taxation

The Central Board of Direct Taxes (CBDT) is likely to increase the exemption limit for tax deducted at source on rental income to Rs 2,00,000 a year from Rs 1,20,000 at present. The move will go a long way towards reducing the tax burden of individuals and companies earning rental income. Professionals, small businesses and companies paying rent above Rs 1,20,000 annually are statutorily requir..

The income tax (IT) department is probing the cash flow and source of funds of some high net worth individuals (HNI) who had generously bid for shares in some of the high profile initial public offerings (IPO) that hit the market early this year. A senior official of the department, who didn’t want to be named, confirmed that the department is inquiring into the source of funds of a few HNIs, peop..

Tax payers can now deposit income tax from the bank accounts of any person in addition to credit and debit cards, the Central Board of Direct Taxes (CBDT) said. The decision has been taken following representation from certain domestic and foreign taxpayers, who said they were facing difficulties in complying with the mandatory e-payment of taxes. Earlier, the CBDT had made it mandat..

Transporters, banks and power utilities may have to share information about their corporate clientele with the excise department. The Central Board of Excise and Customs (CBEC) is formulating a third-party information system to tackle the rampant evasion in indirect taxes, including excise duty. The third-party information system is being designed on the lines of the annual information return ..

The move is being viewed as an effort by the government to expand the taxpayer base. Companies and individuals who do not reveal their Permanent Account Number (PAN) while receiving income from any source will be liable to pay tax deducted at source (TDS) at the maximum marginal rate of 30 per cent (plus surcharge and education cess). Under the Income Tax Act, 1961, any income payable to th..

The Income-Tax Department will organise special camps in Delhi beginning Tuesday to facilitate salaried taxpayers to file their income-tax returns. All salaried returns are to be filed with the Department by July 31. The first of the two special camps will be held from July 22-25 at Mayur Bhavan and the second one would be at Pragati Maidan from July 28-31, said a senior IT department official...

The government on Friday said annexures and certificates relating to tax deducted at source (TDS) like Form 16 are not required to be submitted along with income tax returns. “No annexures, TDS/TCS certificates are required to be annexed to the returns of income. Wherever, documents are attached with the returns, the receiving official is required to detach and return to the tax payers all suc..

NRIs should make their trips to the homeland shorter if they want to avail themselves of the gift tax exemptions, says a recent ruling by a tax tribunal. The gift tax exemptions will not be available to an NRI if he loses his special status on account of overstaying in India, the Income Tax Appellate Tribunal (ITAT) said. Giving a ruling in a case involving levy of tax on a gift made by an ..

A company is entitled to tax treaty benefits between India and another country even if it fails to disclose some key information. This decision was made by the Income-Tax Appellate Tribunal (ITAT), Mumbai, in the case of Sun Chemical of the Netherlands. The case involved capital gains from shares acquired by Sun from an associate company. The transaction pertained to shares of Coates of India...

VAT on all types of components, accessories spares and parts including packing materials used by the textile industry will be notified as industrial inputs taxable at 4%. In order to encourage the manufacture of readymade garments in the State the VAT on imported textiles will be abolished. Entry tax on readymade garments will be abolished. VAT on used motor vehicles and cycles sold by de..

Giving relief to companies engaged in leasing and financing business, the Income Tax Appellate Tribunal has ruled that they are not required to pay interest tax, applicable to other credit institutions. "Since substantial earnings is made from such (lease financing) activity after employing substantial funds...the assessee would be outside the scope of charging provisions contained in the Act ..

The Central Board of Direct Taxes (CBDT) have vide notification S.O.No.493(E) dated 13.3.2008 notified the categories of taxpayers who are mandatorily required to electronically pay taxes on or after the 1st day of April, 2008. A company and such other taxpayers (other than a company), to whom provisions of section 44AB of the Income-tax Act, 1961 are applicable have been brought within the am..

The Central Board of Direct Taxes have vide notification S.O.No.752(E) dated 28.3.2008, notified the return forms for the assessment year 2008-09. With a view to enabling tax-payers to file returns in the electronic mode, these returns (except ITR-7) have been made annexure-less. In the recent past media reports have raised doubts on whether TDS/ TCS certificates, counterfoil of challan for tax p..

Doctors, lawyers and other professionals, both salaried and self-employed, may now have to pay a higher professional tax. Acceding a long-pending demand of the state governments, the Centre has decided to raise the ceiling on professional tax from Rs 2,500 to Rs 7,500 per annum. The Union Cabinet is expected to take up the proposal on Thursday. Professional tax is levied by state governmen..

Imposing some checks on arbitrary actions of taxmen, the Income Tax Appellate Tribunal has made it tougher for the Assessing Officers (AO) to impose penalty on common taxpayers. Setting aside the orders of the AO and Commissioner of Income Tax (Appeals) in case of Delhi-based Genesis Overseas case, Income Tax Appellate Tribunal (ITAT) in a recent ruling said that tax sleuths cannot impose penal..