Companies & Sectors
Sahara's Aamby Valley sealed for tax default

A team of officials swooped on the township situated on the outskirts of the famous Lonavala hill station to seal the property's main gates and its administrative sections

 

Sahara Group's flagship project, Aamby Valley Resort, has been sealed by the Maharashtra government for non-payment of non-agriculture taxes of around Rs.4.50 crore, an official said on Tuesday.
 
A team of officials swooped on the township situated on the outskirts of the famous Lonavala hill station to seal the property's main gates and its administrative sections.
 
However, the back entrance had been kept open for the resort staffers and residents to enter and exit for the time being, an official said.
 
The officials also served a notice to the resort authorities to clear the two-year old dues by March-end, failing which the government would initiate legal proceedings.
 
Aamby Valley, labelled a hill city paradise for the rich and famous, is spread across around 4,300 hectares of lush green hills with a large natural lake and three artificial lakes on the property in Pune district.
 
Constructed in 2003, Aamby Valley boasts of a private airstrip, an 18-hole golf course, premium chateaus, villas and bungalows, shopping plazas, boating and a good all-year round weather.
 
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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COMMENTS

Meenal Mamdani

12 months ago

Last I remember reading,Amitabh Bachhan was deeply involved in this scam. What is the latest? Which political bigwig or celebrity will step up to protect Mr. Roy?

Jaitley to decide on taxing your provident fund

What has created confusion is over whether only the interest component will be taxed upon withdrawal or the whole corpus itself built after April 1 this year

 

Adding further confusion over tax treatment of provident fund contributions proposed in the Union Budget, the finance ministry on Tuesday said a final view was yet to be taken on the subject.
 
In a statement, the ministry said on members of the provident fund who invest their withdrawals in annuity funds, no tax will be levied. If not, 60 percent of the money withdrawn will be taxed. Thus far, it is clear.
 
But what has created confusion is over whether only the interest component will be taxed upon withdrawal or the whole corpus itself built after April 1 this year. Revenue Secretary Hasmukh Adhia had alluded that only interest will be taxed and not the corpus.
 
But a statement thereafter suggests no firm decision has been taken as yet.
 
"We have received representations today from various sections suggesting if the amount of 60 percent of corpus is not invested in annuity products, tax should be levied only on the accumulated returns of the corpus and not on the contributed amount," it said.
 
"We have also received representations asking for not having any monetary limit on employer contribution under EPF because such limit is not there in NPS. The Finance Minister would be considering these suggestions and taking a view on it in due course."
 
The salaried class was shocked by Monday's budget proposal presented by Finance Minister Arun Jaitley that seemed to suggest that 60 percent of withdrawals from the provident fund accounts will be taxed -- that, too, with retrospective effect.
 
Jaitley said 40 percent of the National Pension Scheme (NPS) corpus would be tax-exempt at the time of withdrawal to make it attractive for the savers. He said the annuity fund, which goes to legal heirs, also won't be taxable.
 
In case of superannuation funds and recognised provident funds, the same norm of 40 percent of corpus to be tax-free will apply in respect of corpus created out of the contributions made on or from April 1, the minister added.
 
He said the government was also proposing a monetary limit for the contributions of employer in recognised provident and superannuation fund at Rs.150,000 per annum for taking the tax benefit.
 
The service tax on single premium annuity policies had been reduced to 1.4% from 3.5% of the premium paid in certain cases.
 
Similarly, Jaitley also announced exemption of service tax for annuity services provided by NPS and services provided by Employees Provident Fund Organisation (EPFO).
 
The earlier clarification from Adhia seems to have come due to the uproar against the government's proposal. But the ministry statement has clearly said the matter was not closed as yet.
 
"The Finance Bill does not reflect Adhia's clarification. Perhaps the government may change the relevant provisions," Neha Malhotra, executive director of Nangia and Company, an international tax advisory and accounting firm, told IANS.
 
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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COMMENTS

Anand Vaidya

12 months ago

Another stupid move.

This gov will not get any benefit from the taxation, maybe, possibly, non-BJP gov, will benefit in future. and BJP is taking flak for it NOW!!

BJP is on its way to scoring self-goals and lose 2019.

The FM/PM should have struck down this idea at the first mention

I wonder which monkey came up with this brilliant idea?

Tax on gains from share sales clarified; will help taxpayers

As per the new circular, the assessee can opt to treat income earned from sale of shares or securities as capital gains or business income and the assessment officer cannot question it for the first time

 

The Ministry of Finance has issued a circular (No6/2016) for providing clarification on taxability on income earned from sale of shares and other securities and whether to treat it as capital gains or business income. 
 
The circular gives a choice to the assessee to define the income earned from share or securities sale as capital gains or business income. It says, assessing officers in holding whether the surplus generated from sale of listed shares or other securities would be treated as capital gain or business income, shall take into account the following...
 
a) Where the assessee itself, irrespective of the period of holding the listed shares and securities, opts to treat them as stock-in-trade, the income arising from transfer of such shares/securities would be treated as its business income,
 
b) In respect of listed shares and securities held for a period of more than 12 months immediately preceding the date of its transfer, if the assessee desires to treat the income arising from the transfer thereof as Capital Gain, the same shall not be put to dispute by the Assessing Officer. However, this stand, once taken by the assessee in a particular Assessment Year, shall remain applicable in subsequent Assessment Years also and the taxpayers shall not be allowed to adopt a different/ contrary stand in this regard in subsequent years;
 
c) In all other cases, the nature of transaction (i.e. whether the same is in the nature of capital gain or business income) shall continue to be decided keeping in view the aforesaid Circulars issued by the Central Board of Direct Taxes (CBDT).
 
However, this stand, once taken by the assessee in a particular Assessment Year, shall remain applicable in subsequent Assessment Years also and the taxpayers shall not be allowed to adopt a different/contrary stand in this regard in subsequent years, according to the circular.
 
"It is reiterated that the above principles have been formulated with the sole objective of reducing litigation and maintaining consistency in approach on the issue of treatment of income derived from transfer of shares and securities. All the relevant provisions of the Act shall continue to apply on the transactions involving transfer of shares and securities," the circular says.
 
Sub-section (14) of Section 2 of the Income-tax Act, 1961 ('Act') defines the term "capital asset" to include property of any kind held by an assessee, whether or not connected with his business or profession, but does not include any stock-in-trade or personal assets subject to certain exceptions. For shares and other securities, the same can be held either as capital assets or stock-in-trade or trading assets or both. Determination of the character of a particular investment in shares or other securities, whether the same is in the nature of a capital asset or stock-in-trade, is essentially a fact-specific determination and has led to a lot of uncertainty and litigation in the past, the circular pointed out.
 
Over the years, various courts have laid down different parameters to distinguish shares held as investments from the shares held as stock-in-trade. The Central Board of Direct Taxes ('CBDT) has also, through Instruction No. 1827, dated 31 August 1989 and Circular No.4 of 2007 dated 15 June 2007, summarising the said principles for guidance of the field formations. 
 
However, disputes continue to exist. This was because the taxpayers were finding it difficult to prove the intention in acquiring such shares or securities. The CBDT, while recognising that major part of shares or securities transactions takes place in respect of the listed ones, and no universal principal in absolute terms can be laid down to decide the character of income from sale of shares and securities, decided to issue the new circular. It expects the clarification will help reduce litigation and uncertainty in this matter.
 
The Ministry also warned about misuse of these new guidelines. "It is, however, clarified that the above shall not apply in respect of such transactions in shares or securities where the genuineness of the transaction itself is questionable, such as bogus claims of long term capital gain or short term capital loss or any other sham transactions," it added.
 

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