After Vodafone dispute is resolved, government will be considering amending the Income tax Act, avowed P Chidambaram, the Union Finance Minister of India. "Additional 50 lakh people have filed Income-Tax returns, our approach is yielding results", he said.
He said that the country has achieved the tax target for the financial year 2013 and the same for the subsequent year is achievable. Speaking to media at the Press Information Bureau, Chidambaram mentioned that India has achieved Rs. 10,38,037 crore tax target for 2012-2013.
As many as 1.2 million Permanent Account Number (PAN) holders have not filed income tax returns had not filed their returns, despite making huge transactions, the union finance ministry said on Monday.
The finance ministry said in a statement that it had zeroed on errant individual tax assesses, after notices were sent following the intelligence wing of the Income Tax (I-T) Department's Directorate of Criminal Investigation sifted through nearly 4.7 crore significant financial transactions.
Considering the importance of 2G spectrum case, Supreme Court has urged the Income Tax department to show its urgency in the investigation of the case.
The bench remains dissatisfied with the performance of the Income Tax department into the tax evasion cases linked to 2G spectrum case.
The net direct tax collection during April to February has gone up remarkably. Though there was a sluggish industrial output during this period of time, but it had no effect on the direct tax collection. The corporate tax had been the major contributor.
It has been reported that the direct tax collection during these months have touched Rs 3,36,177 crore. There has been an impressive rise of almost 21% in the collection in this time period against the similar period in the preceding financial year.
2010 – 2011 electronically for some time now as the government has suspended the facility as it could not get the renewal for the security certificate of its e – filing portal as the security certificate for the income tax department’s e filing portal had lapsed on May 8 this year. The E filing that gives the tax payer the convenience to file the tax return from any place using a computer , had to be suspended due to lack of completion of security facilities.
The Government has managed to identify nine territories, with which it may negotiate treaties to seek information on tax avoidance. Up till now, India could enter into tax agreements with countries only, but after the amendment was done in Income Tax Act in the Finance Act, 2009, the Government can also enter into agreement with ‘specified’ regions.
A new tax rate has been imposed on any income received without a permanent account number (PAN) from April 1 this year.
The income which is liable to tax deducted at source will see tax as high as 20% if the earner does not quote a PAN. The union government has made it mandatory for all residents and non-residents to quote a PAN if they want to avoid heavy withholding tax.
While increased allocation for the power sector may trigger new investment opportunities for engineering contracts, the lift in the minimum alternative tax rate is expected to extend an impact on profitability of companies involved in the business of power generation, distribution and transmission.
The Union Budget has announced a hike in MAT to 18% from 15%, a move that is revealed to significantly raise the tax burden of corporate entities.
States and the Centre want different rate of the proposed Good and Services Tax (GST) and thus its implementation is likely to be further delayed beyond April 1, 2010.
The tax burden is all set to be reduced. The Government today announced that tax would come down by 25-30% from the next financial year.
P V Bhide, the Revenue Secretary said that the tax payers would be substantially relieved, as the burden of tax would be pulled down by around 25-30%, after GST comes in starting 1 April 2010. He also said that GST will enhance the competitive edge of both the manufacturing and services industries.