Blog

2017

In the world nothing can be said to be certain, except death and taxes
– Benjamin Franklin

  • Quoted above is the famous statement by Benjamin Franklin about the inevitability of taxes in our life. This has increasingly become a reality in India after the Central Government’s efforts to reduce tax evasion and to bring more and more people in the tax net with the help of policy measures and analytics. However, the Income Tax Act has kept some windows open for the people, particular in the middle income group, to reduce their tax burden smartly. These come in the form of deductions, exemptions etc.
  • One such window for us to save tax smartly is “Benefit of Shifting LTCG to Basic Exemption Limit”. The topic under discussion today is related to reducing tax liability arising from Long Term Capital Gain. Let us first understand briefly as what is long term capital gain?

Archive


2017
  • World Trade Organization is a global intergovernmental organization that acts as the regulator in international trade among its member countries.
  • On 15th April 1994, 123 nations of the world signed Marrakesh Agreement which led to inception of the WTO.
  • Following the Marrakesh Agreement, WTO came into existence on 1st January 1995.
  • As of now it has 164 members. WTO is the largest international economic organization in the world.

2017
  • The tax department on Friday issued warning against those who undertake benami transactions as this would invite Rigorous Imprisonment (RI) of up to seven years under the normal I-T Act.
  • The tax department said the government will soon operationalize a 'Strong Team' to effectively deal with benami properties as well undisclosed foreign income and assets.
  • The Central Board of Direct Taxation (CBDT) is planning to form a special unit, which will dedicatedly investigate and act against 'benamidars' and black money holders having undisclosed foreign income and assets.

2017
  • The Income-Tax department has issued notices to tax assessees who have shown unusually high income from agricultural activities.
  • Notices have been sent to around 700 individuals who have shown more than Rs 20 lakh as farm income. In all these cases, the farm income turns out to be higher than their main source of income, and the department suspects the veracity of the claim.
  • In Mumbai alone, the I-T has sent notices to around 100 people. In quite a few cases, the so-called farm income is twice the income from the main source of income they have been reporting in the past.

2017
  • After much preparation, debates, and anticipation; GST was rolled out in India on the midnight of 30th June, i.e. on July 1, 2017. The One Nation One Tax formula is being hailed as a positive measure for India by international agencies like Moody’s and the World Bank. However, as soon as and even before the new GST regime came into force, there has been a lot of skepticism around it. Messages and pictures are doing rounds of WhatsApp and Facebook, demonstrating what a huge menace GST is. So, are these messages about GST myths or do they hold some truth?
  • We are here to make everything crystal clear for you. Read on to know whether these popular myths about GST have some credibility to them or not.

1. Eating out is more expensive now

Not necessarily. Earlier there was a service tax of 6 % on the total bill amount (for AC restaurants) and a VAT which varied from one state to another. VAT rates differ from one state to another and therefore pre GST and post GST bill amounts may be higher or lower, depending on the earlier VAT rate in a particular state. Further, as the benefits of input tax credit start seeping in, eating out is likely to be cheaper in the long run, and not dearer.

2017
  • Among the various peculiar provisions in GST, there is a provision called RCM. According to this RCM provision, what will happen if purchases are made from an unregistered person?
  • The provision of reverse charge is already in service tax and the same provision is brought in GST. In service tax there are only specified persons who were required to pay tax on reverse charge basis but in GST all the persons are required to pay tax on the reverse charge on the purchase of goods and services.

What is meant by R.C.M?

  • R.C.M means reverse charge mechanism which means that tax on the purchase of goods or services has to be paid by the recipient. In simpler terms, R.C.M means paying the tax of the other person. Which transaction will be covered in RCM has been specified.

Financial Management