latest in the row is Election Commission of India to interfere in the electoral process." Stalin said," They are doing this because of the fear of losing." "This is basically murder of democracy. Rs. 2000 note is being widely offered in the elections, will you report this? In Theni constituency, Rs. 1000 note is being offered to voters, what about that? Tamil Nadu minister Velumani is accused of distributing money, his close aide Sabesan's premises is raided, no one reported, no news on this," he added.

BJP cannot stop me for winning, says Kanimozhi after I-T raid

Income tax officials Tuesday carried out coordinated<a href="https://www.google.com/url?q=https://www.wionews.com/india-news/it-raids-continue-at-various-locations-in-madhya-pradesh-security-heightened-208681&amp;sa=U&amp;ved=0ahUKEwi0_Yr7itThAhUM6XMBHSm7AzYQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw3oa_gTVL_qZZMX3hh6t4Mz"> raids</a> at premises owned by people allegedly linked to JD(S) in Mandya and Hassan districts, where party supremo H D Deve Gowda's grandsons Nikhil Kumaraswamy and Prajwal Revanna are contesting their maiden Lok Sabha elections.

Sources in the I-T department said the searches were conducted by four teams, each comprising 15 officials at the offices, residences and factory premises of people allegedly associated with the JD(S) leadership.

The officials were accompanied by CRPF personnel.

JD(S) and its ally Congress have been alleging that the BJP-led government at the Centre has been "misusing" central agencies to pursue its "politics of vendetta."

On March 28, leaders of both the parties led by chief minister H D Kumaraswamy, former chief minister Siddaramaiah, deputy chief minister G Parameshwara had staged a demonstration outside the income tax office when the raids began.

The Principal Chief Commissioner of Income Tax (Karnataka-Goa region) B R Balakrishnan had even written to the Chief Electoral Officer of Karnataka seeking action against those who staged demonstrations, threatened the officials and interrupted them from discharging their duties under various sections of the IPC.

Meanwhile, an income tax department release said, "Today the Income-tax department is carrying out searches in Hassan, Mandya and Bangalore.

The searches being conducted today are based on credible intelligence that certain businessmen have earned income not disclosed to tax and are in possession of undisclosed assets."

"The taxpayers covered in today's search operations are engaged in real estate, quarrying and stone crushing, executing government contracts, operating petrol bunks, sawmill and managing cooperative Banks.

These are sectors which are prone to generation of black money," it said.

The release further said five residences in Hassan, one in Bangalore and one in Mandya along with their business premises were covered as part of the search operations.&nbsp;

Income tax officials Tuesday carried out coordinated raids at premises owned by people allegedly linked to JD(S) in Mandya and Hassan districts, where party supremo H D Deve Gowda's grandsons Nikhil Kumaraswamy and Prajwal Revanna are contesting their maiden Lok Sabha elections.

Income tax officials Tuesday carried out coordinated raids at premises owned by people allegedly linked to JD(S) in Mandya and Hassan districts, where party supremo H D Deve Gowda's grandsons Nikhil Kumaraswamy and Prajwal Revanna are contesting their maiden Lok Sabha elections. Sources in the I-T department said the searches were conducted by four teams, each comprising 15 officials at the offices, residences and factory premises of people allegedly associated with the JD(S) leadership. The officials were accompanied by CRPF personnel. JD(S) and its ally Congress have been alleging that the BJP-led government at the Centre has been "misusing" central agencies to pursue its "politics of vendetta." On March 28, leaders of both the parties led by chief minister H D Kumaraswamy, former chief minister Siddaramaiah, deputy chief minister G Parameshwara had staged a demonstration outside the income tax office when the raids began. The Principal Chief Commissioner of Income Tax (Karnataka-Goa region) B R Balakrishnan had even written to the Chief Electoral Officer of Karnataka seeking action against those who staged demonstrations, threatened the officials and interrupted them from discharging their duties under various sections of the IPC. Meanwhile, an income tax department release said, "Today the Income-tax department is carrying out searches in Hassan, Mandya and Bangalore. The searches being conducted today are based on credible intelligence that certain businessmen have earned income not disclosed to tax and are in possession of undisclosed assets." "The taxpayers covered in today's search operations are engaged in real estate, quarrying and stone crushing, executing government contracts, operating petrol bunks, sawmill and managing cooperative Banks. These are sectors which are prone to generation of black money," it said. The release further said five residences in Hassan, one in Bangalore and one in Mandya along with their business premises were covered as part of the search operations.

IT raids at premises of people linked to JDS in Mandya, Hassan

The Madhya Pradesh Lokayukta has refused to share details on search operations conducted by the Income Tax department against corrupt public servants of the state government citing an exemption clause under the RTI Act.&nbsp;

RTI activist Ajay Dubey had sought details related to search operations conducted by the Income Tax department from the Lokayukta. He had also sought details of corruption cases registered by it since July 2017 among other information.

In its reply, the Lokayukta said the information sought is in "question-answer" format. Therefore, it cannot be given. It also cited Section 2 (F) of the Right to Information (RTI) Act and said the desired details do not constitute information mentioned in the transparency law.

The information thus cannot be constructed and cannot be given, the Lokayukta said. The section describes "information" as any material in any form, including records, documents, memos, e-mails, opinions, advice, press releases, circulars, orders, logbooks, contracts, reports, papers, samples, models, data material held in any electronic form and information relating to any private body which can be accessed by a public authority under any other law for the time being in force.

To a query on sharing details on information given by the Income Tax department related to the search operations conducted against corrupt government employees, it said the information cannot be made public as its investigating arm - Special Police Establishment (SPE) - was exempt under the transparency law from disclosing such details.

"The Income Tax department shares details of search operations conducted against corrupt government employees with the Lokayukta of the state concerned so that it can also act against them. The Lokayukta has adopted an anti-transparency attitude by blocking access to the information sought," Mr Dubey said.

The Income Tax department recently carried out raids at over 50 locations, including in Delhi and Madhya Pradesh, against close aides of Madhya Pradesh Chief Minister Kamal Nath on charges of tax evasion and hawala transactions.

Searches have detected widespread and well-organized racket of a collection of unaccounted cash of about Rs. 281 crore through various persons in different walks of life including business, politics and public service, a press release issued by the Income Tax department in Delhi on April 8 had said.

The Madhya Pradesh Lokayukta has refused to share details on search operations conducted by the Income Tax department against corrupt public servants of the state government citing an exemption clause under the RTI Act.

The Madhya Pradesh Lokayukta has refused to share details on search operations conducted by the Income Tax department against corrupt public servants of the state government citing an exemption clause under the RTI Act. RTI activist Ajay Dubey had sought details related to search operations conducted by the Income Tax department from the Lokayukta. He had also sought details of corruption cases registered by it since July 2017 among other information. In its reply, the Lokayukta said the information sought is in "question-answer" format. Therefore, it cannot be given. It also cited Section 2 (F) of the Right to Information (RTI) Act and said the desired details do not constitute information mentioned in the transparency law. The information thus cannot be constructed and cannot be given, the Lokayukta said. The section describes "information" as any material in any form, including records, documents, memos, e-mails, opinions, advice, press releases, circulars, orders, logbooks, contracts, reports, papers, samples, models, data material held in any electronic form and information relating to any private body which can be accessed by a public authority under any other law for the time being in force. To a query on sharing details on information given by the Income Tax department related to the search operations conducted against corrupt government employees, it said the information cannot be made public as its investigating arm - Special Police Establishment (SPE) - was exempt under the transparency law from disclosing such details. "The Income Tax department shares details of search operations conducted against corrupt government employees with the Lokayukta of the state concerned so that it can also act against them. The Lokayukta has adopted an anti-transparency attitude by blocking access to the information sought," Mr Dubey said. The Income Tax department recently carried out raids at over 50 locations, including in Delhi and Madhya Pradesh, against close aides of Madhya Pradesh Chief Minister Kamal Nath on charges of tax evasion and hawala transactions. Searches have detected widespread and well-organized racket of a collection of unaccounted cash of about Rs. 281 crore through various persons in different walks of life including business, politics and public service, a press release issued by the Income Tax department in Delhi on April 8 had said.

Madhya Pradesh Lokayukta refuses to share details on I-T searches against corrupt public servants

The Bombay High Court Monday refused to grant any relief to diamantaire Nirav Modi's company Camelot Enterprises which had challenged last week's auction by the Income Tax Department of some paintings and artwork belonging to the firm.

The petitioner, Camelot Enterprises, a shell company in which Nirav Modi holds over 99 per cent shares, had approached the high court last week challenging the tax assessment report of the I-T Department, and the department's subsequent notice proposing the recovery proceedings through the said auction.

A bench of Justices Akil Kureshi and Sarang Kotwal, however, rejected the petitioner's prayers for relief, noting among other things, that on the issue of the assessment order, Camelot had directly approached high court instead of filing an appeal before the concerned Appellate Tribunal.

The bench also noted that by not interfering with the auction that was held on March 26 this year, it was not putting the petitioner through an "irreversible situation".

"The petitioner does not claim any particular attachment to any painting or artwork. It hasn't challenged their valuation," the bench said.

"Incase the petitioner succeeds before the Appellate Authority, the amount recovered by the department through the auction can be returned to it with interest," it said.

The petitioner had also argued that the department had "failed" to serve, in a proper manner, notices, both for the assessment of dues and the auction.

It said the department had served notices to two of its directors, Ramesh Assar and Hemant Bhatt.

While Assar had resigned from the company when the notices were received in September last year, Bhatt was in judicial custody at the time.

Instead, Bhatt's son received the notice and told the department that he was incapable of replying to the same.

Therefore, the service of such notices must be held invalid by the court, the petitioner argued.

It further said of the 68 paintings put up for auction by the department, only 19 belonged to the company.

Therefore, the department should not have sold what did not belong to Camelot or to Nirav Modi.

Additional Solicitor General Anil Singh, who appeared for the I-T Department, however, argued that Camelot had merely made a statement denying ownership of all the paintings and artwork put up for auction.

It had not provided any legal evidence to prove that it did not own all of the paintings and artwork, Singh said.

Instead, "searches and inquiries conducted by the department" had led to the recovery of a total of 173 paintings and artwork belonging to the company.

Such artwork had been stored in a warehouse in Wadala, and the department had initiated the auction of 68 of such paintings and artwork to recover its tax dues, following valid notice and procedure, Singh said.

The ASG further argued that though the auction had been advertised and notified on its website and in newspapers, no one had come forward to claim ownership of such paintings and artwork which Camelot claimed did not belong to the company.

Therefore, it proved that all paintings and artwork were owned by Camelot, Singh said.

Besides, Singh argued, if Camelot indeed did not own the remaining paintings, then, it had no legal right or locus standi to challenge their sale.

On the issue of service of a notice, the ASG argued that in consonance with the law, the department had sent notices of the tax assessment and the recovery proceedings to the petitioner company and its known directors, Assar and Bhatt, through speed post and emails.

He also said Assar was shown by the petitioner to have resigned from the company a day after the notice for recovery proceedings had been dispatched.

There was also no evidence to prove that Assar had indeed resigned on the said date, he said.

The bench agreed that the petitioner had failed to provide any evidence to prove that it owned only 19 paintings.

"There is no explanation for why the petitioner, who claims to own only 19 paintings, had stored the remaining paintings at the same place at the warehouse, at its own cost. Also, no one has come forward to claim ownership of the remaining paintings. Therefore, the petition can't take shelter under this ground," the bench said.

Last month, a Prevention of Money Laundering Act (PMLA) court had allowed the I-T Department to auction selective artwork -- 68 of the 173 items recovered by the department and the Enforcement Directorate in a search -- allegedly belonging to Nirav Modi, to recover tax arrears.

The ED had provisionally attached the artwork, as part of the investigation into the Rs 13,500-crore Punjab National Bank fraud.

The I-T Department sold 55 of the 68 items and raised around Rs 55 crore through such auction.

The Bombay High Court Monday refused to grant any relief to diamantaire Nirav Modi's company Camelot Enterprises which had challenged last week's auction by the Income Tax Department of some paintings and artwork belonging to the firm.

The Bombay High Court Monday refused to grant any relief to diamantaire Nirav Modi's company Camelot Enterprises which had challenged last week's auction by the Income Tax Department of some paintings and artwork belonging to the firm. The petitioner, Camelot Enterprises, a shell company in which Nirav Modi holds over 99 per cent shares, had approached the high court last week challenging the tax assessment report of the I-T Department, and the department's subsequent notice proposing the recovery proceedings through the said auction. A bench of Justices Akil Kureshi and Sarang Kotwal, however, rejected the petitioner's prayers for relief, noting among other things, that on the issue of the assessment order, Camelot had directly approached high court instead of filing an appeal before the concerned Appellate Tribunal. The bench also noted that by not interfering with the auction that was held on March 26 this year, it was not putting the petitioner through an "irreversible situation". "The petitioner does not claim any particular attachment to any painting or artwork. It hasn't challenged their valuation," the bench said. "Incase the petitioner succeeds before the Appellate Authority, the amount recovered by the department through the auction can be returned to it with interest," it said. The petitioner had also argued that the department had "failed" to serve, in a proper manner, notices, both for the assessment of dues and the auction. It said the department had served notices to two of its directors, Ramesh Assar and Hemant Bhatt. While Assar had resigned from the company when the notices were received in September last year, Bhatt was in judicial custody at the time. Instead, Bhatt's son received the notice and told the department that he was incapable of replying to the same. Therefore, the service of such notices must be held invalid by the court, the petitioner argued. It further said of the 68 paintings put up for auction by the department, only 19 belonged to the company. Therefore, the department should not have sold what did not belong to Camelot or to Nirav Modi. Additional Solicitor General Anil Singh, who appeared for the I-T Department, however, argued that Camelot had merely made a statement denying ownership of all the paintings and artwork put up for auction. It had not provided any legal evidence to prove that it did not own all of the paintings and artwork, Singh said. Instead, "searches and inquiries conducted by the department" had led to the recovery of a total of 173 paintings and artwork belonging to the company. Such artwork had been stored in a warehouse in Wadala, and the department had initiated the auction of 68 of such paintings and artwork to recover its tax dues, following valid notice and procedure, Singh said. The ASG further argued that though the auction had been advertised and notified on its website and in newspapers, no one had come forward to claim ownership of such paintings and artwork which Camelot claimed did not belong to the company. Therefore, it proved that all paintings and artwork were owned by Camelot, Singh said. Besides, Singh argued, if Camelot indeed did not own the remaining paintings, then, it had no legal right or locus standi to challenge their sale. On the issue of service of a notice, the ASG argued that in consonance with the law, the department had sent notices of the tax assessment and the recovery proceedings to the petitioner company and its known directors, Assar and Bhatt, through speed post and emails. He also said Assar was shown by the petitioner to have resigned from the company a day after the notice for recovery proceedings had been dispatched. There was also no evidence to prove that Assar had indeed resigned on the said date, he said. The bench agreed that the petitioner had failed to provide any evidence to prove that it owned only 19 paintings. "There is no explanation for why the petitioner, who claims to own only 19 paintings, had stored the remaining paintings at the same place at the warehouse, at its own cost. Also, no one has come forward to claim ownership of the remaining paintings. Therefore, the petition can't take shelter under this ground," the bench said. Last month, a Prevention of Money Laundering Act (PMLA) court had allowed the I-T Department to auction selective artwork -- 68 of the 173 items recovered by the department and the Enforcement Directorate in a search -- allegedly belonging to Nirav Modi, to recover tax arrears. The ED had provisionally attached the artwork, as part of the investigation into the Rs 13,500-crore Punjab National Bank fraud. The I-T Department sold 55 of the 68 items and raised around Rs 55 crore through such auction.

Mumbai: No High Court relief for Nirav Modi firm in I-T Dept's painting auction

The Income Tax Department on Monday claimed to have busted a <a href="http://www.wionews.com/south-asia/kapil-mishra-alleges-aap-received-money-through-hawala-network-15786?amp">nexus of hawala</a> operators who were running a <a href="http://www.wionews.com/india-news/madhya-pradesh-assembly-elections-2018-rs-500-crore-hawala-cash-documents-recovered-before-polls-177234">money laundering racket</a> in the national capital estimated to be worth Rs 20,000 crore.

Official sources in the department said a "series of" raids and surveys were conducted by sleuths of the Delhi investigation unit of the I-T Department over the last few weeks in different business areas of old Delhi.

These operations led to the unearthing of illegal financial activities by three groups of operators, a senior official said.

A survey was conducted on one such group in the Naya Bazar area, that led to the detection of bogus billing of about Rs 18,000 crore. This group had floated a dozen bogus entities for providing fake bills, the official said.

The identities of the accused were not disclosed by the department.

In the second case, a "highly organised" money laundering racket has been unearthed where current transactions in well-known shares were fraudulently camouflaged as being sales of old shares held for years, the official said.

He said this way, the beneficiaries have been found claiming "bogus long-term capital gains."

The taxman suspects the magnitude of this purported scam to be over Rs 1,000 crore.

"This figure appears to be the tip of the iceberg. This modus operandi has been found to be going on for many years," the official said.

The department similarly conducted searches against a group and found "undisclosed foreign bank accounts and a well-established racket of claiming bogus duty drawback/GST through over-invoicing of exports."

"Preliminary estimates of such bogus exports is more than Rs 1,500 crore," the official said.

The search teams have seized signed, un-signed papers, MoUs, agreements, cash loans and interest earned thereupon, documents of the settlement of financial disputes in cash, receipt of cash in settlement of disputed immovable properties among others of around Rs 100 crore, he said.

"Evidence of arranging foreign trips and foreign currency overseas to persons on undertaking these trips have also been noticed vis-a-vis probe in the third case," the official said.

The total amount of tax evasion detected is expected to be around Rs 20,000 crore, he said.

The Income Tax Department on Monday claimed to have busted a nexus of hawala operators who were running a money laundering racket in the national capital estimated to be worth Rs 20,000 crore.

The Income Tax Department on Monday claimed to have busted a nexus of hawala operators who were running a money laundering racket in the national capital estimated to be worth Rs 20,000 crore. Official sources in the department said a "series of" raids and surveys were conducted by sleuths of the Delhi investigation unit of the I-T Department over the last few weeks in different business areas of old Delhi. These operations led to the unearthing of illegal financial activities by three groups of operators, a senior official said. A survey was conducted on one such group in the Naya Bazar area, that led to the detection of bogus billing of about Rs 18,000 crore. This group had floated a dozen bogus entities for providing fake bills, the official said. The identities of the accused were not disclosed by the department. In the second case, a "highly organised" money laundering racket has been unearthed where current transactions in well-known shares were fraudulently camouflaged as being sales of old shares held for years, the official said. He said this way, the beneficiaries have been found claiming "bogus long-term capital gains." The taxman suspects the magnitude of this purported scam to be over Rs 1,000 crore. "This figure appears to be the tip of the iceberg. This modus operandi has been found to be going on for many years," the official said. The department similarly conducted searches against a group and found "undisclosed foreign bank accounts and a well-established racket of claiming bogus duty drawback/GST through over-invoicing of exports." "Preliminary estimates of such bogus exports is more than Rs 1,500 crore," the official said. The search teams have seized signed, un-signed papers, MoUs, agreements, cash loans and interest earned thereupon, documents of the settlement of financial disputes in cash, receipt of cash in settlement of disputed immovable properties among others of around Rs 100 crore, he said. "Evidence of arranging foreign trips and foreign currency overseas to persons on undertaking these trips have also been noticed vis-a-vis probe in the third case," the official said. The total amount of tax evasion detected is expected to be around Rs 20,000 crore, he said.

Income Tax department unearths Rs 20,000 cr hawala, money laundering racket in Delhi

Who doesn’t like a sweet surprise! Budget day started with much hype and contradicting opinions – would the interim Finance Minister (FM) stick to the conventional line or would he break convention? &nbsp;

As the FM presented the Interim Budget, given the manner in which the speech was read out, everyone started reconciling to the thought that there would be no change in direct tax provisions. And then suddenly, there was a ‘pop’ - much like a chocolaty explosion in the middle of hard toffee.&nbsp;

He saved the best for the last, ending with a slew of beneficial tax provisions for the common man. However, has he delivered on the expectations of individual taxpayers, especially the middle-class? &nbsp;Let us have a closer look at the personal tax proposals.

There is no change to the income tax rates and slabs. Instead, a tax rebate of Rs 12,500 has been proposed for resident individuals with taxable income not exceeding Rs 5 lakh. Effectively, no tax will be payable by such individuals.&nbsp;

The rebate will, in fact, provide relief to individuals with higher gross income, as rebate is calculated on the final tax payable after applying deductions available under various sections such as 80C (up to Rs 150,000 for investments such as insurance premium, PF contributions, school fees, principal repayment of home loan and PPF), section 80D for medical insurance premium, section 80E for interest on education loan and section 80TTA for interest on savings bank account, among others.&nbsp;

Standard deduction for salaried individuals has been increased by Rs 10,000 to Rs 50,000. Standard deduction up to Rs 40,000 was reintroduced in the last Budget.&nbsp;

Simultaneously, the deductions available for conveyance allowance and medical expenditure were withdrawn, giving a net benefit of only Rs 5,800.

With the proposed increase in the standard deduction of Rs 10,000, the salaried class will get much-needed relief.&nbsp;

Under the current provisions, a notional rental income is applied on more than one self-occupied house property. If a person owns more than one house property which are not let out, only one house can be considered as self-occupied and hence not be subject to tax.&nbsp;

Any additional house or property, if not rented out, is subject to tax on the basis of notional rental value. It is now proposed that this exemption benefit will be available to two such houses. This is a welcome provision, especially for individuals who have houses in different cities on account of their employment.&nbsp;

However, it is to be noted that the corresponding interest on home loans for both such houses will remain restricted to Rs 2 lakh in aggregate.&nbsp;

Furthermore, notional rent will still apply to more than two such houses.

Currently, an individual or Hindu undivided family (HUF) can avail exemption of long term capital gains arising from the sale of the residential house if the capital gains are re-invested in another residential house in India within the prescribed time period. This exemption has now been extended to reinvestment in two such residential houses.&nbsp;

However, this benefit is available only if the capital gains from the sale of the original residential house does not exceed Rs 2 crore. &nbsp;

Moreover, this exemption can be availed only once in the lifetime of the assessee.

The FM has also given relief through proposed amendments in TDS provisions. The threshold for deduction of tax on interest from bank/post office deposits has been increased from Rs 10,000 to Rs 40,000.&nbsp;

TDS provisions on rental income have also been liberalised by increasing the threshold from Rs 180,000 to Rs 240,000. &nbsp;

Both these provisions will provide relief to persons with limited income, as they will not face the hardship of having cash locked up in TDS refunds.&nbsp;

The tone of the Interim Budget was clearly to appease a cross-section of taxpayers. Apart from the specific provisions, the FM also emphasised on greater use of technology in tax administration to make compliance easier, viz. processing tax returns and refunds within 24 hours of filing, handling scrutiny assessments through electronic mode and reducing personal interaction with tax authorities.

He also thanked honest taxpayers for their contribution to nation building, referring to an increase in the number of tax filers and increase in direct tax collections.

Clearly, this government has chosen to move away from the convention of presenting only a vote on account in an election year. The common man will certainly hope that these proposed amendments are here to stay.&nbsp;

(The article is co-authored by Shikha Malsisaria)&nbsp;

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-budget-aimed-at-appeasing-cross-section-of-taxpayers-2716075">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Who doesn’t like a sweet surprise! Budget day started with much hype and contradicting opinions – would the interim Finance Minister (FM) stick to the conventional line or would he break convention?

Who doesn’t like a sweet surprise! Budget day started with much hype and contradicting opinions – would the interim Finance Minister (FM) stick to the conventional line or would he break convention? As the FM presented the Interim Budget, given the manner in which the speech was read out, everyone started reconciling to the thought that there would be no change in direct tax provisions. And then suddenly, there was a ‘pop’ - much like a chocolaty explosion in the middle of hard toffee. He saved the best for the last, ending with a slew of beneficial tax provisions for the common man. However, has he delivered on the expectations of individual taxpayers, especially the middle-class? Let us have a closer look at the personal tax proposals. There is no change to the income tax rates and slabs. Instead, a tax rebate of Rs 12,500 has been proposed for resident individuals with taxable income not exceeding Rs 5 lakh. Effectively, no tax will be payable by such individuals. The rebate will, in fact, provide relief to individuals with higher gross income, as rebate is calculated on the final tax payable after applying deductions available under various sections such as 80C (up to Rs 150,000 for investments such as insurance premium, PF contributions, school fees, principal repayment of home loan and PPF), section 80D for medical insurance premium, section 80E for interest on education loan and section 80TTA for interest on savings bank account, among others. Standard deduction for salaried individuals has been increased by Rs 10,000 to Rs 50,000. Standard deduction up to Rs 40,000 was reintroduced in the last Budget. Simultaneously, the deductions available for conveyance allowance and medical expenditure were withdrawn, giving a net benefit of only Rs 5,800. With the proposed increase in the standard deduction of Rs 10,000, the salaried class will get much-needed relief. Under the current provisions, a notional rental income is applied on more than one self-occupied house property. If a person owns more than one house property which are not let out, only one house can be considered as self-occupied and hence not be subject to tax. Any additional house or property, if not rented out, is subject to tax on the basis of notional rental value. It is now proposed that this exemption benefit will be available to two such houses. This is a welcome provision, especially for individuals who have houses in different cities on account of their employment. However, it is to be noted that the corresponding interest on home loans for both such houses will remain restricted to Rs 2 lakh in aggregate. Furthermore, notional rent will still apply to more than two such houses. Currently, an individual or Hindu undivided family (HUF) can avail exemption of long term capital gains arising from the sale of the residential house if the capital gains are re-invested in another residential house in India within the prescribed time period. This exemption has now been extended to reinvestment in two such residential houses. However, this benefit is available only if the capital gains from the sale of the original residential house does not exceed Rs 2 crore. Moreover, this exemption can be availed only once in the lifetime of the assessee. The FM has also given relief through proposed amendments in TDS provisions. The threshold for deduction of tax on interest from bank/post office deposits has been increased from Rs 10,000 to Rs 40,000. TDS provisions on rental income have also been liberalised by increasing the threshold from Rs 180,000 to Rs 240,000. Both these provisions will provide relief to persons with limited income, as they will not face the hardship of having cash locked up in TDS refunds. The tone of the Interim Budget was clearly to appease a cross-section of taxpayers. Apart from the specific provisions, the FM also emphasised on greater use of technology in tax administration to make compliance easier, viz. processing tax returns and refunds within 24 hours of filing, handling scrutiny assessments through electronic mode and reducing personal interaction with tax authorities. He also thanked honest taxpayers for their contribution to nation building, referring to an increase in the number of tax filers and increase in direct tax collections. Clearly, this government has chosen to move away from the convention of presenting only a vote on account in an election year. The common man will certainly hope that these proposed amendments are here to stay. (The article is co-authored by Shikha Malsisaria) (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Budget aimed at appeasing cross-section of taxpayers

India Budget 2019: Modi govt's interim budget today

Finance Minister Piyush Goyal on Friday said the government has allocated Rs 64,587 crore for railways in the Interim Budget for 2019-20.

Presenting the Interim Budget in Parliament, Goyal said: "Indian Railways has experienced its safest year in history. We are introducing container cargo movement to the North East.&nbsp;

"All unmanned level crossings on broad gauge network have been completely eliminated," he said.&nbsp;

He said: "Capital support from Budget for railways is proposed at Rs 64,587 crore for railways in 2019-20.

"In fact, railways` overall capital expenditure programme is historic at Rs 1,58,658 crore."

Goyal also said that the operating ratio of railways will come down to 95 per cent in 2019-20 from 96.2 per cent in 2018-19.

Finance Minister Piyush Goyal on Friday said the government has allocated Rs 64,587 crore for railways in the Interim Budget for 2019-20. Presenting the Interim Budget in Parliament, Goyal said: "Indian Railways has experienced its safest year in history.

Finance Minister Piyush Goyal on Friday said the government has allocated Rs 64,587 crore for railways in the Interim Budget for 2019-20. Presenting the Interim Budget in Parliament, Goyal said: "Indian Railways has experienced its safest year in history. We are introducing container cargo movement to the North East. "All unmanned level crossings on broad gauge network have been completely eliminated," he said. He said: "Capital support from Budget for railways is proposed at Rs 64,587 crore for railways in 2019-20. "In fact, railways` overall capital expenditure programme is historic at Rs 1,58,658 crore." Goyal also said that the operating ratio of railways will come down to 95 per cent in 2019-20 from 96.2 per cent in 2018-19.

Union Budget 2019: Rs 64,587 crore support for railways in 2019-20, says Goyal

Budget 2019: Full tax rebate for Rs 5 lakh income, says Piyush Goyal

Gross direct tax collections surged 15.7 per cent to Rs 6.75 lakh crore for April-November, the finance ministry said Monday. Refunds worth Rs 1.23 lakh crore have been issued in the eight months of the current fiscal, which is 20.8 per cent higher than refunds issued in the same period last year. 
 
The provisional figures of direct tax collections up to November 2018, show that gross collections are at Rs 6.75 lakh crore which is 15.7 per cent higher than the gross collections for the corresponding period of last year, the finance ministry said in a statement. 
 
The net direct tax collections represent 48 per cent of the total budget estimates of direct taxes for the financial year 2018-19 (Rs 11.50 lakh crore). Gross collections in corporate income tax (CIT) and personal income tax (PIT) grew 17.7 per cent and 18.3 per cent, respectively. 
 
After adjustment of refunds, the net growth in CIT collections is 18.4 per cent and that in PIT collections is 16 per cent. 
 
The finance ministry said collections of the corresponding period of last fiscal also included extraordinary collections under the Income Declaration Scheme (IDS), 2016, amounting to Rs 10,833 crore (third and last instalment of IDS), which do not form part of the current year’s collections.

Gross direct tax collections surged 15.7 per cent to Rs 6.75 lakh crore for April-November, the finance ministry said Monday. Refunds worth Rs 1.23 lakh crore have been issued in the eight months of the current fiscal, which is 20.

Gross direct tax collections surged 15.7 per cent to Rs 6.75 lakh crore for April-November, the finance ministry said Monday. Refunds worth Rs 1.23 lakh crore have been issued in the eight months of the current fiscal, which is 20.8 per cent higher than refunds issued in the same period last year. The provisional figures of direct tax collections up to November 2018, show that gross collections are at Rs 6.75 lakh crore which is 15.7 per cent higher than the gross collections for the corresponding period of last year, the finance ministry said in a statement. The net direct tax collections represent 48 per cent of the total budget estimates of direct taxes for the financial year 2018-19 (Rs 11.50 lakh crore). Gross collections in corporate income tax (CIT) and personal income tax (PIT) grew 17.7 per cent and 18.3 per cent, respectively. After adjustment of refunds, the net growth in CIT collections is 18.4 per cent and that in PIT collections is 16 per cent. The finance ministry said collections of the corresponding period of last fiscal also included extraordinary collections under the Income Declaration Scheme (IDS), 2016, amounting to Rs 10,833 crore (third and last instalment of IDS), which do not form part of the current year’s collections.

Direct tax collections surge 15.7% to Rs 6.75 lakh crore in April-November

Finance Minister Arun Jaitley Friday said the number of income tax-payers can double to almost 12 crore with the increased formalisation of the economy.

As many as 6.86 crore I-T returns have been filed this year and the number is expected to go up to 7.6 crore before the present government completes its five-year term, he said.

"3.8 crore people filed I-T returns in 2014 when the NDA government came to power. There are 25-26 crore families here. The country is capable of having a 10-11-12 crore tax payer base," Jaitley said at the 'Jagran Conclave' here.

India's normal rate of growth is 7.5-8 per cent and the country will continue to grow at this rate, despite some deviation in one or two quarters, he said.

"Oil prices are a drag.... India can continue to grow at the same pace for two decades, but we need mature leadership for that," the minister said.

The Indian economy grew at 6.7 per cent in 2017-18 fiscal. In the April-June and July-September quarters of the current financial year, the GDP expanded by 8.2 per cent and 7.1 per cent respectively.

Jaitley said India has the capacity to grow at least 5 per cent more than the average growth rate of the rest of the world.

Fitch Ratings in its Global Economic Outlook Thursday forecast global GDP growth at 3.3 per cent for 2018. India, it said, will grow at 7.2 per cent in the current fiscal ending March 2019.&nbsp;

Finance Minister Arun Jaitley Friday said the number of income tax-payers can double to almost 12 crore with the increased formalisation of the economy. As many as 6.

Finance Minister Arun Jaitley Friday said the number of income tax-payers can double to almost 12 crore with the increased formalisation of the economy. As many as 6.86 crore I-T returns have been filed this year and the number is expected to go up to 7.6 crore before the present government completes its five-year term, he said. "3.8 crore people filed I-T returns in 2014 when the NDA government came to power. There are 25-26 crore families here. The country is capable of having a 10-11-12 crore tax payer base," Jaitley said at the 'Jagran Conclave' here. India's normal rate of growth is 7.5-8 per cent and the country will continue to grow at this rate, despite some deviation in one or two quarters, he said. "Oil prices are a drag.... India can continue to grow at the same pace for two decades, but we need mature leadership for that," the minister said. The Indian economy grew at 6.7 per cent in 2017-18 fiscal. In the April-June and July-September quarters of the current financial year, the GDP expanded by 8.2 per cent and 7.1 per cent respectively. Jaitley said India has the capacity to grow at least 5 per cent more than the average growth rate of the rest of the world. Fitch Ratings in its Global Economic Outlook Thursday forecast global GDP growth at 3.3 per cent for 2018. India, it said, will grow at 7.2 per cent in the current fiscal ending March 2019.

Number of income tax payers can double to 12 crore: Jaitley

The Goods and Services Tax (GST) has been hailed as the biggest tax reform in India after independence. One of the principal advantages of the GST is that it is a tax on the value added. So, a firm producing a particular good or service has to pay tax only on the value it adds to the product, while deducting the tax payments made on its inputs (which have already been paid by the input supplier). These tax deductions on inputs are called Input Tax Credits (ITCs).

Firms can avail ITCs from the tax authorities only if they can show that their supplier of inputs paid GST on those inputs. This forces all firms in the value chain to maintain records of their tax payments as firms higher up the value chain will demand these records to avail their respective ITCs.

This self-policing feature of the GST is therefore expected to raise compliance and increase government revenues. It also has one more advantage. Firms in the informal sector are by definition out of the tax net. If these firms are suppliers of inputs to formal sector firms (that pay taxes), then they will be forced to register with the tax authorities and get their GSTIN numbers.

Otherwise, the formal sector firms that procure their products as inputs will switch over to formal sector suppliers as they can use the suppliers’ GSTIN numbers to avail ITCs. Thus, the GST is also expected to formalise the economy, as more and more hitherto informal firms register with the tax authorities.

But there is a reverse possibility also. Consider two firms A and B. A is the supplier of inputs to B. Assume A is in the informal sector and B is in the formal sector. According to the previous paragraph, B will force A to get a GSTIN number so that B can avail ITC.

So, A registers and comes into the formal sector. However, if the cost of GST compliance is very high, then B might instead be tempted to stop paying taxes or de-register and join the informal sector.

As a result, both A and B are now part of the informal sector and the entire value chain slips out of the tax net. Thus, if the costs of compliance are high enough, GST can actually shrink the formal economy and lower revenues.&nbsp;

Two American economists, de Paula and Scheinkman, studied the effects of the introduction of Value Added Tax (VAT) on Brazil. They found that the costs of compliance were so high that it marginally shrank the Brazilian formal sector initially. Later tax reforms reversed this trend and the formal sector expanded as expected. Has something like that happened in India?

It is too early to say given the limited data. No doubt there has been a 50 per cent increase in the indirect taxpayer base (according to the Economic Survey). But there is clear anecdotal evidence to suggest that firms are evading the payment of GST.

Thus, value chains are slipping out of the tax net. Steps are, therefore, being taken to reduce the costs of compliance and incentivise firms to pay GST. The attempts by various stakeholders to make this tax reform work is promising.

(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-impact-of-gst-on-the-formal-sector-2688997">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The Goods and Services Tax (GST) has been hailed as the biggest tax reform in India after independence. One of the principal advantages of the GST is that it is a tax on the value added.

The Goods and Services Tax (GST) has been hailed as the biggest tax reform in India after independence. One of the principal advantages of the GST is that it is a tax on the value added. So, a firm producing a particular good or service has to pay tax only on the value it adds to the product, while deducting the tax payments made on its inputs (which have already been paid by the input supplier). These tax deductions on inputs are called Input Tax Credits (ITCs). Firms can avail ITCs from the tax authorities only if they can show that their supplier of inputs paid GST on those inputs. This forces all firms in the value chain to maintain records of their tax payments as firms higher up the value chain will demand these records to avail their respective ITCs. This self-policing feature of the GST is therefore expected to raise compliance and increase government revenues. It also has one more advantage. Firms in the informal sector are by definition out of the tax net. If these firms are suppliers of inputs to formal sector firms (that pay taxes), then they will be forced to register with the tax authorities and get their GSTIN numbers. Otherwise, the formal sector firms that procure their products as inputs will switch over to formal sector suppliers as they can use the suppliers’ GSTIN numbers to avail ITCs. Thus, the GST is also expected to formalise the economy, as more and more hitherto informal firms register with the tax authorities. But there is a reverse possibility also. Consider two firms A and B. A is the supplier of inputs to B. Assume A is in the informal sector and B is in the formal sector. According to the previous paragraph, B will force A to get a GSTIN number so that B can avail ITC. So, A registers and comes into the formal sector. However, if the cost of GST compliance is very high, then B might instead be tempted to stop paying taxes or de-register and join the informal sector. As a result, both A and B are now part of the informal sector and the entire value chain slips out of the tax net. Thus, if the costs of compliance are high enough, GST can actually shrink the formal economy and lower revenues. Two American economists, de Paula and Scheinkman, studied the effects of the introduction of Value Added Tax (VAT) on Brazil. They found that the costs of compliance were so high that it marginally shrank the Brazilian formal sector initially. Later tax reforms reversed this trend and the formal sector expanded as expected. Has something like that happened in India? It is too early to say given the limited data. No doubt there has been a 50 per cent increase in the indirect taxpayer base (according to the Economic Survey). But there is clear anecdotal evidence to suggest that firms are evading the payment of GST. Thus, value chains are slipping out of the tax net. Steps are, therefore, being taken to reduce the costs of compliance and incentivise firms to pay GST. The attempts by various stakeholders to make this tax reform work is promising. (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Impact of GST on the formal sector

The Income Tax Department has launched a major operation to investigate cases of illegal funds and properties stashed abroad by Indians and may invoke the new anti-black money law for strict criminal action in many such cases, officials said Monday.

The department, in coordination with their foreign counterparts, is investigating offshore bank deposits and purchase of assets by "thousands of Indians", the officials added.

The CBDT Chairman Sushil Chandra confirmed the move but refused to elaborate.

Also read: <a href="http://www.wionews.com/india-news/number-of-crorepatis-has-risen-by-60-in-india-cbdt-172786">Tax Board says </a><a href="http://www.wionews.com/india-news/number-of-crorepatis-has-risen-by-60-in-india-cbdt-172786">number</a><a href="http://www.wionews.com/india-news/number-of-crorepatis-has-risen-by-60-in-india-cbdt-172786"> of Indian crorepatis has risen by 60% in </a><a href="http://www.wionews.com/india-news/number-of-crorepatis-has-risen-by-60-in-india-cbdt-172786">last</a><a href="http://www.wionews.com/india-news/number-of-crorepatis-has-risen-by-60-in-india-cbdt-172786"> 4 years</a>

Officials, however, said the taxman, armed with vital transaction details of overseas transactions from the financial intelligence unit (FIU) and other sources, is working on such cases across the country and this was part of a major "concerted" action against black money.

In a number of cases, notices have been issued to individuals or other categories of taxpayers to explain their transactions, the officials said.

A number of these cases involve high-profile and prominent people, while several high-net worth individuals are under the scanner. However, only those cases will face criminal action under the new anti-black money law which have not been reflected before the taxman in the income tax returns (ITRs) or have been done with an intent to evade taxes, they said.

The government brought this new law -- The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act -- in 2015.

The new legislation deals with cases of overseas illegal assets, which till recently were probed under the Income Tax Act, 1961. This new legislation has provisions for a steep 120 per cent tax and penalty on undisclosed foreign assets and income, besides a jail term of up to 10 years.&nbsp;

The Income Tax Department has launched a major operation to investigate cases of illegal funds and properties stashed abroad by Indians and may invoke the new anti-black money law for strict criminal action in many such cases, officials said Monday.

The Income Tax Department has launched a major operation to investigate cases of illegal funds and properties stashed abroad by Indians and may invoke the new anti-black money law for strict criminal action in many such cases, officials said Monday. The department, in coordination with their foreign counterparts, is investigating offshore bank deposits and purchase of assets by "thousands of Indians", the officials added. The CBDT Chairman Sushil Chandra confirmed the move but refused to elaborate. Also read: Tax Board says number of Indian crorepatis has risen by 60% in last 4 years Officials, however, said the taxman, armed with vital transaction details of overseas transactions from the financial intelligence unit (FIU) and other sources, is working on such cases across the country and this was part of a major "concerted" action against black money. In a number of cases, notices have been issued to individuals or other categories of taxpayers to explain their transactions, the officials said. A number of these cases involve high-profile and prominent people, while several high-net worth individuals are under the scanner. However, only those cases will face criminal action under the new anti-black money law which have not been reflected before the taxman in the income tax returns (ITRs) or have been done with an intent to evade taxes, they said. The government brought this new law -- The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act -- in 2015. The new legislation deals with cases of overseas illegal assets, which till recently were probed under the Income Tax Act, 1961. This new legislation has provisions for a steep 120 per cent tax and penalty on undisclosed foreign assets and income, besides a jail term of up to 10 years.

I-T dept launches massive operation to probe cash, properties of Indians stashed abroad

The Income Tax department is conducting searches at the residences of Telangana Congress working president A Revanth Reddy on Thursday. 
The Congress condemned the raids and termed it as "political vendetta" by the ruling TRS in the state and the BJP at the centre.

A senior official of the I-T department confirmed the searches but did not reveal details such as what triggered the raids.

Calls made to Revanth Reddy for his reaction went unanswered.

Reddy was appointed as one of the Working Presidents of Telangana Pradesh Congress Committee recently.

Jubilee Hills police inspector P Chandra Shekar said they deployed police force near Reddy's residence to avoid any untoward incident.

The city police had earlier issued notice to the Congress leader and former MLA seeking his appearance as part of investigations in a case relating to alleged irregularities committed by office-bearers of a Co-operative Housing Society in 2004.

Describing the I-T searches as "politically motivated", TPCC president Uttam Kumar Reddy tweeted that the TRS and BJP were hand in glove.

"IT &amp; ED raids at @INCTelangana Working President @revanth_anumulas house is pure political vendetta to demoralise our strong MLAs (sic). The people will teach KCR a lesson for being hand in glove with the BJP and the Central govt. I severely condemn these politically motivated raids," he tweeted.

On May 31, 2015, Revanth Reddy, then in Telugu Desam Party, was caught by Anti-Corruption Bureau while allegedly paying a bribe of Rs. 50 lakh to Elvis Stephenson, a nominated MLA, for supporting TDP nominee Vem Narendar Reddy in Legislative Council elections held on June 1, 2015.

&nbsp;"First (sic) it was @JaggaReddyT &amp; now @revanth_anumula, this is a clear sign of KCRs cowardice. He has no capacity to take on any of our leaders &amp; hence resorts to these backdoor moves. @INCTelangana will be united in its fight to rid Telangana soon of his autocratic &amp; whimsical rule," the TPCC president said in another tweet.

The Income Tax department is conducting searches at the residences of Telangana Congress working president A Revanth Reddy on Thursday. The Congress condemned the raids and termed it as "political vendetta" by the ruling TRS in the state and the BJP at the centre.

The Income Tax department is conducting searches at the residences of Telangana Congress working president A Revanth Reddy on Thursday. The Congress condemned the raids and termed it as "political vendetta" by the ruling TRS in the state and the BJP at the centre. A senior official of the I-T department confirmed the searches but did not reveal details such as what triggered the raids. Calls made to Revanth Reddy for his reaction went unanswered. Reddy was appointed as one of the Working Presidents of Telangana Pradesh Congress Committee recently. Jubilee Hills police inspector P Chandra Shekar said they deployed police force near Reddy's residence to avoid any untoward incident. The city police had earlier issued notice to the Congress leader and former MLA seeking his appearance as part of investigations in a case relating to alleged irregularities committed by office-bearers of a Co-operative Housing Society in 2004. Describing the I-T searches as "politically motivated", TPCC president Uttam Kumar Reddy tweeted that the TRS and BJP were hand in glove. "IT & ED raids at @INCTelangana Working President @revanth_anumulas house is pure political vendetta to demoralise our strong MLAs (sic). The people will teach KCR a lesson for being hand in glove with the BJP and the Central govt. I severely condemn these politically motivated raids," he tweeted. On May 31, 2015, Revanth Reddy, then in Telugu Desam Party, was caught by Anti-Corruption Bureau while allegedly paying a bribe of Rs. 50 lakh to Elvis Stephenson, a nominated MLA, for supporting TDP nominee Vem Narendar Reddy in Legislative Council elections held on June 1, 2015. "First (sic) it was @JaggaReddyT & now @revanth_anumula, this is a clear sign of KCRs cowardice. He has no capacity to take on any of our leaders & hence resorts to these backdoor moves. @INCTelangana will be united in its fight to rid Telangana soon of his autocratic & whimsical rule," the TPCC president said in another tweet.

Income Tax department raids Telangana Congress chief's house

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