There were 1,159 company cases where the dues are more than Rs10 crore, involving a net outstanding demand of Rs1,00,836 crore, Minister of State for Finance SS Palanimanickam informed.
As much as Rs2.73 trillion of outstanding income tax dues are locked up in tax disputes at various levels, Parliament was informed.
“As on 30 September 2011, a net amount of Rs3,50,000 crore approximately is outstanding as income tax dues, out of which Rs2,73,000 crore approximately is locked up in tax dispute at various levels,” Minister of State for Finance S S Palanimanickam said in a written reply to the Rajya Sabha.
On the question of steps being taken to recover the pending dues and reduce unnecessary litigation, he replied that the “Income Tax department was using all measures for the recovery... as per the provisions in Income Tax Act, 1961.”
There were 1,159 company cases where the dues are more than Rs10 crore, involving a net outstanding demand of Rs1,00,836 crore, he informed.
On a question on any company from whom tax worth more than Rs1 crore is due for recovery, he said, “The details ... are not being centrally maintained and ... this shall involve substantial manpower and may affect the core functions of the department.”
Explaining the steps taken to reduce unnecessary litigation, Palanimanickam said the threshold limits for filing appeals before Income Tax Appellate Tribunal (ITAT), High Courts and Supreme Court have been enhanced.
On recovery target on pending dues for 2011-12, the minister said the target for cash collection out of arrear demand for 2010-11 and 2011-12 are Rs13,906 crore and Rs16,954 crore respectively.
To another question on the amount of revenue collection till December 2011, finance minister Pranab Mukherjee, in written reply, said, “Total direct taxes realised during April-December last year were Rs3,23,955 crore, up by 8.4%, over the corresponding period of previous year.”
Similarly, total indirect taxes realised during April-December were Rs2,65,448.15 crore, up by 17% over the corresponding period of the previous year, he added.
According to finance minister, the main reason for decline in profit after tax of public sector banks... is higher provision on account of moving to system generated NPAs through CBS and high exposure in stressed assets of certain sectors like textile, telecom, aviation, steel and power
Public sector banks posted 3.06% dip in net profit at Rs31,688 crore in the December quarter of this fiscal due to higher provisioning and exposure to sectors such as aviation and telecom, Parliament was informed.
The net profit of public sector was Rs32,689 crore in the corresponding quarter of 2010-11, finance minister Pranab Mukherjee said in a reply in the Rajya Sabha.
“The main reason for decline in profit after tax of Public Sector Banks... is higher provision on account of moving to system generated Non-Performing Assets (NPAs) through Core Banking System (CBS) and high exposure in stressed assets of certain sectors like textile, telecom, aviation, steel and power,” Mukherjee said.
However, net profit of private sector banks in the December quarter rose 28.79% from the same period a year ago, he said.
Mukherjee added that operating profit of PSBs at the end of the December quarter of this fiscal stood at Rs83,000 crore against Rs73,000 crore in the corresponding period.
In a separate written reply to the House, Minister of State for Finance Namo Narain Meena said public sector banks have advanced a total of Rs1.54 trillion to the textile sector as of 27 January 2012.
He added that as of 31 March 2010, the total outstanding credit of PSU banks for textile sector was Rs1.15 trillion. Meena added that the RBI was examining a proposal from the Textile Ministry for restructuring of these loans.
“RBI has opined that banks can restructure any account and if such restructuring is done within RBI laid down framework, certain assets classification benefits are available to banks.
“However, banks are free to restructure accounts outside RBI’s framework and in such cases, the asset classification benefit will not be available,” Meena said.
“I have noted that there is no allegation as to any price or volume manipulation by the promoters. Therefore, I am of the opinion that purely from a securities market point of view, the severity of the offence could be considered not very grave,” SEBI order on Bank of Rajasthan promoters
The Securities and Exchange Board of India (SEBI) has removed the ban on 100 entities related to the promoters of Bank of Rajasthan (BoR) from dealing in the securities market. SEBI had banned these entities for allegedly violating a number of rules, including the takeover norms, and indulging in fraudulent trade practices.
SEBI had banned these entities saying that the promoters had indicated that they were reducing their stake in Bank of Rajasthan from 44.71% to 28.61% to comply with an RBI directive. Instead, the Tayals had actually increased their stake to 55%.
“I am of the opinion that such an offence (holding in the bank being camouflaged) would have been considered as very serious or fatal if the wrongful disclosures would have led genuine investors into trades that would eventually expose them to much greater risk.
“I have noted that there is no allegation as to any price or volume manipulation by the promoters. Therefore, I am of the opinion that purely from a securities market point of view, the severity of the offence could be considered not very grave,” said Mr Prashant Saran, whole-time member, SEBI, in his order.
“It would be reasonable to assume that on the basis of the material available on record, there is no indication of a likelihood that the entities shall indulge again in wrongful disclosures of their holdings of which they have been charged with in the first place,” SEBI said further in its order.
BoR had been amalgamated with ICICI Bank. The BoR shares have been swapped for ICICI Bank shares.