According to the new budget of the year 2016-17 announced by the Ministry of Finance headed by the Finance Minister Arun Jaitley said that a taxpayer need not fill the wealth income tax return form for the financial year 2016-17.
The officials of the Central Board of Direct taxes said that all the details required to fill during the return of the wealth is now included in the Income tax return form. Because the information of the wealth tax return should be in any official form. The entity or an individual who fills the income tax return form 3 and 4 are already asked to submit the information about the liabilities and the assets if they exceed a particular limit. And taxpayers who fill the ITR forms 1, 2, 2A, 4S also have to fill the details about their liability and asset if the annual income exceeds fifty lakh.
Deloitte Haskins & Sell. tnn consultancy firm partner Tapati Ghose said, to submit the details of an individual’s asset received as a gift is quite difficult. The individuals find it difficult to submit the cost an asset bought long ago without proper receipt, assets they inherit from their ancestors or an asset received as a gift.
He also said that if the department gives the total annual limit for each group to fill in the income tax return form, then it would be easier for an individual or an entity to analyze if their asset is below the specified threshold amount.
The Delhi state government targets to collect twenty four thousand crore in the Value added tax. By the first week of January they collected about forty percent of the annual tax, that is about fourteen thousand seven hundred and twenty crore.
The government started to take sever measures to restrict the entering of undeclared goods since September. The government made it compulsory for the trader and the dealers to declare the goods they brought into the city, to prevent the evasion. And they charged a fine of fifty thousand rupees to the illegal traders.
The income tax department installed an automatic number plate reading camera at both the entry points of Delhi. The camera will capture the registration number of all the vehicles that enters the city, and it transfers it to the department server. They found that many vehicles that enter the city do not have the required documents, and it charged the owners more than two crore. The dealers bring goods like ready-made clothes, electronic goods, auto part, groceries, gutkas, liquor, cigarettes, etc without declaring it in the declaration form. The declaration form Delhi Sugam-2, is available in the department portal. The dealers can fill the form online or through the SMS option.
S. S. Yadav, the VAT Commissioner said that the tax department has an exclusive team of officers at the entry points of major markets, railway stations, and other parts of the city to check the undeclared goods from entering. According to the report, on December 2015 they inspected more than ten thousand vehicles, and about five hundred and thirty nine vehicles from last three months.
Because of the downfall of the economy, the companies tried to reduce the cost, by firing some the employees of the firm. But the companies would like to retain those employees, because they are efficient and below the retirement age. The companies give the employees an option that, they can continue working with their previous employers as a consultant. And the companies feel whether there are any tax implications as a consultant.
In general, the consultancy is an employment according to tax, because the TDS paid is only ten percent, while the tax from earlier deduction was thirty percent. One should know that the tax deducted at source is a temporary one while we have to calculate the actual liability when a person fills the tax return form. In case of an employee the amount that is payable as TDS by the company. But in the case of a consultant it is not possible. The TDS is lesser than the tax liability, and one has to pay it in three installments and if they fail to do so, they have to the interest.
A consultant receives deduction for various expenses; by he has to pay taxes for all the money he receives. The consultants have to maintain the accounts like ledger and cash book and maintain a balance sheet to for the amounts received and spent. So that he will not have any issues while dealing with the tax officials.
The government is planning to reduce small saving scheme’s interest rate on a quarterly basis; this may affect the investor of the small savings. The senior citizens and super senior citizens who rely on the interests from the small saving are the people get affected by the deduction.
The head of the Axis mutual fund, R Sivakumar said that the banks were unable to reduce the leading rates or cut the deposits, because of higher rates of the small savings. He said that we can expect seven percent of the 10 year yield by December, because of the deduction 0f 50 to 70 bps by the Reserve Bank of India before December. And the market rate may also drop down because of its alignment with the small saving.
This plan is beneficial only for the investors who have registered for the long term scheme. These rates are applicable only for the new customers who are the members of the NSC, KVP and the senior citizen savings scheme.
The rates of the Public Provident fund are already low, and experts expect that there are chances for the rate to decrease further due to government’s plan. Hence if the interest rate is at seven percent by the end of December, it might increase in the next quarter.
Amol Joshi of PlanRupee Investment Scheme advised the investor’s of the small saving scheme to opt for the fixed maturity plans (FMP). They also said that investing on a three year fixed maturity plan is a good start, because the indexation of the four year is tax effective.
On April 8th, 2016 the Ministry of Civil Aviation removed one of the eligibility conditions to get overseas permit. One can get the international permit by flying the local routes for five years; the Ministry removed these criteria from its eligibility list. Instead, they added that every carrier should maintain 20% of the threshold capacity in the domestic sector.
The Aviation Ministry official said that they are waiting for the formal approval of the report. These new rules are the 5/20 rule, and he also said that the Prime Minister, Narendra Modi is keen on changing the Aviation rule. Officials said that the Ministers and the Cabinet members will officially approve the new rule by the end of April.
Asia Pacific Aviation’s Chief Executive Kapil Kaul said that the twenty percent of total capacity deployed in the local airline will suppress the liberalization and he also said that it is not a developing reform. The AirAsia and Vistara are the new airline company, which can benefit a lot more from the new rule. Because they can venture into the overseas, within a couple of years, since their launch. But they have to ensure that they have increased their aircraft’s from nine and six to 20 aircrafts top fly overseas.
Apart from this, the other proposals are taxing 1.4% of service tax for domestic flights in a year, concession of fuel at two percent for three years in regional airports. And they will compensate it by charging the landing and take-off on local flights that has more than 80 seats.
The Ministry of Corporate Affairs (MCA) has made it easy for the companies to register their firm in India within a day. Since March 17th, 2016 around twenty eight secretaries of different companies lined up in the conference room of the Ministry of Corporate Affairs in Shastri Bhawan to register their companies in India. The secretaries from the Infosys and major corporate firms were also present in Shastri Bhawan.
The ranking report of ‘Ease of doing business’ by the World Bank stated that it took up to two weeks to reserve the company’s name and five days to process the incorporation regulations. It is possible for a company to take even a year to register the name.
The process of registration is over for about fourteen thousand companies within a month that is seventy applications per day. Rest of the thirty percent had to resubmit the company’s name because they were not acceptable. But the applicants can know the status within a day, whether the name suggested by them is acceptable or not.
According the sources from the income tax department, if an individual fails to pay the property tax on the mentioned time, he has to pay a fine of twenty percent besides the annual tax interest of eighteen percent. A report from the corporation officials said that there were about forty seven thousand people in the year 2015-16 failed to pay the property tax. Only one lakh thirty one thousand rupees was the tax amount received in the year 2015-16, which is less than the previous year 2014-15 were the department received one lakh seventy eight thousand as the property tax amount.
Vivek Varma, Superintendent of the Property tax department said that according to the rules of the property tax, an individual has to pay ten percent as penalty if they fail to the property tax before December 31st. But the department gave chance to the property owners stating that they will not charge until March 31st. They also sent letters to the property owners who did not pay their property tax under their property tax number so that they will not have to pay the penalty. The department said that the individuals or the property owners can submit their property tax in the Corporation office. The property owners can also submit their property tax through online by visiting the official website of the corporation office.
Amrit Kaur Gill, the additional commissioner of the property tax department said that the defaulters who failed to pay the property tax have to pay the penalty. They will also seal the property of the defaulters by April 1st.