Soon, I-T dept to file criminal prosecution against Lalu’s family members

Prosecution to be in connection with I-T dept’s probe into land deals worth Rs 1,000 crore

The Income Tax (I-T) Department will soon file a prosecution complaint against some family members of Rashtriya Janata Dal (RJD) chief Lalu Prasad, including his daughter Misa Bharti, in connection with its probe into land deals worth Rs 1,000 crore, officials privy to the investigation said.

They said the agency will file the complaint in a competent court against at least six family members of Lalu, against whom it recently slapped charges under the new and stringent anti-benami assets act.

Some of them, including Bharti and her husband Shailesh, may also be summoned again for further questioning in the case, they said.

The Tax filing department had served notices of attachment of assets in June to Lalu, his wife and former Bihar chief minister Rabri Devi, son and former Bihar Deputy CM Tejashwi Yadav, daughters Chanda and Ragini Yadav, MP daughter Bharti and son-in-law Kumar.

The Income tax filing department had attached about a dozen plots and buildings in Delhi and Bihar including a farm house and land in the Palam Vihar area, a residential building in the upmarket New Friends Colony area of south Delhi, nine plots on a 256.75 decimal land area in Phulwari Sharif area in Patna, where a shopping mall was being constructed, among few others in the same area in Bihar’s capital.

The department has said these alleged benami assets bear a “deed” value of about Rs 9.32 crore but the taxman has estimated their current market value at Rs 170-180 crore…Read Full Article

Note ban attacked black money, raised tax base: PM in I-Day speech

Said GST led to a 30% cut in travel time by trucks but didn’t mention contraction in July IIP


Prime Minister Narendra Modi, from the ramparts of the Red Fort, rolled out statistics to defend demonetisation, while skipping mention of a lower dividend by the Reserve Bank of India (RBI) as a pitfall of this move.

In his Independence Day speech, Modi implicitly took on critics for blaming his government for not generating jobs, saying the MUDRA scheme is making youth a provider of jobs.

He said the goods and services tax (GST) has led to a 30% cut in travel time by trucks, but did not refer to the transitory problems that have led to a contraction of the Index of Industrial Production (IIP) and Purchasing Managers’ Index (PMI).

He recalled that the first task of his dispensation was to constitute a special investigative team to underscore his government’s stance on corruption.

“I want to tell the countrymen proudly that we have confiscated black money worth Rs 1.25 lakh crore. The culprits would be brought to book and forced to surrender,” he said.

He said demonetisation, which followed the government’s earlier anti-black money stance, has achieved several milestones. → Income tax efiling

“The hidden black money has been brought into the formal economy. According to the research conducted by outside experts, about Rs 3 lakh crore that had never come into the banking system before, has been brought into the system after demonetisation,” he said.

More than Rs 1.75 lakh crore deposited in banks is under scanner. Black money worth Rs 2 lakh crore had to be deposited in banks and this system has forced them to be accountable, he added.

The number of new taxpayers efiling  of income tax (I-T) returns from April 1 to August 5 – the extendable deadline for filing tax returns – is 5.6 million, while in the same period last year, only 2.2 million filed returns…. Read Full Article

More shell firms found: PAN deactivation jolt for tax evaders in stock market

High-value transactions of more than Rs 50,000 and above require PAN details

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Of the 1.1 million permanent account numbers (PAN) that the government deactivated last month, income-tax (IT return) sources say a majority were duplicates and were being used to open share-trading and demat accounts, transact on the stock markets, and operate in shell firms.

The I-T department has discovered one individual could have five to seven PAN cards, each with a slightly different spelling of the holder’s name.

According to I-T officials, such people, who have been identified as small- and medium-sized stock brokers, sub-brokers and their clients, have evaded taxes.

They could have evaded so by using one card for filing income tax return, and others for investing in financial instruments or making high-value transactions, said a senior tax official.

High-value transactions of more than Rs 50,000 and above require PAN details. During demonetisation, PAN was required to be quoted in the case of cash deposits of more than Rs 2 lakh in savings accounts.

Sources said that the income tax department had used data analytics to track down evaders by collecting information such as common addresses, mobile numbers, and emails to establish the relationship among multiple PANs.

The exercise is continuing since demonetisation, at the time of which the department matched the databases of third parties such as banks and financial institutions with its own database and other details like know your customer (KYC), tax deducted at source (TDS), and payments made overseas. This is how it got a comprehensive profile of taxpayers.

A senior tax official said the department identified the link between PAN holders through their business associations, assets and associated transactions, and compliance history in the various databases….Read Full Article

Over 93 million PAN cards linked with Aadhaar so far; last date is Aug 31

About 3 crore linkages were done in June and July


More than 9.3 crore Permanent Account Numbers (PAN) have been linked with Aadhaar, a senior Income Tax Department officer said.

Of the total PAN-Aadhaar seeding, which is nearly 30 per cent of the total about 30 crore PAN holders, about three crore linkages were done in June and July.

“By August 5, which was the last date for filing Income Tax Returns (ITRs), over 9.3 PAN-Aadhaar linkages have been registered by the I-T department,” he said…→ Tax Filing ←

According to the officer, the tally is expected to grow as the Central Board of Direct Taxes (CBDT), the policy-making body of the department, has already extended the last date for linking the two unique numbers till August 31.

The government had madethe PAN-Aadhaar linking mandatory for filing ITR and obtaining a new Permanent Account Number (PAN) from July 1.

The CBDT has said that for the purpose of income tax filing of returns (by August 5), it would be sufficient to quote Aadhaar or acknowledgement number of having applied for Aadhaar, on the e-filing website of the department.

“The actual linking of PAN with Aadhaar can be done subsequently, but any time before August 31, 2017,” the CBDT had said.

It had also cautioned taxpayers that ITRs would not be processed “until the linkage of Aadhaar with PAN is done”…. Read Full Article

Get ready to file first returns before Aug 20: GST chief tells companies

Navin Kumar said, ‘We are working on the assumption that 50% of the people will come on last day’

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Millions of companies in India are still not ready to file their first IT return under the new Goods and Services Tax (GST) ahead of 20 August deadline, a top official told Reuters, urging them not to leave things to the eleventh hour.

Navin Kumar, chairman of the GST Network, also said barely half of the 34 service providers accredited to help firms bulk-file invoices online had received approval to go live.

Yet he gave an assurance that the huge IT back end that is designed to crunch up to 3 billion invoices a month and calculate companies’ taxes would be stable, even if there is a last-minute rush to file. → Efiling Of Income Tax  ←

“It will not crash,” he told Reuters in an interview. “We are working on the assumption that 50 per cent of the people will come on the last day.”

Billed as India’s biggest-ever tax reform, the GST has replaced a slew of federal and state levies. It has also cleared barriers between India’s 29 states, uniting its 1.3 billion people into a common market for the first time.       → Income Tax Efiling

Yet the complexity of the tax – which has main rates of 5, 12, 18 and 28 per cent and multiple exceptions – has raised concerns that companies will struggle to comply and file their monthly returns on time.

Even before the GST filings kick in, business surveys showed both the services and manufacturing sectors contracting at their fastest rate in years, heralding a likely dip in indirect tax revenues…….Read Full Article

Rs 13,715 cr undisclosed income detected, 126 bn taxpayers added in FY17

After demonetisation, the taxman launched Operation Clean Money to clamp down on unaccounted money

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The income tax department detected undisclosed income of Rs 13,715 crore through surveys in 2016 -17, Minister of State for Finance Santosh Gangwar said on Tuesday.

Also, as many as 126 billion new taxpayers were added in the last financial year, he said in a written reply in the Rajya Sabha.

Last financial year, the income tax department conducted searches at 5,102 premises of 1,152 groups during which undisclosed income of Rs 15,496 crore was admitted.

“During the same period, 12,526 surveys led to the detection of undisclosed income of Rs 13,715 crore,” Gangwar said.

He said a total of 196 billion income tax returns were filed between November 9, 2016, to March 31, 2017, compared with 163 billion returns filed during the same period of 2015- 16.

In a separate reply, Gangwar said that during phase one of ‘Operation Clean Money’ launched on January 31, about 18,00,000 persons were identified whose cash transactions did not match their tax profiles.

More than 9.27 lakh responses were received giving information on 13,33,000 accounts, involving cash deposits of around Rs 2.89 lakh crore, he said.

To fight the menace of black money, the government had on November 8, 2016, demonetised old 500 and 1,000 rupee notes and asked holders of such notes to deposit the same in bank accounts…..Read Full Article

Aadhaar now mandatory to identify deceased while registering death

The new rule is said to be applicable starting October 1, 2017.

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According to the latest guidelines, the families of a deceased will now have to produce his/her Aadhaar number for establishing his/her identity in order to register the death and proceed with the norms to obtain a death certificate.

The new rule is said to be applicable starting October 1, 2017.

On June 10, the Supreme Court had ruled that from July 1 onward, every person eligible to obtain Aadhaar card must quote their Aadhaar number or their Aadhaar Enrolment ID number for filing of Income Tax Returns as well as for applications for Permanent Account Number (PAN).

Following this, the apex court pronounced its order on mandatory requirements of Aadhaar card for Income Tax Return (I-TR).

The Income Tax Department has stepped up its efforts to encourage people to link their PAN with Aadhaar.

On July 12, the top court decided to constitute a five-judge bench to hear whether there is a right to privacy or not.  → Tax Filing

The matter was mentioned before a bench comprising of Chief Justice J.S. Khehar and Justice D.Y. Chandrachud, which said its five-judge Constitution Bench will hear Aadhaar-related matters…..Read Full Article

Missed the ITR deadline? Here’s what you need to do next

Filing returns after the due date can have repercussions even if there are no pending liabilities

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Income Tax Filing (I-T) returns on time is every taxpayer’s responsibility and there are several benefits extended to the individual for the same. On the other hand, filing returns after the due date can have repercussions for the taxpayer even if there are no pending tax liabilities. However, if you have missed the deadline, you can file a belated return.

What is a belated return?

A belated IT return can be filed after the due date but before the end of the assessment year. Belated returns have to be filed within one year from the end of the relevant financial year. Hence, if you need to file your return for financial year 2015-16, the assessment year will be 2016-17 and the belated return can be filed by March 31, 2017. Similarly, if you must file your return for financial year 2016-17, you must do so by March 31, 2018 — the end of assessment year 2017-18.

The procedure to file a belated return is the same as Income tax efiling the return within the due date. Log into your e-filing account on the I-T department’s website, select the applicable ITR form and assessment year, and proceed. For example, if you are filing the return for financial year 2015-16, select assessment year 2016-17.

Consequences of filing late returns

Over 1 million PANs deactivated: How to check if your card is still working

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More than one million permanent account numbers (PANs) were deleted or de-activated by the government, in a move to check fake identities. Reportedly, as on July 27, 11,44,211 duplicate PANS have been identified, said Indian Express. PAN is the key identifier of taxable entity and aggregator of all financial transactions undertaken by one person.

As per government rules, a person cannot be registered with more than one PAN number. The Indian Express reported that the Income Tax Department also detected fake PAN cards which were allotted to non-existing individuals or to people who have submitted false information about themselves.

How to check if your PAN is still active

1. Visit the Income Tax e-filing portal –

2. On the homepage, under the ‘Services’ tab, click ‘Know your PAN’

3. The website will take you to a new page where you will be asked to enter – name, gender, date of birth, registered mobile number and click ‘Submit’.

4. Enter the OTP or one-time password received on the registered mobile number and click on Validate.

5. If your PAN is valid, it will show as ‘Active’ under the remarks column….Read Full Article   → Efiling Of Income Tax


If you are an NRI filing tax returns in India, this checklist is a must

NRIs applying for tax refunds have to share foreign bank account details

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India’s overseas population is the largest in the world with 16 million people. Most non-resident Indians (NRIs) have bank accounts, investments in shares/bank deposits, house property and other assets in India and are required to file IT return in India by 31 July 2017.

Here are the certain check points from NRIs perspective, which they should consider while filing their tax returns in India.

Determination of their residential status in India

It is important for NRIs to ascertain their residential tax status in India depending upon their period of stay for a particular financial year (1 April to 31 March). This is a pertinent check point as the global income of an individual who is a resident of India is taxable and in the case of non-residents, only their income from sources in India is taxable. → Tax Filing

It may be pointed out that residency test under the Foreign Exchange Management Act (FEMA) is different from the test given under the Income Tax Act and the same is not relevant for tax purpose.

Under the Income Tax Return Act, an Indian citizen who leaves India for an employment purpose, or an NRI who visits India, can stay for up to 181 days without losing his non-residential status in India. The day of arrival, as well as the day of departure, is considered as stay in India.

  • Changes in the return of income for AY 2017-18
  • Quoting of Aadhar card number not mandatory for NRIs in their return
  • Details of assets and liabilities to be furnished in schedule AL of the ITR for AY 2017-18
  • Recent CBDT clarification on optional reporting of details of one foreign bank account by the non-residents in refund cases
  • Obligation to file return income in case of exempt long-term capital gain 
  • Availing benefit under the Double Tax Avoidance Agreement (DTAA)
  • Certain aspects that need to be taken care of while finalising the Indian tax returns

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