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To save promoters from 10% levy, 70 firms call board meetings on interim pay In the three days since the Union Budget, at least 70 companies have called board meetings to declare interim dividends — in a bid to get the money to the shareholders before the tax on promoters’ dividends kicks in on April 1. The Budget, presented on Monday, had proposed a 10 per cent tax on the dividends for those promoters with annual dividend income of Rs.10 lakh or more. Now, about 70 firms — including Bajaj Auto, Sun TV Network, Piramal Enterprises, and Divi’s Laboratories — have called for board meetings to declare interim dividends, payable before April 1. Several of these firms have also fixed a record date. These 70 firms had collectively paid dividends of about Rs.14,300 crore in FY15. A similar trend was observed in 2007, after the Union Budget that year proposed raising the DDT to 15 per cent from 12.5 per cent. Experts said to get a dividend of Rs.10 lakh now, one would have to own a portfolio

India's effective rate of corporate tax has inched up in the past one year closer to 25%, the proposed tax rate after phasing out exemptions. The effective rate went up to 24.67% in 2014-15 from 23.22% in 2013-14.  Significantly, the effective rate is the highest for smaller companies that have a turnover of up to Rs 1 crore and lowest for those having turnover of more than Rs 500 crore. Smaller companies faced a rate of 29.37%, closer to the statutory rate, while their larger counterparts enjoyed a rate as low as 22.88% Statutory rate of income tax for companies having a turnover of Rs 10 crore is 33.84%, while for those with turnover of up to Rs 10 crore it comes to 32.44%.  Budget documents have attributed the increase in effective rate to gradual phasing out of profit-linked deductions and levy of minimum alternate tax on companies.  A tax official said a number deductions including one for special economic zones would have begun to come down in line with the framework.  The s

Anti-avoidance framework in the form of GAAR will be effective from April next year, but the government is ready to give any guidance to provide more clarity, revenue secretary Hasmukh Adhia has said. He also said that the government cannot remove minimum alternate tax till corporate tax exemptions are in place. "GAAR is definitely coming in from April 1, 2017. When we said in the Budget we are postponing implementation of PoEM (place of effective management rules) by one year we did not want you to get an impression that this government is also going to postpone GAAR," Adhia said on Thursday.  Last year, finance minister Arun Jaitley had deferred applicability of General Anti-Avoidance Rules (GAAR) by two years. "GAAR implementation by the government ought to happen as scheduled as foreign institutional investors and other such portfolios have been escaping capital gains in one form or the other, keeping the domestic industry at disadvantages and, therefore, it should

www.caonline.in News... 1.Contributions made on or after the 1st day of April, 2016 by an employee participating in a recognised provident fund and superannuation fund, up to 40 % of the accumulated balance attributable to such contributions on withdrawal shall be exempt from tax. 2.Time Limit for completion of property acquired or constructed with the borrowed capital increase from 3 year to 5 years for getting exemption u/s 24(b) in respect of Self Occupied House Property 3.Increase in clean energy cess (Notification No. 1 & 2/2016 dated 29th Feb, 2016) applicable from 1st March, 2016. 4.MCA invite comments on Draft Companies (Revival And Rehabilitation Of Sick Companies) Rules, 2016, to be submitted latest by 14.03.16. 5.Last day to pay advance tax is 15th March for payment of 100% of income tax for FY 15-16. 6.New Form 35 for Appeal to the Commissioner of Income-tax (Appeals) introduced vide CBDT NOTIFICATION dated 01.03.16. For more News Like us on https://www.facebo

CBDT has said the taxman has not been given any “unfettered“ power and adequate safeguards have been deployed for regulating the provisions aimed to check tax evasion from overseas locations. The Central Board of Direct Taxes (CBDT) expressed hope that the General Anti Avoidance Rules (GAAR) will be implemented from next fiscal. “There is no reason why it shouldn't come (from April 1next year).GAAR provisions are there in several countries.It's not that unfettered powers have been given to our Assessing Officers (of the IT department),“ CBDT chairman Atulesh Jindal said. The Economic Times, New Delhi, 3rd March 2016

Taxing consortium as `association of persons' is seen as a hurdle by foreign investors After a big infrastructure push in the budget, India is likely to clear the air on taxation of consortia, a structure used internationally to implement large infrastructure projects. “We have examined the issue. There is a genuine problem here. We will soon resolve it...We will issue a circular and if need be move an amendment to the law,“ a financial ministry official said. Taxation of consortium as “association of persons“ is seen as a key hindrance by foreign investors keen to partner the country to build its creaky infrastructure after authorities raised tax demands. Not just industry but many countries have also represented against tax of association of persons. High court rulings that have spelt out clear principles to define `association of persons' are likely to form the basis of the proposed clarification. The Narendra Modi-led NDA government has identified infrastructure d

The Employees' Provident Fund Organisation has announced an Incentive Refund Scheme that encourages employers to provide Universal Account Numbers (UAN) to all employees, a step aimed at bringing transparency and accountability to the EPF system. The scheme will enable employers to claim a refund of up to 10% of the administrative charge paid by them in each quarter, provided they qualify for it based on certain criteria.The scheme will be effective from January 1to December 31, 2016, a labour ministry notification said last month. UAN offers easy portability of PF accounts between employers. It also allows members to view their EPF accounts with current and former employers. If a company has provided member account details of 80% of its workforce to the retirement fund body and linked 80% of the accounts to Aadhaar as well as 100% to bank accounts and PAN numbers wherever applicable, it will be eligible for a refund of 10%, provided also that it has given UAN to all the me