The Union Finance Minister Arun Jaitley today introduced the Taxation Laws (Second Amendment) Bill, 2016 with a view to tax unaccounted black money deposited in bank accounts pursuant to demonetisation. The salient terms of the proposal to tax the unaccounted cash are as follows: (i) 30 per cent tax on undisclosed income plus 10 per cent penalty as also a 33 per cent surcharge; (ii) 25 per cent of undisclosed income post demonetisation has to be deposited in the Pradhan Mantri Garib Kalyan Deposit Scheme; (iii) undisclosed wealth deposited post demonetisation which is detetcted by the income-tax authorities will attract 75 per cent tax and 10 per cent penalty. The money from the Pradhan Mantri Garib Kalyan Deposit scheme would be used for projects in irrigation, housing, toilets, infrastructure, primary education, primary health and livelihood so that there is justice and equality, states the Statement of Objects and Reasons of the Bill
Legal Implications Of Black Money Law: Public Meeting With Eminent Tax & Legal Experts
The Chamber of Tax Consultants has organized a public meeting to discuss the tax and legal implications of the demonetisation of currency. The meeting will be addressed by an expert panel comprising of four eminent Advocates and Chartered Accountants. The experts will consider implications under the Income-tax Act, FEMA, PMLA, Prohibition of Benami Property Transactions Act, Service Tax , VAT, Excise etc. Members of the public are requested to send their queries in advance so that the expert panel can express a considered opinion on them
Bombay High Court’s Tax Bench Constitution w.e.f 15.11.2016
The Constitution of the Bombay High Court’s Tax Bench w.e.f 15.11.2016 is as follows
CBDT Recommends Modification In CASS Parameters For AY 2016-17 Returns
The Directorate of Income Tax Systems has addressed a letter dated 07.11.2016 stating that the Directorate is in the process of modifying the CASS parameters so as to select cases for scrutiny assessment for returns filed in AY 2016-17. The Directorate has made important recommendations and invited suggestions for improving the process
Transfer Of Hon’ble Member Of The ITAT (November 2016)
Vide order dated 26.10.2016 passed by the Hon’ble President pursuant to the consultations with the Collegium of Income Tax Appellate Tribunal consisting of the President and two senior most Vice Presidents, Hon’ble Shri. Sanjay Garg, Judicial Member, ITAT Mumbai Benches, has been transferred in the same capacity to ITAT Cuttack Bench, Cuttack, in the same capacity, in public interest, with effect from 7th November 2016 (forenoon)
CBDT Circular On Eligibility Of Chapter VI-A Deduction On Profits Enhanced By AO
The CBDT has issued Circular No. 37/2016 dated 2nd November 2016 in which it has accepted the settled position that if the disallowances made under sections 32, 40(a)(ia), 40A(3), 43B, etc. of the Act and other specific disallowances, related to the business activity against which the Chapter VI-A deduction has been claimed, result in enhancement of the profits of the eligible business, the deduction under Chapter VI-A is admissible on the profits so enhanced by the disallowance. The CBDT has also directed that appeals should not be filed on this ground by the Department and appeals already filed should be withdrawn/ not pressed upon
Download ICAI Guidance Note On Report Under Section 92E Of The Income-tax Act (Transfer Pricing)
The Institute of Chartered Accountants of India (ICAI) has issued a comprehensive publication dated 28th October 2016 titled “ICAI Guidance Note On Report Under Section 92E Of The Income-tax Act, 1961 (Transfer Pricing)” in which it has explained all the nuances of the law relating to transfer pricing. The publication is useful not only for Chartered Accountants who have the onerous responsibility of issuing the report under section 92E of the Income-tax Act but also for other tax professionals and tax payers who desire to understand the mechanics of the law
New CBDT Chief Reveals Game Plan Of The Income-Tax Department
Hon’ble Sushil Chandra, who has been recently appointed as the Chairman of the CBDT, has got off to a flying start. He has issued a detailed communiqué to the Income-tax department in which he has set out the road map that has to be followed over the next six months
CBDT Order Of Postings And Transfers Of Commissioners Of Income-tax
The CBDT has vide Order No. 181 of 2016 dated 22.10.2016 ordered the postings and transfers of several officers in the grade of Commissioner of Income-tax with immediate effect and until further orders
CBDT Issues S. 119 Order To Extend Time Limit For Processing U/s 143(1) Of Returns With Refund Claims
The CBDT has issued an order u/s 119 of the Income-tax Act dated 25.10.2016 stating that in instances where a valid return-of-income having ‘claim of refund’ for AYs 2014-2015, 2013-2014 and 2012-2013 was filed either under section 139 or 142(1) of the Act and in which the time for sending intimation under sub-section (1) of section 143 has lapsed, the time-frame prescribed in second proviso to sub-section (1) of section 143 is required to be processed by 31.03.2017. Further, intimation of processing and consequential refund, if any, is required to be issued expeditiously as per the prevailing norms and existing provisions of the Act
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