The Tamil Nadu government Monday said it may 'consider' reducing taxes on petrol and diesel, but pointed out its spending on various initiatives, including implementation of the seventh Pay Commission recommendations.

When asked if his state would cut taxes on petrol and diesel, Tamil Nadu Chief Minister K Palaniswami highlighted the requirement of funds for various welfare measures.

He was speaking to reporters here after meeting Prime Minister Narendra Modi to seek Central assistance for various initiatives in the state.

"In Tamil Nadu, as far as the Amma (late Jayalalithaa) government is concerned, funds are required for various departments," he noted.

While the state had recently okayed the implementation of 7th Pay Commission recommendation for its employees, arrears for Transport department staff was also being disbursed, he said.

"Welfare initiatives are happening in various departments. After creating the fund source, government will consider your plea," he told media when asked if his government would axe the tax on fuel.

The Centre had last week announced a Rs 2.50 a litre cut in petrol and diesel prices, factoring in excise duty reduction of Rs 1.50 per litre and asking oil companies to absorb another Re 1.

Many BJP- ruled states had taken a cue from this and announced tax cuts.

Earlier too, Palaniswami had said his government would consider reducing the state tax on petroleum products even as he had put the onus of slashing taxes on the Centre.

"Only the Centre can reduce.. The Centre is only increasing the prices, not the state (government)," he had said last month, in an apparent reference to Oil Marketing Companies' daily revision of petrol and diesel prices.

Pointing to the difficulties in fund allocation for various projects, he had said: "We need sufficient funds but the government will consider the plea (on tax cut)".

On reports about mining firm Vedanta Ltd being allotted oil blocks in Tamil Nadu, Palaniswami said, "any project adversely affecting people will not be allowed".

The firm's copper smelter unit in Tuticorin in the state, had earlier been ordered by the state government to be permanently closed following a public outcry over pollution concerns.

An anti-Sterlite protest on May 22 had turned violent, with 13 protesters being killed in police firing.&nbsp;

The Tamil Nadu government Monday said it may 'consider' reducing taxes on petrol and diesel, but pointed out its spending on various initiatives, including implementation of the seventh Pay Commission recommendations.

The Tamil Nadu government Monday said it may 'consider' reducing taxes on petrol and diesel, but pointed out its spending on various initiatives, including implementation of the seventh Pay Commission recommendations. When asked if his state would cut taxes on petrol and diesel, Tamil Nadu Chief Minister K Palaniswami highlighted the requirement of funds for various welfare measures. He was speaking to reporters here after meeting Prime Minister Narendra Modi to seek Central assistance for various initiatives in the state. "In Tamil Nadu, as far as the Amma (late Jayalalithaa) government is concerned, funds are required for various departments," he noted. While the state had recently okayed the implementation of 7th Pay Commission recommendation for its employees, arrears for Transport department staff was also being disbursed, he said. "Welfare initiatives are happening in various departments. After creating the fund source, government will consider your plea," he told media when asked if his government would axe the tax on fuel. The Centre had last week announced a Rs 2.50 a litre cut in petrol and diesel prices, factoring in excise duty reduction of Rs 1.50 per litre and asking oil companies to absorb another Re 1. Many BJP- ruled states had taken a cue from this and announced tax cuts. Earlier too, Palaniswami had said his government would consider reducing the state tax on petroleum products even as he had put the onus of slashing taxes on the Centre. "Only the Centre can reduce.. The Centre is only increasing the prices, not the state (government)," he had said last month, in an apparent reference to Oil Marketing Companies' daily revision of petrol and diesel prices. Pointing to the difficulties in fund allocation for various projects, he had said: "We need sufficient funds but the government will consider the plea (on tax cut)". On reports about mining firm Vedanta Ltd being allotted oil blocks in Tamil Nadu, Palaniswami said, "any project adversely affecting people will not be allowed". The firm's copper smelter unit in Tuticorin in the state, had earlier been ordered by the state government to be permanently closed following a public outcry over pollution concerns. An anti-Sterlite protest on May 22 had turned violent, with 13 protesters being killed in police firing.

Tamil Nadu govt may consider reducing tax on petrol, diesel: CM

GST Council, the highest decision-making body of the Goods and Services Tax regime, today decided to set up a seven-member group of ministers to suggest on cess demand for Kerala flood rehabilitation.

Briefing reporters after the 30th meeting of the GST Council, Finance Minister Arun Jaitley said the panel discussed the proposal from Kerala to levy Calamity Tax, a special tax or cess to raise additional resources aimed at meeting the cost of reconstruction in Kerala in the aftermath of floods.

The Kerala government on Thursday also announced it will give free ration for three months to all those who lost everything in the deadly floods, reports said.&nbsp;

The Mahatma Gandhi National Rural Employment Guarantee Act scheme announced the decision adding that various committees headed by senior officials to formulate policies and to speed up rebuilding efforts in flood-hit state.

Since this would set a precedence, a group of ministers was formed to give suggestions, he said.

The Council also reviewed revenue trends and deficit of states, he said, adding state deficit this year is 13 per cent and may reduce further as consumption picks up.

GST collections in many North-east states is above expectation.

GST Council, the highest decision-making body of the Goods and Services Tax regime, today decided to set up a seven-member group of ministers to suggest on cess demand for Kerala flood rehabilitation.

GST Council, the highest decision-making body of the Goods and Services Tax regime, today decided to set up a seven-member group of ministers to suggest on cess demand for Kerala flood rehabilitation. Briefing reporters after the 30th meeting of the GST Council, Finance Minister Arun Jaitley said the panel discussed the proposal from Kerala to levy Calamity Tax, a special tax or cess to raise additional resources aimed at meeting the cost of reconstruction in Kerala in the aftermath of floods. The Kerala government on Thursday also announced it will give free ration for three months to all those who lost everything in the deadly floods, reports said. The Mahatma Gandhi National Rural Employment Guarantee Act scheme announced the decision adding that various committees headed by senior officials to formulate policies and to speed up rebuilding efforts in flood-hit state. Since this would set a precedence, a group of ministers was formed to give suggestions, he said. The Council also reviewed revenue trends and deficit of states, he said, adding state deficit this year is 13 per cent and may reduce further as consumption picks up. GST collections in many North-east states is above expectation.

GST council meets to consider new tax for Kerala flood, future calamities

US internet giant Amazon will block Australian shoppers from its international websites to counter new tax laws on online purchases, it announced Thursday.

New rules require internet retailers like the American behemoth to collect a 10 per cent goods and services tax on everything bought from overseas sites from July 1, including under the current tax-free threshold of Aus $1,000 (US$760).

As a result, Amazon said Australian shoppers wanting to use its global platforms will instead be directed to its smaller Australian site, which offers much less for sale.

Amazon reportedly baulked at the massive administrative burden of tracking GST from all overseas transactions.

"While we regret any inconvenience this may cause customers, we have had to assess the workability of the legislation as a global business with multiple international sites," it said in a statement.&nbsp

The retailer said it would compensate by opening a "global store" for Australians, adding an extra four million items previously available only on its American website.

"This will allow us to provide our customers with continued access to (our) international selection and remain compliant with the law," it said.

But even with the changes, the number of products available will be a fraction of what's on sale globally.

The new tax rules were brought in after years of lobbying by struggling local retailers, which have to apply GST to all online and store sales,

Low consumer confidence and tepid wage growth have also hit traditional brick and mortar retail operations.

Amazon only launched a local Australian site last December, shipping from a warehouse in Melbourne with another planned in Sydney.

It had around Aus $1 billion in sales from Australia annually through shipping from overseas ahead of the launch, according to Morgan Stanley analysts.

Treasurer Scott Morrison said the new laws "level the playing field for Australian businesses".

"The government doesn't apologise for ensuring multinationals pay a fair amount of tax here in Australia," he said.&nbsp

Amazon reportedly baulked at the massive administrative burden of tracking GST from all overseas transactions

US internet giant Amazon will block Australian shoppers from its international websites to counter new tax laws on online purchases, it announced Thursday. New rules require internet retailers like the American behemoth to collect a 10 per cent goods and services tax on everything bought from overseas sites from July 1, including under the current tax-free threshold of Aus $1,000 (US$760). As a result, Amazon said Australian shoppers wanting to use its global platforms will instead be directed to its smaller Australian site, which offers much less for sale. Amazon reportedly baulked at the massive administrative burden of tracking GST from all overseas transactions. "While we regret any inconvenience this may cause customers, we have had to assess the workability of the legislation as a global business with multiple international sites," it said in a statement. The retailer said it would compensate by opening a "global store" for Australians, adding an extra four million items previously available only on its American website. "This will allow us to provide our customers with continued access to (our) international selection and remain compliant with the law," it said. But even with the changes, the number of products available will be a fraction of what's on sale globally. The new tax rules were brought in after years of lobbying by struggling local retailers, which have to apply GST to all online and store sales, Low consumer confidence and tepid wage growth have also hit traditional brick and mortar retail operations. Amazon only launched a local Australian site last December, shipping from a warehouse in Melbourne with another planned in Sydney. It had around Aus $1 billion in sales from Australia annually through shipping from overseas ahead of the launch, according to Morgan Stanley analysts. Treasurer Scott Morrison said the new laws "level the playing field for Australian businesses". "The government doesn't apologise for ensuring multinationals pay a fair amount of tax here in Australia," he said.

Amazon blocks Australia from global sites over tax

According to the finance ministry, the government was able to mobilise Rs 7.41 lakh crore from the Goods and Services Tax (GST) during 2017-18.

"During the year 2017-18, total revenue collections under GST in the period between August 2017 and March 2018 has been Rs 7.19 lakh crore. Including the collection of July, 2017, the total GST collections during the 2017-18 stands provisionally at Rs. 7.41 lakh crore," the Finance Ministry said in a tweet.

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During the year 2017-18, total Revenue Collections under GST in the period between August 2017 and March 2018 has been Rs. 7.19 Lakh Crore .
— Ministry of Finance (@FinMinIndia) <a href="https://twitter.com/FinMinIndia/status/989738503264133120?ref_src=twsrc%5Etfw">April 27, 2018</a></blockquote>
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"This includes Rs 1.19 lakh crore of CGST, Rs.1.72 lakh crore of SGST, and Rs 3.66 lakh crore of IGST (including Rs 1.73 lakh crore on imports) and Rs 62,021 crore of cess (including Rs 5,702 crore on imports)," it said.

According to the finance ministry, the average monthly collection during the August-March period has amounted to Rs 89,885 crore.

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The SGST Collection during the year 2017-18 including the settlement of IGST has been Rs. 2.91 Lakh Crore.
— Ministry of Finance (@FinMinIndia) <a href="https://twitter.com/FinMinIndia/status/989741622186332160?ref_src=twsrc%5Etfw">April 27, 2018</a></blockquote>
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Total compensation released to the states for a period of eight months during 2017-18 was Rs 41,147 crore, this was to ensure that the revenue of the states is protected at the level of 14 per cent over the base year tax collection in 2015-16.

The ministry further noted that the Revenue Gap in each state has been on the decline over the last eight months.

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<blockquote class="twitter-tweet" data-lang="en">
Including the collection of July, 2017, the total GST Collections during the Financial Year 2017-18 stands provisionally at Rs. 7.41 Lakh Crore.
— Ministry of Finance (@FinMinIndia) <a href="https://twitter.com/FinMinIndia/status/989739237217001472?ref_src=twsrc%5Etfw">April 27, 2018</a></blockquote>
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The GST was rolled out on July 1, 2017.

(With inputs from PTI)&nbsp;

The ministry further noted that the Revenue Gap in each state has been on the decline over the last eight months

According to the finance ministry, the government was able to mobilise Rs 7.41 lakh crore from the Goods and Services Tax (GST) during 2017-18. "During the year 2017-18, total revenue collections under GST in the period between August 2017 and March 2018 has been Rs 7.19 lakh crore. Including the collection of July, 2017, the total GST collections during the 2017-18 stands provisionally at Rs. 7.41 lakh crore," the Finance Ministry said in a tweet. During the year 2017-18, total Revenue Collections under GST in the period between August 2017 and March 2018 has been Rs. 7.19 Lakh Crore . — Ministry of Finance (@FinMinIndia) April 27, 2018 × "This includes Rs 1.19 lakh crore of CGST, Rs.1.72 lakh crore of SGST, and Rs 3.66 lakh crore of IGST (including Rs 1.73 lakh crore on imports) and Rs 62,021 crore of cess (including Rs 5,702 crore on imports)," it said. According to the finance ministry, the average monthly collection during the August-March period has amounted to Rs 89,885 crore. The SGST Collection during the year 2017-18 including the settlement of IGST has been Rs. 2.91 Lakh Crore. — Ministry of Finance (@FinMinIndia) April 27, 2018 × Total compensation released to the states for a period of eight months during 2017-18 was Rs 41,147 crore, this was to ensure that the revenue of the states is protected at the level of 14 per cent over the base year tax collection in 2015-16. The ministry further noted that the Revenue Gap in each state has been on the decline over the last eight months. Including the collection of July, 2017, the total GST Collections during the Financial Year 2017-18 stands provisionally at Rs. 7.41 Lakh Crore. — Ministry of Finance (@FinMinIndia) April 27, 2018 × The GST was rolled out on July 1, 2017. (With inputs from PTI)

Average monthly GST collection since rollout Rs 90,000 crore: Finance Ministry

Reeling from the adverse effects surging imports, Sri Lanka today proposed a 15 per cent tax on gold.

The country has been grappling with a deficit in trade and an increased pressure on its exchange rate.

The tax has been reintroduced after five years owing to a rapid spike in imports.

A finance ministry official noted that it is believed that some duty-free imported gold in Sri Lanka is being smuggled out to other countries that have high customs duties in place.&nbsp;

According to reports, Sri Lanka, this year, has already imported gold equivalent to the total amount of its imported precious metal in the year 2016 estimated at 8,000 kilograms. Last year the country imported over 15,000 kilograms of gold.&nbsp;

Sri Lanka's foreign exchange outflow that facilitated such humongous import gold has also caused damage to its foreign reserves and the value of its rate of currency. 
&nbsp;

Sri Lanka's foreign exchange outflow that facilitated such humongous import gold has also caused damage to its foreign reserves

Reeling from the adverse effects surging imports, Sri Lanka today proposed a 15 per cent tax on gold. The country has been grappling with a deficit in trade and an increased pressure on its exchange rate. The tax has been reintroduced after five years owing to a rapid spike in imports. A finance ministry official noted that it is believed that some duty-free imported gold in Sri Lanka is being smuggled out to other countries that have high customs duties in place. According to reports, Sri Lanka, this year, has already imported gold equivalent to the total amount of its imported precious metal in the year 2016 estimated at 8,000 kilograms. Last year the country imported over 15,000 kilograms of gold. Sri Lanka's foreign exchange outflow that facilitated such humongous import gold has also caused damage to its foreign reserves and the value of its rate of currency.

Sri Lanka's new tax on gold aims at curbing imports

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

Pakistan's Prime Minister Shahid Khaqan Abbasi announced a tax amnesty on Thursday aimed at broadening the government's revenue base in a country where only about 1 percent of the adult population are taxpayers.

Announcing that all 120 million national identity card holders will be assigned tax numbers, Abbasi told a news conference in Islamabad: "If you don't pay taxes, Pakistan will not be sustainable."

Under the amnesty plan, all Pakistanis will be able to declare their unreported income and assets and bring their money into the tax base after paying a 5 percent one-off penalty, Abbasi said. He said Pakistanis living overseas and declaring income or assets would pay a 2 per cent one-time penalty.

Pakistani politicians will be exempted from the amnesty, which will be effective until June 30.

"This is some 2-1/2 months' time you have to benefit from, and after that, you will have to face the law," the prime minister said.

Once the amnesty period expires, Pakistani authorities will use technology to identify and catch tax evaders.

He said only 1.2 million of Pakistan's 208 million people filed income tax returns in the last year, and of them, 500,000 paid zero taxes.

Abbasi said the government was also reducing the tax rate to encourage people to voluntarily sign up. Tax rates on individuals vary in Pakistan but can be as high as 30 percent for salaried individuals and 35 percent for non-salaried individuals.

Pakistan has one of the world's lowest number of taxpayers as a percentage of the population.

Successive governments have promised to rein in tax evasion and boost revenues but have faced fierce resistance to change, including from the many politicians and businessmen believed to be among those dodging payment.

Pakistan's nearly $300 billion economies has recently been showing signs of vulnerability despite surging growth rates above 5 percent, the fastest pace in a decade.

The government has in recent months devalued the rupee, imposed tariffs on imported goods and sought to boost exports to reduce growing balance of payments pressures.

A widened current account deficit has prompted analysts to suggest the country may need an International Monetary Fund bailout in the next 12 months.

Abbasi said he was aware of the challenges.

"We have been in a growth phase. There are current account challenges. We are tackling that," he said.&nbsp

Announcing that all 120 million national identity card holders will be assigned tax numbers, Abbasi told a news conference in Islamabad: "If you don't pay taxes, Pakistan will not be sustainable."

Pakistan's Prime Minister Shahid Khaqan Abbasi announced a tax amnesty on Thursday aimed at broadening the government's revenue base in a country where only about 1 percent of the adult population are taxpayers. Announcing that all 120 million national identity card holders will be assigned tax numbers, Abbasi told a news conference in Islamabad: "If you don't pay taxes, Pakistan will not be sustainable." Under the amnesty plan, all Pakistanis will be able to declare their unreported income and assets and bring their money into the tax base after paying a 5 percent one-off penalty, Abbasi said. He said Pakistanis living overseas and declaring income or assets would pay a 2 per cent one-time penalty. Pakistani politicians will be exempted from the amnesty, which will be effective until June 30. "This is some 2-1/2 months' time you have to benefit from, and after that, you will have to face the law," the prime minister said. Once the amnesty period expires, Pakistani authorities will use technology to identify and catch tax evaders. He said only 1.2 million of Pakistan's 208 million people filed income tax returns in the last year, and of them, 500,000 paid zero taxes. Abbasi said the government was also reducing the tax rate to encourage people to voluntarily sign up. Tax rates on individuals vary in Pakistan but can be as high as 30 percent for salaried individuals and 35 percent for non-salaried individuals. Pakistan has one of the world's lowest number of taxpayers as a percentage of the population. Successive governments have promised to rein in tax evasion and boost revenues but have faced fierce resistance to change, including from the many politicians and businessmen believed to be among those dodging payment. Pakistan's nearly $300 billion economies has recently been showing signs of vulnerability despite surging growth rates above 5 percent, the fastest pace in a decade. The government has in recent months devalued the rupee, imposed tariffs on imported goods and sought to boost exports to reduce growing balance of payments pressures. A widened current account deficit has prompted analysts to suggest the country may need an International Monetary Fund bailout in the next 12 months. Abbasi said he was aware of the challenges. "We have been in a growth phase. There are current account challenges. We are tackling that," he said.

Pakistan declares tax amnesty to broaden income revenue base

The Central Board of Direct Taxes today extended the deadline for linking the permanent account number and Aadhaar to June 30. The policy-making body of the tax department issued an order extending the deadline from the current last date of March 31.

A statement from CBDT said after "consideration of the matter", it has decided to extend the deadline.Earlier in March, the Supreme Court indefinitely extended the deadline for linking Aadhaar with bank accounts and mobile phones.

March 31 was also the previous deadline for linking of Aadhaar with bank accounts and mobile phones to avail their services.&nbsp;

This is the fourth extension given by the government for individuals to link their Permanent Account Number with their biometric ID (Aadhaar).

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.

March 31 was also the previous deadline for linking of Aadhaar with bank accounts and mobile phones to avail their services.

The Central Board of Direct Taxes today extended the deadline for linking the permanent account number and Aadhaar to June 30. The policy-making body of the tax department issued an order extending the deadline from the current last date of March 31. A statement from CBDT said after "consideration of the matter", it has decided to extend the deadline.Earlier in March, the Supreme Court indefinitely extended the deadline for linking Aadhaar with bank accounts and mobile phones. March 31 was also the previous deadline for linking of Aadhaar with bank accounts and mobile phones to avail their services. This is the fourth extension given by the government for individuals to link their Permanent Account Number with their biometric ID (Aadhaar). 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.

Aadhaar-PAN linking deadline extended to June 30: CBDT

With rise in personal disposable income post 7th Pay Commission, the income tax exemption limit needs to be raised by Rs 50,000 to Rs 3 lakh, an SBI report said today.

The move will benefit around 75 lakh people, it said.

The SBI&#39;s Ecowrap report further said that if the exemption limit of interest payments under housing loan is increased to Rs 2.5 lakhs for existing home loan buyers, from Rs 2 lakhs now, it will benefit 75 lakh home loan buyers and cost the government just about Rs 7,500 crore.

Finance Minister Arun Jaitley is set to present the fifth and final full budget of the current government on February 1.

The government has periodically increased the income tax slabs from Rs 22,000 in 1990-91 to Rs 2.5 lakh in 2014-15.

&quot;Due to 7th pay commission, the personal disposable income has been increased, so we believe there is a need to raise the exemption limit to Rs 3 lakh. Due to such increase in limit, around 75 lakh tax payers will be exempted from income tax,&quot; said the report -- &#39;Union Budget: If wishes were horses!&#39;.

It has also pitched for incentivising savings through bank deposits. In an effort to incentivise savings, it said, the government can exempt interest of savings bank deposits.

The exemption limit on TDS on interest on term deposits with banks may be raised from the present limit of Rs 10,000 per annum, it said.

Also, the lock-in period for tax savings term deposits needs to be reduced to 3 years from the present 5 years and these deposits should be brought under EEE (exempt, exempt, exempt) tax regime.

The SBI report said that SBI&#39;s expectations regarding the forthcoming budget are based upon principle of inclusive growth and meeting the medium and long term objectives set by the government.

&quot;As per our reading of the things, budget should give priority to agriculture, MSME, infrastructure and affordable housing,&quot; it said.

Agriculture reforms should aim at re-examination of legally created structures whose provisions are restrictive and create barriers to free trade, it said.

Centre in conjunction with states should emulate the price support schemes like in Madhya Pradesh and Haryana say &#39;Bhavantar Krishi Yojana&#39; for major crops (including vegetables).

&quot;This scheme will help farmers in situations (when wholesale price of the crop is less than the MSP) and the cost of which is only 10 per cent of farm loan waiver programme as per our estimates. Provision of A2 milk in Mid-day meals for children will create adequate additional income for 16 million farmer per year,&quot; the report said.

Regarding investment revival, the report said capital subsidy in case of delayed projects equal to cost overrun may be provided. Cost overrun may be funded at concessional interest rate by the government in such cases.

Also, there is a &quot;dire need&quot; to publish monthly payroll report in India for formal sector as job creation is &quot;grossly underreported&quot;.

Other measures like providing support infrastructure and skilling and certifying workers need to be adopted, it added.

The SBI's Ecowrap report further said that if the exemption limit of interest payments under housing loan is increased to Rs 2.5 lakhs for existing home loan buyers, it will benefit 75 lakh home loan buyers and cost the government just about Rs 7,500 crore

With rise in personal disposable income post 7th Pay Commission, the income tax exemption limit needs to be raised by Rs 50,000 to Rs 3 lakh, an SBI report said today. The move will benefit around 75 lakh people, it said. The SBI's Ecowrap report further said that if the exemption limit of interest payments under housing loan is increased to Rs 2.5 lakhs for existing home loan buyers, from Rs 2 lakhs now, it will benefit 75 lakh home loan buyers and cost the government just about Rs 7,500 crore. Finance Minister Arun Jaitley is set to present the fifth and final full budget of the current government on February 1. The government has periodically increased the income tax slabs from Rs 22,000 in 1990-91 to Rs 2.5 lakh in 2014-15. "Due to 7th pay commission, the personal disposable income has been increased, so we believe there is a need to raise the exemption limit to Rs 3 lakh. Due to such increase in limit, around 75 lakh tax payers will be exempted from income tax," said the report -- 'Union Budget: If wishes were horses!'. It has also pitched for incentivising savings through bank deposits. In an effort to incentivise savings, it said, the government can exempt interest of savings bank deposits. The exemption limit on TDS on interest on term deposits with banks may be raised from the present limit of Rs 10,000 per annum, it said. Also, the lock-in period for tax savings term deposits needs to be reduced to 3 years from the present 5 years and these deposits should be brought under EEE (exempt, exempt, exempt) tax regime. The SBI report said that SBI's expectations regarding the forthcoming budget are based upon principle of inclusive growth and meeting the medium and long term objectives set by the government. "As per our reading of the things, budget should give priority to agriculture, MSME, infrastructure and affordable housing," it said. Agriculture reforms should aim at re-examination of legally created structures whose provisions are restrictive and create barriers to free trade, it said. Centre in conjunction with states should emulate the price support schemes like in Madhya Pradesh and Haryana say 'Bhavantar Krishi Yojana' for major crops (including vegetables). "This scheme will help farmers in situations (when wholesale price of the crop is less than the MSP) and the cost of which is only 10 per cent of farm loan waiver programme as per our estimates. Provision of A2 milk in Mid-day meals for children will create adequate additional income for 16 million farmer per year," the report said. Regarding investment revival, the report said capital subsidy in case of delayed projects equal to cost overrun may be provided. Cost overrun may be funded at concessional interest rate by the government in such cases. Also, there is a "dire need" to publish monthly payroll report in India for formal sector as job creation is "grossly underreported". Other measures like providing support infrastructure and skilling and certifying workers need to be adopted, it added.

Budget 2018: Increase tax exemption limit to Rs 3 lakh, says SBI report

Priyanka Chopra might have to shell out a hefty amount as tax for owning a luxury watch and a sedan.&nbsp; 
 
The Income Tax Appellate Tribunal (ITAT) has refused to accept Chopra&#39;s explanation that an LVMH-TAG watch worth Rs 40 lakh was a gift to her from the company selling it and not part of her professional income. Neither has the tribunal accepted her explanation regarding a Toyota Prius car, valued at Rs 27 lakh.&nbsp; 
 
The value of both items was treated as taxable perquisites in the hands of Chopra, under section 28(iv) of the Income-tax (I-T) Act. The section treats as taxable &quot;the value of any benefit or perquisite (whether convertible into money or not), arising from business or exercise of a profession&quot;.

Priyanka had entered into an endorsement agreement with luxury brand LVMH-TAG Watches in the year 2006 -07. The tribunal noted that apart from fees of Rs 1.40 crore for modeling and promotional activities over a two-year period, Chopra was also gifted a watch worth Rs 40 lakh. 
 
The actress argued that gifts had been given as a token of love by the company and that she should not be taxed for it. To which the tribunal disagreed and stated in its order, &quot;A company, is an artificial person and therefore does not have any emotional feeling of love and affection which is the cardinal factors for treating any transaction as gift&quot;&nbsp; 
 
The order treated the value of the watch as a prerequisite under section 28(iv) which would be subject to tax.&nbsp; 
 
The ITAT also observed that the actor has not been able to produce evidence that the value of the watch was much less. Thus, the taxable amount would be Rs 40 lakh.

The watch is an LVMH-TAG, the car is a Prius

Priyanka Chopra might have to shell out a hefty amount as tax for owning a luxury watch and a sedan. The Income Tax Appellate Tribunal (ITAT) has refused to accept Chopra's explanation that an LVMH-TAG watch worth Rs 40 lakh was a gift to her from the company selling it and not part of her professional income. Neither has the tribunal accepted her explanation regarding a Toyota Prius car, valued at Rs 27 lakh. The value of both items was treated as taxable perquisites in the hands of Chopra, under section 28(iv) of the Income-tax (I-T) Act. The section treats as taxable "the value of any benefit or perquisite (whether convertible into money or not), arising from business or exercise of a profession". Priyanka had entered into an endorsement agreement with luxury brand LVMH-TAG Watches in the year 2006 -07. The tribunal noted that apart from fees of Rs 1.40 crore for modeling and promotional activities over a two-year period, Chopra was also gifted a watch worth Rs 40 lakh. The actress argued that gifts had been given as a token of love by the company and that she should not be taxed for it. To which the tribunal disagreed and stated in its order, "A company, is an artificial person and therefore does not have any emotional feeling of love and affection which is the cardinal factors for treating any transaction as gift" The order treated the value of the watch as a prerequisite under section 28(iv) which would be subject to tax. The ITAT also observed that the actor has not been able to produce evidence that the value of the watch was much less. Thus, the taxable amount would be Rs 40 lakh.

Priyanka Chopra declares watch, car as gifts; I-T says pay tax

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

Former Finance Minister and Congress leader P&nbsp;Chidambaram on Saturday lashed out at Modi&#39;s government after the government brought down the 28 per cent&nbsp; Goods and Services Tax (GST) slab to just 50 products against earlier&nbsp;227 products.

In a series of tweets, Chidambaram took potshots at Modi government.&nbsp;

&quot;It took four months and ten days for common&nbsp;sense to germinate, flower and ripen into a fruit,&quot; the Congress leader said in the first of several tweets posted on his Twitter handle on Friday.

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4 months and 10 days is the time taken for commonsense to germinate, flower and ripen into a fruit.
&mdash; P. Chidambaram (@PChidambaram_IN) <a href="https://twitter.com/PChidambaram_IN/status/929212211792199680?ref_src=twsrc%5Etfw">November 11, 2017</a></blockquote>
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&quot;Congress is vindicated. I am vindicated. The merit of capping GST at 18 percent is now recognised,&quot; Chidambaram tweeted on Friday.&nbsp;

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Congress is vindicated. I am vindicated. The merit of capping GST at 18% is now recognised.
&mdash; P. Chidambaram (@PChidambaram_IN) <a href="https://twitter.com/PChidambaram_IN/status/929032922916462592?ref_src=twsrc%5Etfw">November 10, 2017</a></blockquote>
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The BJP) government at the Centre realised&nbsp;its mistake as Gujarat Assembly election&nbsp;is around the corner, he further said.

Responding to Chidambaram&#39;s allegations,&nbsp;Defence Minister Nirmala Sitharaman said GST&nbsp;was adopted taking all political parties into consideration and every change that has been made was done after looking into one&#39;s needs.&nbsp;

Congress has just been trying to misinterpret the fact.

&quot;Modiji government listens to everything that public says and respond to people.The GST was implemented with the agreement of all political parties. We are ready if there is a need for any change like the Centre did in yesterday&#39;s GST Council meeting. The Congress party is trying to misinterpret the fact,&quot; new agency ANI quoted&nbsp;Sitharaman as saying.&nbsp;

The rearrangements in the tax system were carried out at the 23rd GST Council meeting headed by the finance minister, at Guwahati on Friday.&nbsp;

Chidambaram also took a dig at Bharatiya Janata Party (BJP) and said that the government has realised their mistake because of the upcoming Gujarat Assembly elections.

Former Finance Minister and Congress leader P Chidambaram on Saturday lashed out at Modi's government after the government brought down the 28 per cent Goods and Services Tax (GST) slab to just 50 products against earlier 227 products. In a series of tweets, Chidambaram took potshots at Modi government. "It took four months and ten days for common sense to germinate, flower and ripen into a fruit," the Congress leader said in the first of several tweets posted on his Twitter handle on Friday. 4 months and 10 days is the time taken for commonsense to germinate, flower and ripen into a fruit. — P. Chidambaram (@PChidambaram_IN) November 11, 2017 × "Congress is vindicated. I am vindicated. The merit of capping GST at 18 percent is now recognised," Chidambaram tweeted on Friday. Congress is vindicated. I am vindicated. The merit of capping GST at 18% is now recognised. — P. Chidambaram (@PChidambaram_IN) November 10, 2017 × The BJP) government at the Centre realised its mistake as Gujarat Assembly election is around the corner, he further said. Responding to Chidambaram's allegations, Defence Minister Nirmala Sitharaman said GST was adopted taking all political parties into consideration and every change that has been made was done after looking into one's needs. Congress has just been trying to misinterpret the fact. "Modiji government listens to everything that public says and respond to people.The GST was implemented with the agreement of all political parties. We are ready if there is a need for any change like the Centre did in yesterday's GST Council meeting. The Congress party is trying to misinterpret the fact," new agency ANI quoted Sitharaman as saying. The rearrangements in the tax system were carried out at the 23rd GST Council meeting headed by the finance minister, at Guwahati on Friday.

It took 4 months for common sense to germinate on GST: Chidambaram

Congress Vice President Rahul Gandhi&nbsp;made some promising comments while addressing people in Khedbrahma, Sabarkantha on Saturday.&nbsp;

He took a jab at Modi&#39;s government yet again and said that &#39;as soon as his government comes to power, he promises to bring down&nbsp;&#39;Gabbar Singh Tax&#39; (GST), bring a sound GST so that no one will have to pay anything over 18% tax&#39;.&nbsp;

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As soon as Congress comes to the power, we will bring down Gabbar Singh Tax, bring a sound GST so that no one will have to pay anything above 18% tax.: Congress Vice President Rahul Gandhi in Khedbrahma, Sabarkantha <a href="https://twitter.com/hashtag/Gujarat?src=hash&amp;ref_src=twsrc%5Etfw">#Gujarat</a> <a href="https://t.co/xub6Oo3d7l">pic.twitter.com/xub6Oo3d7l</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/929333658137214977?ref_src=twsrc%5Etfw">November 11, 2017</a></blockquote>
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Gandhi further stated that &#39;this is the highest unemployment rate in 8 years&#39;.

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This phase marks the highest number of unemployment in 8 years: Congress Vice President Rahul Gandhi in Khedbrahma, Sabarkantha <a href="https://twitter.com/hashtag/Gujarat?src=hash&amp;ref_src=twsrc%5Etfw">#Gujarat</a> <a href="https://t.co/NAKpN2P8F3">pic.twitter.com/NAKpN2P8F3</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/929331099452313607?ref_src=twsrc%5Etfw">November 11, 2017</a></blockquote>
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The Congress leader has previously taken many hits at Modi&#39;s government, suggesting them to impose a &#39;simple tax&#39; rather than &#39;Gabbar Singh Tax&#39; and how the recent rearrangement in GST is going to cause a slowdown for small and medium businesses.&nbsp;

Moreover,&nbsp;Congress, on Saturday, also&nbsp;<a href="http://www.wionews.com/preview/article/23995">claimed credit for the the GST Council&#39;s decision to cut tax rates on 178 items of daily use</a>, saying the government was forced to do so due to the pressure mounted by party vice-president Rahul Gandhi and the &#39;huge response&#39;&nbsp;his campaign had been receiving in poll-bound Gujarat.

Gandhi further stated that 'this is the highest unemployment rate in 8 years'.

Congress Vice President Rahul Gandhi made some promising comments while addressing people in Khedbrahma, Sabarkantha on Saturday. He took a jab at Modi's government yet again and said that 'as soon as his government comes to power, he promises to bring down 'Gabbar Singh Tax' (GST), bring a sound GST so that no one will have to pay anything over 18% tax'. As soon as Congress comes to the power, we will bring down Gabbar Singh Tax, bring a sound GST so that no one will have to pay anything above 18% tax.: Congress Vice President Rahul Gandhi in Khedbrahma, Sabarkantha #Gujarat pic.twitter.com/xub6Oo3d7l — ANI (@ANI) November 11, 2017 × Gandhi further stated that 'this is the highest unemployment rate in 8 years'. This phase marks the highest number of unemployment in 8 years: Congress Vice President Rahul Gandhi in Khedbrahma, Sabarkantha #Gujarat pic.twitter.com/NAKpN2P8F3 — ANI (@ANI) November 11, 2017 × The Congress leader has previously taken many hits at Modi's government, suggesting them to impose a 'simple tax' rather than 'Gabbar Singh Tax' and how the recent rearrangement in GST is going to cause a slowdown for small and medium businesses. Moreover, Congress, on Saturday, also claimed credit for the the GST Council's decision to cut tax rates on 178 items of daily use, saying the government was forced to do so due to the pressure mounted by party vice-president Rahul Gandhi and the 'huge response' his campaign had been receiving in poll-bound Gujarat.

Will bring down GST if Congress comes to power, says Rahul Gandhi

In the biggest GST rearrangement till date, tax rates on over 200 items were cut down&nbsp;to provide relief to consumers and businesses&nbsp;on Friday.&nbsp;

Giving a major reprieve to the common man, the GST Council came up with <a href="http://www.wionews.com/preview/article/23931">a number of new measures.&nbsp;</a>

Maximum pruning was done in the 28% slab which will now be applied on only 50 items from 228 earlier. &nbsp;

Many of the items and services which were previously under the 28% bracket will now attract tax of 18% only.&nbsp; 
&nbsp;

Following is a&nbsp;list of all the items under&nbsp;the&nbsp;tax slabs:

<ins>Items under GST rate reduced from 28% to 18%&nbsp;</ins>

Wire, cables, insulated conductors, electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors 
Electrical boards, panels, consoles, cabinets etc for electric control or distribution 
Particle/fibre boards and ply wood. Article of wood, wooden frame, paving block 
Furniture, mattress, bedding and similar furnishing 
Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases 
Detergents, washing and cleaning preparations 
Liquid or cream for washing the skin 
Shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar other goods; henna powder or paste, not mixed with any other ingredient; 
Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorisers 
Perfumes and toilet waters 
Beauty or make-up preparations 
Fans, pumps, compressors 
Lamp and light fitting 
Primary cell and primary batteries 
Sanitary ware and parts thereof of all kind 
Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic 
Slabs of marbles and granite 
Goods of marble and granite such as tiles 
Ceramic tiles of all kinds 
Miscellaneous articles such as vacuum flasks, lighters, 
Wrist watches, clocks, watch movement, watch cases, straps, parts 
Article of apparel &amp; clothing accessories of leather, guts, furskin, artificial fur and other articles such as saddlery and harness for any animal 
Articles of cutlery, stoves, cookers and similar non electric domestic appliances 
Razor and razor blades 
Multi-functional printers, cartridges 
Office or desk equipment 
Door, windows and frames of aluminium. 
Articles of plaster such as board, sheet, 
Articles of cement or concrete or stone and artificial stone, 
Articles of asphalt or slate, 
Articles of mica 
Ceramic flooring blocks, pipes, conduit, pipe fitting 
Wall paper and wall covering 
Glass of all kinds and articles thereof such as mirror, safety glass, sheets, glassware 
Electrical, electronic weighing machinery 
Fire extinguishers and fire extinguishing charge 
Fork lifts, lifting and handling equipment, 
Bull dozers, excavators, loaders, road rollers, 
Earth moving and levelling machinery, 
Escalators, 
Cooling towers, pressure vessels, reactors 
Crankshaft for sewing machine, tailor&rsquo;s dummies, bearing housings, gears and gearing; ball or roller screws; gaskets 
Electrical apparatus for radio and television broadcasting 
Sound recording or reproducing apparatus 
Signalling, safety or traffic control equipment for transports 
Physical exercise equipment, festival and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment 
All musical instruments and their parts 
Artificial flowers, foliage and artificial fruits 
Explosive, anti-knocking preparation, fireworks 
Cocoa butter, fat, oil powder, 
Extract, essence ad concentrates of coffee, miscellaneous food preparations 
Chocolates, Chewing gum / bubble gum 
Malt extract and food preparations of flour, groats, meal, starch or malt extract 
Waffles and wafers coated with chocolate or containing chocolate 
Rubber tubes and miscellaneous articles of rubber 
Goggles, binoculars, telescope, 
Cinematographic cameras and projectors, image projector, 
Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology 
Solvent, thinners, hydraulic fluids, anti-freezing preparation

<ins>Items under GST rate reduced from 18% to 12%&nbsp;</ins>

Condensed milk 
Refined sugar and sugar cubes 
Pasta 
Curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasoning 
Diabetic food 
Medicinal grade oxygen 
Printing ink 
Hand bags and shopping bags of jute and cotton 
Hats (knitted or crocheted) 
Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery 
Specified parts of sewing machine 
Spectacles frames 
Furniture wholly made of bamboo or cane

<ins>Items under GST rate reduced from 12% to 5%&nbsp;</ins>

Desiccated coconut 
Narrow woven fabric including cotton newar [with no refund of unutilised input tax credit] 
Idli, dosa batter 
Finished leather, chamois and composition leather 
Coir cordage and ropes, jute twine, coir products 
Fishing net and fishing hooks 
Worn clothing 
Fly ash brick

<ins>Items under GST rate reduced from 18% to 5%&nbsp;</ins>

Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya 
Flour of potatoes put up in unit container bearing a brand name 
Chutney powder 
Fly ash 
Sulphur recovered in refining of crude 
Fly ash aggregate with 90% or more fly ash content

<ins>Items under GST rate reduced from 5% to NIL</ins>

Guar meal 
Hop cone (other than grounded, powdered or in pellet form) 
Certain dried vegetables such as sweet potatoes, maniac 
Unworked coconut shell 
Fish frozen or dried (not put up in unit container bearing a brand name) 
Khandsari sugar

Only 50 items including air conditioner, washing machine, paints, cement and mostly demerit, sin and luxury goods, to remain in the highest tax bracket of 28%.&nbsp;

New GST rates will come into effect from November 15 2017.&nbsp;

New GST rates will come into effect from November 15 2017.?

In the biggest GST rearrangement till date, tax rates on over 200 items were cut down to provide relief to consumers and businesses on Friday. Giving a major reprieve to the common man, the GST Council came up with a number of new measures. Maximum pruning was done in the 28% slab which will now be applied on only 50 items from 228 earlier. Many of the items and services which were previously under the 28% bracket will now attract tax of 18% only. Following is a list of all the items under the tax slabs: Items under GST rate reduced from 28% to 18% Wire, cables, insulated conductors, electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors Electrical boards, panels, consoles, cabinets etc for electric control or distribution Particle/fibre boards and ply wood. Article of wood, wooden frame, paving block Furniture, mattress, bedding and similar furnishing Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases Detergents, washing and cleaning preparations Liquid or cream for washing the skin Shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar other goods; henna powder or paste, not mixed with any other ingredient; Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorisers Perfumes and toilet waters Beauty or make-up preparations Fans, pumps, compressors Lamp and light fitting Primary cell and primary batteries Sanitary ware and parts thereof of all kind Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic Slabs of marbles and granite Goods of marble and granite such as tiles Ceramic tiles of all kinds Miscellaneous articles such as vacuum flasks, lighters, Wrist watches, clocks, watch movement, watch cases, straps, parts Article of apparel & clothing accessories of leather, guts, furskin, artificial fur and other articles such as saddlery and harness for any animal Articles of cutlery, stoves, cookers and similar non electric domestic appliances Razor and razor blades Multi-functional printers, cartridges Office or desk equipment Door, windows and frames of aluminium. Articles of plaster such as board, sheet, Articles of cement or concrete or stone and artificial stone, Articles of asphalt or slate, Articles of mica Ceramic flooring blocks, pipes, conduit, pipe fitting Wall paper and wall covering Glass of all kinds and articles thereof such as mirror, safety glass, sheets, glassware Electrical, electronic weighing machinery Fire extinguishers and fire extinguishing charge Fork lifts, lifting and handling equipment, Bull dozers, excavators, loaders, road rollers, Earth moving and levelling machinery, Escalators, Cooling towers, pressure vessels, reactors Crankshaft for sewing machine, tailor’s dummies, bearing housings, gears and gearing; ball or roller screws; gaskets Electrical apparatus for radio and television broadcasting Sound recording or reproducing apparatus Signalling, safety or traffic control equipment for transports Physical exercise equipment, festival and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment All musical instruments and their parts Artificial flowers, foliage and artificial fruits Explosive, anti-knocking preparation, fireworks Cocoa butter, fat, oil powder, Extract, essence ad concentrates of coffee, miscellaneous food preparations Chocolates, Chewing gum / bubble gum Malt extract and food preparations of flour, groats, meal, starch or malt extract Waffles and wafers coated with chocolate or containing chocolate Rubber tubes and miscellaneous articles of rubber Goggles, binoculars, telescope, Cinematographic cameras and projectors, image projector, Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology Solvent, thinners, hydraulic fluids, anti-freezing preparation Items under GST rate reduced from 18% to 12% Condensed milk Refined sugar and sugar cubes Pasta Curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasoning Diabetic food Medicinal grade oxygen Printing ink Hand bags and shopping bags of jute and cotton Hats (knitted or crocheted) Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery Specified parts of sewing machine Spectacles frames Furniture wholly made of bamboo or cane Items under GST rate reduced from 12% to 5% Desiccated coconut Narrow woven fabric including cotton newar [with no refund of unutilised input tax credit] Idli, dosa batter Finished leather, chamois and composition leather Coir cordage and ropes, jute twine, coir products Fishing net and fishing hooks Worn clothing Fly ash brick Items under GST rate reduced from 18% to 5% Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya Flour of potatoes put up in unit container bearing a brand name Chutney powder Fly ash Sulphur recovered in refining of crude Fly ash aggregate with 90% or more fly ash content Items under GST rate reduced from 5% to NIL Guar meal Hop cone (other than grounded, powdered or in pellet form) Certain dried vegetables such as sweet potatoes, maniac Unworked coconut shell Fish frozen or dried (not put up in unit container bearing a brand name) Khandsari sugar Only 50 items including air conditioner, washing machine, paints, cement and mostly demerit, sin and luxury goods, to remain in the highest tax bracket of 28%. New GST rates will come into effect from November 15 2017.

Revised GST rates: Complete list

As the 23rd GST Council meeting ended on Friday, Congress vice-president Rahul Gandhi said that his party will not let the BJP-led NDA government to impose the&nbsp;&quot;Gabbar Singh Tax&quot;, meaning the GST.

Gabbar Singh is a famous decoit in the Bollywood movie Sholay, Rahul had earlier too taken potshots at the BJP government over the GST, calling it the&nbsp;&quot;Gabbar Singh Tax&quot;.

The Congres vice-president&nbsp;said the government&#39;s new tax structure would &quot;break the back of small and medium businesses, crush the informal sector and destroy millions&quot;.&nbsp;

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We will not allow BJP to impose a Gabbar Singh Tax on India. They cannot break the back of the small and medium businesses, crush the informal sector and destroy millions of jobs. <a href="https://twitter.com/hashtag/GSTCouncilMeet?src=hash&amp;ref_src=twsrc%5Etfw">#GSTCouncilMeet</a>
&mdash; Office of RG (@OfficeOfRG) <a href="https://twitter.com/OfficeOfRG/status/928951424473378817?ref_src=twsrc%5Etfw">November 10, 2017</a></blockquote>
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The Congress leader then went on to give some &#39;suggestions&#39;, saying, &quot;correct the fundamental flaw in GST architecture to give India a &quot;Genuine Simple Tax&quot; and advised the government not to waste time&nbsp;with lip service.

&quot;Acknowledge your incompetence, shed your arrogance and listen to the people of India,&quot; he told the government.

He also said how this decision would 'break the back of small and medium businesses, crush the informal sector and destroy millions'.?

As the 23rd GST Council meeting ended on Friday, Congress vice-president Rahul Gandhi said that his party will not let the BJP-led NDA government to impose the "Gabbar Singh Tax", meaning the GST. Gabbar Singh is a famous decoit in the Bollywood movie Sholay, Rahul had earlier too taken potshots at the BJP government over the GST, calling it the "Gabbar Singh Tax". The Congres vice-president said the government's new tax structure would "break the back of small and medium businesses, crush the informal sector and destroy millions". We will not allow BJP to impose a Gabbar Singh Tax on India. They cannot break the back of the small and medium businesses, crush the informal sector and destroy millions of jobs. #GSTCouncilMeet — Office of RG (@OfficeOfRG) November 10, 2017 × The Congress leader then went on to give some 'suggestions', saying, "correct the fundamental flaw in GST architecture to give India a "Genuine Simple Tax" and advised the government not to waste time with lip service. "Acknowledge your incompetence, shed your arrogance and listen to the people of India," he told the government.

Correct GST with 'Genuine Simple Tax', says Rahul Gandhi

In a significant breakthrough in implementation of India&#39;s biggest tax reform, the deadlock over administration of GST ended on Monday after the Centre agreed to allow states control over most of small taxpayers, but the rollout date was pushed back by 3 months to July 1.

The split of GST taxpayers between the two will be done horizontally with states getting to administer and control 90 per cent of the asseesses below Rs 1.5 crore annual turnover, and the remaining 10 per cent coming under the Centre.

The Centre and states will share control of assessees with annual turnover of over Rs 1.5 crore in 50:50 ratio even as Finance Minister Arun Jaitley insisted that each tax payer will be assessed only once and by only one authority.

Besides ceding control, the Centre also agreed to the demand of coastal states, allowing them to tax economic activity in 12 nautical miles even though constitutionally the Centre has jurisdiction over territorial waters.

&quot;This is a significant headway,&quot; Jaitley said after the meeting.

While a four-rate tax slab of 5, 12, 18 and 28 per cent had already been reached, a consensus on the administration of the Goods and Services Tax - which will subsume central and state levies like excise duty, service tax and VAT - paved the way for finalisation of the draft supporting laws.

Jaitley said the draft of Integrated GST or IGST, the tax which will be levied by the Centre on inter-state movement of goods and services, as well as SGST and CGST will be finalised in the next meeting of the GST Council on February 18.

Once approved, the Council will then decide on taxing various goods and services in different tax slabs, he said.

The stalemate over administration of GST had been holding up consensus in the GST Council since early November with four successive meetings failing to break the deadlock as the Centre was not in favour of a horizontal split. It said states did not have the expertise to administer levies like service tax.

The Centre also did not favour dual agencies auditing and scrutinising each taxpayer as multiple authorities could end up acting at cross-purposes. Since GST is a transactional tax, which is to be levied when a sale takes place, it does not necessarily have to be implemented from the beginning of the fiscal, he said.

The penal arrest provisions, which were part of the draft law, have been diluted. Officials said default in payment of taxes amounting up to Rs 2 crore will be a bailable offence. The arrest powers will be invoked only in cases of criminal offences like forgery and collected tax not deposited in government coffers.

Briefing reporters after the 9th meeting of the GST Council, Jaitley said the entire taxation base will be shared between the Centre and states. He said: &quot;All assessees with GST turnover of Rs 1.5 crore or less, 90 per cent of them will be assessed for the purposes of scrutiny and audit by the states and 10 per cent by the centre.

&quot;Those above the turnover of Rs 1.5 crore would be assessed in the ratio of 50:50 between centre and states,&quot; he said, adding that intelligence-based enforcement powers would vest in both Centre and states.

&quot;The power to levy and collect the IGST taxation is with the central government but by special provision in law, the states will also be cross empowered in the same manner.&quot; In case of contentious issues and conflicts between states with regard to place of supply, the assessment would be done by Centre, he said. Also, importantly, the area of 12 nautical miles into the territorial waters, which is part of the Union government territory, will be taxed by states.

This is one of the issues which states with various parties in power - from BJP-rule Gujarat to Congress-ruled Karnataka and CPM-governed Kerala, had demanded.

&quot;This decision has been taken after very wide consultation,&quot; Jaitley said.

The Finance Minister said each assessee would be assessed only by one authority. &quot;Once you evolve numerically a lot more will come from state to the centre, because the percentage is 50:50 in higher category and 90:10 in lower category. The computer programming would be done in a manner so that there is no discretion.&quot;

After drafts of supporting legislations are prepared, fitments of rates in various slabs will be undertaken. &quot;This exercise will in all probability take us into the month of March. The Ministers and Council then assessed the realistic date by when the three important things pending -- final draft legislation and rules, secondly approval of these by the legislative bodies, and fitments of rates can take place.

&quot;I requested the ministers to give their opinion about the realistic dates and there was a broad view that July 1 appears to be more realistic,&quot; he said. Also, industry and trade should be given some adequate notice to prepare for the new regime and once the rates are decided the systems of GSTN will have to be modified suitably.

&quot;So our next meeting will be on February 18. This long gap is because -- the drafts are going to take some time to be finalised and most finance ministers would be busy with the central and state budgets,&quot; Jaitley said.

He added that all states, except West Bengal, agreed to the proposal of division of assessees in GST for audit and scrutiny purposes. &quot;The West Bengal minister disagreed to the limited extent that assessments below Rs 1.5 crore which are divided 90:10 between the states and centre. His dissent was confined to the issue that it should be 100 versus zero and not 90:10. On all other proposals he also agreed,&quot; he said.

After the Council meeting, West Bengal Finance Minister Amit Mitra said the Centre has come very close to the position that empowered committee had taken, where below Rs 1.5 crores, turnover all goods, all deemed goods, was to be assessed by states.

&quot;Our great struggle has been to save the small enterprises of states and we have succeeded to the extent of 90 per cent (of services) and all goods. We could not succeed in only 10 per cent which relates to services,&quot; Mitra said.

Earlier, Kerala Finance Minister T M Thomas Isaac said there was no agreement on the issue of administration of GST, with states continuing to seek sole control over tax payers. With regard to Integrated GST, Jaitley said the power to levy and collect the IGST taxation is with the central government but by special provision in law, states will also be cross empowered in the same manner of the ratio mentioned earlier.

&quot;In the exercise of IGST where there are contentious issues between conflicting states with regard to place of supply etc. Obviously, one of the states cannot assess and therefore those assessment would take place by Centre,&quot; Jaitley said.

(DNA) 
&nbsp;

The deadlock over GST ended after the Centre agreed to allow states control over most of small taxpayers

In a significant breakthrough in implementation of India's biggest tax reform, the deadlock over administration of GST ended on Monday after the Centre agreed to allow states control over most of small taxpayers, but the rollout date was pushed back by 3 months to July 1. The split of GST taxpayers between the two will be done horizontally with states getting to administer and control 90 per cent of the asseesses below Rs 1.5 crore annual turnover, and the remaining 10 per cent coming under the Centre. The Centre and states will share control of assessees with annual turnover of over Rs 1.5 crore in 50:50 ratio even as Finance Minister Arun Jaitley insisted that each tax payer will be assessed only once and by only one authority. Besides ceding control, the Centre also agreed to the demand of coastal states, allowing them to tax economic activity in 12 nautical miles even though constitutionally the Centre has jurisdiction over territorial waters. "This is a significant headway," Jaitley said after the meeting. While a four-rate tax slab of 5, 12, 18 and 28 per cent had already been reached, a consensus on the administration of the Goods and Services Tax - which will subsume central and state levies like excise duty, service tax and VAT - paved the way for finalisation of the draft supporting laws. Jaitley said the draft of Integrated GST or IGST, the tax which will be levied by the Centre on inter-state movement of goods and services, as well as SGST and CGST will be finalised in the next meeting of the GST Council on February 18. Once approved, the Council will then decide on taxing various goods and services in different tax slabs, he said. The stalemate over administration of GST had been holding up consensus in the GST Council since early November with four successive meetings failing to break the deadlock as the Centre was not in favour of a horizontal split. It said states did not have the expertise to administer levies like service tax. The Centre also did not favour dual agencies auditing and scrutinising each taxpayer as multiple authorities could end up acting at cross-purposes. Since GST is a transactional tax, which is to be levied when a sale takes place, it does not necessarily have to be implemented from the beginning of the fiscal, he said. The penal arrest provisions, which were part of the draft law, have been diluted. Officials said default in payment of taxes amounting up to Rs 2 crore will be a bailable offence. The arrest powers will be invoked only in cases of criminal offences like forgery and collected tax not deposited in government coffers. Briefing reporters after the 9th meeting of the GST Council, Jaitley said the entire taxation base will be shared between the Centre and states. He said: "All assessees with GST turnover of Rs 1.5 crore or less, 90 per cent of them will be assessed for the purposes of scrutiny and audit by the states and 10 per cent by the centre. "Those above the turnover of Rs 1.5 crore would be assessed in the ratio of 50:50 between centre and states," he said, adding that intelligence-based enforcement powers would vest in both Centre and states. "The power to levy and collect the IGST taxation is with the central government but by special provision in law, the states will also be cross empowered in the same manner." In case of contentious issues and conflicts between states with regard to place of supply, the assessment would be done by Centre, he said. Also, importantly, the area of 12 nautical miles into the territorial waters, which is part of the Union government territory, will be taxed by states. This is one of the issues which states with various parties in power - from BJP-rule Gujarat to Congress-ruled Karnataka and CPM-governed Kerala, had demanded. "This decision has been taken after very wide consultation," Jaitley said. The Finance Minister said each assessee would be assessed only by one authority. "Once you evolve numerically a lot more will come from state to the centre, because the percentage is 50:50 in higher category and 90:10 in lower category. The computer programming would be done in a manner so that there is no discretion." After drafts of supporting legislations are prepared, fitments of rates in various slabs will be undertaken. "This exercise will in all probability take us into the month of March. The Ministers and Council then assessed the realistic date by when the three important things pending -- final draft legislation and rules, secondly approval of these by the legislative bodies, and fitments of rates can take place. "I requested the ministers to give their opinion about the realistic dates and there was a broad view that July 1 appears to be more realistic," he said. Also, industry and trade should be given some adequate notice to prepare for the new regime and once the rates are decided the systems of GSTN will have to be modified suitably. "So our next meeting will be on February 18. This long gap is because -- the drafts are going to take some time to be finalised and most finance ministers would be busy with the central and state budgets," Jaitley said. He added that all states, except West Bengal, agreed to the proposal of division of assessees in GST for audit and scrutiny purposes. "The West Bengal minister disagreed to the limited extent that assessments below Rs 1.5 crore which are divided 90:10 between the states and centre. His dissent was confined to the issue that it should be 100 versus zero and not 90:10. On all other proposals he also agreed," he said. After the Council meeting, West Bengal Finance Minister Amit Mitra said the Centre has come very close to the position that empowered committee had taken, where below Rs 1.5 crores, turnover all goods, all deemed goods, was to be assessed by states. "Our great struggle has been to save the small enterprises of states and we have succeeded to the extent of 90 per cent (of services) and all goods. We could not succeed in only 10 per cent which relates to services," Mitra said. Earlier, Kerala Finance Minister T M Thomas Isaac said there was no agreement on the issue of administration of GST, with states continuing to seek sole control over tax payers. With regard to Integrated GST, Jaitley said the power to levy and collect the IGST taxation is with the central government but by special provision in law, states will also be cross empowered in the same manner of the ratio mentioned earlier. "In the exercise of IGST where there are contentious issues between conflicting states with regard to place of supply etc. Obviously, one of the states cannot assess and therefore those assessment would take place by Centre," Jaitley said. (DNA)

GST deadlock ends, rollout pushed to July 1

&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

Jaitley said small enterprises with an annual turnover of up to 20 million rupees could save up to 30 per cent in tax payments

Indian finance minister Arun Jaitley on Tuesday addressed the media and said the government will offer tax incentives to small scale businesses engaged in cashless transactions, news agency Reuters reported. The incentives will be applicable to small scale businesses with a turnover of up to 20 million rupees ($294,000). Jaitley said the move would enable such businesses to save up to 30 per cent in tax payments, Reuters reported. He also said further amendments had been made to how small traders are taxed in order to boost digital payment, the Financial Express reported. Jaitley further said that anybody who still has old currency must deposit the amount with his or her bank at one go, The Financial Express reported. If somebody goes to the banks every day, it raises questions, Jaitley said. Since the government's demonetisation of India's 500- and 1,000-rupee note, the government has come out with a raft of incentives to encourage cashless transactions. It has also come out with a host of orders governing how the old notes are to be exchanged for new currency. (WION with inputs from Reuters)

India to offer tax breaks to small businesses that go cashless: Fin Min

Indian finance minister Arun Jaitley today repudiated a call by the state government of India&#39;s West Bengal to delay a planned Goods and Services Tax (GST) to avoid inflicting another economic shock in the wake of demonetisation.

He said the plan was still to launch the new tax on April 1. Time was tight because, under a constitutional amendment that enabled the GST, India&#39;s old system of indirect taxation would lapse next September.

&quot;If on September 16, 2017, there&#39;s no GST, then there&#39;s no taxation,&quot; he said. &quot;Our intention is to make sure it gets implemented from April 1, 2017.&quot;

Jaitley also said on Friday that a cash crunch following the scrapping of high-value banknotes would ease by December&nbsp;30 with the release of new 500 and 2,000 rupee notes.

Jaitley said, however, that the amount of new banknotes being released would not be the same as that circulating before November&nbsp;8, when Prime Minister Narendra Modi announced the so-called demonetisation to purge the economy of illicit &quot;black money&quot;.

Modi, at a stroke, removed from circulation banknotes worth an estimated 17 trillion rupees ($249 billion). Finance ministry sources say they plan to reissue just over half of this - a task that would take months given the capacity of India&#39;s four banknote printing presses.

Modi set a 50-day deadline that runs to December&nbsp;30 for people to swap or deposit their old banknotes. He has promised the situation would stabilise by then and urged Indians to adopt cashless payment forms such as debit cards and mobile wallets.

&quot;Obviously, one of the advantages of this exercise is going to be that you won&#39;t have the same level of paper currency which existed,&quot; Jaitley told the Hindustan Times Leadership Summit.

(Reuters)

Jaitley repudiated a call by the Bengal government to delay the GST to avoid inflicting another economic shock

Indian finance minister Arun Jaitley today repudiated a call by the state government of India's West Bengal to delay a planned Goods and Services Tax (GST) to avoid inflicting another economic shock in the wake of demonetisation. He said the plan was still to launch the new tax on April 1. Time was tight because, under a constitutional amendment that enabled the GST, India's old system of indirect taxation would lapse next September. "If on September 16, 2017, there's no GST, then there's no taxation," he said. "Our intention is to make sure it gets implemented from April 1, 2017." Jaitley also said on Friday that a cash crunch following the scrapping of high-value banknotes would ease by December 30 with the release of new 500 and 2,000 rupee notes. Jaitley said, however, that the amount of new banknotes being released would not be the same as that circulating before November 8, when Prime Minister Narendra Modi announced the so-called demonetisation to purge the economy of illicit "black money". Modi, at a stroke, removed from circulation banknotes worth an estimated 17 trillion rupees ($249 billion). Finance ministry sources say they plan to reissue just over half of this - a task that would take months given the capacity of India's four banknote printing presses. Modi set a 50-day deadline that runs to December 30 for people to swap or deposit their old banknotes. He has promised the situation would stabilise by then and urged Indians to adopt cashless payment forms such as debit cards and mobile wallets. "Obviously, one of the advantages of this exercise is going to be that you won't have the same level of paper currency which existed," Jaitley told the Hindustan Times Leadership Summit. (Reuters)

Constitutional compulsion to roll out GST from September 2017: Indian finance minister

Amendments to the I-T laws do not seek to tax inherited gold and jewellery as also those items that are purchased through disclosed or agriculture income, the government said today.

The Lok Sabha earlier this week passed the Taxation Laws (Second Amendment) Bill, which proposes a steep up to 85 per cent tax and penalty on undisclosed wealth that is discovered by tax authorities during search and seizure.

Dispelling rumours that jewellery would be covered under the amended law, the Central Board of Direct Taxes (CBDT) said the government has not introduced any new provision regarding chargeability of tax on jewellery.

&quot;The jewellery/gold purchased out of disclosed income or out of exempted income like agricultural income or out of reasonable household savings or legally inherited which has been acquired out of explained sources is neither chargeable to tax under the existing provisions nor under the proposed amended provisions,&quot; the CBDT said.

During search operations, conducted by I-T Department, there would be no seizure of gold jewellery and ornaments to the extent of 500 grams per married women, 250 gm per unmarried women as also 100 gm per male member of the family, it said.

&quot;Further, legitimate holding of jewellery up to any extent is fully protected,&quot; it added.

The Bill, which is currently under consideration of the Rajya Sabha, will amend Section 115BBE of the Income Tax Act to provide for a steep 60 per cent tax and a 25 per cent surcharge on it (total 75 per cent) for black money holders.

Another section inserted provides for an additional 10 per cent penalty on being established that the undeclared wealth is unaccounted or black money, taking the total incidence of levies to 85 per cent.

CBDT said: &quot;Tax rate under section 115BBE is proposed to be increased only for unexplained income as there were reports that the tax evaders are trying to include their undisclosed income in the return of income as business income or income from other sources.

&quot;The provisions of section 115BBE apply mainly in those cases where assets or cash etc. Are sought to be declared as &#39;unexplained cash or asset&#39; or where it is hidden as unsubstantiated business income, and the Assessing Officer detects it as such.&quot;

The Bill also proposes to raise penalty under I-T Act for search and seizure cases by 3-fold to 30 per cent, a move aimed at deterring black money holders, from 10 or 20 per cent currently.

Once the amendments are approved by Parliament, there would be a penalty of 30 per cent of unaccounted income, if admitted and taxes are paid. This would take the total incidence of tax and penalty to 60 per cent.

While proposing to amend Section 271AAB, the government has decided to retain the provision of levying penalty of 60 per cent of income in &quot;any other cases&quot;. That would raise the incidence of tax and penalty to 90 per cent.

During 2015-16, the I-T Department conducted 445 searches which discovered undisclosed income of Rs 11,066 crore. Total assets seized were Rs 712.68 crore.

Also 545 searches conducted in 2014-15 have led to admission of undisclosed income worth Rs 10,288 crore. Total assets seized amounted to Rs 761.70 crore.

Besides, 569 searches in 2013-14 saw admission of undisclosed income of Rs 10,791.63 crore and asset seizure of Rs 807.84 crore.

This took the total undisclosed income which was admitted during searches to Rs 32,146 crore.

Search and seizure operations are conducted by the tax department when the Assessing Officer believes that the assessee is unlikely to produce books of accounts or likely to suppress books of account and other documents which may be useful and relevant to an income tax proceedings.

(PTI)

Central Board of Direct Taxes (CBDT) said the government has not introduced any new provision regarding chargeability of tax on jewellery

Amendments to the I-T laws do not seek to tax inherited gold and jewellery as also those items that are purchased through disclosed or agriculture income, the government said today. The Lok Sabha earlier this week passed the Taxation Laws (Second Amendment) Bill, which proposes a steep up to 85 per cent tax and penalty on undisclosed wealth that is discovered by tax authorities during search and seizure. Dispelling rumours that jewellery would be covered under the amended law, the Central Board of Direct Taxes (CBDT) said the government has not introduced any new provision regarding chargeability of tax on jewellery. "The jewellery/gold purchased out of disclosed income or out of exempted income like agricultural income or out of reasonable household savings or legally inherited which has been acquired out of explained sources is neither chargeable to tax under the existing provisions nor under the proposed amended provisions," the CBDT said. During search operations, conducted by I-T Department, there would be no seizure of gold jewellery and ornaments to the extent of 500 grams per married women, 250 gm per unmarried women as also 100 gm per male member of the family, it said. "Further, legitimate holding of jewellery up to any extent is fully protected," it added. The Bill, which is currently under consideration of the Rajya Sabha, will amend Section 115BBE of the Income Tax Act to provide for a steep 60 per cent tax and a 25 per cent surcharge on it (total 75 per cent) for black money holders. Another section inserted provides for an additional 10 per cent penalty on being established that the undeclared wealth is unaccounted or black money, taking the total incidence of levies to 85 per cent. CBDT said: "Tax rate under section 115BBE is proposed to be increased only for unexplained income as there were reports that the tax evaders are trying to include their undisclosed income in the return of income as business income or income from other sources. "The provisions of section 115BBE apply mainly in those cases where assets or cash etc. Are sought to be declared as 'unexplained cash or asset' or where it is hidden as unsubstantiated business income, and the Assessing Officer detects it as such." The Bill also proposes to raise penalty under I-T Act for search and seizure cases by 3-fold to 30 per cent, a move aimed at deterring black money holders, from 10 or 20 per cent currently. Once the amendments are approved by Parliament, there would be a penalty of 30 per cent of unaccounted income, if admitted and taxes are paid. This would take the total incidence of tax and penalty to 60 per cent. While proposing to amend Section 271AAB, the government has decided to retain the provision of levying penalty of 60 per cent of income in "any other cases". That would raise the incidence of tax and penalty to 90 per cent. During 2015-16, the I-T Department conducted 445 searches which discovered undisclosed income of Rs 11,066 crore. Total assets seized were Rs 712.68 crore. Also 545 searches conducted in 2014-15 have led to admission of undisclosed income worth Rs 10,288 crore. Total assets seized amounted to Rs 761.70 crore. Besides, 569 searches in 2013-14 saw admission of undisclosed income of Rs 10,791.63 crore and asset seizure of Rs 807.84 crore. This took the total undisclosed income which was admitted during searches to Rs 32,146 crore. Search and seizure operations are conducted by the tax department when the Assessing Officer believes that the assessee is unlikely to produce books of accounts or likely to suppress books of account and other documents which may be useful and relevant to an income tax proceedings. (PTI)

No tax on ancestral jewellery, purchase from disclosed income

US President Barack Obama today praised Indian Prime Minister Narendra Modi for&nbsp;ushering &quot;bold&quot; tax reforms in India. 
 
The Indian parliament had cleared a landmark tax law named Goods and Services Tax in August. The law has been broadly lauded&nbsp;for simplifying India&#39;s taxation structure.&nbsp; 
 
Modi first met Obama briefly when they were onstage to pose for a family photograph at the G20 Summit venue in this eastern Chinese city of Hangzhou. The two leaders had another opportunity to exchange views during an informal evening programme. 
 
Obama in his intervention during the G20 summit praised Modi for the recent tax reform as an example of &quot;bold policy&quot; in an otherwise &quot;difficult global economic scenario&quot;. 
 
Later, Modi said that more than just &quot;difficult conversations&quot; needed to be taken to tackle the economic downturn.&nbsp; 
 
China President Xi Jinping also sounded alarm about the current economic climate.

Rise in protectionist policies have pushed global economy to the brink, warned Xi Jinping on the first of the two-day G20 summit. 
 
Jinping stressed the need to come around to work towards righting the depressed global economy.&nbsp; 
 
The comments come a month after Australia stonewalled a Chinese bid of&nbsp;$7.7 billion&nbsp;to buy the country&#39;s biggest energy grid, a move perceived to be being protectionist in nature. 
 
&quot;Growth drivers from the previous round of technological progress are gradually fading, while a new round of technological and industrial revolution has yet to gain momentum,&quot; he said. 
 
Xi also asked the G20 nations to back the talk.&nbsp;&quot;We should turn the G20 group into an action team, instead of a talk shop,&quot; he said. 
 
Meanwhile, the security remained tight in Hangzhou to ensure the summit passed&nbsp;off&nbsp;incident-free.&nbsp;

Modi later stressed about the need to take tough decisions to tide over the current global economic crisis

US President Barack Obama today praised Indian Prime Minister Narendra Modi for ushering "bold" tax reforms in India. The Indian parliament had cleared a landmark tax law named Goods and Services Tax in August. The law has been broadly lauded for simplifying India's taxation structure. Modi first met Obama briefly when they were onstage to pose for a family photograph at the G20 Summit venue in this eastern Chinese city of Hangzhou. The two leaders had another opportunity to exchange views during an informal evening programme. Obama in his intervention during the G20 summit praised Modi for the recent tax reform as an example of "bold policy" in an otherwise "difficult global economic scenario". Later, Modi said that more than just "difficult conversations" needed to be taken to tackle the economic downturn. China President Xi Jinping also sounded alarm about the current economic climate. Rise in protectionist policies have pushed global economy to the brink, warned Xi Jinping on the first of the two-day G20 summit. Jinping stressed the need to come around to work towards righting the depressed global economy. The comments come a month after Australia stonewalled a Chinese bid of $7.7 billion to buy the country's biggest energy grid, a move perceived to be being protectionist in nature. "Growth drivers from the previous round of technological progress are gradually fading, while a new round of technological and industrial revolution has yet to gain momentum," he said. Xi also asked the G20 nations to back the talk. "We should turn the G20 group into an action team, instead of a talk shop," he said. Meanwhile, the security remained tight in Hangzhou to ensure the summit passed off incident-free.

Obama lauds India PM Narendra Modi for ushering 'bold' tax reforms

Powerful business lobbying bodies on Thursday sued the Obama administration, seeking to strike down recent rules intended to prevent corporate tax avoidance through so-called inversions. 
 
In a rule adopted in April, the US Treasury sought to prevent American companies from moving overseas to reduce their tax burdens, often through reverse mergers. The pharmaceutical giant Pfizer that month abandoned plans for a merger with Botox producer Allergan, based in Ireland, as a result. 
 
In a complaint filed in US District Court in Texas, the US Chamber of Commerce and the Texas Association of Business accused the Obama administration of attempting to re-write US tax laws while bypassing the legislature, which is controlled by Republicans and hostile to the measure. If the rule is allowed to stand, &quot;it is not just mergers that will suffer, it is the rule of law, and the certainty and stability required for effective commerce,&quot; the complaint said. 
 
In a statement, US Chamber President, Tom Donahue, said the Treasury and Internal Revenue Service had &quot;ignored the clear limits of a statute, and simply rewrote the law unilaterally.&quot; 
 
The Treasury Department said on Thursday it had acted within its powers to address what lawmakers had failed to. 
 
&quot;In the absence of congressional action, Treasury proposed regulations to eliminate tax benefits for companies that acquire multiple US firms over a short period of time,&quot; the department said. 
 
&quot;This action was based on strong policy interests and clear legal authority. We will continue to defend these regulations, which will help slow the erosion of our corporate tax base.&quot; 
 
According to the rule adopted in April, companies formed in tax inversions can be subject to higher taxes if the newly formed company does less than 25 per cent of its business in the foreign country where it is incorporated, or if the shareholders in the old American parent company end up owning at least 60 per cent of the new foreign parent. 
 
(AFP)

The US Treasury, in a rule adopted in April, has sought to prevent American companies from moving overseas to reduce tax burden

Powerful business lobbying bodies on Thursday sued the Obama administration, seeking to strike down recent rules intended to prevent corporate tax avoidance through so-called inversions. In a rule adopted in April, the US Treasury sought to prevent American companies from moving overseas to reduce their tax burdens, often through reverse mergers. The pharmaceutical giant Pfizer that month abandoned plans for a merger with Botox producer Allergan, based in Ireland, as a result. In a complaint filed in US District Court in Texas, the US Chamber of Commerce and the Texas Association of Business accused the Obama administration of attempting to re-write US tax laws while bypassing the legislature, which is controlled by Republicans and hostile to the measure. If the rule is allowed to stand, "it is not just mergers that will suffer, it is the rule of law, and the certainty and stability required for effective commerce," the complaint said. In a statement, US Chamber President, Tom Donahue, said the Treasury and Internal Revenue Service had "ignored the clear limits of a statute, and simply rewrote the law unilaterally." The Treasury Department said on Thursday it had acted within its powers to address what lawmakers had failed to. "In the absence of congressional action, Treasury proposed regulations to eliminate tax benefits for companies that acquire multiple US firms over a short period of time," the department said. "This action was based on strong policy interests and clear legal authority. We will continue to defend these regulations, which will help slow the erosion of our corporate tax base." According to the rule adopted in April, companies formed in tax inversions can be subject to higher taxes if the newly formed company does less than 25 per cent of its business in the foreign country where it is incorporated, or if the shareholders in the old American parent company end up owning at least 60 per cent of the new foreign parent. (AFP)

US Big Business sues Obama administration over corporate tax rules

The world&#39;s major economies need to deepen cooperation on tax collection and information sharing as companies seek to minimise the amount they pay to governments, finance ministers at G20 said today.

The issue has become controversial in many countries, with multinational firms from Google to Starbucks facing accusations of not contributing appropriately to the economies where they make their money, and multi-billion-dollar merger proposals being partly driven by tax considerations.

&quot;When the current cross-border tax rules were developed they were tied to concepts that reflected geography and national boundaries,&quot; US treasury secretary Jacob Lew told G20 finance ministers meeting in the Chinese city of Chengdu.

&quot;When we look at technology a lot of that has become harder to define.&quot;

&quot;There needs to be a common standard across countries on important issues of transfer pricing,&quot; he said at a high-level symposium on tax policy, adding that countries had to deal &quot;collectively&quot; with issues that lead to non-taxation.

Closing loopholes, he added, would change the choices businesses make.

The G20 has previously supported proposals requiring authorities to share the identities of shell companies&#39; real owners, and backed creating a blacklist of international tax havens that do not cooperate with information-sharing programmes.

But the discussion as the G20 finance ministers and central bank chiefs meeting opened in Chengdu, in southwestern China, was wider, addressing base erosion and profit shifting, known as BEPS.

The term refers to companies using accounting techniques to shift their profits to low- or no-tax jurisdictions, reducing the amounts they are liable to pay.

Some countries, such as Ireland or Luxembourg, have drawn major firms to establish headquarters or subsidiaries by virtue of their tax rules -&nbsp;a key contributor to Dublin declaring earlier this month that its economy grew by a spectacular 26.3 per cent last year.

&quot;In the 21st century, talent, capital, and even physical infrastructures are increasingly mobile,&quot; said Angel Gurria, secretary-general of the Organisation for Economic Co-operation and Development (OECD).

&quot;So, a global conversation on these issues, on tax policy, is obvious, critical, important,&quot; he said, later naming Google, Apple and Starbucks as example companies.

But he acknowledged that it could be a sensitive subject: &quot;Tax policy has been and remains a sovereign issue.&quot;

The seminar jointly pushed for by Germany, China and the OECD &nbsp;also addressed issues of using tax policy to promote growth.

Earlier French finance minister Michel Sapin said that some countries, &quot;not only China&quot; were &quot;reluctant&quot; on questions of cooperation on tax evasion.

But Chinese finance minister Lou Jiwei said: &quot;We need to deepen the international tax cooperation, building on existing mechanisms.&quot; 
 
(AFP)

The multinational firms use accounting techniques to shift their profits to no-tax jurisdictions, reducing amounts they are liable to pay

The world's major economies need to deepen cooperation on tax collection and information sharing as companies seek to minimise the amount they pay to governments, finance ministers at G20 said today. The issue has become controversial in many countries, with multinational firms from Google to Starbucks facing accusations of not contributing appropriately to the economies where they make their money, and multi-billion-dollar merger proposals being partly driven by tax considerations. "When the current cross-border tax rules were developed they were tied to concepts that reflected geography and national boundaries," US treasury secretary Jacob Lew told G20 finance ministers meeting in the Chinese city of Chengdu. "When we look at technology a lot of that has become harder to define." "There needs to be a common standard across countries on important issues of transfer pricing," he said at a high-level symposium on tax policy, adding that countries had to deal "collectively" with issues that lead to non-taxation. Closing loopholes, he added, would change the choices businesses make. The G20 has previously supported proposals requiring authorities to share the identities of shell companies' real owners, and backed creating a blacklist of international tax havens that do not cooperate with information-sharing programmes. But the discussion as the G20 finance ministers and central bank chiefs meeting opened in Chengdu, in southwestern China, was wider, addressing base erosion and profit shifting, known as BEPS. The term refers to companies using accounting techniques to shift their profits to low- or no-tax jurisdictions, reducing the amounts they are liable to pay. Some countries, such as Ireland or Luxembourg, have drawn major firms to establish headquarters or subsidiaries by virtue of their tax rules - a key contributor to Dublin declaring earlier this month that its economy grew by a spectacular 26.3 per cent last year. "In the 21st century, talent, capital, and even physical infrastructures are increasingly mobile," said Angel Gurria, secretary-general of the Organisation for Economic Co-operation and Development (OECD). "So, a global conversation on these issues, on tax policy, is obvious, critical, important," he said, later naming Google, Apple and Starbucks as example companies. But he acknowledged that it could be a sensitive subject: "Tax policy has been and remains a sovereign issue." The seminar jointly pushed for by Germany, China and the OECD also addressed issues of using tax policy to promote growth. Earlier French finance minister Michel Sapin said that some countries, "not only China" were "reluctant" on questions of cooperation on tax evasion. But Chinese finance minister Lou Jiwei said: "We need to deepen the international tax cooperation, building on existing mechanisms." (AFP)

G20 ministers urge tighter tax rules for multinationals

The monsoon session of the Indian parliament began on Monday, amid government&#39;s effort to push through major reform bills including the Goods and Services Tax (GST) bill in the Rajya Sabha, upper house of the parliament. 
 
Ahead of the session, Prime Minister Narendra Modi said that all should work together in this session to take the country forward. 
 
Modi had on Sunday reached out to the opposition parties to ensure passage of the GST bill while urging all to keep national interests above other issues. Speaker of the Lok Sabha, lower house of the parliament, Sumitra Mahajan also expressed hope that the house would function smoothly without any adjournments. 
 
Buoyed by the restoration of its governments in two states - Arunachal Pradesh and Uttarakhand - the Congress party is likely to target the Modi supporters for &quot;using all tricks&quot; to destabilise opposition-ruled states. 
 
The Congress, which originally piloted the GST bill, has said it is still in favour of the same. The changes it has demanded include putting a cap of 18 per cent on GST rate in the constitution amendment bill. 
 
Of the 10 bills expected to come up in the Lok Sabha during the 20-day sittings are the Consumer Protection Bill 2015, the Benami Transactions (Prohibition) Amendment Bill 2015, and the Lok Pal and Lokayuktas and Other Related Laws (Amendment) Bill. 
 
A total of 25 bills are expected to come up for passing and consideration during the session. 
 
(DNA webdesk)

Prime Minister Modi has appealed to the opposition for smooth functioning of the house and keep national interests above others

The monsoon session of the Indian parliament began on Monday, amid government's effort to push through major reform bills including the Goods and Services Tax (GST) bill in the Rajya Sabha, upper house of the parliament. Ahead of the session, Prime Minister Narendra Modi said that all should work together in this session to take the country forward. Modi had on Sunday reached out to the opposition parties to ensure passage of the GST bill while urging all to keep national interests above other issues. Speaker of the Lok Sabha, lower house of the parliament, Sumitra Mahajan also expressed hope that the house would function smoothly without any adjournments. Buoyed by the restoration of its governments in two states - Arunachal Pradesh and Uttarakhand - the Congress party is likely to target the Modi supporters for "using all tricks" to destabilise opposition-ruled states. The Congress, which originally piloted the GST bill, has said it is still in favour of the same. The changes it has demanded include putting a cap of 18 per cent on GST rate in the constitution amendment bill. Of the 10 bills expected to come up in the Lok Sabha during the 20-day sittings are the Consumer Protection Bill 2015, the Benami Transactions (Prohibition) Amendment Bill 2015, and the Lok Pal and Lokayuktas and Other Related Laws (Amendment) Bill. A total of 25 bills are expected to come up for passing and consideration during the session. (DNA webdesk)

Tax bill in focus as monsoon session of Indian parliament begins

A &#39;fat tax&#39; of 14.5 per cent on burgers, pizzas and other junk food was proposed in the budget tabled by the government of the south Indian state, Kerala. The tax, if cleared, will be levied on &#39;&#39;burgers, pizzas and pasta served in branded restaurants&quot;.&nbsp; 
 
The state government hopes to raise a corpus of Indian Rupees 100&nbsp;million from this move. 
 
Packaged wheat products will also be taxed. Those buying coconut oil that is used for cooking and other domestic purposes will have to pay 5 per cent additional tax. 
 
A green tax for vehicles more than 10 years old has also been proposed in the Left Front government&#39;s budget on Friday. The budget provides for a Rupees 120,000-million &#39;anti-slowdown package&#39; for taking up development projects. 
 
(PTI)

Eating burger, pasta and pizzas in Kerala restaurants will burn a bigger hole in your pocket, but it's for your own good, says government

A 'fat tax' of 14.5 per cent on burgers, pizzas and other junk food was proposed in the budget tabled by the government of the south Indian state, Kerala. The tax, if cleared, will be levied on ''burgers, pizzas and pasta served in branded restaurants". The state government hopes to raise a corpus of Indian Rupees 100 million from this move. Packaged wheat products will also be taxed. Those buying coconut oil that is used for cooking and other domestic purposes will have to pay 5 per cent additional tax. A green tax for vehicles more than 10 years old has also been proposed in the Left Front government's budget on Friday. The budget provides for a Rupees 120,000-million 'anti-slowdown package' for taking up development projects. (PTI)

Indian state imposes 'fat tax' on junk food

US actor John Malkovich took French daily Le Monde and two of its journalists to court on Friday for defamation over a report alleging that he held a secret Swiss bank account. 
 
Dangerous Liaisons star Malkovich is suing the paper over two articles published in February about the tax evasion scheme run by British banking giant HSBC out of its Swiss affiliate. 
 
Malkovich, 62, was among several celebrities listed by Le Monde among the &quot;elite tax evaders&quot; to have had a secret Swiss account between 2005 and 2007 - a claim Malkovich has rejected. 
 
&quot;Not only did John Malkovich not defraud tax authorities&quot;, he &quot;never had an account with HSBC&quot;, Julia Minkowski, one of his lawyers, told a Paris court. 
 
The only Swiss account he ever had was a securities portfolio with a bank that was later bought by HSBC, Minkowski added. 
 
The actor had declared that account to US tax authorities before closing it on November 30, 1999, a month before the creation of HSBC&#39;s Swiss private banking arm, she said. 
 
Herve Temime, another of the actor&#39;s lawyers, said Le Monde&#39;s linking of the actor to the Swissleaks revelations was &quot;shameful&quot;, calling his client a &quot;man of great integrity&quot;. 
 
Prosecutor Annabelle Philippe rapped the two journalists who authored the report, and who were absent from the proceedings, for not having the &quot;decency to come and recognise the lack of professionalism of their investigation&quot;. 
 
Le Monde&#39;s lawyer Christophe Bigot, for his part, accused Malkovich of &quot;creating a fuss&quot; despite having had an account &quot;in a discreet little bank in a country (that was) uncooperative&quot; with other countries on tax matters. 
 
The court will rule on the case in October. 
 
(AFP)

The Hollywood actor took two journalists to court for alleging he held a secret Swiss bank account

US actor John Malkovich took French daily Le Monde and two of its journalists to court on Friday for defamation over a report alleging that he held a secret Swiss bank account. Dangerous Liaisons star Malkovich is suing the paper over two articles published in February about the tax evasion scheme run by British banking giant HSBC out of its Swiss affiliate. Malkovich, 62, was among several celebrities listed by Le Monde among the "elite tax evaders" to have had a secret Swiss account between 2005 and 2007 - a claim Malkovich has rejected. "Not only did John Malkovich not defraud tax authorities", he "never had an account with HSBC", Julia Minkowski, one of his lawyers, told a Paris court. The only Swiss account he ever had was a securities portfolio with a bank that was later bought by HSBC, Minkowski added. The actor had declared that account to US tax authorities before closing it on November 30, 1999, a month before the creation of HSBC's Swiss private banking arm, she said. Herve Temime, another of the actor's lawyers, said Le Monde's linking of the actor to the Swissleaks revelations was "shameful", calling his client a "man of great integrity". Prosecutor Annabelle Philippe rapped the two journalists who authored the report, and who were absent from the proceedings, for not having the "decency to come and recognise the lack of professionalism of their investigation". Le Monde's lawyer Christophe Bigot, for his part, accused Malkovich of "creating a fuss" despite having had an account "in a discreet little bank in a country (that was) uncooperative" with other countries on tax matters. The court will rule on the case in October. (AFP)

John Malkovich a 'man of integrity', French court told lawyer in defamation case

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