Taxation
14 lakh high value non-PAN transactions being scrutinised: I-T
The Income Tax Department is closely scrutinising 14 lakh high value non-PAN transactions reported for the period 2009-10 to 2016-17 and will be soon issuing letters seeking information regarding the same, an official statement said on Thursday.
 
"The Income Tax Department has details of about 90 lakh transactions for the period 2009-10 to 2016-17. These include reporting of cash deposits of Rs 10,00,000 or more in a saving bank account, sale and purchase of immovable property valued at Rs 30,00,000 or more, etc. Many of these transactions do not have PAN linked to it,” said a finance ministry statement.
 
"The department has grouped such non-PAN transactions and identified 7 lakh high-risk clusters having around 14 lakh non-PAN transactions which are being scrutinised closely. The Income Tax Department will be issuing letters to the parties of these transactions requesting them to provide their PAN number against these transactions,” the statement said.
 
A new functionality on e-filing portal has been developed wherein people who receive these letters can own up transactions and provide a structured response electronically. People can log-in to their e-filing website and by quoting a unique transaction sequence number from the letter sent to them, can link their transaction with their PAN easily.
 
Responses to these letters can be given electronically by choosing the option of either owning up the transaction or denying the transaction as their own. 
 
“The responses received from such parties online will be examined by the Income Tax Department. The department will initiate further necessary action in those cases where no replies are received,” it said.
 
"The members who receive such letters may use the departmental helpline to ask questions, as far as possible, instead of making direct contact with any officials of the income tax department," it added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  

 

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Economic growth to moderate further in the coming quarters: Report
There are signs of moderation in the proprietary indices of Nomura that try to gauge India’s growth momentum and near-term monetary policy path. Only one in five of Nomura’s indicators accelerated in May (compared to April), down from three at the end of the March quarter. According to their Composite Leading Index, non-agricultural GDP growth is likely to moderate during the June quarter up to December 2016 due to the lagged impact of tighter financial conditions. Nomura expects good monsoons, Seventh Pay Commission pay hikes, higher government spending and easier liquidity to support growth. However, impact of this will be realised later on. Hence, GDP growth is expected to rise very gradually to 7.3% y-o-y in 2016 from 7.2% in 2015, before picking up to 7.7% in 2017, the report states.
 
According to a report from SBI’s economic research department, credit growth continues to be a laggard. The overall credit-deposit ratio is at 75.4% as on 8 July 16 from 75.8% a year ago and 77.6% in 20 March 2016. Accordingly to the fortnightly data of all scheduled and commercial banks, the credit off-take (YoY) recovered from the historical low of 8.7% as on 10 June 2016 to 9.8% on 8 July 2016, compared to last year growth of 8.9% in 10 July 2015. SBI expects a 13%-14% credit growth, but mostly on the back of refinancing by banks on completed infrastructure projects in sectors like power and roads, where there are no risks. But this is likely to happen in the second half of current fiscal. The yearly SBI Composite Index for July 2016 is showing an upward momentum and is at 51.0 (suggesting low growth), compared to last month’s 48.9 (suggesting low decline). The monthly composite index increased marginally to 50.9 in July 2016 from 50.6 in June 2016.
 
 
Diesel consumption, cellular subscriptions, railway passenger traffic and airline freight have all slowed in the June quarter. Investments and financial services have yet to show any signs of recovery, mirroring stressed bank balance sheets, slow corporate deleveraging and ample spare capacity in the manufacturing sector. Public sector investments have yet to gain traction, tracking significantly below last year’s levels on a three-month moving average basis. The Monthly Activity Indicator, a weighted-average growth indicator, slowed to 6.8% y-o-y in May from 7.8% in April and 8.1% at the end of March, indicating weaker growth momentum in the June quarter.
 
 
The Nomura Economic Surprise Index rose to -0.07 in mid-July, from -0.20 in mid-June, indicating positive data surprises relative to consensus expectations. The manufacturing PMI rebounded in June, rising above its three-month trend, while industrial production for May improved despite still being fairly weak. Rather than robust data, the improvement was instead driven by a downward adjustment in consensus expectations owing to past disappointments.
 
The Nomura RBI Policy Signal Index remains in the neutral (no rate change) zone due to elevated inflation and a marginal improvement in external demand. In mid-July, the RBI Policy Signal Index stood at -0.09 versus -0.11 in June. Historically, index values lower than -0.2 have coincided with a rate cut, while values between -0.2 and +0.2 have corresponded to policy rates staying on hold. Hence, the Repo rate is expected to be kept unchanged at the 9th August monetary policy review. Over the past month, the benchmark 10-year G-Sec yield eased to 7.27% as on 21 July from over 7.50% seen in June.
 

 

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COMMENTS

SuchindranathAiyerS

7 months ago

Essentially, as Nomura sees it, India's Economic Growth will lag behind real inflation.

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