CA Online

India has notified the revised double tax avoidance agreement with South Korea under which capital gains tax will be levied at the source with effect from April 1, 2017. The changes are in line with the amendment to the India-Mauritius double taxation avoidance convention. The existing DTAA between India and Korea has been in effect for three decades and provides for residencebased taxation of capital gains on shares, which means taxes were to be paid where the investor was a resident. “The revised DTAA aims to avoid the burden of double taxation for taxpayers of two countries in order to promote and stimulate flow of investment, technology and services between India and Korea,“ a CBDT statement said. It provides for exchange of information. E conomic Times New Delhi,27th October 2016

To draw the right lessons from the largest ever leak of debit and credit card data from several Indian banks that happened last week, the Aadhaar authorities feel it is time to integrate the same with bank account numbers. Ajay Bhushan Pandey, director-general of Unique Identification Authority of India (UIDAI), says the Aadhaar authentication protocol can be overlaid on the card systems. Talking with Business Standard , he said it would mean every time a person swipes her debit card on relatively insecure points such as automated teller machines (ATMs), she will be prompted to provide the Aadhaar number along with her PIN provided by the bank. The two will act as double verification for her. Pandey said he would discuss this option with the finance ministry. The ministry will have to engage in talks with the National Payments Corporation of India and the Reserve Bank of India (RBI), subsequently. Right now, while banks do insist on Aadhaar number for opening of savings accounts,

Around 7.8 million new assessees started filing income tax returns between assessment years 2012-13 and 2014-15, pushing up the total number of filers to 39.13 million. According to the Income Tax Return Statistics released by the Central Board of Direct Taxes, 31.2 million assessees filed returns in the assessment year 2012-13, which rose to 36 million in 2013-14 and 39.13 million the following year. Most of these were individuals but there were also Hindu Undivided Family entities, firms, associations of persons, companies, limited liability partnerships, trusts, etc. There were 7.5 million more individual filers in 2014-15 than two years ago. As many as 28.9 million individuals filed I-T returns during AY 2012-13, which went up to 33.5 million in AY 2013-14 and further to 36.5 million in AY 2014-15. Of the 36.5 million individuals who filed returns in AY 2014-15, 19.5 million individuals have shown nil salary income. The remaining 17 million individuals showed cumulative sal

The Income Tax(I-T) Department has unearthed cases of tax evasion worth about Rs.38,000 crore involving around 1,000 entities,and has issued notices to 147 individuals, a senior official of the I-T department said. The amount has been arrived at through investigation of cases of stock manipulation in the past two years,the official added. Most of the individual shail from Mumbai,Kolkata, Ahmedabad,Surat,and Delhi,officialssaid.These cities account for most of the trading volumes in the cash segment of the stock market. Prosecution against these entities,who face penalty at the rate of 200 percent on the evaded tax,will start soon, said the official.However,some of the entities involved had declared unaccounted wealth in the central government’s recently concluded Income Declaration Scheme and will get immunity as a result. To evade tax,some entities claimed long-term capital gains by showing a fake back-dated purchase of shares at lower prices,explained at a tax officer. Bu

The tax department on Tuesday came out with draft rules for valuation of assets of charitable institutions for taxation after they convert in to non-charitable entities. The draft norms,on which the Central Board of Direct Taxes has sought comments by October 31,prescribed if ferent methods for computing the aggregate fair market value of total asset softrusts and charitable institutions.The Finance Act,2016,added a new chapter in the Income Tax Act, specifying provisions relating to levy of additional income tax where charitable institutions exempt under the Act cease to exist as charitable organisations or convert intonon-charitable entities. Business Standard New Delhi,26th October 2016

Asserting that the government is determined to implement the goods and services tax (GST)from FY18,Economic Affairs Secretary Shaktikanta Dason Tuesday expressed confidence that the revenue neutralrate structure will be decided next month.“The rate structure on which there is alot of discussion going on at the moment with the GST Council and also in the public domain... will get resolved in the next meeting of GST Council in the first week of November. May be,one or two sittings,it should come to a conclusion,”Das said at an Assocham event in the Capital.Dismissing criticism,he said the rate structure has been prepared, based on “a very practical basis”. Business Standard New Delhi,26th October 2016

The finance ministry is examining the possibility of cutting the corporation tax rate by one to two percentage points, even as the revenue department is set to kickstart Budget consultations with industry and consultants from the first week of November. The ministry’s thinking is part of bringing down the corporation tax rate to 25 per cent by the end of 2018-19, from 30 per cent at present.  An official said the government could look at an across-the-board one to two percentage point reduction in corporation tax rate, from 30 per cent next year, based on the phasing-out of exemptions.  Finance Minister Arun Jaitley had, in 2015-16, promised a reduction in corporation tax rate to 25 per cent by 2019. Towards that, it has laid down the road map to simultaneously phase out exemptions given to the corporate sector to reduce the tax rate, simplify administration, and improve India’s competitive edge globally. Corporation tax is 30 per cent, but it is effectively 23 per cent due to many ex