Citizens' Issues
Jaitley announces amnesty scheme on black money
New Delhi : Union Finance Minister Arun Jaitley on Monday announced a new amnesty scheme for those holding unaccounted money and assets to come clean by paying 45 percent of such wealth.
 
The government offers a compliance window to domestic tax payers to declare their past transgressions and come clean by paying 45 percent of the undisclosed income and assets (tax 30 percent, surcharge 7.5 percent and penalty 7.5 percent), Jaitley said while presenting the 2016-17 general budget in parliament.
 
"We plan to open the window under this Income Disclosure Scheme from June 1 to September 30, 2016, with an option to pay the due amount within two months of the declaration," the finance minister said.
 
Regarding the income shown in these declarations, there will be no scrutiny or enquiry under the Income Tax Act or the Wealth Tax Act and the declarants will have immunity from prosecution, Jaitley said.
 
Immunity from Benami Transaction (Prohibition) Act, 1988 is also proposed, subject to certain conditions.
 
The minister said after offering an opportunity to declare the concealed income, the government will focus all its resources on bringing people with black money to book.
 
"This shows that the government has launched a two-pronged attack on domestic black money - one by curbing the generation of black money, and second, by asking domestic tax evader to come clean by disclosing their undisclosed income and assets," Suraj Nangia, partner, Nangia & Co., told IANS.
 
He said the government is tackling the menace of domestic black money by effecting changes in rules to discourage cash transactions, compulsory reporting of Permanent Account Number and others.
 
The new amnesty scheme is yet another constructive step to kill the menace of domestic black money, Nangia added.
 
The 7.5 percent surcharge on the undisclosed income will be called Krishi Kalyan surcharge, which will be used for agriculture and rural economy.
 
Last October, the government said it had received 638 declarations regarding undisclosed foreign assets amounting to Rs.3,770 crore under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the Act). 
 
Thirty percent tax and as much penalty was to be paid by December 31, 2015. The compliance window that opened on July 1, 2015, closed on September 30, 2015.
 
The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (the Act) has been enacted to deal with the menace of black money stashed abroad. 
 
The Act also provided for a compliance window for a limited period to people who have undisclosed foreign assets which they had not disclosed for the purposes of income tax so far.
 
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.

User

COMMENTS

Subramani P K

9 months ago

Unless drastic steps are taken just like raid by high level anti corruption agencies,arrest of the culprits, confiscate the unaccounted wealth and stringent punishment bringing out black money is a very difficult task. Without fear or favour immediate action should be taken to organize raids by ED, IT & other agencies as done in the case of Karthi chithambaram.

Government turning tax payer friendly
New Delhi : Terming tax disputes as a scourge of tax-friendly regime, Finance Minister Arun Jaitley, presenting the budget for 2016-17 on Monday, unveiled a new dispute resolution mechanism to minimise litigation.
 
He also said that Income Tax officials will be responsible for higher interest payout if there was a delay in implementing the orders of Appellate authority.
 
He said there were around 300,000 tax cases pending with the First Appellate Authority involving a tax dispute of around Rs.550,000 crore.
 
As per the new dispute resolution mechanism unveiled by Jaitley, a tax payer who has an appeal pending as of Friday before the Commissioner (Appeals) can settle his case by paying the disputed tax and interest up to the date of assessment.
 
There will be no penalty in respect of income tax cases with a disputed tax up to Rs.10 lakh.
 
Accoriding to Jaitley, the cases with disputed tax exceeding Rs.10 lakh will be subjected to only 25 percent of the minimum of the imposable penalty for both direct and indirect taxes.
 
He said any pending appeal against a penalty order can also be settled by paying 25 percent of the minimum of the imposable penalty.
 
However, certain categories of persons including those charged with criminal offences under specific Acts are proposed to be barred from this scheme.
 
With special reference to the government's assurance of not to create retrospectively fresh tax liability, Jaitley reiterated the government's commitment to provide a stable and predictable taxation regime and not create fresh tax liability retrospectively.
 
He proposed one-time scheme of dispute resolution for past cases ongoing under retrospective amendment.
 
One can settle the case by paying only the tax arrears in which case liability of the interest and penalty shall be waived. This is subject to agreeing to withdraw any pending case lying in any Court or Tribunal or any proceeding for arbitration, mediation under Bilateral Investment Protection and Promotion Agreements (BIPA).
 
Identifying that levy of heavy penalty as a cause for a large number of disputes, Jaitley proposed to modify the scheme of penalty by providing different categories of misdemeanour with graded penalty and thereby substantially reducing the discretionary power of the tax officers.
 
The penalty rates will now be 50 percent of tax in case of underreporting of income and 200 percent of the tax where there is misreporting of facts. Remission of penalty is also proposed where taxes are paid and appeal is not filed.
 
Quantification of disallowance of expenditure relatable to exempt income in terms of Section 14A of the Income Tax Act is another issue led to number of disputes. Hence, it has been proposed to rationalize formula in Rule 8D governing such quantification.
 
Jaitley said the Income Tax department was also issuing instruction making it mandatory for the assessing officer to grant stay of demand once the assessee pays 15 percent of the disputed demand while the appeal is pending before Commissioner of Income Tax (Appeals).
 
Jaitley also said the government has accepted many of the recommendations of Justice Easwar Committee.
 
To make the Income Tax officials responsible, Jaitley said the government will pay nine percent interest on where there is a delay in implementing the Appellate orders beyond 90 days.
 
"The officers who delay it will be accountable for this loss to the government," Jaitley said.
 
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.

User

Priyanka second most searched celeb in Oscar searches: Google
New Delhi : While India made it to the top 10 markets for searches related to the 88th Academy Awards held in Los Angeles on Sunday, it was actor Priyanka Chopra who was the second most searched celebrity in India after Hollywood actor Leonardo Dicaprio, internet search giant Google said on Monday.
 
India although contributing about two percent of the global searches for the Oscars, still made it to the top 10 markets for Oscar searches, the company said in a statement.
 
As much as 50 percent of all Oscar searches worldwide originated from the US. 
 
Markets that made up to the next 30 percent of the search share included Britain, Canada, Australia and Spain. 
 
"Compared to 2015, this year has seen an unprecedented 70 percent year-on-year growth in queries for the Oscars. January 2016 saw two times spike in searches in comparison to December 2015," the company said in a statement.
 
The top searches for Oscars 2016 from India included best picture, best actor, best actress and best director, Google said.
 
The top searched nominees in the best picture category were "The Revenant", "Mad Max: Fury Road", "The Martian", "Room", "Bridge of Spies", "Spotlight" and "The Big Short".
 
For Indian fans, Leonardo DiCaprio emerged as the most popular nominee in the race for best actor, followed by Matt Damon (The Martian). 
 
Incidentally, DiCaprio also emerged as the most searched best actor nominee across the US.
 
Among the best actress nominees, Cate Blanchett (Carol) was the most searched nominee followed by Jennifer Lawrence (Joy), Brie Larson (Room), Saoirse Ronan (Brooklyn) and Charlotte Rampling (45 Years). 
 
In the US, the two best searched nominees in this category were Cate Blanchett and Jennifer Lawrence
 
"In 2016, searches around the Oscars are trending to be the top query worldwide in the art and entertainment category", Google added. 
 
The same trend was seen in India as well. All varieties of queries were typed by the users -- around the awards, award dates and nominations, Google said.
 
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.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)