Ministry of Finance

Cabinet approves signing and ratification of Agreement between India and Brunei Darussalam for the Exchange of Information and Assistance in Collection with respect to Taxes

Dated: 16 MAY 2018

The Union Cabinet Chaired by Prime Minister Shri Narendra Modi has has approved the signing and ratification of Agreement between India and Brunei Darussalam for the Exchange of Information and Assistance in Collection with respect to Taxes.

Details:

i. The Agreement enables the competent authorities of India and Brunei Darussalam to provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the two countries concerning taxes covered by this Agreement.  

ii. The information received under the Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts or administrative bodies) concerned with assessment, collection, enforcement, prosecution or determination of appeals in relation to taxes covered under the Agreement. Information may be disclosed to any other person or entity or authority or jurisdiction with the prior written consent of the information sending country.

iii. The Agreement also provides for automatic exchange of information between India and Brunei with respect to categories of cases.

iv. The Agreement also enables assistance in collection of tax revenue claims between both countries.

v. The Agreement provides for Mutual Agreement Procedure for resolving any difference or for agreeing on procedures under the Agreement.

vi. The Agreement shall enter into force on the date of notification of completion of the procedures required by the respective laws of the two countries for entry into force of the Agreement.

The Agreement will stimulate the flow of exchange of information between India and Brunei for tax purposes which will help curb tax evasion and tax avoidance. It will also enable assistance in collection of tax revenue claims between both countries.

As such, the Agreement does not have any financial implications. Only in the event of extraordinary costs exceeding USD 500 as per Article 9 of the Agreement, the same will be borne by the Government of India. India has similar provisions in other such tax information exchange agreements.

Background:

The Central Government is authorized under section 90 of the Income Tax Act, 1961 to enter into an Agreement with a foreign country or specified territory for exchange of information for the prevention of evasion or avoidance of income tax chargeable under the Income Tax Act, 1961. Negotiations for entering into an Agreement for the Exchange of Information with respect to Taxes were conducted at Brunei from 10th  to 11th January, 2017.  Pursuant to the same, the Governments of India and Brunei Darussalam have agreed on the text of the Agreement.

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AKT/VBA/SH

(Release ID: 1532278)

Dated: 10.05.2018

New PAN allotment and Change request applications with 'gender' as 'transgender' is allowed without any hassle. Also, there is no requirement of depositing any supporting document for change of ‘gender’ to 'transgender' vide PAN Change request application

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 7th May, 2018

PRESS RELEASE

CBDT notifies the Protocol amending the Double Taxation Avoidance Agreement (DTAA) between India and Kuwait

A Protocol to amend the existing Double Taxation Avoidance Agreement (DTAA) between India and Kuwait signed on 15.06.2006 for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income was signed on 15.01.2017. The said Protocol has entered into force on 26.03.2018 and is notified in Official Gazette on 04.05.2018.

The Protocol updates the provisions in the DTAA for exchange of information as per international standards. Further, the Protocol enables sharing of the information received from Kuwait for tax purposes with other law enforcement agencies with authorisation of the competent authority of Kuwait and vice versa.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

Press Information Bureau 
Government of India
Ministry of Finance

03-May-2018

CBDT invites suggestions on draft notification pertaining to new Rule 11UAB of IT Rules, 1962 

Finance Act, 2018 has inserted clause (via) to section 28 of the Income-tax Act, 1961 (‘the Act’) so as to provide that any profit and gains from conversion of inventory into capital asset or its treatment as capital asset shall be charged to tax as business income. It has also been provided that for this purpose the fair market value of inventory on the date of conversion or treatment determined in prescribed manner shall be deemed to be the full value of consideration. Accordingly, rules are to be framed for providing the manner in which fair market value of the inventory shall be determined.

In view of the above, it is proposed to insert a new rule 11UAB in the Income-tax Rules, 1962 for prescribing the manner of determination of fair market value of the inventory which has been converted into, or treated as, capital asset.

In order to have wider consultation in this matter, the draft of notification proposed to be issued for amending the Income-tax Rules, 1962 has been uploaded on www.incometaxindia.gov.in. Stakeholders are requested to submit their comments/ suggestions on the draft notification by 14.05.2018 at the e-mail address dirtpl2@nic.in

Press Information Bureau

Government of India

Election Commission

30-April-2018

 

State Election Machinery and Income Tax Department step up their action against misuse of money in forthcoming Karnataka Assembly elections

In Karnataka, State Election Machinery and Income Tax Department have stepped up their action against misuse of money in election and for the first time, teams with statutory powers and sufficient resources in terms of manpower, vehicles etc. have been posted in each district of the state.

Total cash seizure as on today ( 30.04.2018) is Rs.19.69 crores and the unexplained jewellery of value Rs.4.81 crores has been made by the Investigation Wing of Income Tax department in Karnataka after the start of the Assembly election related surveillance.

In 2013, Karnataka State Assembly Elections, the total seizure made in the entire campaign period was only Rs 4.97 crore cash and Rs 3.41 crore worth of jewellery. It has been found that the bulk of cash seized during operations in the present Assembly Elections is has been meant for distribution.

The Investigation Wing of the Income Tax Department has been doing intensive surveillance and monitoring activities in the State.

The details of some of the major activities carried out by Income Tax department are as follows.

(A) Searches conducted in Mysore on 24th April, 2018

1. Based on the intelligence, search & seizure operations were conducted on several government contractors between the 24th and 26th of April 18. This resulted in a seizure of unaccounted cash of Rs 6.76 crore from four such contractors in the Mysore area. The entire amount seized was in higher denomination notes i.e. Rs.2,000/- and Rs.500/- and the bulk of the seizure was made from lockers in benami names. The cash found and seized was not reflected in the books of account maintained by the contractors and they could not explain the source of the cash.

2. Hoarding of huge stocks cash by these persons at a time when the election process is in progress and when cash shortages are reported in some areas in the state raises troubling questions.

(B) Bangalore, Davangere & Mysore cases on 26th April, 2018 to 28th April, 2018

1.Based on the specific intelligence that cash is hoarded by Government contractors for being used for election purposes, search action has been initiated in the cases of 3 contractors in Bangalore, Davangere and Mysore on 26/04/2018 and were concluded on 28.04.2018.

2. Unaccounted cash of Rs. 4.08 crores and unexplained gold jewellery of 2.79 Crores worth were seized. In one of the contractor's case, cash of Rs. 1.2 crores was found in a moving car.

3. During the search evidences have been recovered showing inflation of purchases, bogus sub-contractor and labour payments and unaccounted cash payments. The searched party admitted additional income of Rs.74.39 crores.

(C) Searches conducted in Bangalore on 28.04.2018 & 29.04.2018

1. Based on the intelligence inputs that one person was funding certain candidates of a particular party, a search was conducted at 2 business premises and 1 residence, which continued for 32 hours and resulted in seizure of Rs. 3.18 Crs of cash, concluded on early hours of 29th April.

2. Cash of Rs.2.00 crores was found in a car parked closed to the main persons residence, which was found by the department after causing the thorough rummaging of the persons premises and belongings.

(D) Searches conducted at Khanapur, Hubballi and Bangalore on 28th & 29th April, 2018

1. Searches were conducted on a candidate who is contesting on a party ticket based on verification of the affidavit filed by him, specific intelligence about the cash transactions and other particulars.

2. It was found that the contesting candidate is a non – filer since AY 2012-13 onwards. However, in his election affidavit he has declared some income and put a remark that online filing of return has been blocked by Income Tax Department so he could not file his return and has paid Self Assessment Tax.

There is no such thing like blocking the filing of return. Also, there are substantial discrepancies between income declared by his wife in her return of income filed, declared in affidavit and actually detected during the search.

4. He accepted that five Properties (out of which 3 are General Power of Attorneys and 2 are purchased Properties) of his family members have not been declared in the election affidavit.

5. During the search it was found that he and his family members have not declared their income out of real estate business and Joint Development Agreements. The income detected and now being declared by him and his family members is Approx. Rs.18.00 crores for various Assessment Years, including he himself, his wife and two sons. He has most of the business activities in family member’s name only.

6. Issues like valuation of properties which he claimed to be valued at Rs.191.00 crores are under investigation.