Skip to main content

For Financial Info, India & US to Ink FACTA Today

By
India will on Thursday sign the tough financial information exchange law enacted by the US, which will also give a boost to New Delhi's own attempts to unearth black money stashed away overseas with information inflow beginning as early as October.
The Foreign Account Tax Compliance Act (FATCA) makes it mandatory for all foreign financial institutions to report accounts and financial transaction of US citizens held with them and also accounts of certain foreign entities with substantial US owners. In return, the US will provide India information on investments and financial transactions by its citizens.
The US is expected to start sharing information with India from October 1, a senior finance ministry official told ET. FATCA, which came into force on January 1 this year, was enacted by the US in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act to combat tax evasion by US nationals holding investments in offshore accounts.
India couldn't sign the accord by the December 31 deadline, but had expressed its commitment to the agreement. The Union Cabinet had in March cleared signing of the accord.
The government has already held out the threat of greater information flow from the US to urge people to use the currently open one-time compliance window to come clean under the new black money law.
“India is expected to start receiving information through AEOI (Automatic Exchange of Information) route under FATCA from USA later in the year 2015,“ the finance ministry said in a statement on Monday, detailing the nuances of the Black Money (Undisclosed Foreign Income & Assets) and Imposition of Tax Act, 2015, that came into force on July 1.
The law provides for 120% tax on undisclosed foreign assets and imprisonment of up to 10 years.
The government has provided a threemonth window beginning July 1 for offenders to come clean after paying a tax of 30% and penalty of another 30% on the disclosed assets obtained from unaccounted income. A global agreement to combat tax evasion through sharing of information is to come into force from 2017. As many as 58 jurisdictions will start sharing information under this agreement from 2017 while another 36 will join the global protocol from 2018, boosting India's attempts to uncover black money stashed overseas.
The Economic Times, New Delhi, 9th July 2015

Comments

Post a Comment

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

By
  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6
Post a Comment
Read more

Jaitley plans to cut MSME tax rate to 25%

By
Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem
1 comment
Read more

Don't forget to verify your income tax return in August: Here's the process

By
  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s
Post a Comment
Read more