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CBDT No notice to taxpayers in case of minor I-T return filing mismatch The tax man will no tissue demand notice to tax payers incase there is a minor  mismatch between their income tax return and the corresponding tax credit data. The measure, introduced in  the Financial Bill, is aimed at providing relief to salaried tax payers and ease issues of discrepancies that crop up between the information on Form 16(provided by the employer) andForm26AS (taxcredit statement received by the tax department). The Business Standard, New Delhi, 07th February 2018

Centre´s GST relief to states at Rs  900 billion The Narendra Modi government has budgeted for Rs 900 billion to be paid as compensation to states to make good their losses on account of the goods and services tax (GST) in 201819.This represents a 47 percent increase over the Rs 613 billion it plans to distribute in 2017-18. The compensation comes to 3.6 per cent of the 201819 Budget size of Rs 24.4 trillion. According to the mediumterm fiscal policy statement (part of the Budget documents), the Centre has also projected a compensation cess outlay of Rs 900 billion each for 2019-20 and 2020-21. These however, are provisional projections and will be subject to change in future Budget The compensation cess is levied on high value items like luxury cars and demerit goods such as tobacco.By law, the Centre has to provide compensation to states for their revenue losses on account of the GST for five years.The Budget documents also make it clear that the amount earmarked for the comp

IRFC tax issue resolved Giving a major relief to the Indian Railway Finance Corporation (IRFC), the dedicated market borrowing arm of the railways, the ministry of corporate affairs has exempted it from an accumulated deferred tax liability of Rs 63.92 billion.This will increase the company´s net worth and help IRFC raise additional debt of over Rs 630 billion, Indian Railways said in a statement issued on Tuesday. It will also improve the valuation of the company for its maiden IPO. According to the government, post its exemption from the tax liability, IRFC will not require any equity infusion.IRFC faced a deferred tax liability as its depreciation was greater than its profit. The company did not pay tax under normal assessment and is subject to a minimum alternate tax of 21 per cent.Besides, it had to make a provision for the deferred tax liability at 35 per cent. Thus the company´s books were bearing a total tax provision of 56 per cent. This will now come down to 21 per ce

Sebi, bourses step up guard Market regulator Sebi and stock exchanges beefed up their surveillance mechanism amid a spike in volatility in the market following a rout in the global markets. According to sources, they are also keeping a close tab on market manipulators who might take advantage of the volatile trends expected in the equity and the derivatives segments. Sebi and the exchanges had a discussion on the ongoing sell-off. “As a proactive measure, regulators and exchanges have been monitoring positions across the market and calling for additional margins where required,” said Vikram Limaye, MD & CEO, National Stock Exchange. The Business Standard, New Delhi, 07th February 2018

 Don't misuse I-T laws, pay taxes as rates are already low: CBDT to industry CBDT Chief Sushil Chandra on Monday asked the industry to refrain from misusing provisions of laws to evade taxes, saying the effective tax rate for big companies is already 26 per cent on account of various exemptions. He said the industry should act more responsibly than the salaried class in paying taxes and help build a tax compliant society. "I want to drive home that point very clearly before the industry that you should be more tax compliant, automatically rates will come down. We are ready to move with you for making the society tax compliant. Industry has got much more responsibility than salary earning person," Chandra said while addressing the CII post-Budget meet. The Business Standard, New Delhi, 06th February, 2018 .....

 No Angel Tax on Startups with up to Rs. 10cr Funding Startups incorporated before 2016 that have got up to Rs. 10 crore in angel funding won’t face the so-called angel tax, once changes in the regime are finalised by the Department of Industrial Policy and Promotion (DIPP), which will soon notify the amendment, a senior government official told ET. It will also set up a separate committee for the recognition of such startups so that they get the relief, he said. “We have finalised the conditions which will resolve the issue of pre-2016 startups,” the official said. This will ease the concerns of about 300 startups that received funding from the Angel Investors Network. ET reported on February 5 that DIPP was working to provide relief to startups incorporated before 2016. Startups incorporated after 2016 and recognised under the Startup India policy are spared this tax. “We will have adequate safeguards that would be taken into account when a startup is examined for recognition,”

 CV Sales May Stay in Top Gear for 2 years on GST, Infra Boost Sales of medium and heavy commercial vehicles are set to reach a new high this financial year and continue the growth momentum into next year, with the positive rub-off from the government’s infrastructure push and implementation of GST, as well as strict enforcement of rules against overloading driving demand. Sales of commercial vehicles in the 16-49-tonne category this fiscal year are set to top the record of 245,000 units achieved in 2011-12, industry executives estimate. In construction equipment, sales are expected to cross the 50,000-unit mark for the first time and be as much as 55,000 units, thanks primarily to the rapid pace at which the country is building highways and other infrastructure. Commercial vehicle sales, particularly of higher tonnage trucks, are seen as an indicator of economic activity. The strong showing by the sector and expectations among industry executives for the momentum to continue i