For support, write to us on: admin@taxsutra.com
Ministry of Finance
Dated: 30 AUG 2018
The Reserve Bank has twice released its reports stating that the demonetised Notes of rs. 500 and rs. 1000 have been substantially deposited in the Banks. A widely stated comment has been that just because most of the currency came back into the Banks, the object of Demonetisation has not succeeded. Was the invalidation of the Non-deposited currency the only object of demonetisation? Certainly Not. The larger purpose of demonetisation was to move INDIA from a Tax Non-compliant society to a compliant society. This necessarily involved the formalisation of the Economy and a blow to the black money. How has this been achieved?
i) WHEN cash is deposited in the Banks, the anonymity about the owner of the cash disappears. The deposited cash is now identified with its owner giving rise to an inquiry, whether the amount deposited is in consonance with the depositor’s income. Accordingly, post demonetisation about 1.8 million depositors have been identified for this enquiry. Many of them are being fastened with Tax and Penalties. Mere deposit of cash in a bank does not lead to a presumption that it is Tax paid Money.
ii) In March 2014, the number of Income Tax returns filed was 3.8 crores. In 2017-18, this figure has grown to 6.86 crores. In the last two years, when the impact of demonetisation and other steps is analysed, the Income Tax returns have increased by 19% and 25%. This is a phenomenal increase.
iii) The number of New Returns filed post demonetisation increased in the past two years by 85.51 Lakhs and 1.07 crores.
iv) For 2018-19, advance Tax in the first quarter has increased for personal Income Tax Assesses by 44.1% and in the Corporate Tax category by 17.4%.
v) The Income Tax collections have increased from the 2013-14 figure of `6.38 Lakh crores to the 2017-18 figure of `10.02 Lakh crores.
vi) The growth of Income Tax collections in the Pre-demonetisation two years was 6.6% and 9%. Post-demonetisation, the collections increased by 15% and 18% in the next two years. The same trend is visible in the third year.
vii) The GST was implemented from 1st July, 2017 i.e. Post demonetisation. In the very first year, the number of registered assesses has increased by 72.5%. The original 66.17 Lakh assesses has increased to 114.17 Lakhs
This is the positive impact of the Demonetisation. More formalisation of the Economy, More Money in the System, Higher Tax Revenue, Higher Expenditure, Higher Growth after the first two quarters.
****
(Release ID: 1544568)
F.No. 370142/1112018-TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Dated: 30th August, 2018
Subject: Framing of Income-tax rules relating to 'Significant Economic Presence' as per section 9(1)(i) of the Income-tax Act, 1961, Comments and suggestions - reg.
1. In order to frame income-tax rules relating to 'Significant Economic Presence' as per section 9(1)(i) of the income-Tax Act,1961, communication dated 13th July, 2018, inviting comments and suggestions of stakeholders and the general public was uploaded on the website of the Income-tax Department(www.incometaxindia.gov.in). The last date for furnishing of comments and suggestions was 10th August, 2018.
2. In view of the representations received requesting for extension of the time for furnishing of comments and suggestions, the last date for furnishing of comments and suggestions on the subject matter is extended up to 30th September, 2018. The comments and suggestions may be sent electronically latest by 30th September, 2018 at the email address ustpl3@nic.in.
(Saurabh Gupta)
DCIT (OSD)-TPL
Tel: 011-23095470
Email:ustp13@nic.in
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 28th August, 2018
PRESS RELEASE
Extension of date for filing of Income Tax Returns for taxpayers in Kerala
The Central Board of Direct Taxes(CBDT) had earlier extended the ‘due date’ for filing of Income Tax Returns from 31st July, 2018 to 31st August, 2018 in respect of the categories of taxpayers who were liable to file their Income Tax Returns by 31st July, 2018.
In view of the disruption caused due to severe floods in Kerala, CBDT hereby further extends the due date for furnishing Income Tax Returns from 31st August, 2018 to 15th September, 2018 for all Income Tax assessees in the State of Kerala, who were liable to file their Income Tax Returns by 31st August, 2018.
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT.
HC dismisses assessee's appeal, holds the share applicants and investments therefrom bogus; Notes the facts that the only explanation given by the assessee as to one shareholder-HUF was that the relevant person was 'out of station' and the other shareholder-company whose address was in a residential building, without any more information about the same and hence, identity of both the shareholders was found unsatisfactory; Observes that the AO after making a thorough enquiry into the documents submitted, held them to be not satisfactory; Holds that "In the light of such findings of the AO which withstood scrutiny before final fact-finding body that is the Appellate Tribunal, it scarcely lies in the mouth of the assessee to question the propriety of the AO having found the explanation furnished by the assessee to be unsatisfactory."
Click here to read facts and download copy of HC judgment reported in [TS-5528-HC-2018(Calcutta)-O]
Interest on delayed payment of excise duty, service tax and ESI, compensatory in nature, not disallowable u/s. 43B; Disallowance u/s 14A cannot exceed the exempt income - ITAT rules in favour of assessee; Holds that interest is levied on service tax, excise duty and ESI is compensatory in nature and not disallowable u/s .43B; States that SC has held in many cases that only interest which is in the nature of breach of Act can be disallowed and interest in compensatory nature cannot be disallowed; Further, noting that HDFC Bank is not a not public financial institution, holds that interest paid thereto is outside the purview of section 43B; Separately, deletes disallowance made u/s 14A r.w.r. 8D(2)(iii), holds that disallowance u/s 14A cannot exceed the exempt income
Click here to read facts and download copy of ITAT ruling reported in [TS-7893-ITAT-2018(Hyderabad)-O]