Blog

2018

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The human race is undergoing a new era of technological revolution. Data have become the new oxygen in our socio-economic environment. Machine Learning, Big Data Analytics, Artificial Intelligence etc. are the new buzz words. Application of Big Data Analytics is increasingly applied to numerous fields such as marketing, economics, agriculture, finance, telecom, healthcare etc. The field of direct and indirect taxes are no exception to this.

Archive


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?

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
  • As a non-resident Indian have you been grappling with the constant challenge of how various incomes would be taxed in your home country and in India? Are your decisions related to remittances, investments, property purchases and rentals marred at the thought of taxes?
  • Though tax laws in different countries are difficult to fathom, they aren’t as perplexing as you thought. Take for instance the income from abroad. The ground rule is that income which is earned outside India by an NRI is not taxed in India.
  • Similarly, there are a host of other incomes that aren’t taxed in India, but may or may not be touched in the country you are residing in. We present a simple guide for Non-resident Indian to assist them in saving taxes by understanding which income will be exempt and which won’t.

2017
  • A taxpayer has to comply with ‘paying’ income tax and ‘filing’ income tax returns every year. Though it is important to file the tax returns within the due date, this doesn’t mean that he cannot file his income tax returns, in case he has missed filing it, due to some unforeseen reason.
  • But if a person has missed the deadline, he might have to face some penal consequences and might even get a notice from the IT department anytime. In addition to it, there are other consequences of filing belated taxes which may affect the total tax liability of the taxpayer. The Income Tax Act has prescribed certain penalties for late filing of tax returns.

Financial Management