Page 6 - Income Tax Department

I-T dept says changes in capital gains tax to promote ease of compliance

The income tax department on Wednesday issued a FAQ on changes in the capital gains tax saying the idea behind it was to simplify the tax structure and promote ease of compliance. The holding period for various asset classes for the purpose of short- and long-term capital gains tax has been rationalised. The holding period of all listed assets will be now one year for the purpose of long-term capital gains tax (LTCG). Therefore, for listed units of business trusts (ReITs, InVITs) holding period is reduced from 36 months to 12 months. The holding period of gold, unlisted securities (other than unlisted shares) is also reduced from 36 months to 24 months for calculating LTCG. The holding period of immovable property and unlisted shares remains the same as earlier i.e. 24 months. "Simplification of any tax structure has benefits of ease of compliance viz computation, filing, maintenance of records. This also removes the differential rates for various classes of assets," the income tax

Error-free tax return, luxury concierge firms: Top personal finance stories

This week we report about common mistakes people make in their tax filing and how India's richest use personalised concierge services

SC slams I-T department for 'gross delay of 422 days in filing' plea

"We also find no merit in the Special Leave Petition. In the result, the Special Leave Petition stands dismissed both on the ground of delay as well as on merits," the order said

Our decisions affect nation's economy: New CBDT chief to I-T officials

Newly appointed CBDT chairman Ravi Agrawal has told Income Tax Department officials that the decisions they take have implications on the nation's economy, ease of doing business and international transactions as he asked them to draw a 100-day action plan. Agrawal, 59, took charge as the head of the administrative body of the direct taxes department in the Union finance ministry on Monday. The government issued orders for his appointment last week. The new CBDT chief wrote a two-page letter to the officers and staff of the department that has been accessed by PTI. "Together, we should build a professional Department that is well-versed in the nuances of investigation, sensitive to taxpayer requirements, technology-savvy and is aware of our approach towards taxpayers. "Let us be conscious that the decisions that we take have implications on the nation's economy and ease of doing business, including international transactions and businesses," Agrawal wrote in his message issued on

HDFC Life Insurance gets a tax demand of Rs 1,495 cr from I-T dept

The company had certain marketing and advertising expenses in financials that were considered as admissible expenses incorrectly while calculating the taxable surplus in the policyholder's account

Is the Centre planning to decriminalise minor I-T offences in 100 days?

The industry has long suggested that minor Income Tax offences incur penalties rather than criminal prosecution. This would garner more trust and boost ease of doing business

Link PAN with Aadhaar by May 31 to avoid higher TDS deduction: I-T dept

The income tax department on Tuesday asked taxpayers to link PAN with Aadhaar by May 31 to avoid tax deduction at a higher rate. As per income tax rules, if a Permanent Account Number (PAN) is not linked with biometric Aadhaar, TDS is required to be deducted at double the applicable rate. Last month, the income tax department issued a circular stating that no action will be taken for short deduction of TDS in case the assessee links his/her PAN with Aadhaar by May 31. "Please link your PAN with Aadhaar before May 31, 2024, if you haven't already, in order to avoid tax deduction at a higher rate," the department posted on X. In a separate post, the I-T department asked reporting entities, including banks, forex dealers, to file SFT by May 31 to avoid penalties. "The deadline to file SFT (Statement of Specified Financial Transactions) is May 31, 2024. Avoid penalties by filing accurately and on time," the department said. The reporting entities which are required to file SFT return

I-T dept notifies cost inflation index for FY25 to compute capital gains

The Income Tax Department has notified the cost inflation index for the current fiscal to calculate long-term capital gains arising from the sale of immovable property, securities and jewellery. The cost inflation index (CII) is used by a taxpayer to compute gains arising out of the sale of capital assets after adjusting for inflation. The Cost Inflation Index for FY 2022-23 relevant to AY 2023-24 is 331. AMRG & Associates Senior Partner Rajat Mohan said the CII will help taxpayers to compute long-term capital gains tax, enabling them to remit advance tax on time. "For the last couple of years, the inflation index has been rising faster, which depicts the mounting inflation in the country," Mohan added. AKM Global Head of Tax Markets Yeeshu Sehgal said the CII will be beneficial to taxpayers as assets, which are held for long term, are recorded at purchase cost despite increasing inflation "It is very important to adjust the said purchase cost with the new cost inflation index ..

Data sharing among authorities, taxpayers to improve I-T dept AIS: Deloitte

Deloitte India on Sunday said creating a seamless data exchange and establishing a framework for efficient data sharing among businesses, tax authorities and taxpayers would help improve the AIS functionality of the income tax department. The Annual Information Statement (AIS) is a comprehensive view of financial information for a taxpayer, made available by the income tax department. Information about the taxpayer relating to specified financial transactions such as cash deposit/ withdrawal from bank accounts, sale/purchase of immovable property, time deposits, credit card payments, purchase of shares, debentures, foreign currency, mutual funds, buyback of shares, cash payment for goods and services etc. To improve the functionality of AIS and the efficiency of tax administration and compliance, Deloitte India's latest paper, "Annual Information Statement: Ushering in a new era of tax administration", recommends creating a seamless data exchange and establishing a framework for ...

Tax dept extends deadline for charitable trusts' registration till June 30

The income tax department on Thursday extended the deadline for charitable and religious trusts to furnish registration application with tax authorities till June 30. The Central Board of Direct Taxes (CBDT) had earlier extended the due date for filing Form 10A, Form 10AB by trusts, institutions and funds multiple times and the last such extension was till September 30, 2023. "Considering the representations received by CBDT requesting for further extension of due date for filing of such forms beyond the last extended date of September 30, 2023, and with a view to avoid genuine hardships to taxpayers, CBDT has extended the due date of filing Form 10A/Form 10AB up to June 30, 2024," the CBDT said in a statement. Form 10A is an application form filed by trusts/institutions who wish to get themselves registered for income tax exemption. Form 10 AB is filed by trusts/institutions to renew their permanent registration. CBDT further clarified that if any such existing trust, institution

Foreign entities fund Indian NGOs to halt public projects: I-T dept to SC

The Environics Trust had filed a petition in the Delhi High Court, contesting the notice issued to it under Section 148 of the Income Tax Act, 1961

I-T dept allays apprehensions on reopening of large cases of HRA claims

Data analysis was carried out in some high-value cases of mismatch between the rent paid by the employee and receipt of rent by the recipient for the financial year 2020-21

Run a small biz or work as a freelancer? Pay tax on only 50% of your income

For small businesses with annual gross receipts under Rs. 3 crore, this scheme applies if the cash receipts are less than 5% of the total receipts.

No coercive action against Cong over tax demand notices: I-T dept to SC

The Income Tax department on Monday told the Supreme Court that it will not take any coercive action against the Congress over the tax demand notices of approximately Rs 3,500 crore in view of the Lok Sabha elections. A bench of Justice B V Nagarathna and Justice Augustine George Masih recorded the statement of Solicitor General Tushar Mehta, representing the I-T department, that no precipitative action will be taken in the prevailing circumstances till the final adjudication of the matter. The bench posted the Congress' plea against the tax demand notices for July. At the outset, Mehta said, "I want to make a statement in this matter. The Congress is a political party and since elections are going on, we are not going to take any coercive action against the party." The department is not commenting on the merit of the matter and all rights and contentions should be left open, he said. Senior advocate Abhishek Singhvi, appearing for the Congress appreciated the gesture, terming it

Zomato gets GST notice of Rs 23.26 cr from Karnataka tax authorities

The company received the tax order for the overutilisation of input tax credit, along with associated interest and penalties

Cong gets I-T notice of over Rs 1,745 cr, total tax demand at Rs 3,567 cr

In mounting trouble for the Congress, sources in the party said it has received fresh notices from the Income Tax department, raising a tax demand of Rs 1,745 crore for the assessment years 2014-15 to 2016-17. With this latest notice, the Income Tax department has raised a total demand of Rs 3,567 crore from the Congress. According to sources, the fresh tax notices relate to 2014-15 (Rs 663 crore), 2015-16 (around Rs 664 crore) and 2016-17 (around Rs 417 crore). The authorities have ended the tax exemption available to political parties and have taxed the party for the entire collections, they added. The Congress has also been taxed for "third-party entries" made in diaries seized from some of its leaders by probe agencies during raids, the sources said. The main opposition party on Friday said that it has received notices from the I-T department, asking it to pay around Rs 1,823 crore. The tax authorities have already withdrawn Rs 135 crore from the party's accounts for a tax dema

Modi govt trying to make Congress party bankrupt: AICC gen secy Venugopal

The Congress on Friday sharply reacted to the Income Tax Department's notice to the grand old party to pay a penalty of over Rs 1,750 crore and said the officials were being used as the "gundas" of the ruling BJP. Addressing the media here, AICC general secretary in-charge of the organisation, K C Venugopal, lashed out at the Narendra Modi-led BJP government and accused it of trying to "financially strangulate" the opposition parties during the election time. Venugopal said the Modi government was trying to make the Congress party bankrupt. The Income Tax Department has served a notice to the Congress to pay over Rs 1750 crore, hours after the Delhi High Court had rejected its petitions challenging the tax reassessment proceedings against it. "Usually, the political parties are exempted from paying taxes. However, this penalty is in the name of delay in filing returns. The Narendra Modi government is doing this with the specific purpose of bankrupting the Congress party at a time w

Income Tax department levies Rs 564 crore penalty on Bank of India

The Income Tax department has levied a penalty of Rs 564.44 crore on Bank of India, the public sector lender said on Thursday. The bank is in the process of filing an appeal before the Commissioner of Income Tax, National Faceless Appeal Centre (NFAC) against the order, it said. "The bank has received the order under Section 270A of the Income Tax Act, 1961 from the Income Tax Department, Assessment Unit pertaining to AY2018-19, wherein the penalty of Rs 564.44 crore has been imposed on various disallowances made," it said in a regulatory filing. Looking to the precedence/orders of appellate authorities, the bank believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter, it added. "Accordingly, the bank expects the entire demand to subside. As such, there is no impact on financial, operations or other activities of the bank," Bank of India said. Shares of Bank of India closed at Rs 137, up 3.79 per cent over previous close on the

Delhi HC dismisses Cong's plea against tax re-assessment by I-T authorities

The Delhi High Court on Thursday rejected petitions by the Congress challenging the initiation of tax reassessment proceedings against it for a period of four years by tax authorities. A bench of Justices Yashwant Varma and Purushaindra Kumar Kaurav said the pleas were dismissed in terms of its earlier decision refusing to interfere with the opening of re-assessment for another year. The present matter pertained to assessment years 2017 to 2021. In the earlier petition, which was dismissed last week, the Congress party had challenged initiation of re-assessment proceedings pertaining to assessment years 2014-15 to 2016-17.

Banks to insurers: Using the ombudsman system to get complaints resolved

A guide to how banks, insurers, brokers and tax officials are supposed to listen to you