Government may levy wealth tax on deposits in foreign banks

Deposits in banks located outside the country may attract wealth tax, as part of government's drive to unearth black money. The proposal is part of the Direct Taxes Code (DTC) bill which is being scrutinised by a Parliamentary panel

New Delhi: Deposits in banks located outside the country may attract wealth tax, as part of government's drive to unearth black money, reports PTI quoting the finance ministry.

The proposal is part of the Direct Taxes Code (DTC) bill which is being scrutinised by a Parliamentary panel.

"For the purpose of levy of wealth tax, taxable assets have been defined to include deposits in banks located outside India in case of individuals, unreported bank deposits in case of others..." the ministry said, adding this is one of "specific new measures for unearthing black money".

The DTC also proposes a "reporting requirement ... making it obligatory on the part of resident assessees to furnish details of their investment and interest in any entity outside India," the document said.

Besides, an assessee's interest in a foreign trust or a company is also proposed to be made taxable assets under the new tax regime, it said.

The Bill proposes to impose a wealth tax of 1% on the net assets exceeding Rs1 crore.

The government is hoping for approval of the measure by Parliament in the next fiscal. Pending Parliamentary nod, some of the provisions may be included in the budget to be presented on 16th March.

The Bill, introduced in the Lok Sabha in August 2010, proposes to overhaul the over 50-year old Income Tax Act.

At present, wealth tax contributes a meagre amount to the government kitty. For the current fiscal, the only Rs635 crore is targeted from this source out of the total tax revenue of Rs9.32 lakh crore.

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COMMENTS

Suresh Prasad

5 years ago

Let the DTC come...!!!!!!!!!!!

As DTC will be more easy and simple to understand for the general public.

http://www.aubsp.com/2011/07/definition-...

Govt releases retail inflation numbers; CPI up 7.65% in January

The all India CPI will be in addition to the three retail price indices-for agricultural labourers, rural labourers and industrial workers-prepared by the ministry of labour. The new nationwide CPI is being prepared by the ministry of statistics and programme implementation and is eventually expected to replace the Wholesale Price Index as the benchmark inflation

New Delhi: Inflation based on the all India Consumer Price Index (CPI) stood at 7.65% in January, as per the first nationwide retail inflation data released by the government today, reports PTI.

While 'food and beverages' reported a moderate rate of price rise of 4.11% year-on-year in January, the inflation numbers for fuel and light, and clothing, bedding and footwear segments were in double-digits.

Overall retail inflation in rural and urban areas stood at 7.38% and 8.25% in January, respectively.

"There was a long pending demand of ministries and various users for a comprehensive consumer inflation rate. To meet this demand, annual inflation rates based on this broad based CPI series for January 2012 are released today," minister of state (independent charge) in the ministry of statistics and programme implementation Srikant Jena said.

The all India CPI will be in addition to the three retail price indices-for agricultural labourers, rural labourers and industrial workers-prepared by the ministry of labour.

The new nationwide CPI is being prepared by the ministry of statistics and programme implementation (MOSPI) and is eventually expected to replace the Wholesale Price Index (WPI) as the benchmark inflation.

Vegetables were cheaper by over 24% on a nationwide basis in January over the same month last year.

However, other food and beverages reported a rise in prices.

In rural and urban areas, inflation in the category stood at 4.18% and 3.98%, respectively.

Milk and milk products became 16.53% more expensive on an annual basis, while price of oils and fats went up by 13.47% in January. Condiments and spices became dearer by 11.83% and fruits by 10.62% in the month.

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30 Kingfisher flights cancelled; officials appear before DGCA

Concerned over the sudden cancellations and passenger inconvenience, DGCA had summoned the airline's CEO and top officials to appear before them to explain the large-scale disruptions in the operations and the reasons

New Delhi: Beleaguered Kingfisher Airline's top brass Tuesday briefed the Directorate General of Civil Aviation (DGCA) about their plans to end the large-scale disruptions of flights and their financial troubles even as over 30 flights of the carrier were cancelled Tuesday, reports PTI.

Before going into the meeting with the chief of DGCA EK Bharat Bhushan, Kingfisher CEO Sanjay Aggarwal said, "We will answer whatever the regulator asks."

Concerned over the sudden cancellations and passenger inconvenience, DGCA had summoned the airline's CEO and top officials to appear before them to explain the large-scale disruptions in the operations and the reasons.

Civil aviation minister Ajit Singh told reporters, "We have to hear out Kingfisher. We don't know what their plans are, how they are going to restore normal schedule. Then there are safety issues which they have to answer".

He also said that in any industry closure of one unit creates trouble for the entire industry and added that steps have to be taken to see that Kingfisher restores its flight schedule and passengers are not inconvenienced.

The carrier cancelled more flights on Tuesday. While 13 flights were cancelled from Mumbai, eight were cancelled from Kolkata and four from Delhi leaving many passengers stranded.

The major air route of Mumbai-Delhi was the worst-hit with maximum cancellations and clubbing of flights.

The airline faced fresh problems on Monday with 34 pilots quitting and a large number of staff being put on notice.

The resignation of the pilots has taken the total number of those who have quit to about 80 since last October, industry sources said.

Kingfisher has been suffering from a severe cash crunch that has culminated into the income tax authorities freezing its bank accounts last week on grounds of non-payment of tax dues.

The carrier had Monday cancelled 30 flights including those to Bangkok, Singapore, Kathmandu and Dhaka, leaving hundreds of passengers stranded at various airports across the country.

Kingfisher Airlines promoter Vijay Mallya has said he will not shut down the private carrier which struggled to stay afloat after further large-scale flight disruptions and resignation of pilots. "Closing down is not an option," he said.

Mr Mallya had lobbied hard with the government on both these issues. He claimed that the entire issue of bailout was of "media making". Asked about sudden disruption in Kingfisher flights, the UB Group chief said the bank accounts of the airline were frozen "very suddenly" by the income tax authorities over non-payment of tax dues.

Auditors of Kingfisher Airlines, which posted a net loss of Rs444.26 crore for the third quarter of this fiscal, have once again raised concerns over its ability to stay afloat.

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