Page 4 - Tax Benefits

Govt exempts certain payments to units in IFSC from TDS starting April 1

The government has exempted certain payments made to units of 14 services sectors in IFSC from TDS provisions effective April 1, a move which will reduce tax compliance burden. The Central Board of Direct Taxes (CBDT) in a notification said that no TDS will have to be deducted for payments to units in sectors like FinTech, banking, fund management entity, finance company, credit rating agency, insurance intermediary and investment banking. The TDS exemption will now be applicable on payments like professional/referral fee, brokerage income, interest on External Commercial Borrowings /Loans, insurance commission, dividend and credit rating fee. International Financial Services Centre (IFSC) in Gujarat is being developed as a tax-neutral enclave for the financial sector. Nangia & Co LLP Partner Amit Agarwal said the notification by the CBDT offers a significant relief by exempting specified payments made to the units in IFSC from TDS. Previously, exemptions from withholding tax were

Centre released Rs 4,842 cr in tax devolution to Chhattisgarh: CM Sai

He also expressed his best wishes to the students appearing in the board examination and wished for their bright future, suggesting they write the examination without any fear

NRIs should check their tax residency certificates for smoother compliance

Understanding tax residency rules and maintaining proper documentation is imperative to ensure smooth tax compliance

Karnataka ministers defend 10% tax on temples amid row, criticise BJP

Minister for Transport, Ramalinga Reddy alleged that BJP is 'anti-Hindu' adding that the party which was in power in 2011 had made the amendments to the Bill

Centre giving tax benefits to few chosen big corporates: Jairam Ramesh

The Congress on Wednesday accused the central government of giving tax benefits to a few chosen big corporate conglomerates and doing "anyay" (injustice) to the poor and common people of the country. Congress general secretary Jairam Ramesh said the money generated from personal income tax is higher than corporate tax and alleged this is a direct result of Prime Minister Narendra Modi giving corporate tax cut to his chosen friends while the poor are reeling under the onslaught of price rise and high taxes. "For the first time in over three decades (excluding the 2020-21 pandemic), the Union government is generating more money from personal income tax (Rs 10 lakh crore) than it is from corporate tax (Rs 9 lakh crore). "This is the direct result of PM Modi giving his close friends a Rs 1.84 lakh crore handout in the form of the September 2019 corporate tax cut just before he left for Houston's Howdy Modi event to boost Trump's re-election campaign," he said in a post on X. "This ...

TDS, explaining the rise and rise of a safe-bet tax collection method

The I-T department's cost of collection has been reduced as a share of the total direct taxes collected

FM Sitharaman's interim Budget extends tax benefits in IFSC till March 2025

Proposal will give 'some breather' business set up in GIFT city, she says

Interim Budget withdraws certain small, disputed direct tax demands

Proposal expected to help 10 million taxpayers, clean up government books

House passes bill to enhance child tax credit, revive tax breaks for biz

The House accomplished something unusual Wednesday in passing with broad, bipartisan support a roughly USD 79 billion tax cut package that would enhance the child tax credit for millions of lower-income families and boost three tax breaks for businesses, a combination that gives lawmakers on both sides of the political aisle coveted policy wins. Prospects for the measure becoming law are uncertain with the Senate still having to take it up, but for a House that has struggled to get bills of consequence over the finish line, the tax legislation could represent a rare breakthrough. The bill passed by a vote of 357-70. Speaker Mike Johnson, R-La., threw his support behind the bill on Wednesday morning. He spent part of the previous day meeting with GOP lawmakers who were concerned about particular features of the bill, namely the expanded child tax credit. Some were also unhappy that it failed to address the $10,000 cap on the total amount of property taxes or state or local taxes that

Star Health Insurance Q3 results: Net profit rises 37.5% to Rs 289.55 cr

The net commission of the health insurer dropped 13.11 per cent (Y-o-Y) to Rs 349.85 crore from Rs 402.64 crore

Donate and save tax; get the best room heater: Top personal finance stories

This week we tell you how making charitable donations can help in your taxes and the health effects of room heaters

Direct tax-GDP ratio rises to 15-year high of 6.11% during FY23, shows data

However, direct tax collections rose higher than economic growth during FY23

In India's drive to boost tourism, tax becomes roadblock for industry

Sector struggling to recover from effects of pandemic created 1.6 mn jobs in 2023

Tax-saving strategy; spotting mis-selling: Top personal finance stories

This week we explain what a tax-saving investment must do and how to read the fine print of pension plans

Centre issues Rs 5,488 cr additional instalment of tax devolution to Bengal

West Bengal has received Rs 5,488.88 crore as additional instalment of tax devolution by the Centre. On Friday, the Centre had disbursed Rs 72,961.21 crore to all states as tax devolution for funding various social welfare measures and infrastructure development schemes. This comes in addition to the tax devolution instalment due to states on January 10, 2024, the government said. The Centre disburses tax devolution funds in 14 yearly instalments. In the latest allocation, Uttar Pradesh received the largest share at Rs 13,088.51 crore. This was followed by Bihar (Rs 7,338 crore), Madhya Pradesh (Rs 5,727.44 crore), West Bengal (Rs 5,488.88 crore), Maharashtra (Rs 4,608.96 crore), Rajasthan (Rs 4,396.64 crore) and Odisha ( Rs 3,303.69 crore).

BCCI denied tax exemption under Section 11 of I-T Act, says FinMin

The government on Monday said the Income Tax department has denied tax exemption to BCCI under Section 11 of I-T Act, and the matter is now sub judice. Section 11 of I-T Act deals with charitable institutions. Minister of State for Finance Pankaj Chaudhary made the remarks while responding to a question on whether the BCCI, despite being one of the richest sports bodies in the world, is enjoying tax exemption in the name of promoting cricket. "BCCI is claiming exemption under Section 11 of the Income Tax Act, 1961. However, during assessment proceedings the exemption is being disallowed by the Income Tax department. The matter pertaining to tax exemption of BCCI is sub judice," Chaudhary said.

Leverage HUF to max tax benefits by distributing income, availing deduction

By distributing income and availing of deductions, it can facilitate tax savings

63% opted for old tax regime in FY24, PPF and ULIP top saving tools: survey

When asked about the reason for the choice of the old tax regime, 43 per cent of taxpayers cited lower tax liability as the primary reason

Realty boost: IT SEZ developers get flexibility to use vacant space

A notification amending the SEZ Rules, 2006, issued by the ministry, said a part of the SEZ could be declared "non-processing area" where free-zone rules would not apply

Outward remittances under RBI's LRS rose 26% in Q2FY24, shows data

In September 2023, Indians remitted $3.50 billion overseas, compared to $2.67 billion in September 2022