NATGRID to get I-T's PAN records, taxpayer data access

While there are over 25 cr PAN holders in the country, actual number of taxpayers is about 5 cr

 

 

The NATGRID, a network aimed at sharing information about terrorists among security agencies, will now be getting access to the Income Tax Department's PAN records and individual taxpayers' data.

The ambitious project conceived by the then Home Minister P Chidambaram during UPA II rule will soon be getting new powers to access tax payers' information after it signs a Memorandum of Understanding (MoU) with the Income Tax department.

According to an order issued by the Central Board of Direct Taxes, the department will share 'bulk information', starting from the Permanent Account Number (PAN) to the taxpayer's name and all the individual data that it captures like father's name, gender, date of birth, photograph and signature or thumb impression.

The department will also share with the National Intelligence Grid (NATGRID) all information available in the department's database regarding residential and office addresses, addresses for communication, email addresses and phone and mobile numbers of all the taxpayers.
The MoU with the NATGRID that functions under the Union home ministry will also include confidentially clause so that transfer of personal data is safe.

According to data, while there are over 25 crore PAN holders in the country, the actual number of taxpayers is about 5 crore....

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I-T Dept slaps Rs 24,500-cr tax notice on PACL

Demand adds to the Rs 57,000-crore dues payable from company's assets on sale

 

 

The income tax (I-T) department has raised a massive tax demand of about Rs 24,500 crore on troubled realty-based investment firm PACL (formerly Pearls Agrotech Corp). The revenue demand pertains to a six-year period, from assessment year 2008-09 to 2014-15.

The I-T department has written to a committee headed by former chief justice R M Lodha to consider this claim “so that the due tax  liability of the assessee company can be recovered after the sale/auction of the various properties of M/s PACL Ltd”. The committee has informed the Supreme Court of this tax demand as part of its submissions recently.

These claims have added substantially to the dues of the company, which already owes more than Rs 57,000 crore to some 51.5 million investors. The firm had run into trouble with markets regulator Securities and Exchange Board of India (Sebi) for raising this money without necessary approvals.
This is the second such large demand by the I-T department on a company under Sebi orders. In April, reports said the department had raised a Rs 24,646-crore demand on the Sahara group’s Aamby Valley, after conducting a special audit.

PACL was allegedly carrying on an investment scheme, though it couched this in the real estate activity of purchase and sale of land parcels across the country. In the process, it had accumulated vast tracts of land, a large part of this being barren agricultural land. After a protracted legal battle that dragged on for over 15 years, Sebi had directed the company to refund Rs 49,100 crore along with interest in (read more...)

Online platforms make tax filing easy, help fill details automatically

If you have capital gains on a house or shares, they can automatically tell you the tax liability

 

The Income Tax department on May 4 activated an e-filing facility in which you can start filing returns. The department has also simplified the ITR forms to make it easier for individuals to file returns. If you still find filing this a tedious, you can approach online tax filing websites. These platforms are using technology to shorten the process and avoid errors.

 

If you are a salaried person, in most websites you can upload Form 16 on the website. Their software automatically picks the details and fills all the fields, avoid hassle of an individual typing each and every detail manually. These platforms can also parse multiple Form 16s, if the individual has changed jobs, and compute the tax liability. “If all the required details are handy, a salaried person can file tax returns within 10 minutes,” says Chetan Chandak, head of tax research, H&R Block India. If you have capital gains on a house or shares, these websites can automatically tell you the tax liability, once you enter the date of buying and selling and price at which you bought and sold the asset.

It’s not only for the salaried. These platforms have also simplified tax filing returns for business owners and professionals. Explains Archit Gupta, founder of Cleartax.com: “The ITR Form for business is a lengthy form with multiple pages. To simplify, we just ask around five questions to the taxpayer. Using the answers, we fill all the relevant details automatically.”

In most of the platforms, a business owner can generate tax deduction at source, or TDS. Individuals can check refund status. If you have received an income tax notice, you can use their consultation services and know how you should proceed further. If there’s a mistake, you can also file revised returns. When you enter details, these websites use tax optimisers to tell you areas where money can be saved. “We also offer a vault where you can store all tax-related documents for future reference,” says Sudhir Kaushik, co-founder, Taxspanner.com....(read more...)

Soon, get notification of tax scrutiny notice over SMS, reply online

I-T department is looking to make the process easier for taxpayers

 

 

Replying to income tax (I-T) scrutiny notices with supporting documents will soon be just a click away.

Instead of having to make the rounds of the tax department with a sheaf of papers in response to notices received, taxpayers can soon upload them on the department's e-filing portal sitting in the comfort of one's own premises.

The I-T Department will very soon launch on its e- filing website a facility for uploading of information sought through scrutiny notices, a senior government official told PTI.

"This is part of our focus to reduce human interface and make the department more taxpayer friendly," he said, adding, "The facility to e-file the documents to scrutiny notices is being done to reduce interface between the assessing officer and the taxpayer."

Also, the tax department plans to soon start an SMS facility to communicate with taxpayers about any scrutiny notice sent to them.

"We will send SMS on the registered mobile number informing them to go to their account in the e-filing portal to see the new notice," the official said.

Once the facility is started, taxpayers will get an SMS alert of a new notice or information being raised by the income tax department. The assessee can then log on to the e-filing portal and upload the documents that have been sought.

Currently, the department sends SMSes for informing taxpayers, especially the salaried class, about the tax deducted at source (TDS). Also, such alerts are sent on filing of tax returns and their acceptance...read more...

Paying over Rs 50k as rent? Now you must cut TDS and deposit with I-T dept

Govt has tightened several rules governing real estate to step flow of black money in the sector

 

 

For the past four-five years, the income tax (I-T) department has been consistently tightening its noose around realty transactions. From making registration of rental agreements with PAN details of both the tenant and owner mandatory to the latest — deduction of TDS (tax deducted at source) on monthly rental of Rs 50,000 and above — rules have been tightened significantly to ensure black money isn’t generated from this sector.

The Central Board of Direct Taxes’ (CBDT’s) latest salvo targets people who claim significant amounts as house rent allowance (HRA), sometimes with the help of false documents. From June onwards, those who pay monthly rental of Rs 50,000 need to deduct 5 per cent TDS and deposit it with the IT return department.

This TDS trail will serve as proof for people claiming high HRA. The provision was introduced in the Finance Bill, 2017. “The idea behind the provision is to make sure taxpayers don’t claim fake HRA exemption and also to trace those who don’t disclose their rental income. When a trail is created, it will be possible to detect such individuals in the system,'' said Kuldip Kumar, partner and leader, personal tax, PwC India.

Interestingly, the government has also made the provision that if multiple tenants stay at the same place and pay total rent of Rs 50,000 and above per month, they need not deduct TDS. But, all tenants’ names should be in the registered agreement with the owner. On the other hand, if the entire rent is paid by a single tenant and the others are merely paying that person, then TDS is applicable. Clearly, CBDT has given relief to people staying together, especially in big cities and paying high rent to stay near their office or for any other reasons...read more...

Dread filing tax returns? Ready reckoner on the forms you need to fill

There are total 7 ITR forms available for e-filing

 

 

Though filing of income tax returns is a process to be done every year one should be aware of changes made by the government in the income tax return forms in order to minimize the chances of error and rework. This year a lot of changes have been made in the ITR forms.

 

For instance, taxpayers who have filed ITR 4 last year are now required to file ITR 3 this year. So one must be aware of these changes in order to file the correct ITR form applicable to you. The income tax department will not consider your ITR as valid if you file the wrong ITR Form.

There are total 7 ITR forms available for e-filing
Out of theses 7 forms, only ITR 1, 2, 3 and 4 are applicable for salaried class and individuals. ITR 5,6 and 7 are applicable to partnership firms, Limited liability partnership(LLP), Association of persons and companies.

For Salaried Individuals

• ITR 1 Sahaj and ITR 2 are available for the salaried individuals and your sources of income will decide which form to use. ITR 1 sahaj is a simplified one-page form introduced by the government to ease the process of tax filing by salaried individuals. It is applicable for the salaried individuals having income up to Rs 50 lakh. Income can be from salary, pension, house property, interest income or agricultural income up to......

 

For Business individual

• There have been changes in the ITR form applicable for business individuals this year. ITR 3 and ITR 4 Sugam are available for business individuals and HUF for filing the tax return for FY 2016-17.One must be aware of these changes as last year ITR 4 and ITR 4S were applicable for business individuals and ....(read more...)

Top 5 common mistakes to avoid while filing your income tax returns

Here is a list of things to help you sail through

 

 

With the due date of July 31 fast approaching, it is that time of the year again when the taxpayers need to file their I-T returns. After all, filing of tax return is compulsory for everyone whose gross total income exceeds the basic exemption limit. The basic exemption limit for individuals is Rs 2.5 lakhs and for senior citizens, it is Rs 3 lakhs.

 

So, if your income exceeds this limit, you need to file the tax return by the due date. eFiling of tax return requires caution to avoid mistakes. Keeping in mind few things can make your tax filing a breeze.

 

Here is a list of things to help you sail through:

• Choose the right ITR Form applicable
• Claim all the Deductions
• List all sources of income including Interest Income
• Reporting all bank accounts
  Report Exempt Income

E – Verify your return or send the ITR V acknowledgement on time - 

The process of filing return does not get completed till the returns are verified. The govt gives you the option of either sending the ITR V acknowledgement within 120 days of filing the return to their office or you can e -verify your returns online also. If you e – verify the returns online, then there is no need to send the .....(read more...)

SuperNight pack: Vodafone counters Jio with unlimited internet at Rs 6/hour

SuperNight packs will enable users to download unlimited data for five hours at a fixed price

 

Vodafone India on Monday announced a new product -- Vodafone SuperNight -- with immediate effect for prepaid customers.

According to the company, the new product at Rs 29 will enable unlimited 3G/4G data usage and download for five hours.

"The pack can be activated any time of the day but will be applicable only during the subsequent five hours between 1 a.m. to 6 a.m.," it said in a statement.

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Vodafone is offering Internet access between 1am and 6am at Rs 29 a day. This comes out to less than Rs. 6 per hour.In contrast, Reliance Jio’s services cost about Rs. 10 per day for 1GB of 4G data.

The recharge pack can be purchased anytime during the day, but will kick in at 1 am only. The new SuperNight pack is available to purchase from digital channels, offline outlets, and via the *444*4# USSD code.....More Plans

Make in India fighter jets? Tata, Lockheed join hands to build F-16s

Will compete for contract with Gripen E, built by Saab-Adani combine

 US defence giant Lockheed Martin and India’s Tata group signed an agreement on Monday to jointly build the F-16 Block 70 fighter in Make in India, should New Delhi opt for the American aircraft in the procurement of single-engine fighters for its air force.

Highlighting the importance of this contract for the Tata group’s aerospace and defence aspirations, Chairman Emeritus Ratan Tata attended the signing ceremony at the ongoing Paris Air Show in France.

The Tata group has earmarked Tata Advanced Systems Ltd (TASL) to build the F-16 in India with technology and manufacturing facilities transferred from Lockheed Martin.

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Coming ahead of Prime Minister Narendra Modi’s visit to the United States this month, Lockheed Martin’s inking of this joint venture (JV) – which would have required formal clearance from Washington – indicates that, despite President Donald Trump’s promises to keep skilled jobs in the US, his administration is willing to transfer the ageing F-16 production line from Texas to India.

TASL and Lockheed Martin already have a joint venture (JV) that manufactures airframe components in Hyderabad, including for the C-130J Super Hercules airlifter and the Sikorsky S-92 helicopter.

However, the manufacture of F-16 Block 70 would be a far more ambitious project. This would first require the Ministry of Defence (MoD) to select the Tata group as an Indian “strategic partner” for aircraft production. Next, the IAF and the MoD would have to choose the F-16 Block 70 as the air force’s single-engine fighter aircraft. That multi-billion dollar procurement has already kicked off with the issue of a global request for information (RFI) by the IAF.

MoD and IAF sources confirm aviation market intelligence that the IAF’s chosen fighter is likely to be either the F-16 Block 70, or the Gripen E fighter that Swedish company, Saab, has offered to India...(read more...)

Wall Street hits record highs on strong technology, health stocks

Nasdaq's biotechnology index rose 2.5% in its biggest one-day gain since February

 

 

US stocks(wall street) rose on Monday, with the S&P 500 and the Dow hitting record highs with growth sectors such as technology in favour again as investors appeared to regain confidence in the economy after upbeat comments from Federal Reserve officials.

Nasdaq's biotechnology index rose 2.5 per cent in its biggest one-day gain since February while the S&P's healthcare index had a record-high close.

Amazon.com's Friday announcement that it would buy Whole Foods and an upbeat tone from Federal Reserve speakers seemed to help reassure investors after the US central bank's rate hike last week, according to J Bryant Evans, portfolio manager at Cozad Asset Management, in Champaign, Illinois.

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"It looks like a bet that interest rates, such as the 10-year yield, are bottoming out," said Evans. "It's a resumption of this idea that the economy is in decent shape."

He added that a "push in M&A tends to propel the market" and that the Amazon/Whole foods $13.7 billion deal was a "tangible sign the mergers and acquisition environment is pretty good right now."

The Dow Jones Industrial Average rose 144.71 points, or 0.68 per cent, to end at 21,528.99, the S&P 500 gained 20.31 points, or 0.83 per cent, to 2,453.46 and the Nasdaq Composite rose 87.26 points, or 1.42 per cent, to 6,239.01.

The S&P's financial sector was also one of the benchmark's strongest gainers with a 0.98 per cent rise after New York Federal Reserve President William Dudley said US inflation was a bit low but should rise alongside wages as the labour market continues to improve, allowing the Fed to continue gradually tightening monetary policy.

The Fed commentary last week had surprised investors who expected more caution after some weak US economic data...(read more...)