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As government turns the heat on black money, number of returns filed jumps substantially The number of people who filed tax returns surged by 95 lakh as the government turned the heat on black money with demonetisation and various other measures, two top government officials told ET. The figure was in a presentation made before Prime Minister Narendra Modi as part of the revenue department's review on Tuesday . “There has been an addition of about 95 lakh new taxpayers,“ said one of the officials aware of the details of the presentation. The government has been looking to widen the tax net as barely a little over 1% of the population is said to pay income tax. As many as 5.28 crore returns were e-filed in FY16, a rise of 22% over the previous year. Some returns were filed in paper mode as well. The income-tax department had launched a crackdown against tax evaders as part of its war against black money . It identified 18 lakh persons who had made bank depo Rs 1,000 and 500

Banks allowed these to take up private placements of equity in rival companies; conflict clause confined to specific sub-sectors To ensure success of its 2017-18 disinvestment target, the government is taking an easier approach towards investment banks participating in public sector undertaking (PSU) share sales. The department of public asset management (Dipam), the government body in charge of divestment, has allowed investment banks with PSU mandates to take up certain types of capital market offerings by rival companies in the private sector. The move comes after some lenders, including Deutsche Bank, raised concerns over the ‘conflict of interest’ clause applicable for the share sale mandate in seven PSUs, including Indian Oil and NTPC. Recently, the government floated a Request for Proposal, inviting i-bankers to manage share sales in these seven entities, in the power, finance, energy and metal segments. Sectoral players say the bankers were keen on applying for the mandate

At a time when fintech players and banks are vying to offer faster services to their customers, reduce paperwork, and move processes online for greater convenience, government bodies like the Employees’ Provident Fund Organisation (EPFO) too have realised that they need to change with the times. The EPFO, which has traditionally been perceived as stodgy, has surprised long-time watchers with its customer-friendly initiatives in recent months. No certificates required for advances Earlier if you wanted a non-refundable advance from your EPF account, you had to produce a certificate to prove your need was genuine.If you needed money for medical treatment, you had to produce a doctor's certificate. If you needed it to finance a child's marriage, you had to submit the wedding card as proof. All such requirements have been done away. "You can withdraw money by just making a self-declaration.This is in line with the central government's policy of relying on people's s

The government said the goods and services tax regime, likely to start in two months, will not increase the compliance burden on trade and industry. “Many people think that implementation of GST would result in increase in compliance cost.This is completely misplaced,“ revenue secretary Hasmukh Adhia told netizens on Facebook. Industry has been apprehensive about GST increasing compliance burden. Adhia said that on the contrary, it would come down because trade and industry won't have to maintain separate books for central excise and value added tax. “With the rollout of GST, there would be a single tax and accounting for this will be very simple. It can be done through an offline excel form provided by GST Network. If someone uses this form for keeping records of purchase and sales, then he can use this for filing returns. Thus, compliance would be minimised,“ he said. Adhia, who is spearheading the implementation of GST, said the finance ministry is gearing up for the rollo

Retail small and mediumsized enterprises (SMEs) have builtacase for deferment of implementation of the goods and services tax (GST) to September 1 on account of complexities involved to comply with the new setup.Agroup of retail businesses, including Max Standard Retail, SRS Group and VMart Retail, has written a letter to Finance Minister and Chairman of the GST Council Arun Jaitley to extend the GST deadline, which has now been set at July 1. The retailers sought extension, along with clarification for the industry, to absorb the change, the representation made to the finance minister said.Earlier, traders´ association, the Confederation of All India Traders, also pitched delaying the roll-out of the GST regime to September 1, as small businesses are not yet ready for it. Business Standard New Delhi, 02nd May 2017

The budget session of Parliament is likely to begin on January 31, advancing it by over three weeks, the cabinet committee on parliamentary affairs decided on  Tuesday. Finance minister Arun Jaitley will present the combined Union budget – including allocations for the railways and ending a 92-year-old tradition of presenting a separate railway budget – on February 1. Jaitley was present at the meeting also attended by home minister Rajnath Singh, parliamentary affairs minister Ananth Kumar and external affairs minister Sushma Swaraj. Officials expect the move will allow for earlier allocation of funds for government schemes and projects and lead to their better implementation on the ground. In the past, funds were usually not allotted from the beginning of the financial year on April 1, creating a backlog and choking funds. Though the budget was presented in February, several tax proposals kick-in only from June after Parliament passes the annual finance bill in May. A gro

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