&nbsp

Sharing "specific information" with the&nbspincome tax&nbspdepartment about any Benami transaction or property could earn you up to Rs one crore, while the same for undisclosed black money stashed abroad could fetch up to Rs 5 crore.

Besides, the 'Income Tax Informants Reward Scheme' has also been amended under which a person can get reward up to Rs 50 lakh for giving specific information about substantial evasion of tax on income or assets in India, which are actionable under the Income-tax Act, 1961.

The&nbspCBDT&nbsptoday announced Benami Transactions Informants Reward Scheme, 2018, under which any person, including foreigners, can inform Joint or Additional Commissioners about benami transactions and properties which can be tried under the Benami Transactions (Prohibition) Amendment Act, 2016.

This reward scheme is aimed at encouraging people to give information about benami transactions and properties as well as income earned on such properties by such hidden investors and beneficial owners, the Central Board of Direct Taxes (CBDT) said.

"Under the Benami Transactions Informants Reward Scheme, 2018, a person can get reward up to Rs one crore for giving specific information in prescribed manner to the Joint or Additional Commissioners of Benami Prohibition Units (BPUs) in Investigation Directorates of Income Tax Department about benami transactions and properties as well as proceeds from such properties which are actionable under Benami Property Transactions Act, 1988, as amended by Benami Transactions (Prohibition) Amendment Act, 2016," it said.

The tax department also assured full confidentiality of the informer for all the reward schemes saying that the identity of the persons giving information will not be disclosed.

With regard to information shared with the I-T authorities about any undisclosed black money held overseas under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, an informer could earn a reward up to Rs 5 crore.

The reward amount for information under the Foreign Black money Act has been kept high at Rs 5 crore to make it "attractive to potential sources" in foreign countries, the I-T department said.&nbsp

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The tax department also assured full confidentiality of the informer for all the reward schemes saying that the identity of the persons giving information will not be disclosed

Sharing "specific information" with the&nbspincome tax&nbspdepartment about any Benami transaction or property could earn you up to Rs one crore, while the same for undisclosed black money stashed abroad could fetch up to Rs 5 crore. Besides, the 'Income Tax Informants Reward Scheme' has also been amended under which a person can get reward up to Rs 50 lakh for giving specific information about substantial evasion of tax on income or assets in India, which are actionable under the Income-tax Act, 1961. The&nbspCBDT&nbsptoday announced Benami Transactions Informants Reward Scheme, 2018, under which any person, including foreigners, can inform Joint or Additional Commissioners about benami transactions and properties which can be tried under the Benami Transactions (Prohibition) Amendment Act, 2016. This reward scheme is aimed at encouraging people to give information about benami transactions and properties as well as income earned on such properties by such hidden investors and beneficial owners, the Central Board of Direct Taxes (CBDT) said. "Under the Benami Transactions Informants Reward Scheme, 2018, a person can get reward up to Rs one crore for giving specific information in prescribed manner to the Joint or Additional Commissioners of Benami Prohibition Units (BPUs) in Investigation Directorates of Income Tax Department about benami transactions and properties as well as proceeds from such properties which are actionable under Benami Property Transactions Act, 1988, as amended by Benami Transactions (Prohibition) Amendment Act, 2016," it said. The tax department also assured full confidentiality of the informer for all the reward schemes saying that the identity of the persons giving information will not be disclosed. With regard to information shared with the I-T authorities about any undisclosed black money held overseas under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, an informer could earn a reward up to Rs 5 crore. The reward amount for information under the Foreign Black money Act has been kept high at Rs 5 crore to make it "attractive to potential sources" in foreign countries, the I-T department said.

Be an informer to Income Tax department; earn up to Rs 5 crore

The tax department will seek share purchase agreement from Flipkart on the mega <a href="http://www.wionews.com/business-&-economy/walmart-buying-77-stake-in-flipkart-for-16-billion-135737">USD 16 billion </a><a href="http://www.wionews.com/business-&-economy/walmart-buying-77-stake-in-flipkart-for-16-billion-135737">buyout</a> by US retail giant Walmart to assess the tax liability and also to find out whether the GAAR provisions can be invoked, an official said.

The department currently is going through the Section 9(1) of the Income Tax law, which deals with indirect transfer provisions, to see if the benefits under the bilateral tax treaties with countries like Singapore and Mauritius, could be available for foreign investors selling stakes to Walmart.

Singapore-registered Flipkart Pvt Ltd holds majority stake in Flipkart India. As per the definitive agreement between the companies last week, Walmart will acquire about 77 per cent stake in the Singapore entity for USD 16 billion.

The agreement will effectively result in transfer of ultimate ownership in Flipkart India to Walmart.

To ascertain the exact tax liability, the revenue department will write to Flipkart seeking the share purchase agreement that the company had entered into with Walmart.

Also read:&nbsp;<a href="http://www.wionews.com/india-news/flipkarts-1st-employee-was-hired-at-rs-8000-a-month-today-hes-a-multi-millionaire-135789">Flipkart's 1st employee was hired at Rs 8,000 a month. Today, he's a multi-millionaire</a>

"The department will seek the share purchase agreement once the formalities for the sale are completed. The agreement will help in tracking the flow of funds and the ultimate beneficiary," the official told PTI.

As regards applicability of General Anti Avoidance Rules (GAAR), the official said it would apply in cases where the investments were made to avoid taxes.

In the Walmart-Flipkart deal, the revenue department will go through the share purchase agreement to ascertain the purpose of investment and the emanating gains.

On whether the benefits of bilateral tax treaties will be available in this deal, the official said the department will go through the details of different double taxation avoidance agreements (DTAAs) to ascertain whether taxes could be levied at concessional rate and investment made prior to a particular date can be grandfathered.

"There is likely to be capital gains withholding tax implications when the shares of Flipkart Singapore are sold by Softbank or other foreign investors. The tax rate will depend upon the facts of the case," V Lakshmikumaran,

Managing Partner of law firm Lakshmikumaran & Sridharan said.

The tax department had last week written to Bentonville-Arkansas based Walmart saying that the US company can seek guidance about the tax liability under Section 195 (2) of the I-T Act.

Under Section 195 of the Act, anyone making payment to non-residents is required to deduct tax (commonly known as withholding tax).

As per Section 9 (1) of I-T Act dealing with indirect transfer provisions, the value of shares of a foreign company is deemed to be substantially derived from India, if the value of the Indian assets is greater than 50 per cent of its worldwide assets -- a criteria that is apparently met in Flipkart's case.

"In the Walmart-Flipkart deal, Section 9 (1) will apply as the assets of Flipkart Singapore are substantially based in India and hence the sellers would be liable to pay capital gains tax," Titus & Co Managing Partner Diljeet Titus opined.

As regards the capital gains tax made by Indian founders Sachin Bansal and Binny Bansal, the official said they would have to pay 20 per cent tax with indexation benefit, which is applicable on sale of unlisted shares by Indian residents.&nbsp;

To ascertain tax liability, the revenue department will write to Flipkart seeking the share purchase agreement the company has entered into with Walmart

The tax department will seek share purchase agreement from Flipkart on the mega USD 16 billion buyout by US retail giant Walmart to assess the tax liability and also to find out whether the GAAR provisions can be invoked, an official said. The department currently is going through the Section 9(1) of the Income Tax law, which deals with indirect transfer provisions, to see if the benefits under the bilateral tax treaties with countries like Singapore and Mauritius, could be available for foreign investors selling stakes to Walmart. Singapore-registered Flipkart Pvt Ltd holds majority stake in Flipkart India. As per the definitive agreement between the companies last week, Walmart will acquire about 77 per cent stake in the Singapore entity for USD 16 billion. The agreement will effectively result in transfer of ultimate ownership in Flipkart India to Walmart. To ascertain the exact tax liability, the revenue department will write to Flipkart seeking the share purchase agreement that the company had entered into with Walmart. Also read: Flipkart's 1st employee was hired at Rs 8,000 a month. Today, he's a multi-millionaire "The department will seek the share purchase agreement once the formalities for the sale are completed. The agreement will help in tracking the flow of funds and the ultimate beneficiary," the official told PTI. As regards applicability of General Anti Avoidance Rules (GAAR), the official said it would apply in cases where the investments were made to avoid taxes. In the Walmart-Flipkart deal, the revenue department will go through the share purchase agreement to ascertain the purpose of investment and the emanating gains. On whether the benefits of bilateral tax treaties will be available in this deal, the official said the department will go through the details of different double taxation avoidance agreements (DTAAs) to ascertain whether taxes could be levied at concessional rate and investment made prior to a particular date can be grandfathered. "There is likely to be capital gains withholding tax implications when the shares of Flipkart Singapore are sold by Softbank or other foreign investors. The tax rate will depend upon the facts of the case," V Lakshmikumaran, Managing Partner of law firm Lakshmikumaran & Sridharan said. The tax department had last week written to Bentonville-Arkansas based Walmart saying that the US company can seek guidance about the tax liability under Section 195 (2) of the I-T Act. Under Section 195 of the Act, anyone making payment to non-residents is required to deduct tax (commonly known as withholding tax). As per Section 9 (1) of I-T Act dealing with indirect transfer provisions, the value of shares of a foreign company is deemed to be substantially derived from India, if the value of the Indian assets is greater than 50 per cent of its worldwide assets -- a criteria that is apparently met in Flipkart's case. "In the Walmart-Flipkart deal, Section 9 (1) will apply as the assets of Flipkart Singapore are substantially based in India and hence the sellers would be liable to pay capital gains tax," Titus & Co Managing Partner Diljeet Titus opined. As regards the capital gains tax made by Indian founders Sachin Bansal and Binny Bansal, the official said they would have to pay 20 per cent tax with indexation benefit, which is applicable on sale of unlisted shares by Indian residents.

Tax department to seek information from Flipkart on Walmart buyout, ascertain tax liability

The income tax department (ITD) has seized a further Rs440 crore of dividend income due to Cairn Energy Plc to recover a part of the Rs10,247 crore tax demand it had raised on the British firm using a retrospective tax legislation.

The ITD had previously seized Rs666 crore of dividends due to Cairn from its 4.95% residual holding in Vedanta Ltd. It has also refused to pay tax refund of Rs1,594 crore due to Cairn as a result of overpayment of capital gains tax to recover the dues.

People in the know said Vedanta, owned by billionaire Anil Agarwal, had last month declared for shareholders a Rs21.2 a share dividend and a 7.5% payment on preference shares. For Cairn, the total receivable came to about Rs440 crore. But due to an ITD order, Vedanta transferred that money to a separate account. This was then taken over by the department.

The action comes ahead of the beginning of the final hearing in the arbitration initiated by Cairn to oppose the retrospective tax demand which was raised on a 2006 internal reorganisation of the firm’s India unit, called Cairn India.

Cairn India was in 2011 acquired by Vedanta but the British firm continued to hold 9.8% share in the company. Cairn India was last year merged into Vedanta Ltd. On merger, Cairn Energy’s holding in Vedanta came to 4.95%.

When contacted, a spokesperson of Central Board of Direct Taxes (CBDT) confirmed taking over the dividend saying its assessment order dated 9 March 2015 raised a tax demand of Rs10,247 crore. “This order was confirmed by the Dispute Resolution Panel on December 31, 2015. However, no demand was paid by the taxpayer at that stage,” the spokesperson said.

Cairn filed an appeal before Income Tax Appellate Tribunal, which on 9 March last year upheld the assessment order. “As there is no stay of demand from any court or authority, the entire demand is enforceable. However, as the taxpayer did not pay the demand, the Assessing Officer adjusted the refund for AY 2012-13 amounting to Rs 1,594 crore. Dividend of Rs 666 crore was also adjusted against the pending demand in June 2017,” the spokesperson said.

Stating that the Cairn Energy’s shares in Vedanta have been attached, dividend declared by Vedanta of about Rs440 crore was also collected as tax in March 2018, the spokesperson said. “Total recovery in FY 2017-18 comes to Rs 2,700 crore of which the dividend amount is Rs 1,106 crore and recovery by way of refund adjustment is Rs 1,594 crore,” the spokesperson added.

The ITD had in January 2014 used a two-year-old law to raise a Rs10,247 crore demand on Cairn Energy. The 2012 law gave the government powers to impose taxes retrospectively. Following the draft assessment order of January 2014, the tax department attached the company’s residual 9.8% shares in its erstwhile subsidiary, Cairn India, and confiscated dividend income it was due to receive.

Also, a Rs1,594 crore income tax refund was also confiscated. A final assessment order in January 2016 raised tax demand of Rs10,247 crore plus an interest of Rs18,800 crore. However, the interest demand was quashed by the Income Tax Appellate Tribunal in late 2016.

Following that, the ITD issued a revised demand including interest running from February 2016—30 days after the date of the assessment order. While interest will be charged on the principal at a rate of 12% a year from February 2016, penalties are assessed as 100% of the principal tax due. A three-member international arbitration tribunal is to begin final hearing in August.

The action comes ahead of the beginning of the final hearing in the arbitration initiated by Cairn to oppose the retrospective tax demand.

The income tax department (ITD) has seized a further Rs440 crore of dividend income due to Cairn Energy Plc to recover a part of the Rs10,247 crore tax demand it had raised on the British firm using a retrospective tax legislation. The ITD had previously seized Rs666 crore of dividends due to Cairn from its 4.95% residual holding in Vedanta Ltd. It has also refused to pay tax refund of Rs1,594 crore due to Cairn as a result of overpayment of capital gains tax to recover the dues. People in the know said Vedanta, owned by billionaire Anil Agarwal, had last month declared for shareholders a Rs21.2 a share dividend and a 7.5% payment on preference shares. For Cairn, the total receivable came to about Rs440 crore. But due to an ITD order, Vedanta transferred that money to a separate account. This was then taken over by the department. The action comes ahead of the beginning of the final hearing in the arbitration initiated by Cairn to oppose the retrospective tax demand which was raised on a 2006 internal reorganisation of the firm’s India unit, called Cairn India. Cairn India was in 2011 acquired by Vedanta but the British firm continued to hold 9.8% share in the company. Cairn India was last year merged into Vedanta Ltd. On merger, Cairn Energy’s holding in Vedanta came to 4.95%. When contacted, a spokesperson of Central Board of Direct Taxes (CBDT) confirmed taking over the dividend saying its assessment order dated 9 March 2015 raised a tax demand of Rs10,247 crore. “This order was confirmed by the Dispute Resolution Panel on December 31, 2015. However, no demand was paid by the taxpayer at that stage,” the spokesperson said. Cairn filed an appeal before Income Tax Appellate Tribunal, which on 9 March last year upheld the assessment order. “As there is no stay of demand from any court or authority, the entire demand is enforceable. However, as the taxpayer did not pay the demand, the Assessing Officer adjusted the refund for AY 2012-13 amounting to Rs 1,594 crore. Dividend of Rs 666 crore was also adjusted against the pending demand in June 2017,” the spokesperson said. Stating that the Cairn Energy’s shares in Vedanta have been attached, dividend declared by Vedanta of about Rs440 crore was also collected as tax in March 2018, the spokesperson said. “Total recovery in FY 2017-18 comes to Rs 2,700 crore of which the dividend amount is Rs 1,106 crore and recovery by way of refund adjustment is Rs 1,594 crore,” the spokesperson added. The ITD had in January 2014 used a two-year-old law to raise a Rs10,247 crore demand on Cairn Energy. The 2012 law gave the government powers to impose taxes retrospectively. Following the draft assessment order of January 2014, the tax department attached the company’s residual 9.8% shares in its erstwhile subsidiary, Cairn India, and confiscated dividend income it was due to receive. Also, a Rs1,594 crore income tax refund was also confiscated. A final assessment order in January 2016 raised tax demand of Rs10,247 crore plus an interest of Rs18,800 crore. However, the interest demand was quashed by the Income Tax Appellate Tribunal in late 2016. Following that, the ITD issued a revised demand including interest running from February 2016—30 days after the date of the assessment order. While interest will be charged on the principal at a rate of 12% a year from February 2016, penalties are assessed as 100% of the principal tax due. A three-member international arbitration tribunal is to begin final hearing in August.

IT dept seizes Rs440 crore dividend income of Cairn Energy

The government has amended Income Tax rules that will now allow transgenders to be recognised as an independent category of applicants for obtaining a Permanent Account Number (PAN) for their tax-related transactions.

As per reports, Form 49A and 49AA will now have an option of transgender along with 'Male'and 'Female'category. Aadhaar and voter ID cards already have the 'third gender'option.

Central Board of Direct Taxes (CBDT), which is responsible for framing a policy for the department, had earlier issued a notification on Monday, April 9, providing a new tick box for transgenders to apply for PAN.&nbsp

The notification, issued under sections 139A and 295 of the Income Tax Act, specifies the new application process for obtaining a PAN number by an individual.

"Individuals from the transgender community were facing hassles in obtaining a PAN card and this problem was further magnified as Aadhaar had the third gender category but not PAN. "Hence, the transgenders were not able to link their PAN with their Aadhaar due to this anomaly," the official said.

Also, transgenders who are eligible to file income tax returns (ITR) were likely to face similar problems of their return not being processed by the tax department as the PAN would not have linked with Aadhaar due to mismatch in gender details.

The government has now made quoting of Aadhaar mandatory for filing income tax returns as well as obtaining a new PAN.

Section 139 AA (2) of the Income Tax Act says that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate his Aadhaar number to the tax authorities.&nbsp

Central Board of Direct Taxes (CBDT), which is responsible for framing a policy for the department, had earlier issued a notification on Monday, April 9, providing a new tick box for transgenders to apply for PAN

The government has amended Income Tax rules that will now allow transgenders to be recognised as an independent category of applicants for obtaining a Permanent Account Number (PAN) for their tax-related transactions. As per reports, Form 49A and 49AA will now have an option of transgender along with 'Male'and 'Female'category. Aadhaar and voter ID cards already have the 'third gender'option. Central Board of Direct Taxes (CBDT), which is responsible for framing a policy for the department, had earlier issued a notification on Monday, April 9, providing a new tick box for transgenders to apply for PAN. The notification, issued under sections 139A and 295 of the Income Tax Act, specifies the new application process for obtaining a PAN number by an individual. "Individuals from the transgender community were facing hassles in obtaining a PAN card and this problem was further magnified as Aadhaar had the third gender category but not PAN. "Hence, the transgenders were not able to link their PAN with their Aadhaar due to this anomaly," the official said. Also, transgenders who are eligible to file income tax returns (ITR) were likely to face similar problems of their return not being processed by the tax department as the PAN would not have linked with Aadhaar due to mismatch in gender details. The government has now made quoting of Aadhaar mandatory for filing income tax returns as well as obtaining a new PAN. Section 139 AA (2) of the Income Tax Act says that every person having PAN as on July 1, 2017, and eligible to obtain Aadhaar, must intimate his Aadhaar number to the tax authorities.

Transgenders can now issue PAN cards under 'Independent' gender category

The income tax rules are set for changes from April 1 and it's going to impact your salaries or investments. Here is a list of 10 things you need to know. 
&nbsp; 
1. Standard deduction: The salaried class will enjoy a flat Rs 40,000 deduction on taxable income. The deductions are linked to the transport and medical allowances which will help taxpayers save upto Rs 5,800 every year. 
&nbsp; 
2. Higher cess: The gain from standard deduction could be wiped out by higher cess. The cess on health and education will now attract four per cent of income tax, an increase of one per cent from last year. 
&nbsp; 
3. Long-term capital gains tax: Capital gains from equity shares will now attract a new 10 per cent tax. This tax will be applicable if capital gains exceed Rs one lakh. However, gains till January 31 have been exempted from this tax. 
&nbsp; 
4. Tax on equity mutual fund dividends: Ten per cent tax will be levied on dividend income from equity mutual funds. 
&nbsp; 
5. Benefits on single premium health insurance policies: Those with policies covering more than a year will enjoy more deduction. Earlier, a person could claim deduction only up to Rs 25,000. From April 1, deduction will be allowed on a proportionate basis. The calculation is based on the number of years for which the cover is provided. 
&nbsp; 
6. Tax benefit on NPS withdrawal:&nbsp;Tax-free withdrawal of National Pension Scheme (NPS) will be allowed for non-employee subscribers. Earlier, a contributing employee was allowed 40 per cent benefit on closure of account.&nbsp;Now this benefit will be extended to the non-employee contributers as well. 
&nbsp; 
7. Interest income exemption (senior citizens): Senior citizens will enjoy higher returns from deposits in banks and post offices. The deduction on such income under section 80TTA is currently Rs 10,000. Under a new it section, deduction will be allowed up to Rs 50,000. 
&nbsp; 
8. Higher TDS for senior citizens: Tax Deduction at Source (TDS) on interest income for senior citizens will be hiked to Rs 50,000. Earlier the threshold for deduction at source on interests was Rs 10,000. 
&nbsp; 
9. Higher deduction under Section 80D: Senior citizens will enjoy increased deduction on health insurance premiums. The earlier limit of Rs 30,000 has been raised to Rs 50,000. Citizens with 
parents above 60 years can claim an additional deduction of Rs 25,000. 
&nbsp; 
10. Deduction under section 80DDB: Senior citizens will get more benefit for medical treatment of specified diseases. The deduction has been hiked by Rs 20,000 to Rs 1 lakh for very senior citizens. 
The deduction limit has been raised by Rs 40,000 for senior citizens.

The income tax rules are set for changes from April 1 and it's going to impact your salaries or investments

The income tax rules are set for changes from April 1 and it's going to impact your salaries or investments. Here is a list of 10 things you need to know. 1. Standard deduction: The salaried class will enjoy a flat Rs 40,000 deduction on taxable income. The deductions are linked to the transport and medical allowances which will help taxpayers save upto Rs 5,800 every year. 2. Higher cess: The gain from standard deduction could be wiped out by higher cess. The cess on health and education will now attract four per cent of income tax, an increase of one per cent from last year. 3. Long-term capital gains tax: Capital gains from equity shares will now attract a new 10 per cent tax. This tax will be applicable if capital gains exceed Rs one lakh. However, gains till January 31 have been exempted from this tax. 4. Tax on equity mutual fund dividends: Ten per cent tax will be levied on dividend income from equity mutual funds. 5. Benefits on single premium health insurance policies: Those with policies covering more than a year will enjoy more deduction. Earlier, a person could claim deduction only up to Rs 25,000. From April 1, deduction will be allowed on a proportionate basis. The calculation is based on the number of years for which the cover is provided. 6. Tax benefit on NPS withdrawal: Tax-free withdrawal of National Pension Scheme (NPS) will be allowed for non-employee subscribers. Earlier, a contributing employee was allowed 40 per cent benefit on closure of account. Now this benefit will be extended to the non-employee contributers as well. 7. Interest income exemption (senior citizens): Senior citizens will enjoy higher returns from deposits in banks and post offices. The deduction on such income under section 80TTA is currently Rs 10,000. Under a new it section, deduction will be allowed up to Rs 50,000. 8. Higher TDS for senior citizens: Tax Deduction at Source (TDS) on interest income for senior citizens will be hiked to Rs 50,000. Earlier the threshold for deduction at source on interests was Rs 10,000. 9. Higher deduction under Section 80D: Senior citizens will enjoy increased deduction on health insurance premiums. The earlier limit of Rs 30,000 has been raised to Rs 50,000. Citizens with parents above 60 years can claim an additional deduction of Rs 25,000. 10. Deduction under section 80DDB: Senior citizens will get more benefit for medical treatment of specified diseases. The deduction has been hiked by Rs 20,000 to Rs 1 lakh for very senior citizens. The deduction limit has been raised by Rs 40,000 for senior citizens.

New income tax rules from April 1: 10 things you need to know

The Income Tax department has frozen Cognizant Technology Solutions Corp`s bank accounts and deposits in Chennai and Mumbai for allegedly evading a dividend distribution tax (DDT), according to a report on Tuesday.

A Cognizant spokesman confirmed the report and said in a statement that a court has instructed the tax department not to take further action pending further hearings.

Cognizant failed to pay the tax of more than Rs 2,500 cr in the 2016-17 financial year, the Hindu newspaper reported, citing officials from the tax department.

Cognizant said it had paid all applicable taxes due on the transaction.

The company's accounts were frozen a week back and it had approached the High Court against the tax department, according to the report.

"Cognizant`s business operations, our associates and our work with clients are not impacted by actions recently attempted by the Indian Income Tax Department," the company said.

A Cognizant spokesman declined to give more details, while tax department officials could not be reached for comment outside regular business hours.

The US-listed IT services have significant operations in India where the majority of its 260,000 employees reside.

Cognizant failed to pay the tax of more than Rs 2,500 cr in the 2016-17 financial year, the Hindu newspaper reported, citing officials from the tax department.

The Income Tax department has frozen Cognizant Technology Solutions Corp`s bank accounts and deposits in Chennai and Mumbai for allegedly evading a dividend distribution tax (DDT), according to a report on Tuesday. A Cognizant spokesman confirmed the report and said in a statement that a court has instructed the tax department not to take further action pending further hearings. Cognizant failed to pay the tax of more than Rs 2,500 cr in the 2016-17 financial year, the Hindu newspaper reported, citing officials from the tax department. Cognizant said it had paid all applicable taxes due on the transaction. The company's accounts were frozen a week back and it had approached the High Court against the tax department, according to the report. "Cognizant`s business operations, our associates and our work with clients are not impacted by actions recently attempted by the Indian Income Tax Department," the company said. A Cognizant spokesman declined to give more details, while tax department officials could not be reached for comment outside regular business hours. The US-listed IT services have significant operations in India where the majority of its 260,000 employees reside.

Income Tax department freezes Cognizant’s bank accounts for non-payment of Rs 2,500 cr tax

Income Tax (IT) officials are conducting a raid at sand mining baron and close aide of Lalu Prasad Yadav, Subhash Yadav&#39;s house on Friday morning.

According to news agency ANI, the IT department raided Yadav&#39;s house in Danapur

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<blockquote class="twitter-tweet" data-lang="en">
<a href="https://twitter.com/hashtag/Bihar?src=hash&amp;ref_src=twsrc%5Etfw">#Bihar</a>: IT raids underway at Ex-MP &amp; close aide of Lalu Prasad Yadav, Subhash Yadav&#39;s house in Danapur.
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/966898225520111618?ref_src=twsrc%5Etfw">February 23, 2018</a></blockquote>
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More details awaited.&nbsp;&nbsp; 
&nbsp;

According to news agency ANI, the IT department raided Yadav's house in Danapur

Income Tax (IT) officials are conducting a raid at sand mining baron and close aide of Lalu Prasad Yadav, Subhash Yadav's house on Friday morning. According to news agency ANI, the IT department raided Yadav's house in Danapur #Bihar: IT raids underway at Ex-MP & close aide of Lalu Prasad Yadav, Subhash Yadav's house in Danapur. — ANI (@ANI) February 23, 2018 × More details awaited.

IT raids underway at Lalu Yadav close aide's house in Bihar

The Income Tax Department on Thursday claimed to have busted a racket of extracting fraudulent tax refunds by employees of bellwether companies like IBM, Vodafone and Infosys in alleged connivance with a Chartered Accountant (CA) in Bengaluru, the IT capital of the country.

The investigation wing of the department conducted searches on the premises of an unidentified CA yesterday and claimed to have &quot;seized&quot; bogus claim documents of his various clients along with WhatsApp chat messages.

The CA, a department statement said, was &quot;found to be instrumental in filing false income tax returns and making fraudulent refund claims&quot; by citing inflated or false claims of loss from house property.

The department claimed that the CA filed &quot;nearly 1,000 returns with the loss from house property, aggregating to loss claim of Rs 18 crore&quot; till now.

Employees of over 50 prominent and medium-sized companies in Bengaluru are under the scanner of the department who were the clients of this CA, whom the department did not identify citing ongoing investigation.

&quot;It is noted that employees from some of the reputed companies such as IBM, Vodafone, Saplabs, Biocon, Infosys, ICICI Bank, CISCO, Thomson Reuters India Limited among others have also resorted to such fraudulent claim of refunds by filing revised returns of their individual income,&quot; the department said.

It added that many of them have been questioned by the taxman in their respective offices since yesterday.

&quot;This is a case that is building up. Such a large-scale action in cases of employees seeking false refunds has been undertaken by the tax department for the first time,&quot; a senior official said.

The department said many of the employees it questioned, after the fraud was unearthed, said they do not have any &quot;real loss&quot; under the &#39;income from house property&#39; category and the employees shifted blame on the CA saying it was the professional who said &quot;he can get refunds for them by making some claims&quot;.

&quot;They also deposed that, out of the refund received, the auditor (CA) had charged 10 per cent as incidental charges.

Some WhatsApp messages with auditor were also shown by them, as supporting evidence,&quot; it said.

The CA, instead, told the taxman that he filed those bogus claim refunds at the &quot;insistence of his clients&quot;.

&quot;Further enquiries like examination of his (CA&#39;s) other clients and cross-examination of them with the CA are being conducted.

&quot;Necessary action as per law will be taken against the CA as well as the persons who have claimed wrong refunds under the provisions of Income Tax Act,&quot; it said.

The department cautioned taxpayers from indulging or getting influenced by such frauds as it said that making a claim of refunds by the taxpayer from the department is based on &quot;trust&quot; between the two sides and this should not be breached.

&quot;The Income Tax department now does automate and faceless return processing and the issue of refunds. This is based on the principle of trusting the taxpayer.

&quot;Making a bogus and fraudulent claim is not only a betrayal of this trust, it will expose the taxpayer to heavy interest, penalty and possible prosecution ending in a jail term,&quot; it said.

All taxpayers, the statement said, are requested to be highly alert to fraudulent schemes like the present one.

&quot;Such fraudulent schemes will invariably be caught out and will result in penal action on the taxpayer.

&quot;If any person has made a false claim in the I-T returns resulting in lower tax payment/unjustified refund, they are advised to take immediate steps to file revised returns disclosing the correct income and paying due tax,&quot; it said.

Employees of over 50 prominent and medium-sized companies in Bengaluru are under the scanner

The Income Tax Department on Thursday claimed to have busted a racket of extracting fraudulent tax refunds by employees of bellwether companies like IBM, Vodafone and Infosys in alleged connivance with a Chartered Accountant (CA) in Bengaluru, the IT capital of the country. The investigation wing of the department conducted searches on the premises of an unidentified CA yesterday and claimed to have "seized" bogus claim documents of his various clients along with WhatsApp chat messages. The CA, a department statement said, was "found to be instrumental in filing false income tax returns and making fraudulent refund claims" by citing inflated or false claims of loss from house property. The department claimed that the CA filed "nearly 1,000 returns with the loss from house property, aggregating to loss claim of Rs 18 crore" till now. Employees of over 50 prominent and medium-sized companies in Bengaluru are under the scanner of the department who were the clients of this CA, whom the department did not identify citing ongoing investigation. "It is noted that employees from some of the reputed companies such as IBM, Vodafone, Saplabs, Biocon, Infosys, ICICI Bank, CISCO, Thomson Reuters India Limited among others have also resorted to such fraudulent claim of refunds by filing revised returns of their individual income," the department said. It added that many of them have been questioned by the taxman in their respective offices since yesterday. "This is a case that is building up. Such a large-scale action in cases of employees seeking false refunds has been undertaken by the tax department for the first time," a senior official said. The department said many of the employees it questioned, after the fraud was unearthed, said they do not have any "real loss" under the 'income from house property' category and the employees shifted blame on the CA saying it was the professional who said "he can get refunds for them by making some claims". "They also deposed that, out of the refund received, the auditor (CA) had charged 10 per cent as incidental charges. Some WhatsApp messages with auditor were also shown by them, as supporting evidence," it said. The CA, instead, told the taxman that he filed those bogus claim refunds at the "insistence of his clients". "Further enquiries like examination of his (CA's) other clients and cross-examination of them with the CA are being conducted. "Necessary action as per law will be taken against the CA as well as the persons who have claimed wrong refunds under the provisions of Income Tax Act," it said. The department cautioned taxpayers from indulging or getting influenced by such frauds as it said that making a claim of refunds by the taxpayer from the department is based on "trust" between the two sides and this should not be breached. "The Income Tax department now does automate and faceless return processing and the issue of refunds. This is based on the principle of trusting the taxpayer. "Making a bogus and fraudulent claim is not only a betrayal of this trust, it will expose the taxpayer to heavy interest, penalty and possible prosecution ending in a jail term," it said. All taxpayers, the statement said, are requested to be highly alert to fraudulent schemes like the present one. "Such fraudulent schemes will invariably be caught out and will result in penal action on the taxpayer. "If any person has made a false claim in the I-T returns resulting in lower tax payment/unjustified refund, they are advised to take immediate steps to file revised returns disclosing the correct income and paying due tax," it said.

I-T busts refund fraud, claims nexus between employees of top companies, CA

The government&#39;s direct tax kitty swelled to Rs 6.95 lakh crore during the April-January period of the current fiscal, a growth of 19.3 per cent over the year-ago period. 
 
The net direct tax collections represent 69.2 per cent of the revised estimates of Rs 10.05 lakh crore for direct taxes in 2017-18. 
 
&quot;The provisional figures of Direct Tax collections up to January, 2018 show that net collections are at Rs 6. 95 lakh crore which is 19.3 per cent higher than the net collections for the corresponding period of last year,&quot; a finance ministry statement said. 
 
The net collections for Corporate Income Tax (CIT) showed a growth of 19.2 per cent and for Personal Income Tax (PIT) at 18.6 per cent. 
 
Refunds amounting to Rs 1.26 lakh crore have been issued during 10-month period of the current fiscal. 
&nbsp;

The direct tax collection saw a growth of 19.3% over the year-ago period

The government's direct tax kitty swelled to Rs 6.95 lakh crore during the April-January period of the current fiscal, a growth of 19.3 per cent over the year-ago period. The net direct tax collections represent 69.2 per cent of the revised estimates of Rs 10.05 lakh crore for direct taxes in 2017-18. "The provisional figures of Direct Tax collections up to January, 2018 show that net collections are at Rs 6. 95 lakh crore which is 19.3 per cent higher than the net collections for the corresponding period of last year," a finance ministry statement said. The net collections for Corporate Income Tax (CIT) showed a growth of 19.2 per cent and for Personal Income Tax (PIT) at 18.6 per cent. Refunds amounting to Rs 1.26 lakh crore have been issued during 10-month period of the current fiscal.

Direct tax kitty grows 19% to Rs 6.95 lakh crore in April-January

The Income Tax (IT) department has issued nearly two lakh notices to people who deposited unaccounted sum of Rs.15 lakh or more in their accounts during the demonetisation period in November 2016.

&quot;More than Rs. 15 lakh were deposited in accounts of certain individuals, for which no returns were filed. We have identified around 1.98 lakh such accounts and sent notices to the account holders in the months of December and January. However, we have not received any response on the same. It is to be noted that failing to reply to these notices can lead to penalising by the IT department,&quot; Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra told ANI.

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Notices sent to those who deposited more than Rs 15 lakh in banks during demonetisation but didn&#39;t file return.Sent around 1,98,000 notices during Dec- Jan.Pursuing that everybody should file return who deposited more than Rs 15 lakh during demonetisation: S Chandra Chairman CBDT <a href="https://t.co/w2WkA0UKTY">pic.twitter.com/w2WkA0UKTY</a>
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Chandra further stated that around 3,000 prosecution cases were filed in the last three months across different areas, including tax evasion, delayed tax filing, abetment, and so on.

In a bid to encourage digitisation, the IT department, Chandra said, is focusing on e-assessment.

&quot;This year, we introduced e-assessment on a trial basis. Nearly 60,000 e-assessments were done in three months. We expect this number to increase in the coming months,&quot; he said.

On a related note, the e-assessment process, which was introduced recently, allows online tax filing and assessment, thereby reducing the need for taxpayers to visit the income tax office for the same.&nbsp;

The Income Tax (IT) department has issued nearly two lakh notices to people who deposited unaccounted sum of Rs.15 lakh or more in their accounts during the demonetisation period in November 2016

The Income Tax (IT) department has issued nearly two lakh notices to people who deposited unaccounted sum of Rs.15 lakh or more in their accounts during the demonetisation period in November 2016. "More than Rs. 15 lakh were deposited in accounts of certain individuals, for which no returns were filed. We have identified around 1.98 lakh such accounts and sent notices to the account holders in the months of December and January. However, we have not received any response on the same. It is to be noted that failing to reply to these notices can lead to penalising by the IT department," Central Board of Direct Taxes (CBDT) Chairman Sushil Chandra told ANI. Notices sent to those who deposited more than Rs 15 lakh in banks during demonetisation but didn't file return.Sent around 1,98,000 notices during Dec- Jan.Pursuing that everybody should file return who deposited more than Rs 15 lakh during demonetisation: S Chandra Chairman CBDT pic.twitter.com/w2WkA0UKTY — ANI (@ANI) February 3, 2018 × Chandra further stated that around 3,000 prosecution cases were filed in the last three months across different areas, including tax evasion, delayed tax filing, abetment, and so on. In a bid to encourage digitisation, the IT department, Chandra said, is focusing on e-assessment. "This year, we introduced e-assessment on a trial basis. Nearly 60,000 e-assessments were done in three months. We expect this number to increase in the coming months," he said. On a related note, the e-assessment process, which was introduced recently, allows online tax filing and assessment, thereby reducing the need for taxpayers to visit the income tax office for the same.

Deposited Rs.15 lakh during demonetisation? You could be in trouble

Union Finance Minister Arun Jaitley on Thursday announced to make no changes in the personal income-tax slabs.

&quot;Govt has made many positive changes in the personal income tax rates applicable to individuals in the last three years therefore I do not wish to make any changes to this,&quot; he said.

Jaitley said that there will be a standard deduction of Rs 40,000 under transport, medical reimbursement for the salaried class.

The facility has been extended to pensioners also.

However, for the senior citizens, the exemption of interest income on bank deposits has been raised to Rs 50,000.

During his budget speech, Jaitley informed that the number of effective tax-payers has gone up from 6.47 crore in 2014-15 to 8.27 crore in 2016-17.

He also projected the fiscal deficit for 2018-19 at 3.3% of GDP.

&quot;The fiscal deficit for 2017-18 was Rs 5.95 lakh crore, that is, 3.5% of GDP. I project it at 3.3% of GDP in 2018-19.&quot;

Thi is the last full budget of the ruling NDA government.

The facility has been extended to pensioners also.

Union Finance Minister Arun Jaitley on Thursday announced to make no changes in the personal income-tax slabs. "Govt has made many positive changes in the personal income tax rates applicable to individuals in the last three years therefore I do not wish to make any changes to this," he said. Jaitley said that there will be a standard deduction of Rs 40,000 under transport, medical reimbursement for the salaried class. The facility has been extended to pensioners also. However, for the senior citizens, the exemption of interest income on bank deposits has been raised to Rs 50,000. During his budget speech, Jaitley informed that the number of effective tax-payers has gone up from 6.47 crore in 2014-15 to 8.27 crore in 2016-17. He also projected the fiscal deficit for 2018-19 at 3.3% of GDP. "The fiscal deficit for 2017-18 was Rs 5.95 lakh crore, that is, 3.5% of GDP. I project it at 3.3% of GDP in 2018-19." Thi is the last full budget of the ruling NDA government.

Budget 2018: Finance Minister Arun Jaitley announces 'no change' in personal income tax slabs

Just over 2 crore Indians, or 1.7 per cent of the total population, paid income tax in the assessment year (AY) 2015-16, according to data released by the I-T department.

The number of income-tax return filers increased to 4.07 crore in assessment year 2015-16 (FY 2014-2015) from 3.65 crore in the previous year but only 2.06 crore actually paid tax as the others claimed income below taxable limits.

In the previous AY 2014-15, 1.91 crore, out of 3.65 crore who filed returns, had paid income tax.

But the total income tax paid by individuals declined to Rs 1.88 lakh crore in AY 2015-16 from Rs 1.91 lakh crore in AY 2014-15.

The data, released last week, indicates just over 3 per cent of the 120 crore population filed returns. Of these, 2.01 crore paid nil income tax, 9,690 paid tax of over Rs 1 crore.

Only one individual paid over Rs 100 crore in taxes (Rs 238 crore to be precise).

A maximum amount of 19,931 crore was collected from 2.80 crore tax filers who paid between Rs 5.5 lakh to Rs 9.5 lakh in taxes.

As many as 1.84 crore returns were filed for payment of income tax of less than Rs 1.5 lakh or an average of Rs 24,000.

Of the 4.07 crore tax returns field in AY 2015-16, close to 82 lakh showed zero or income less than Rs 2.5 lakh.

Currently, there is no income tax for income up to Rs 2.5 lakh.

In AY 2014-15, 3.65 crore filed tax returns with 1.37 crore showing zero or less than Rs 2.5 lakh income.

The combined income of all individual tax filers rose to Rs 21.27 lakh crore in AY 2015-16 from Rs 18.41 lakh crore in the previous year.

A maximum number of 1.33 crore individuals were in the Rs 2.5 lakh to Rs 3.5 lakh income group in AY 2015-16.

In all, 4.35 crore income tax returns, including those by individuals, were filed in AY 2015-16. Total income declared was Rs 33.62 lakh crore.

In the previous year, 3.91 crore returns were filed with Rs 26.93 crore declared income.

Companies filed 7.19 lakh returns with gross income of Rs 10.71 lakh crore.

Only 2.06 crore Indians actually paid tax as the others claimed income below taxable limits

Just over 2 crore Indians, or 1.7 per cent of the total population, paid income tax in the assessment year (AY) 2015-16, according to data released by the I-T department. The number of income-tax return filers increased to 4.07 crore in assessment year 2015-16 (FY 2014-2015) from 3.65 crore in the previous year but only 2.06 crore actually paid tax as the others claimed income below taxable limits. In the previous AY 2014-15, 1.91 crore, out of 3.65 crore who filed returns, had paid income tax. But the total income tax paid by individuals declined to Rs 1.88 lakh crore in AY 2015-16 from Rs 1.91 lakh crore in AY 2014-15. The data, released last week, indicates just over 3 per cent of the 120 crore population filed returns. Of these, 2.01 crore paid nil income tax, 9,690 paid tax of over Rs 1 crore. Only one individual paid over Rs 100 crore in taxes (Rs 238 crore to be precise). A maximum amount of 19,931 crore was collected from 2.80 crore tax filers who paid between Rs 5.5 lakh to Rs 9.5 lakh in taxes. As many as 1.84 crore returns were filed for payment of income tax of less than Rs 1.5 lakh or an average of Rs 24,000. Of the 4.07 crore tax returns field in AY 2015-16, close to 82 lakh showed zero or income less than Rs 2.5 lakh. Currently, there is no income tax for income up to Rs 2.5 lakh. In AY 2014-15, 3.65 crore filed tax returns with 1.37 crore showing zero or less than Rs 2.5 lakh income. The combined income of all individual tax filers rose to Rs 21.27 lakh crore in AY 2015-16 from Rs 18.41 lakh crore in the previous year. A maximum number of 1.33 crore individuals were in the Rs 2.5 lakh to Rs 3.5 lakh income group in AY 2015-16. In all, 4.35 crore income tax returns, including those by individuals, were filed in AY 2015-16. Total income declared was Rs 33.62 lakh crore. In the previous year, 3.91 crore returns were filed with Rs 26.93 crore declared income. Companies filed 7.19 lakh returns with gross income of Rs 10.71 lakh crore.

Mere 1.7% Indians paid income tax in 2015-16: Official data

The Punjab and Haryana <a href="http://www.wionews.com/india-news/delhi-high-court-reserves-order-in-honeypreets-bail-plea-20684" target="_blank">High Court</a> has ordered the Income Tax and Enforcement Directorate to investigate on the movable and immovable properties of the <a href="http://www.wionews.com/india-news/600-skeletons-found-in-dera-chief-ram-rahims-headquarters-20450" target="_blank">Dera Sacha Sauda</a>. &nbsp;

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Punjab&amp;Haryana HC order Income Tax &amp; ED to conduct probe in properties movable/immovable relating to Dera of Ram Rahim: Petitioner&#39;s lawyer <a href="https://t.co/mHVzPg3prs">pic.twitter.com/mHVzPg3prs</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/912954067701325824">September 27, 2017</a></blockquote>
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The High Court has asked the court commissioner who conducted a search of all the properties of Dera Sacha Sauda to submit a copy of the report to&nbsp;Government of India.

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High Court asked Court Commissioner who searched all the premises of Dera to supply a copy of the report to the GoI also:Petitioner&#39;s lawyer
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The High Court of the two states has also ordered that separate tribunals will be constituted for each of the states.

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Punjab and Haryana HC ordered that there will be two tribunals constituted, one for Punjab, other for Haryana: Petitioner&#39;s lawyer <a href="https://twitter.com/hashtag/RamRahim?src=hash">#RamRahim</a> <a href="https://t.co/ba1P2lmEy9">pic.twitter.com/ba1P2lmEy9</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/912955186103988224">September 27, 2017</a></blockquote>
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The tribunals will investigate the claims made by people and will further decide the amount to be paid to them.&nbsp; 


&nbsp;

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These tribunals will examine if the claims made by ppl are genuine; if it is then how much amount are they entitled: Petitioner&#39;s lawyer <a href="https://t.co/r78ZlwT5b8">pic.twitter.com/r78ZlwT5b8</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/912955615965618182">September 27, 2017</a></blockquote>
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&nbsp;( Also read: <a href="http://www.wionews.com/india-news/he-exposed-dera-sacha-saudas-truth-in-2002-was-shot-down-anshul-slain-journalists-son-19602" target="_blank">WION Web Exclusive: &#39;My father was shot for exposing Ram Rahim, but his readers helped me&#39;</a>)&nbsp;

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After this report comes, then the Punjab and Haryana High Court will finally decide as to how much amount has to paid: Petitioner&#39;s lawyer
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/912955967024672768">September 27, 2017</a></blockquote>
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&nbsp;

&nbsp;

The Punjab and Haryana High Court has ordered the Income Tax and Enforcement Directorate to investigate on the movable and immovable properties of the Dera Sacha Sauda

The Punjab and Haryana High Court has ordered the Income Tax and Enforcement Directorate to investigate on the movable and immovable properties of the Dera Sacha Sauda. Punjab&Haryana HC order Income Tax & ED to conduct probe in properties movable/immovable relating to Dera of Ram Rahim: Petitioner's lawyer pic.twitter.com/mHVzPg3prs — ANI (@ANI) September 27, 2017 × The High Court has asked the court commissioner who conducted a search of all the properties of Dera Sacha Sauda to submit a copy of the report to Government of India. High Court asked Court Commissioner who searched all the premises of Dera to supply a copy of the report to the GoI also:Petitioner's lawyer — ANI (@ANI) September 27, 2017 × The High Court of the two states has also ordered that separate tribunals will be constituted for each of the states. Punjab and Haryana HC ordered that there will be two tribunals constituted, one for Punjab, other for Haryana: Petitioner's lawyer #RamRahim pic.twitter.com/ba1P2lmEy9 — ANI (@ANI) September 27, 2017 × The tribunals will investigate the claims made by people and will further decide the amount to be paid to them. These tribunals will examine if the claims made by ppl are genuine; if it is then how much amount are they entitled: Petitioner's lawyer pic.twitter.com/r78ZlwT5b8 — ANI (@ANI) September 27, 2017 × ( Also read: WION Web Exclusive: 'My father was shot for exposing Ram Rahim, but his readers helped me') After this report comes, then the Punjab and Haryana High Court will finally decide as to how much amount has to paid: Petitioner's lawyer — ANI (@ANI) September 27, 2017 ×

HC orders investigation on Dera Sacha Sauda properties

The income tax department has raided the properties of Cafe Coffee Day founder and owner VG Siddhartha.&nbsp;

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Income Tax raids on VG Siddhartha: Over 20 locations in Bengaluru, Mumbai, Chennai and Chikmagalur being raided.
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Income Tax raids on VG Siddhartha: <a href="https://twitter.com/hashtag/Visuals?src=hash">#Visuals</a> from Caf&eacute; Coffee Day HQ in Bengaluru. <a href="https://t.co/GROf1wpun5">pic.twitter.com/GROf1wpun5</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/910723170793013248">September 21, 2017</a></blockquote>
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Siddhartha is also the son-in-law of senior BJP leader SM Krishna.&nbsp;

Krishna has also been a former external affairs minister, and a former chief minister of Karnataka.&nbsp;

He was with the Congress then. He only recently joined the BJP.&nbsp;

Siddhartha is also the son-in-law of senior BJP leader SM Krishna

The income tax department has raided the properties of Cafe Coffee Day founder and owner VG Siddhartha. Income Tax raids on VG Siddhartha: Over 20 locations in Bengaluru, Mumbai, Chennai and Chikmagalur being raided. — ANI (@ANI) September 21, 2017 × Income Tax raids on VG Siddhartha: #Visuals from Café Coffee Day HQ in Bengaluru. pic.twitter.com/GROf1wpun5 — ANI (@ANI) September 21, 2017 × Siddhartha is also the son-in-law of senior BJP leader SM Krishna. Krishna has also been a former external affairs minister, and a former chief minister of Karnataka. He was with the Congress then. He only recently joined the BJP.

IT Dept raids Cafe Coffee Day owner VG Siddhartha

India&#39;s income tax department has scanned one crore accounts for unaccounted money and identified 18 lakh people with &quot;suspicious deposits&quot; of over Rs 5 lakhs.

It has asked these depositors to explain the source of their funds, PTI reported.&nbsp;The tax department was looking at suspicious deposits siphoned&nbsp;off into bank accounts after demonetisation as a part of &#39;Operation Clean Money&#39; launched by it on January 31.&nbsp;

It has sent SMS and emails to 18 lakh people who have made suspicious deposits of Rs 5 lakh and above between November 10 and December 30.

Sources told PTI the department is scrutinising all categories of accounts and will send out more SMS/emails for suspicious deposits under &quot;Operation Clean Money&quot;.

It has also asked taxpayers to e-verify the deposits they made in their accounts after&nbsp;demonetisation&nbsp;on November 8 and respond to queries of any mismatch on the tax e-filing portal.

The tax department has run big data analytics through more than one-crore accounts in its data bank and matched them with the taxpayer profile of the holder, a top source told PTI.

&quot;We have initially matched 1-crore accounts with the profile in our database and identified 18 lakh people with suspicious deposits of over Rs 5 lakh. We will expand the scope of data analytics further and match the profiles with our data base,&quot; the source told PTI.

&quot;If the cash in hand is as per the balance sheet, no questions will be asked and the case would be closed. We have put enough safeguard to ensure that there is no harassment to taxpayers,&quot; the source added.&nbsp;

&quot;If the department is convinced with the reply of the assessee, the case will be closed and that will be communicated by SMS and email. But, in case of unsatisfactory reply, the decision to issue notice will be taken by Assistant Commissioner and Commissioner rank officers,&quot; the source said.

In order to reduce harassment of taxpayers, the revenue department has mandated only officers in the rank of Assistant Commissioners and above to issue notices in case of unsatisfactory response received about bank deposits post demonetisation.

Cash transactions above Rs 3 lakh to invite 100% penalty: Government

In a bid to curb black money, the government has also said it will impose a steep penalty on those accepting cash in excess of Rs 3 lakh while settling any transaction.

A ban on cash transaction of more than Rs 3 lakh has been proposed in the Budget for 2017-18.

Revenue secretary Hasmukh Adhia told PTI on Saturday the penalty for cash transaction will be steep and the receiver will have to pay an amount equivalent to the cash received.

&quot;Supposing you do a transaction of Rs 4 lakh in cash, then the penalty would be Rs 4 lakh. If you do a transaction of Rs 50 lakh, penalty would be Rs 50 lakh,&quot; he&nbsp;told PTI, adding that the penalty will be levied on the receiver.

The government says it intends to track all large cash transactions to disincentivise people from generating black money and also to also curb the avenues of conspicuous consumption through cash.

People with large sum of unaccounted money usually spend it on holidaying or buying luxury items like cars, watches and jewellery. The new cash curbs will mean that such spending avenues are curtailed, the revenue secretary said.&nbsp;

(WION with inputs from PTI)

The tax department has sent SMS and emails to 18 lakh people who have made suspicious deposits of Rs 5 lakh

India's income tax department has scanned one crore accounts for unaccounted money and identified 18 lakh people with "suspicious deposits" of over Rs 5 lakhs. It has asked these depositors to explain the source of their funds, PTI reported. The tax department was looking at suspicious deposits siphoned off into bank accounts after demonetisation as a part of 'Operation Clean Money' launched by it on January 31. It has sent SMS and emails to 18 lakh people who have made suspicious deposits of Rs 5 lakh and above between November 10 and December 30. Sources told PTI the department is scrutinising all categories of accounts and will send out more SMS/emails for suspicious deposits under "Operation Clean Money". It has also asked taxpayers to e-verify the deposits they made in their accounts after demonetisation on November 8 and respond to queries of any mismatch on the tax e-filing portal. The tax department has run big data analytics through more than one-crore accounts in its data bank and matched them with the taxpayer profile of the holder, a top source told PTI. "We have initially matched 1-crore accounts with the profile in our database and identified 18 lakh people with suspicious deposits of over Rs 5 lakh. We will expand the scope of data analytics further and match the profiles with our data base," the source told PTI. "If the cash in hand is as per the balance sheet, no questions will be asked and the case would be closed. We have put enough safeguard to ensure that there is no harassment to taxpayers," the source added. "If the department is convinced with the reply of the assessee, the case will be closed and that will be communicated by SMS and email. But, in case of unsatisfactory reply, the decision to issue notice will be taken by Assistant Commissioner and Commissioner rank officers," the source said. In order to reduce harassment of taxpayers, the revenue department has mandated only officers in the rank of Assistant Commissioners and above to issue notices in case of unsatisfactory response received about bank deposits post demonetisation. Cash transactions above Rs 3 lakh to invite 100% penalty: Government In a bid to curb black money, the government has also said it will impose a steep penalty on those accepting cash in excess of Rs 3 lakh while settling any transaction. A ban on cash transaction of more than Rs 3 lakh has been proposed in the Budget for 2017-18. Revenue secretary Hasmukh Adhia told PTI on Saturday the penalty for cash transaction will be steep and the receiver will have to pay an amount equivalent to the cash received. "Supposing you do a transaction of Rs 4 lakh in cash, then the penalty would be Rs 4 lakh. If you do a transaction of Rs 50 lakh, penalty would be Rs 50 lakh," he told PTI, adding that the penalty will be levied on the receiver. The government says it intends to track all large cash transactions to disincentivise people from generating black money and also to also curb the avenues of conspicuous consumption through cash. People with large sum of unaccounted money usually spend it on holidaying or buying luxury items like cars, watches and jewellery. The new cash curbs will mean that such spending avenues are curtailed, the revenue secretary said. (WION with inputs from PTI)

India's I-T department scans 1 crore accounts, identifies 18 lakh 'suspicious deposits'

&nbsp;

The Indian Income Tax department is looking into over Rs 16,000 crore deposited in different accounts of cooperative banks. More than Rs 2 lakh have been deposited in over 60 lakh bank 
accounts post-demonetisation.

&quot;Rs 3-4 lakh crore of evaded income has been deposited in banks post-demonetisation,&quot; Income Tax official said. &quot;Rs 25,000 crore has been deposited in cash in dormant bank accounts post-demonetisation,&quot; tax officials added.

Nearly Rs 80,000 crore of repayment of loans have been done in cash post-demonetisation, tax officials have concluded.

The Indian Income Tax department is looking into over Rs 16,000 crore deposited in different accounts of cooperative banks.

The Indian Income Tax department is looking into over Rs 16,000 crore deposited in different accounts of cooperative banks. More than Rs 2 lakh have been deposited in over 60 lakh bank accounts post-demonetisation. "Rs 3-4 lakh crore of evaded income has been deposited in banks post-demonetisation," Income Tax official said. "Rs 25,000 crore has been deposited in cash in dormant bank accounts post-demonetisation," tax officials added. Nearly Rs 80,000 crore of repayment of loans have been done in cash post-demonetisation, tax officials have concluded.

Rs 25,000 crore deposited in cash post-demonetisation: I-T department

Seeking to analyse the banking transactions in months before the demonetisation, Income Tax department has asked banks to report cash deposits in savings accounts between April 1 to November 9, 2016.

Bank&#39;s have also been directed to ask&nbsp;account holders, who did not furnish&nbsp;PAN (Permanent Account Number) or Form 60 (for those without PAN) at the time of opening bank account, to do so by February 28 this year.

As per a notification, the banks, cooperative banks and post offices will have to report to the tax department all cash deposits between April 1 to November 9, 2016 -- the day when the demonetisation was effected by junking old Rs 500 and Rs 1000 notes.

Further bank officials will have to document PAN or declaration of Form 60 received from account holders and maintain all records for transactions under Rule 114B of I-T Act. Rule 114B lists various transactions for which quoting PAN is mandatory.

Following the demonetisation move, the tax department had earlier asked banks and post offices to report to it all deposits above Rs 2.5 lakh in savings accounts and more than Rs 12.50 lakh in current accounts made between November 10-December 30, 2016.

Also, cash deposits exceeding Rs 50,000 in a single day had to be reported.

With an estimated about Rs 15 lakh crore in junked currency notes coming back into the banking system post demonetisation, the tax department has started analysing the bank deposit trends.

(PTI)

Banks have been directed to ask account holders who did not provide a permanent account number of Form 16 to do so by February 28 this year

Seeking to analyse the banking transactions in months before the demonetisation, Income Tax department has asked banks to report cash deposits in savings accounts between April 1 to November 9, 2016. Bank's have also been directed to ask account holders, who did not furnish PAN (Permanent Account Number) or Form 60 (for those without PAN) at the time of opening bank account, to do so by February 28 this year. As per a notification, the banks, cooperative banks and post offices will have to report to the tax department all cash deposits between April 1 to November 9, 2016 -- the day when the demonetisation was effected by junking old Rs 500 and Rs 1000 notes. Further bank officials will have to document PAN or declaration of Form 60 received from account holders and maintain all records for transactions under Rule 114B of I-T Act. Rule 114B lists various transactions for which quoting PAN is mandatory. Following the demonetisation move, the tax department had earlier asked banks and post offices to report to it all deposits above Rs 2.5 lakh in savings accounts and more than Rs 12.50 lakh in current accounts made between November 10-December 30, 2016. Also, cash deposits exceeding Rs 50,000 in a single day had to be reported. With an estimated about Rs 15 lakh crore in junked currency notes coming back into the banking system post demonetisation, the tax department has started analysing the bank deposit trends. (PTI)

Income Tax department asks banks to report cash deposits before demonetisation

Kolkata-based businessman Paras Mal Lodha was arrested by Enforcement Directorate (ED) from Mumbai airport on Thursday morning for converting over 25 crore old currency into new.&nbsp;

&ldquo;ED arrests Paras Mal Lodha. Involved in conversion of more than Rs 25 Crores of old notes to new notes in Shekhar Reddy and Rohit Tandon cases,&rdquo; said a statement issued by the Enforcement Directorate.&nbsp;

Lodha was arrested on Thursday morning from Mumbai airport, while he was attempting to flee the country. He was arrested in connection with the Karnataka-based business Shekhar Reddy and Delhi-based lawyer Rohit Tandon cases.&nbsp;

Sources in ED reveal, that Lodha besides being a real-estate baron, he ran a full-fledged hawala racket across the country and after demonetisation, he came under the scanner of the IT Department.&nbsp;

Later, he was taken to Delhi, where ED produced him before a court and was remanded to seven-day ED custody.&nbsp;

Lodha is the current director of Peerless Chairman and Managing Director. It is registered under the Ministry of Corporate Affairs. In 1991, he took over the Peerless General Finance and Investment Company Limited. Peerless is India&rsquo;s largest non-banking financial institution. He had &lsquo;reportedly&rsquo; threatened the then Peerless Chairman and Managing Director PC Sen and even hired &lsquo;contract killers&rsquo; to get maximum stake in the company for decision making, but was unsuccessful. He was later summoned by Kolkata Police in the same year, but let off after questioning.&nbsp;

His name came to fore in 2010, when a major fire in Kolkata&rsquo;s Stephen Court building claimed as many as 40 lives. He was reportedly accused of constructing two floors in the building illegally.&nbsp;

Lodha&rsquo;s younger daughter&rsquo;s wedding in 2014 made it to the headlines, when it was attended by top stars, bureaucrats and politicians.&nbsp;

(WION) 
&nbsp;

Kolkata-based businessman Paras Mal Lodha was arrested for converting over 25 crore old currency into new

Kolkata-based businessman Paras Mal Lodha was arrested by Enforcement Directorate (ED) from Mumbai airport on Thursday morning for converting over 25 crore old currency into new. “ED arrests Paras Mal Lodha. Involved in conversion of more than Rs 25 Crores of old notes to new notes in Shekhar Reddy and Rohit Tandon cases,” said a statement issued by the Enforcement Directorate. Lodha was arrested on Thursday morning from Mumbai airport, while he was attempting to flee the country. He was arrested in connection with the Karnataka-based business Shekhar Reddy and Delhi-based lawyer Rohit Tandon cases. Sources in ED reveal, that Lodha besides being a real-estate baron, he ran a full-fledged hawala racket across the country and after demonetisation, he came under the scanner of the IT Department. Later, he was taken to Delhi, where ED produced him before a court and was remanded to seven-day ED custody. Lodha is the current director of Peerless Chairman and Managing Director. It is registered under the Ministry of Corporate Affairs. In 1991, he took over the Peerless General Finance and Investment Company Limited. Peerless is India’s largest non-banking financial institution. He had ‘reportedly’ threatened the then Peerless Chairman and Managing Director PC Sen and even hired ‘contract killers’ to get maximum stake in the company for decision making, but was unsuccessful. He was later summoned by Kolkata Police in the same year, but let off after questioning. His name came to fore in 2010, when a major fire in Kolkata’s Stephen Court building claimed as many as 40 lives. He was reportedly accused of constructing two floors in the building illegally. Lodha’s younger daughter’s wedding in 2014 made it to the headlines, when it was attended by top stars, bureaucrats and politicians. (WION)

Enforcement Directorate arrests businessman for money laundering

Indian taxmen on Wednesday conducted raids at over dozen places in two states against the son and some relatives of Tamil Nadu Chief Secretary P Rama Mohana Rao.

India&#39;s Income Tax department said they seized cash and gold bars worth Rs 18 lakh (roughly $26,500).&nbsp;

There are allegations that Rao -- appointed as Tamil Nadu state&#39;s top bureaucrat earlier this year -- has close links with industrialist Sekhar Reddy.&nbsp;Reddy was arrested on Wednesday after taxmen seized&nbsp;127 kg of gold and over Rs 170 crore from his businesses and residences. 
 
A team of about 100 tax sleuths, aided by a platoon (about 35 personnel) of CRPF, launched the raids as early as 6 AM and visited at least 15 premises in the state and the neighbouring Andhra Pradesh as part of the tax evasion probe.&nbsp; 
 
The searches, top I-T sources said, were launched against Rao&#39;s son Vivek Papisetty and his relatives and Rs 18 lakh in new notes and two gold bars of 1-kg each were seized from the premises of Vivek&#39;s father-in-law based in Chittoor of AP.&nbsp;

Not vindictive action

Rebutting West Bengal Chief Minister Mamata Banerjee&#39;s criticism of the Income Tax raids on Tamil Nadu Chief Secretary P Ramamamohana Rao, BJP said today&#39;s raids prove the agency was working without any discrimination and had carried out a &quot;usual procedure.&quot;

BJP state President Tamilisai Sounderrajan said I-T authorities had been conducting searches in the state of late, with lot of seizures being made from a private contractor, Shekhar Reddy.

&quot;And today, searches are being conducted at the Chief Secretary&#39;s residence. This is a usual procedure undertaken by the Income Tax department. So how is it acceptable if those like Mamata Banerjee call it vindictive action,&quot; she said.

&quot;The taxmen raid a place on suspicion or on information of &#39;movement of money&#39; and &quot;they will say there was nothing (incriminating available) if that is the case,&quot; she told reporters.

&quot;The raids are done to see if any (illegal) cash is present. If there is nothing (incriminating available), they will say it. Therefore, I completely deny that this is vindictive action,&quot; she said.

Today&#39;s searches were also proof that the I-T department was &quot;working without any discrimination&quot;, she said and pointed out that cash, gold and documents had been seized in earlier I-T searches in the state.

Recalling Prime Minister Narendra Modi&#39;s statement, she said &#39;honest people need not fear&#39; as the tax evasion and black money probe was targeted against those indulging in irregularities.

&quot;Therefore, today&#39;s searches is an action in support of people,&quot; she added.

Mamata Banerjee had criticised the I-T raid at the residence of Rao, saying such a &quot;vindictive and unethical&quot; act by the central agencies devalues the institution of head of the civil service.

&quot;Why this vindictive, unethical, technically improper action? Is it only to disturb the federal structure? Why do not they raid Amit Shah and others...&quot; she said in a statement.

Responding to Banerjee&#39;s charge that why BJP leaders were not being raided, Sounderrajan said that the tax sleuths just don&#39;t go about conducting searches but gather all relevant information before doing so.

(PTI)

'A total of 13 premises are being searched,' a senior official said

Indian taxmen on Wednesday conducted raids at over dozen places in two states against the son and some relatives of Tamil Nadu Chief Secretary P Rama Mohana Rao. India's Income Tax department said they seized cash and gold bars worth Rs 18 lakh (roughly $26,500). There are allegations that Rao -- appointed as Tamil Nadu state's top bureaucrat earlier this year -- has close links with industrialist Sekhar Reddy. Reddy was arrested on Wednesday after taxmen seized 127 kg of gold and over Rs 170 crore from his businesses and residences. A team of about 100 tax sleuths, aided by a platoon (about 35 personnel) of CRPF, launched the raids as early as 6 AM and visited at least 15 premises in the state and the neighbouring Andhra Pradesh as part of the tax evasion probe. The searches, top I-T sources said, were launched against Rao's son Vivek Papisetty and his relatives and Rs 18 lakh in new notes and two gold bars of 1-kg each were seized from the premises of Vivek's father-in-law based in Chittoor of AP. Not vindictive action Rebutting West Bengal Chief Minister Mamata Banerjee's criticism of the Income Tax raids on Tamil Nadu Chief Secretary P Ramamamohana Rao, BJP said today's raids prove the agency was working without any discrimination and had carried out a "usual procedure." BJP state President Tamilisai Sounderrajan said I-T authorities had been conducting searches in the state of late, with lot of seizures being made from a private contractor, Shekhar Reddy. "And today, searches are being conducted at the Chief Secretary's residence. This is a usual procedure undertaken by the Income Tax department. So how is it acceptable if those like Mamata Banerjee call it vindictive action," she said. "The taxmen raid a place on suspicion or on information of 'movement of money' and "they will say there was nothing (incriminating available) if that is the case," she told reporters. "The raids are done to see if any (illegal) cash is present. If there is nothing (incriminating available), they will say it. Therefore, I completely deny that this is vindictive action," she said. Today's searches were also proof that the I-T department was "working without any discrimination", she said and pointed out that cash, gold and documents had been seized in earlier I-T searches in the state. Recalling Prime Minister Narendra Modi's statement, she said 'honest people need not fear' as the tax evasion and black money probe was targeted against those indulging in irregularities. "Therefore, today's searches is an action in support of people," she added. Mamata Banerjee had criticised the I-T raid at the residence of Rao, saying such a "vindictive and unethical" act by the central agencies devalues the institution of head of the civil service. "Why this vindictive, unethical, technically improper action? Is it only to disturb the federal structure? Why do not they raid Amit Shah and others..." she said in a statement. Responding to Banerjee's charge that why BJP leaders were not being raided, Sounderrajan said that the tax sleuths just don't go about conducting searches but gather all relevant information before doing so. (PTI)

Taxmen raid Tamil Nadu chief secretary's home over graft charges

The Government on Monday introduced a new Bill in Lok Sabha to tax newly deposited undeclared income as part of demonetisation drive.&nbsp;

&nbsp;

Under the scheme namely,&nbsp;&lsquo;Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana,&nbsp;2016&rsquo; (PMGKY) proposed in the Bill, it said, &quot;Concerns have been raised that some of the existing provisions of the Income-tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 (&lsquo;the Bill&rsquo;) has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision.&quot;

The Government said, &quot;In the wake of declaring specified bank notes &ldquo;as not legal tender&rdquo;, there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy.&quot;

<table border="1" cellpadding="1" cellspacing="1" summary="Changes to Income Tax Act">
	<caption>Overview of Amendments Proposed</caption>
	<tbody>
		<tr>
			<td>PARTICULARS</td>
			<td>EXISTING PROVISIONS</td>
			<td>PROPOSED PROVISIONS</td>
		</tr>
		<tr>
			<td>General provision for penalty&nbsp;</td>
			<td>
			PENALTY (Section 270A)&nbsp;

			Under-reporting - @50% of tax&nbsp;

			Misreporting - @200% of tax

			(Under-reporting/ Misreporting income is normally difference between returned income and assessed income)
			</td>
			<td>No changes proposed</td>
		</tr>
		<tr>
			<td>Provisions for taxation &amp; penalty of unexplained credit, investment, cash and other assets</td>
			<td>
			Penalty (271AAB)

			(i) 10% of income, if admitted, returned and taxes are paid

			(ii) 20% of income, if not admitted but returned&nbsp;and taxes are paid

			(iii) 60% of income in any other case
			</td>
			<td>
			Penalty (271AAB)

			(i) 30% of income, if&nbsp;admitted, returned and taxes are paid

			(ii) 60% of income in any other case
			</td>
		</tr>
		<tr>
			<td>Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016&rsquo; (PMGKY)</td>
			<td>New Taxation&nbsp;and Investment&nbsp;Regime</td>
			<td>
			Undisclosed income in the form of cash &amp; bank deposit can be declared:

			(A)&nbsp;Tax, Surcharge, Penalty payable

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@30% of income declared

			&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Surcharge &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@33% of tax

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Penalty&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@10% of income&nbsp;declared

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Total&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@50% of income (approx.)

			<a id="m_5906746394611854875__GoBack" name="m_5906746394611854875__GoBack"></a>(B) &nbsp;Deposit

			&nbsp;&nbsp;&nbsp;&nbsp; 25% of declared income to be deposited in interest &nbsp;&nbsp;&nbsp;

			&nbsp;&nbsp;&nbsp;&nbsp; free Deposit Scheme for four years.&nbsp;&nbsp;
			</td>
		</tr>
		<tr>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
		</tr>
	</tbody>
</table>

&nbsp;

The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called &lsquo;Pradhan Mantri Garib Kalyan Cess&rsquo; @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the &lsquo;Pradhan Mantri Garib Kalyan Deposit Scheme, 2016&rsquo;, it said.&nbsp;

&quot;This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality,&quot; it concluded. &nbsp;

The Taxation Law is expected to tax defaulting assessees at a higher rate and stringent penalty provision

The Government on Monday introduced a new Bill in Lok Sabha to tax newly deposited undeclared income as part of demonetisation drive. Under the scheme namely, ‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) proposed in the Bill, it said, "Concerns have been raised that some of the existing provisions of the Income-tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 (‘the Bill’) has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision." The Government said, "In the wake of declaring specified bank notes “as not legal tender”, there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy." Overview of Amendments Proposed PARTICULARS EXISTING PROVISIONS PROPOSED PROVISIONS General provision for penalty PENALTY (Section 270A) Under-reporting - @50% of tax Misreporting - @200% of tax (Under-reporting/ Misreporting income is normally difference between returned income and assessed income) No changes proposed Provisions for taxation & penalty of unexplained credit, investment, cash and other assets Penalty (271AAB) (i) 10% of income, if admitted, returned and taxes are paid (ii) 20% of income, if not admitted but returned and taxes are paid (iii) 60% of income in any other case Penalty (271AAB) (i) 30% of income, if admitted, returned and taxes are paid (ii) 60% of income in any other case Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) New Taxation and Investment Regime Undisclosed income in the form of cash & bank deposit can be declared: (A) Tax, Surcharge, Penalty payable Tax @30% of income declared Surcharge @33% of tax Penalty @10% of income declared Total @50% of income (approx.) (B) Deposit 25% of declared income to be deposited in interest free Deposit Scheme for four years. The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called ‘Pradhan Mantri Garib Kalyan Cess’ @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’, it said. "This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality," it concluded.

Income Tax Act: This is how the new amnesty scheme looks like

Warning people against depositing their unaccounted old currency in someone else&#39;s bank account , the tax department has decided to slap charges under the newly enforced Benami Transactions Act against violators that carries a penalty, prosecution and rigorous jail term of a maximum seven years.

Such instances where the suspicion is found to be true will be prosecuted under the Benami Property Transactions Act, 1988, applicable on both movable and immovable property, that has been enforced from November 1 this year.

They said the Act empowers the taxman to confiscate and prosecute both the depositor and the person whose illegal money he or she has &quot;adjusted&quot; in their account.

&quot;The CBDT (Central Board of Direct Taxes) has asked the Income Tax department to closely monitor all such transactions where people are using bank accounts of other persons for hiding and converting into white their black money using the old currency notes of Rs 500 and Rs 1,000.

&quot;Already some instances have been reported in this regard and the department is set to issue notices under the Benami Act,&quot; the sources told PTI.

Primarily, they said, the notices will be issued in cases of huge cash deposits beyond the threshold of Rs 2.5 lakh but in cases where a suspicious report is received from the bank or the Financial Intelligence Unit below this threshold will also be investigated.

&quot;Such an arrangement where a person deposits old currency of Rs 500 and Rs 1000 in the bank account of another person with an understanding that the account holder shall return his money in new currency, the transaction shall be regarded as benami transaction under the said Act.

&quot;The person who deposits old currency in the bank account shall be treated as beneficial owner and the person in whose bank account the old currency has been deposited shall be categorised under this law as a benamidar,&quot; a senior official explained.

In a related development, official sources said that the department had detected over Rs 200 crore in undisclosed income after it conducted over 80 surveys and about 30 searches in cases of suspicious usage of the scrapped currency. About Rs 50 crore has also been seized in these operations since November 8 across various states, they said.

The sources said the taxman has initiated a country-wide operation to identify suspect bank accounts where huge cash deposits have been made after November 8, when government demonetised the Rs 500 and Rs 1,000 currency notes.

(PTI) 
&nbsp;

India's income tax department has decided to slap charges against violators under the newly enforced Benami Transactions Act

Warning people against depositing their unaccounted old currency in someone else's bank account , the tax department has decided to slap charges under the newly enforced Benami Transactions Act against violators that carries a penalty, prosecution and rigorous jail term of a maximum seven years. Such instances where the suspicion is found to be true will be prosecuted under the Benami Property Transactions Act, 1988, applicable on both movable and immovable property, that has been enforced from November 1 this year. They said the Act empowers the taxman to confiscate and prosecute both the depositor and the person whose illegal money he or she has "adjusted" in their account. "The CBDT (Central Board of Direct Taxes) has asked the Income Tax department to closely monitor all such transactions where people are using bank accounts of other persons for hiding and converting into white their black money using the old currency notes of Rs 500 and Rs 1,000. "Already some instances have been reported in this regard and the department is set to issue notices under the Benami Act," the sources told PTI. Primarily, they said, the notices will be issued in cases of huge cash deposits beyond the threshold of Rs 2.5 lakh but in cases where a suspicious report is received from the bank or the Financial Intelligence Unit below this threshold will also be investigated. "Such an arrangement where a person deposits old currency of Rs 500 and Rs 1000 in the bank account of another person with an understanding that the account holder shall return his money in new currency, the transaction shall be regarded as benami transaction under the said Act. "The person who deposits old currency in the bank account shall be treated as beneficial owner and the person in whose bank account the old currency has been deposited shall be categorised under this law as a benamidar," a senior official explained. In a related development, official sources said that the department had detected over Rs 200 crore in undisclosed income after it conducted over 80 surveys and about 30 searches in cases of suspicious usage of the scrapped currency. About Rs 50 crore has also been seized in these operations since November 8 across various states, they said. The sources said the taxman has initiated a country-wide operation to identify suspect bank accounts where huge cash deposits have been made after November 8, when government demonetised the Rs 500 and Rs 1,000 currency notes. (PTI)

Demonetisation: Those involved in suspect cash deposits could face 7-year jail, warns Income Tax department

India&#39;s Income Tax (IT) department has summoned Tata Trusts to explain the misuse of tax exemption granted to the trusts for charitable purposes, reported Indian business daily, Business Standard.

A Comptroller and Auditor General (CAG) report of 2013 had stated that the trusts are earning huge profit instead of using it for charitable purposes. The IT department has thus asked the executive trustee of Tata trusts, R Venkataramanan, to give it an explanation on Friday evening in Mumbai.

The trusts headed by Ratan Tata are using surplus funds for creating fixed assets or are transferred to other trusts to avoid tax, the CAG alleged. Its audit stated that the 22 trusts under scrutiny have accumulated surpluses to the tune of Rs 819 crore.

The CAG also accused the IT department for allowing irregular exemptions to Jamshetji Tata Trust and Navajbai Ratan Tata Trust.

The Business Standard report said that the Jamshetji Tata Trust and Navajbai Ratan Tata Trust earned Rs 1,905 crore and Rs 1,234 crore from capital gains during 2009 and 2010, respectively, as stated by CAG.

They invested this amount in prohibited mode of investments, which is in contravention to the provisions of Section 13(1)(d) of the Income Tax Act, the business daily reported.

The summons for Friday are part of the promise made by India&#39;s ministry of finance to take action.

(WION with inputs from agencies)

A Comptroller and Auditor General report of 2013 had stated that the trusts are earning huge profit instead of using it for charity

India's Income Tax (IT) department has summoned Tata Trusts to explain the misuse of tax exemption granted to the trusts for charitable purposes, reported Indian business daily, Business Standard. A Comptroller and Auditor General (CAG) report of 2013 had stated that the trusts are earning huge profit instead of using it for charitable purposes. The IT department has thus asked the executive trustee of Tata trusts, R Venkataramanan, to give it an explanation on Friday evening in Mumbai. The trusts headed by Ratan Tata are using surplus funds for creating fixed assets or are transferred to other trusts to avoid tax, the CAG alleged. Its audit stated that the 22 trusts under scrutiny have accumulated surpluses to the tune of Rs 819 crore. The CAG also accused the IT department for allowing irregular exemptions to Jamshetji Tata Trust and Navajbai Ratan Tata Trust. The Business Standard report said that the Jamshetji Tata Trust and Navajbai Ratan Tata Trust earned Rs 1,905 crore and Rs 1,234 crore from capital gains during 2009 and 2010, respectively, as stated by CAG. They invested this amount in prohibited mode of investments, which is in contravention to the provisions of Section 13(1)(d) of the Income Tax Act, the business daily reported. The summons for Friday are part of the promise made by India's ministry of finance to take action. (WION with inputs from agencies)

Tata Trusts get summons from India's income tax department

income-tax

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