News and Events
Direct Tax Collections for F.Y. 2017-2018 show Growth of 18.7% up to 15th January, 2018
The direct tax collections up to 15th January, 2018 are at Rs. 6.89 lakh crore which is 18.7% higher than the net collections for the corresponding period last year.
Taxpayers: e-Filing Helpdesk number has been changed.
New Helpdesk number is as below:
India Toll Free - 1800 103 0025
Direct Number - +91 80 4612 2000
- Exemption of interest income on deposits with banks and post offices to be increased from Rs 10,000 to Rs 50,000 for senior citizens.
- TDS not required to be deducted under section 194A for senior citizens. Benefit also available for interest from all fixed deposit schemes and recurring deposit schemes.
- Hike in deduction limit for health insurance premium and/or medical expenditure from Rs 30,000 to Rs 50,000 under section 80D.
- Increase in deduction limit for medical expenditure for certain critical illness from Rs 60,000 (in case of senior citizens) and from Rs 80,000 (in case of very senior citizens) to Rs 1 lakh for all senior citizens, under section 80DDB.
- Current investment limit proposed to be increased to Rs 15 lakh from the existing limit of Rs 7.5 lakh per senior citizen.
- Proposed to extend Pradhan Mantri Vaya Vandana Yojana up to March, 2020.
- More concessions for International Financial Services Centre (IFSC), to promote trade in stock exchanges located in IFSC.
- To control cash economy, payments exceeding Rs 10,000 in cash made by trusts and institutions to be disallowed and would be subject to tax.
- Tax on Long Term Capital Gains exceeding Rs 1 lakh at the rate of 10%, without allowing any indexation benefit. However, all gains up to 31st January, 2018 will be grandfathered.
- Proposal to introduce tax on distributed income by equity oriented mutual funds at the rate of 10%.
- Proposal to increase cess on personal income tax and corporation tax to 4% from present 3%.
- Proposal to roll out E-assessment across the country to almost eliminate person to person contact leading to greater efficiency and transparency in direct tax collection.
- Proposed changes in customs duty to promote creation of more jobs in the country and also to incentivise domestic value addition and 'Make in India' in sectors such as food processing, electronics, auto components, footwear and furniture.
GST Updates - Key Decisions Taken in the 25th GST Council Meet:
- Late fee reduction:
- For GSTR-1, GSTR-5, GSTR-5A and GSTR-6 the late fees is reduced to Rs. 50 per day.
- In case of Nil return filed for GSTR-1, GSTR-5, GSTR-5A late fee is reduced to Rs. 20 per day.
- The maximum late fees that can be charged is Rs 5,000.
- Cancellation of registration by voluntary registrants can be applied before expiry of 1 year from the date of registration.
- Cancellation of registration (REG – 29) by migrated taxpayers extended till 31st March 2018.
- Certain modification to e-way bill rules to be notified soon.
- On successful implementation of e-Way bills, the E-way bill portal to be shifted to ewaybillgst.gov.in
- Recommendations made by Handicraft committee has been accepted by the council: The rates are to be worked out later.
- GST Rates for 29 Goods and 53 Services have been reduced with effect from 25th January 2018.
The direct tax collections up to November, 2016 are at Rs. 4.12 lakh
crore which is 15.12% higher than the net collections for the corresponding period last year.
Source : incometaxindiaefiling.gov.in
Quoting of PAN Mandatory
A notification has been issued stating that quoting of PAN to the Banking Company, Post office etc. is mandatory for transactions exceeding fifty thousand rupees during any one day or an aggregate of amount exceeding two lakh fifty thousand rupees remitted during the period 09/11/2016 to 30/12/2016.
Provision to Incorporate Companies Electronically
MCA has taken a bold initiative in Government Process Re-engineering (GPR) and has launched a Simplified proforma for Incorporating Companies Electronically.
Tax Relief for certain Donations
All donations towards the Prime Minister’s National Relief Fund (PMNRF) and the National Defence Fund (NDF) are notified for 100% deduction from taxable income under Section 80G of the Income Tax Act, 1961.
Provision to E-Verify Income Tax Returns
Electronic Verification Code (EVC) can be generated by pre-validating your Bank Account on the e-Filing portal. Punjab National Bank and United Bank of India have launched this facility which will facilitate the account holders, who may not have a NetBanking account, to e-verify their return. Other banks are expected to launch this facility
Electronic Verification Code (EVC) can be generated by pre-validating your Demat Account on the e-Filing portal. NSDL and CDSL have launched this facility which will facilitate the account holders to e-verify their return.
Relaxation from deduction of tax at higher rate under section 206AA
In the case of a non-resident, not being a company, or a foreign company and not having permanent account number the provisions of section 206AA shall not apply in respect of payments in the nature of interest, royalty, fees for technical services and payments on transfer of any capital asset, if the deductee furnishes the details and the documents specified in sub-rule (2) to the deductor.
Sub Rule (2) states that, the deductee shall in respect of payments specified therein, furnish the following details and documents to the deductor, namely :-
- name, e-mail id, contact number;
- address in the country or specified territory outside India of which the deductee is a resident;
- a certificate of his being resident in any country or specified territory outside India from the Government of that country or specified territory if the law of that country or specified territory provides for issuance of such certificate;
- Tax Identification Number of the deductee in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the deductee is identified by the Government of that country or the specified territory of which he claims to be a resident.
Amendment to Companies Act will help boost fund flow for MSMEs: Arun Jaitley
Finance minister Arun Jaitley has said amendments to the Companies Act 2013 being considered by Parliament will help ease institutional fund flow to small businesses, acknowledging this has been an issue with the MSME sector that has also not received adequate policy attention
The MSME database portal and finance facilitation portal are part of the Digital India initiative and will facilitate ease of doing business in the country. MSME sector is one of the biggest job creators in the country, employing about 110 million people. The online databank is expected to cut down on the costs and efforts put in conducting census physically.