I-T dept seeks explanation from DHFL on "suspicious" deals, company says no reference
The Income-Tax Department has sent notices to crisis-ridden NBFC, Dewan Housing Finance Corporation Ltd (DHFL), seeking its books of accounts and asked it to clarify the "unexplained transactions" which the firm has denied saying there is no reference to any "any suspicious transactions".
 
Sources said the department's Mumbai tax office has learnt of several "suspicious transactions" and asked DHFL to explain them. But, the company, in an exchange filing said, "The notice does not refer to any suspicious transactions. Apart from this, as per our knowledge there is no other price sensitive information under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 which could have bearing on the share price of the Company."
 
On Monday, DHFL disclosed to the exchanges that that the Income-Tax Department's Investigation Wing had issued a notice to the company seeking information/evidence on certain aspects of the books of accounts.
 
In reply to stock exchange queries, DHFL said,"The company is in receipt of a notice under section 131 of the Income Tax Act, 1961 from the Income tax department (Investigation Wing) on 7th February, 2019 seeking information / evidence on certain aspects of the books of accounts."
 
The NBFC said it was in the process of collating the requisite details and would be submitting them before the regulatory department in due course of time. 
 
The company has been under scrutiny after news portal Cobrapost in January reported that the primary promoters of DHFL siphoned off public money to the tune of Rs 31,000 crore through loans and advances to shell companies and other means to create private wealth for themselves.
 
DHFL on January 31 also appointed an independent chartered accountancy firm to probe the allegations.
 
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

tapan sur

2 months ago

Once again common man will lose money and nothing will happen. Sahara, Modi, Choksi, Sharda, the list can go on & on till the moon, but in the end, there will no case where the common man loses his money and even having an elected govt. he will get back his hard earned money syphoned away by unscrupulous wheelers dealers. There will never be a light at the end of the tunnel for the common man.

Reality check: Difference of Re 1 will turn tax liability from zero to Rs 13,000!
After the latest tax norm changes, proposed in the Interim Budget, taxable annual income up to Rs 5 lakh will get full tax rebate as Finance Minister Piyush Goyal announced in his Budget speech. But exceeding the net taxable income even by a single rupee beyond Rs 5 lakh would result in a tax liability of Rs 13,000 for taxpayers.
 
According to the Budget document placed in Parliament, the government has not raised the exemption limit for taxpayers from Rs 2.5 lakh to Rs 5 lakh, but has just made changes in the tax rebate under Section 87A of the Income Tax Act, which earlier provided a rebate of Rs 2,500 for those with net taxable income up to Rs 3.5 lakh.
 
The government has simply increased the rebate to Rs 12,500 -- the equivalent of 5 per cent tax on the Rs 2.5-5 lakh slab -- and the eligibility criterion for claiming the rebate to Rs 5 lakh from Rs 3.5 lakh.
 
Thus, for a person with a tax liability up to Rs 12,500, it becomes zero after the proposed rebate. But if the liability is beyond that, he/she will have to pay the entire tax amount without the rebate -- beginning from the threshold limit of Rs 2.5 lakh.
 
While a person with taxable income up to Rs 5 lakh will have to pay zero tax, the tax liability will be Rs 13,000 -- Rs 12,500 as income tax plus Rs 500 as health and education cess -- if the income increases to Rs 5,00,001.
 
This complicates matters for taxpayers whose taxable income lies in the margins of Rs 5 lakh as any increment that takes it beyond Rs 5 lakh would result in a financial loss of Rs 13,000, instead of increasing their incomes. Even an increment of Rs 13,000 per annum (assuming their previous income was exactly Rs 4,87,001) would only help a taxpayer just break even. 
 
This is in contrast to what would have happened had the government taken the other route and raised the income tax exemption limit from Rs 2.5 lakh to Rs 5 lakh. Since India follows a progressive taxation system, any income beyond Rs 5 lakh would have resulted in 20 per cent tax only on the amount by which the income exceeded Rs 5 lakh.
 
Thus, if the exemption limit would have been raised a taxable income of Rs 5,20,000 (after all deductions and a standard deduction of Rs 50,000) would have resulted in tax liability of only Rs 4,000 (plus Rs 160 as cess). But the rebate system as introduced in the Interim Budget would result in a liability of Rs 16,500 (plus Rs 660 as cess). 
 
However, a taxpayer with even an annual gross income beyond Rs 5 lakh -- and even up to Rs 9-10 lakh -- can reduce his/her tax liability to zero by making prudent investments and claiming prevalent income tax deductions, like insurance, interest on home loan, education loan, medical expenses and other expenditures.
 
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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Anoop Tikamdas Lalwani

2 months ago

The rules, rebates or the IT jargon is made so complicated that - either the Honest tax payer is FORCED to find loop holes or fall by the wayside, when comparing with tactics utilised by other so called SMART TAX PAYERS. How can one expect a neat and clean Taxation or Legal or Administrative set up when Practical sense is not followed in framing rules or regulations

No doubling of IT exemption limit, only rebate is up
While announcing tax sops in his Interim Budget, Finance Minister Piyush Goyal has not raised the threshold exemption limit from Rs 2.5 lakh to Rs 5 lakh as is widely perceived but has only extended the benefit of rebate to those with income is up to Rs 5 lakh.
 
Experts say that for those with income above Rs 5 lakh, tax implications will still begin from Rs 2.5 lakh as is the case till now.
 
"... For the present, the existing rates of income tax will continue for 2019-20," Goyal said in his Budget speech and then went on to announce sops.
 
"Individual tax payers having taxable annual income upto Rs 5 lakh will get full tax rebate and therefore will not be required to pay any income tax," he said.
 
With specified investments and additional deductions, such as interest on home loan, education loan and other expenditures, people with gross income of Rs 6.5 lakh and more will have to pay no tax.
 
This gave an impression that the threshold exemption limit had gone up to Rs 5 lakh. 
 
When Goyal was asked if a person with a net income above Rs 5 lakh will benefit from the move, he parried the query. 
 
"We are upholding the conventions of an Interim Budget. Any changes to tax slabs will be made in the full budget that will be presented after the election," he said.
 
However, experts differ saying that it is not the exemption limit which has been raised but the tax rebate under Section 87A of the Income Tax Act which earlier provided a rebate of Rs 2,500 for those with net taxable income up to Rs 3.5 lakh.
 
What the government has simply done is increase the rebate to Rs 12,500 -- the equivalent of 5 per cent tax on Rs 2.5 lakh to Rs 5 lakh slab -- and the eligibility criterion for claiming the rebate to Rs 5 lakh from Rs 3.5 lakh.
 
Value Research CEO Dhirendra Kumar said what it effectively means is that if a person has a tax liability up to Rs 12,500, it becomes nil after the proposed rebate. But if the liability is beyond that, he is liable to pay the entire tax amount without the rebate - beginning from the threshold limit of Rs 2.5 lakh. 
 
"The government had the option to pass on the benefit to taxpayers in two ways -- by raising the tax slab or by giving this rebate. In this case, the tax slab remains the same," Kumar told IANS.
 
Welcoming the announcement, he added it would have marginal financial implication for the government because it would benefit a large number of people who pay very little tax.
 
Calling it a sensible move by the government, Deloitte India Partner Divya Baweja said it would benefit only the poor people earning less than Rs 5 lakh in net income with no concessions for the rich.
 
"The whole purpose is to benefit the middle income group. Had exemption limit been raised to Rs 5 lakh, the benefits would have not been restricted only to poor but would have been availed by the rich as well," he told IANS.
 
Baweja added that the government had little room as considering the fiscal deficit situation, it could not have gone ahead with too many tax changes.
 
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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Anoop Tikamdas Lalwani

2 months ago

Can anyone explain me whether -people earning about 5.25 lakhs upto 10 lakhs after tax ( not even 1 lakh per year- for personal and family expenses- childrens studies- own medical and retirement expenses- elderly parents responsibility etc etc)- , are they POOR, or RICH- as per Government and hi fi HNI's definition??

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