The standard deduction of Rs.40,000 meant that a pensioner who is at the highest tax bracket of 30% would save Rs.12,000 of taxes.
The good news is that the advance taxes paid for the second quarter of the fiscal year and higher GST collections in October open a window for closing the fiscal deficit gap
Tax anti-avoidance rule GAAR will kick in from April 1, 2017, the tax department said today.
The market is not likely to bounce back anytime soon, says Jyotivardhan Jaipuria, Founder & MD of Veda Investment Managers. Recovery, after demonetisation and GST, may be delayed by around 1-2 months. Third quarter earnings are going to be worse than expected, he says.
The Central Board of Direct Taxes today singed five unilateral advance pricing agreements (APAs) with Indian taxpayers as it looks to reduce litigation by providing certainty in transfer pricing.
Government's revenue collection in the first 5 months of current fiscal has shown impressive growth, with indirect taxes up 27.5 percent and direct taxes, 15.03 percent.
The department plans to undertake meetings with various stakeholders like company deductors and chartered accountants to ensure that due taxes under this category are deposited accurately and on time.
The government has decided not to cut its annual borrowing this fiscal as it wants to keep public spending high in order to keep growth engines running.
With preparations for the next Union Budget picking up pace, the Finance Ministry has invited suggestions from trade and industry for changes in tax rates and broadening of base.
The apex policy-making body of the I-T department is actively working to ensure that this customer-friendly measure can be launched for taxpayers from the next financial year.
The top boss of the I-T department said the Board is constantly trying to strengthen its information systems in both the domestic and international arena in order to create the â€œcapacity to catch hold of such people who are spoiling country‘s tax compliance culture.â€
The department last week issued a set of new instructions to all its offices in the country stating any person who provides credible inputs against a declared defaulter would be rewarded a 10 percent booty of tax realised from such an entity, but upto a maximum limit of Rs 15 lakh.
In the Frequently Asked Questions (FAQs) the Central Board of Direct Taxes (CBDT) will answer around two dozen queries based on inputs received from various stakeholders since the notification of the Compliance Window under the Black Money Act on July 1.
A Framework Agreement was recently signed with the US under the Mutual Agreement Procedure (MAP) provision of the India-US Double Taxation Avoidance Convention (DTAC). "This is a major positive development," the Central Board of Direct Taxes (CBDT) said in a statement.
The Central Board of Direct Taxes (CBDT) has notified ITR 3, 4, 5, 6 and 7 for Assessment Year 2015-16. These forms are used by non-salaried entities to file income tax returns.
CBDT has asked its investigation and regular assessment ranges across the country to "quickly" collect the data and submit them so that RBI can take a final view on the grant of licences to eligible parties.
Goods & Services Tax (GST) will be a game changer for the Indian economy. The new tax regime can lead to efficient resource allocation within the economy, improve tax compliance and positively impact GDP growth.
"The officers should emphasise how a rupee gained or collected by way of taxes is utlilised towards development of the country leading to nation building. The officers should discuss the importance of taxation and menace of black money or the parallel economy," the latest directive to the I-T officials said.
The Income Tax Department should adopt a responsive taxpayer-centric regime and focus on dealing with the menace of both domestic as well as overseas black money, Revenue Secretary Shaktikanta Das has said.
For the current financial year, the Arun Jaitley said, direct tax collection was likely to improve by 14-15 percent and there was possibility of government improving upon the fiscal deficit target of 3.9 percent.
The Finance Ministry could have sidestepped a damaging multibillion-dollar tax row with foreign investors if it had acted on regular warning letters that officials had been sending since as long ago as September.
The government had revised the direct tax collection target to Rs 7,05,000 crore for the fiscal 2014-15 against the initial projection of Rs 7,36,000 crore in view of the sluggish economic growth.
The move is aimed at quickly resolving the controversial tax issue facing foreign portfolio investors. The Income Tax Department has sent notices in 68 cases to FIIs for payment of dues totalling Rs 602.83 crore towards Minimum Alternate Tax (MAT).
The FIIs have, however, decided to challenge the tax demands, stating that MAT cannot be levied on FIIs or FPIs as they do not earn any 'business income' in India and their income is defined as 'capital gains' under the I-T Act.