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Ministry of Finance
IT Department Conducts Verification of Reporting Entities
Dated: 30th JUN 2023
The Income-Tax Department has been focusing its efforts on promoting voluntary compliance. In this endeavour, information is received about financial transactions of taxpayers from Reporting Entities, such as Banks, Forex Dealers, Sub-Registrars, etc. The information furnished by the Reporting Entities is used for display to the taxpayer, through the e-filing account, in the form of the Annual Information Statement (AIS). This is an important step towards facilitating taxpayers for filing their Return of Income accurately.
While most Reporting Entities are voluntarily complying with the statutory requirements of filing correct and complete Statements of Specified Financial Transactions (SFTs), defaults have been noticed in some cases.
Recently, the Department carried out verification of a prominent Bank based in Tamil Nadu, to address Reporting Entity compliance issues.
During the course of verification, several discrepancies were found. It was seen that the bank had not filed SFTs in certain cases and in some others, had not filed complete/accurate particulars. SFTs were not filed in respect of Cash deposits of over Rs.2,700 crore involving more than 10,000 accounts; specified Credit card payments involving total transaction value of over Rs.110 crore; Dividend distributed of more than Rs.200 crore and Shares issued of over Rs.600 crore.
Further, SFTs already filed by the Bank were found incomplete in several respects. The bank had failed to report major transactions which included Interest paid of more than Rs.500 crore; Time deposits; Cash deposits and withdrawals in current accounts, etc.
The verification also revealed defective filing of Form 61B for Automatic Exchange of Information (AEOI) about account holders “resident” in other countries.
In the recent past too, verification was conducted by the Department on 2 cooperative banks in Uttarakhand and transactions exceeding few thousand crore, not reported by the banks, were identified.
In order to explain the legal obligations and processes, as well as to address difficulties faced by the Reporting Entities, outreach programmes are being regularly organised by the Department across the country. This is another initiative of the Department to facilitate ease of compliance.
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PPG/KMN
(Release ID: 1936490)
The Income Tax Department (TN&P), Chennai has got the Second conviction for the financial year 2023-24 in respect of the prosecution proceedings initiated against an individual assesse for the offence committed under section 276CC of the Income Tax Act, 1961, viz., willful failure to furnish return of income.
The assesse is an individual had failed to file return of income as mandated u/s.139(1) of the Income Tax Act before the due date of 31.07.2013 or before the expiry of one year from the end of the Assessment Year despite having taxable income.
A. prosecution complaint was filed before the Hon’ble Addl. Chief Judicial Magistrate, Madurai against the assesse for wilful failure to file return of income for AY 2013-14. Shri A.Periasamy, Special Public Prosecutor represented the Department during the course of trial proceedings in the case.
The Hon’ble Addl. Chief Judicial Magistrate, Madurai has passed an order on 13.06.2023 holding the assesse guilty of the offence charged u/s.276CC of the Income Tax Act and convicted the assesse u/s.248(2) of Cr.PC. The accused individual is convicted and sentenced to Rigorous Imprisonment for a term of 3 months along with fine of Rs.5000/- and on default, to undergo simple imprisonment for one week.
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(Release ID: 1935885)
Press Information Bureau
Government of India
Ministry of Finance
Dated: 18 JUN 2023
Gross Direct Tax collections for Financial Year (FY) 2023-24 register a growth of 12.73%
The figures of Direct Tax collections for the Financial Year 2023-24, as on 17.06.2023 show that net collections are at Rs. 3,79,760 crore, compared to Rs. 3,41,568 crore in the corresponding period of the preceding Financial Year i.e. FY 2022-23, representing an increase of 11.18%.
The Net Direct Tax collection of Rs. 3,79,760 crore (as on 17.06.2023) include Corporation Tax (CIT) at Rs. 1,56,949 crore (net of refund) and Personal Income Tax (PIT) including Securities Transaction Tax(STT) at Rs. 2,22,196 crore (net of refund).
The Gross collection of Direct Taxes (before adjusting for refunds) for the FY 2023-24 stands at Rs. 4,19,338 crore as compared to Rs. 3,71,982 crore in the corresponding period of the preceding financial year, registering a growth of 12.73% over collections of FY 2022-23.
The Gross collection of Rs. 4,19,338 crore includes Corporation Tax (CIT) at Rs. 1,87,311 crore and Personal Income Tax (PIT) including Securities Transaction Tax(STT) at Rs. 2,31,391 crore. Minor head wise collection comprises Advance Tax of Rs. 1,16,776 crore; Tax Deducted at Source of Rs. 2,71,849 crore; Self-Assessment Tax of Rs. 18,128 crore; Regular Assessment Tax of Rs. 9,977 crore; and Tax under other minor heads of Rs. 2,607 crore.
The Advance Tax collections for the first quarter of the FY 2023-24 stand at Rs. 1,16,776 crore as on 17.06.2023, against Advance Tax collections of Rs. 1,02,707 crore for the corresponding period of the immediately preceding Financial Year i.e. 2022-23, showing a growth of 13.70%. The Advance Tax collection of Rs. 1,16,776 crore as on 17.06.2023 comprises Corporation Tax (CIT) at Rs. 92,784 crore and Personal Income Tax (PIT) at Rs. 23,991 crore.
Refunds amounting to Rs. 39,578 crore have also been issued in the FY 2023-24 till 17.06.2023, as against refunds of Rs. 30,414 crore issued during the corresponding period in the preceding Financial Year 2022-23, showing a growth of 30.13%.
First conviction in Tamilnadu & Pondicherry charge of Income Tax Department during the Financial Year 2023-24 on account of offence committed in violation of the provisions of the Income Tax Act,1961
Dated: 09 JUN 2023
The Income Tax Department (TN&P), Chennai has got the first conviction for the financial year 2023-24 in respect of the prosecution proceedings initiated against a tax defaulter on 11.04.2023 for the offence committed under section 276C(2) of the Income Tax Act, 1961, viz., willful attempt to evade payment of Income-tax.
The tax defaulter is a private limited company engaged in civil construction business. The Tax defaulter filed its return of Income for the AY 2017-18 without paying the tax admitted in the return of income and the same remained unpaid till the date of the order of conviction.
A prosecution complaint was filed before the Hon’ble Addl. Chief Metropolitan Magistrate, Economic Offences-I, against the said tax defaulter and its two directors for the offences u/s 276C(2)& 276C(2) r.w.s 278B of IT Act, 1961 for willful evasion of payment of tax. Chief examination of the prosecution witnesses was conducted and charges were framed by the Special Public Prosecutor, Shri. L. Muralikrishnan on behalf of the Department.
The Additional Chief Metropolitan Magistrate for Economic Offences –I, Chennai has passed order on 11.04.2023 holding the tax defaulter and its directors guilty of the offences charged. The accused company has been convicted and sentenced to pay a fine of Rs. 25,000/-. The Managing Director and the Director of the Company have also been convicted and sentenced to undergo R.I for 1 year and to pay fine of Rs.25,000/- each.
This is stated in a Press Release issued by Sanjai Kumar Verma, Principal Chief Commissioner of Income-tax (TN&P), Chennai.
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(Release ID: 1930974)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
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New Delhi, 25th May, 2023
PRESS RELEASE
Increased limit for tax exemption on leave encashment for non-government salaried employees notified
The tax exemption on leave encashment of non-government salaried employees (in respect of the period of earned leave at his credit at the time of his retirement, whether on superannuation or otherwise) was earlier upto a limit of Rs.3 lakh only under section 10(10AA)(ii) of the Income-tax Act,1961(the Act).
In pursuance to the proposal in the Budget Speech, 2023, by the hon’ble FM, the Central Government has notified the increased limit for tax exemption on leave encashment on retirement or otherwise of non-government salaried employees to Rs. 25 lakh w.e.f. 01.04.2023.
The aggregate amount exempt from income-tax under section 10(10AA)(ii) of the Act shall not exceed the limit of Rs. 25 lakh where any such payments are received by a non-government employee from more than one employer in the same previous year.
Further, the amount exempt from income-tax under section 10(10AA)(ii) of the Act shall not exceed the limit of Rs. 25 lakh as reduced by the tax exemption already allowed in the total income of the employee under section 10(10AA)(ii) of any previous
year or years.
Notification No.31/2023 dated 24.05.2023 has been published and is available at https://egazette.nic.in.
(Surabhi Ahluwalia)
Pr. Commissioner of Income Tax
(Media & Technical Policy) &
Official Spokesperson, CBDT