Budget 2023 Overview
The Budget 2023 presented on 1st February 2023, indicates an extremely cautious approach of the Finance Minister, Ms. Nirmala Sitharaman’s towards balancing this critical phase of Indian economy.
Indian economy is facing multifaceted challenges due to soaring inflation and
interest rates, post covid unemployment, rising debt burden &interest payments,
international oil prices, growing borrowings, border tensions, falling rupee
value, ethnic disturbances, frequent elections, deficit on current and capital
account, corruption, banking frauds, black money, international uncertainties,
internal law and order disturbances and high growth {GDP} expectations from
fiscal governance. Further, the issues have become more complex due to lack of
adaptiveness of contemporary and unconventional fiscal tools available within
the country for additional non- tax resource mobilisation. In these
circumstances, our finance minister can definitely be excused for playing safe
in her position...........................click
here to read further
Are Income Tax Raids Truly Treacherous & Terrifying?
Through this article, I intend to share my professional experience with regards to one of the most draconian and terrifying subject, commonly mentioned as income tax raids. In legislation, this word is referred as search and seizure. I am sure many of you have passed through this traumatic experience and some of you may be expecting this due to your appreciative business success and admirable financial acquisitions and achievements. If you think it is inevitable at some time in future, please do organise yourself so that, it’s not a surprise and you sail through smoothly. Although this can be discussed in details but for the sake of general over view, I will just share a few tips to familiarise you with the subject.. .................click here to read further
Case Laws - Benami Property
Dy. Commissioner of Income Tax vs M/s. Manpreet Estates LLP 26th
March, 2019 Appellate Tribunal Smt. P. Leelavathi (D) by LRS Vs V.
Shankarnarayana Rao (D) on 09 April, 2019 Supreme Court
.................click
here to read further
FAQ's on Filing of MCA Form DPT-3
With Companies (Acceptance of Deposits), Amendment Rules, 2019, MCA introduced Form DPT-3 which mandates Filing of Details of Loan with ROC. Language of Companies (Acceptance of Deposits) Amendment Rules, 2019: Sub Rule 3 of Rule 16A : Every company other than Government company shall file a onetime return of outstanding receipt of money or loan by a company but not considered as deposits, in terms of clause (c) of sub-rule 1 of rule 2 from the 01st April, 2014 to the date of publication of this notification in the Official Gazette, as specified in Form DPT-3 within ninety days from the date of said publication of this notification along with fee as provided in the Companies (Registration Offices and Fees) Rules, 2014.”. .................click here to read further
Protect Your Software Rights
(Trademark / Patent / Copyright)
Software Patent Registration
Creators and inventors of software products have always strived to protect their intellectual property rights and obtain patent registration for software products. The rapid growth of the internet and fast increasing competition has further increased the demand for software patents in India. However, patenting of software was not allowed for a long time in India, due to restrictions in the patent laws of India. But to cope up with the demand, boost innovation and safeguard the rights of inventors, the Indian Patent Office has evolved detailed guidelines for patenting Computer Related Inventions (CRIs). In this article, we look at patentability of software and Computer Related Inventions in detail.................click here to read further
------------------------------------------------------------
Buying A Property In Bank Auction
The traditional channels of searching real estate listings and working with real estate agents aren't the only ways to acquire a property. Experienced real estate investors often purchase properties at auctions. But auctions aren't limited to professionals; novices have purchased their homes at auctions, too.
How Do Properties End Up at Auction?
The two main types of property auctions are foreclosure auctions and tax lien auctions. Before a property reaches this stage, several things have to happen.
First, the homeowner has to have not paid the mortgage for several months. Then, the bank files a notice of default with the county recorder. If the homeowner doesn't pay the balance owed or renegotiate the mortgage with the lender, the home can be put up for auction. The amount of time it takes from when the homeowner stops paying the mortgage to when the home ends up at auction varies, but can be anywhere from a few months to a year or more...................click here to read further
------------------------------------------------------------
Double Taxation Avoidance Pact With Hong Kong
AGREEMENT BETWEEN THE GOVERNMENT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF INDIA
FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
The Government of the Hong Kong Special Administrative Region of the People’s Republic of China and the Government of the Republic of India, desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows:..............click here to read further
------------------------------------------------------------
Salary To Non Resident Director
TAXABILITY OF SALARY PAID TO NON RESIDENT
Scope of Total Income - Section 5(2) of Income Tax Act
Subject to the provisions of this Act, the total income of any previous year
of a person who is a non-resident includes all income from whatever source
derived which—
(a) is received or is deemed to be received in India in such year by or on
behalf of such person ; or
(b) accrues or arises or is deemed to accrue or arise to him in India during
such year.
Explanation 1.— Income accruing or arising outside India shall not be deemed
to be received in India within the meaning of this section by reason only of
the fact that it is taken into account in a balance sheet prepared in India..............click
here to read further
------------------------------------------------------------
Audit Under CGST Act, 2017
According to Section 2(13) of the CGST Act, 2017 “Audit” means the
examination of records, returns and other documents maintained or furnished
by the registered person under the GST Acts or the rules made there under or
under any other law for the time being in force to verify the correctness of
turnover declared, taxes paid, refund claimed and input tax credit availed,
and to assess his compliance with the provisions of the GST Acts or the
rules made thereunder..............click
here to read further
----------------------------------------------------------------
Settlement Commission
Income Tax Settlement Commission is a premier Alternative Dispute Resolution (ADR) body in India. Its mandate is to resolve tax disputes in respect of Indian Income Tax & Wealth Tax Laws between the two disputing parties, Income Tax Department on one side and litigating tax payer on the other.
This institution was set up in 1976 by the Central Government on the recommendations of the Direct Taxes Enquiry Committee (1971) set up under the Chairmanship of Justice K.N. Wanchoo, the retired Chief Justice of the Supreme Court of India. The Wanchoo Committee had conceived of the Settlement Commission as a mechanism to allow a one-time tax evader or an unintending defaulter to make clean breast of his affairs. At present, there are Seven benches of the Commission located at New Delhi, Mumbai, Kolkata and Chennai............click here to read further
------------------------------------------------------------
Pakistan PM Announces Tax Amnesty Scheme
Prime Minister Shahid Khaqan Abbasi, after a meeting of the Economic Advisory Council, announced tax reforms aimed at clamping down on tax evaders. Building his case for the government's new package, the prime minister noted that only 1.2 million Pakistanis file income tax returns. He further noted that of the 1.2m filers, only 700,000 actually paid tax, while others filed returns but paid no income tax. Presenting his package as an incentive for more people to enter the tax net, PM Abbasi stressed that he felt this to be the most optimum way to maximise the government's revenues keeping in mind the significant challenges it faces..........click here to read further
------------------------------------------------------------
Samosa is Cooked
Food
Judgment ( 09-03-2018 ) by Uttarakhand High Court
The Uttarakhand High Court has ruled that samosa is considered to be cooked food, hence it would attract higher tax rate. In the instant case Assessee is running shop and engaged in the activity of selling sweets, namkeen, samosa, milk and curd etc. and he has filed his return of income for the relevant assessment year and declared his taxable income at Rs.50,720 on the basis of the total turnover of Rs.11,55,900. During the course of assessment proceedings, the Assessing Officer (AO) recomputed the income of the Assessee and declared his total income at Rs.13,66,400 while completing the assessment..........click here to read further
------------------------------------------------------------
Hon’ble F. M. Arun Jaitley – Budget 2018
CA Anil Kumar Jain
Once again the Finance Minister of India has gone through the ritualistic Annual Budget exercise on 1st of February, 2018. As, this is the last functional financial budget in the present tenure of this BJP Government, Economic and Financial wizards around the world were holding their breath in the expectation of some far-fetched fiscal announcements on this day.
There was also a feeling that, the budget documents will be election driven. So far, international investors and Indian industry has shown its stout confidence, conviction and admiration in the leadership of this regime. Pragmatic decisiveness on demonetarization and tax reforms also raised optimism for incredible proclamations through budget documents 2018.
Although, it will be hasty and unreasonable to judge and conclude the far reaching implications and affects of this presentation, but apparently it appears that, a lot is missing …………….. an opportunity is lost……… fiscal issues are inadequately balanced………common person is somewhat confused on his choice of …………!!!
In the juggleries of financial politics and democratic limitations, we as a nation are the worst victim of appeasement practices and policies. It is distressing to say that, “the illiterate farming community and allied classes of Indian Diaspora, which supersede in electoral numbers have restrained our finest leadership from dynamic fiscal decisions in the interest of nation as a whole”.
If India has to stand in the frontline, we have to compulsorily grow consistently at least 12% plus rate for next three to five years. Revenue from direct and indirect taxes can by no means fulfill the necessities of the nation. Steel, Power, Transport, Industries are the backbone of growth cycle. Massive capital investment is required in Infrastructure, education and health sector. There is no answer for all this in budget documents.
On multiple occasions it is governmentally acknowledged that, abundant financial resources are held / parked by our own fellow Indians outside India. In the interest of the Nation, the Hon’ble Finance Minster should not be shy in acknowledging this reality of the economics. The issue is, “why can’t, we find a respectable mutually acceptable solution so that, these staggering funds can voluntarily flow back to country and contribute in our economic growth”. I once again accentuate that, tax revenue can, on no account meet the resource needs of India.
Besides, it is also noteworthy that, good intent, announcements
and allocations of Finance Minster are not getting to the last
point. The administrative machinery is extremely enervated and
inefficient. Historically, there appears to be lack of
synchronisation and harmonisation amongst Ministry of Finance,
Commerce, Law, Reserve bank of India, Judiciary etc. The Hon’ble
Prime Minister must find a way out so that, there is conceptual
understanding of action from conceivement to execution.
In his budget documents, additional tax collection provisions through increase in direct taxes may not be purposeful. Capital gain tax may negatively impact the sentiments of capital market. In nutshell, economic sentiments can be better managed through greater dependence on indirect taxes rather than direct taxes. Some of the penal provisions introduced in Direct Taxes appear to be too harsh and impractical. Being our representative on national mission, we expect our Finance Minister to be a friend and a philosopher in his approach while drafting his budget proposals. We are sure he will have a relook at some of the penal provisions in Budget Documents. Besides, it is worth mentioning that, the present rates of individual and corporate taxes are still very high as compared to other progressive nations. Higher rates can definitely be justified only in the circumstances where social security scheme and other welfare programmes are effectively serving every citizen of the country.........click here to read further
------------------------------------------------------------
Shell, Dormant & Defunct
Companies
SHELL COMPANIES
What are shell companies?
The Companies Act, 2013 has not defined what a ‘shell company’ is and as to what kind of activities would lead to a company being termed a ‘shell’. Shell companies are typically corporate entities which do not have any active business operations or significant assets in their possession. The government views them with suspicion as some of them could be used for money laundering, tax evasion and other illegal activities.
Is there a law governing shell companies?
In India, there is no specific law relating to “shell companies.” However,
some laws help, to an extent, in curbing illegal activities such as money
laundering and can indirectly be used to target shell companies — Benami
Transaction (Prohibition) Amendment Act 2016; The Prevention of Money
Laundering Act 2002 and The Companies Act, 2013........click
here to read further
------------------------------------------------------------
Key Features of Budget 2017 - 18
INTRODUCTION
1. In the last two and half years administration has moved from
discretionary, favouritism based to system and transparency based.
2. Inflation brought under control. CPI-based inflation declined from 6% in
July 2016 to 3.4% in December, 2016.
3. Economy has moved on a high growth path. India’s Current Account Deficit declined from about 1% of GDP last year to 0.3% of GDP in the first half of 2016-17. FDI grew 36% in H1 2016-17 over H1 2015-16, despite 5% reduction in global FDI inflows. Foreign exchange reserves have reached 361 billion US Dollars as on 20th January, 2017.
4. War against black money launched.
5. Government continued on path of fiscal consolidation, without
compromising on........click
here to read further
------------------------------------------------------------
Place of effective Management
CLARIFICATORY CIRCULAR BY GOVERNMENT OF INDIA
Circular No. 06 of 2017 / F. No. 142/11/2015-TPL / Government of India /
Ministry of Finance / Department of Revenue / Central Board of Direct Taxes /
Dated: 24th January, 2017
Section 6(3) of the Income-tax Act, 1961 (the Act), prior to its amendment by the Finance Act, 2015, provided that a company is said to be resident in India in any previous year, if it is an Indian company or if during that year, the control and management of its affairs is situated wholly in India. This allowed tax avoidance opportunities for companies to artificially escape the residential status under these provisions by shifting insignificant or isolated events related with control and management outside India. To address these concerns, the existing provisions of section 6(3) of the Act were amended vide Finance Act, 2015, with effect from 1st April,2016 to provide that........click here to read further
------------------------------------------------------------
FUTURE CURRENCY : DIGITALISED BITCOIN
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros they’re produced by running computers using software. It is a crypto-currency. Bitcoin is designed around the idea of using cryptography to control the creation and transfer of money, rather than relying on central authorities. The first Bitcoin concept was published in 2009 by Satoshi Nakamoto. However, Satoshi left the project in late 2010 without revealing much about himself. The community has since grown manifolds........click here to read further
------------------------------------------------------------
ASSET DISPOSAL - GOVERNMENT E-COMMERCE PLATFORM CAN SAVE BILLIONS
NEED FOR E- COMMERCE PLATFORM
General lack of transparency and inefficiencies in the handling and disposal of the seized, confiscated, obsolete, surplus, unused assets has time and again created embarrassing situation for the government’s functionaries. Non - standardized assets disposal policies have also resulted into enormous financial losses, bribery, bungling, corruption and crime in this sector.
1. GENERATION OF DISPOSABLE ASSETS
High value disposable assets in considerable quantum are regularly generated by all Government departments, financial institution, banks, public sector organization, local bodies etc. Besides, revenue departments like Income Tax, Customs, VAT, Excise regularly seize / confiscate valuable assets in course of raids or at the time of recovering their dues. NPA accounts are also generating disposal assets in the hands of government ........click here to read further
------------------------------------------------------------
REVIEW AND HIGHLIGHTS - BUDGET 2016
ANALYSIS: The 2016 Budget of the Narendra Modi Government, which was
delivered on 29th February, was eagerly awaited. With increasing
criticism of the perceived gap between promises made and action taken on
the ground, this Budget was the key opportunity to regain lost ground
and accelerate the process of converting the ‘Make in India’ dream into
a reality. Indeed, there was little in the run-up to the Budget that
generated cheer or optimism. The data from the manufacturing, banking,
and real estate sectors were depressing. The ill-timed notice from the
Indian tax department of over Rs. 14,000 crore to Vodafone two weeks ago
seriously cast doubts on whether the Prime Minister’s Office and the
Finance Ministry were pursuing a common agenda of making India an
investment-friendly destination. The only large silver lining on the
dark economic cloud was the drastic fall in oil prices.............click
here to read further
------------------------------------------------------------
"STARTUP INDIA" A Step Forward in Right Direction
STARTUP INDIA is a flagship initiative of the Government of India,
intended to build a strong eco-system for nurturing innovation and
Startups in the country that will drive sustainable economic growth and
generate large scale employment opportunities. The Government through
this initiative aims to empower Startups to grow through innovation and
design. In order to meet the objectives of the initiative, Government of
India is announcing this Action Plan that addresses all aspects of the
Startup ecosystem.........click
here to read further
------------------------------------------------------------
INDIAN GOVERNMENT OPENS COMPLIANCE WINDOW FOR BLACK MONEY DISCLOSURE
SCHEME OPEN UPTO SEPT. 30, 2015
Those assessee with any undeclared overseas income or assets will have a 3 month window to come clean beginning on July 1, 2015 and a further 3 months to deposit the appropriate tax and penalty till Dec 31, 2015. Ministry of Finance, Government of India has announced details of a compliance window to curb black money. Central government has notified on 30th September, 2015, as the date on or before which a person can make a declaration in respect of an undisclosed asset located outside India. The last date for depositing tax is December 31, 2015........click here to read further
------------------------------------------------------------
HIGHLIGHTS UNDISCLOSED FOREIGN INCOME & ASSETS BILL, 2015 INTRODUCED
IN LOK SABHA ON 20TH, MARCH 2015
The Finance Minister, in his budget speech, while acknowledging the
limitations under the existing law, had conveyed the considered
decision of the Government to enact a comprehensive new law on black
money to specifically deal with black money stashed away abroad. He
also promised to introduce the new Bill in the current Session of
the Parliament.
In order to fulfil the commitment made by the Government to the people of India through the Parliament, the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 has been introduced in the Parliament on 20.03.2015. The Bill provides for separate taxation of any undisclosed income in relation to foreign income and assets. Such income will henceforth not be taxed under the Income-tax Act but under the stringent provisions of the proposed........click here to read further
------------------------------------------------------------
A few years back, when the world was looking at us with high expectation
of growth and stability, the apathetic fiscal management severely dented
the Indian economic system. The erstwhile Indian Government failed to
appreciate the ground rules and requirements of a growing Indian
economy. When Indian corporate was looking at world map for their next
destination, some over-enthusiastic Economists did everything possible
to rattle the aspiration, ambition and dignity of the entrepreneurs and
their enterprise. Why did they do it? This is a question for everyone.
Anyway, that is past. India has to come back and cover the losses of
sixty seven years. In 1947, one rupee was giving us one dollar and today
we have to pay almost sixty rupees for a dollar. As a person of basic
virtues, I am more than confident that, an emotional connect to country
and little financial sensibilities in economic policy framing can
progressively take us back to 1917. I am sure, our new PM will show us
again, those respectable days.
Although, Mr. Modi has the best of the technology and talent around him
to coordinate his plans and proposal, with all the humbleness, I would
like to mention some suggestive ideas for the desired upgradation of
Indian Fiscal System.
 |
| www.youtube.com/watch?v=v-jQnv8rL2w |
It is foremost important that the fiscal system should not be draconian, excruciating and compelling. It should be appeasable and amenable. Present Indian fiscal system is not only perplexing but also mystifying for a common person. In existing format, Government is collecting revenue through multiple and multilevel tax legislation. The basic concept of Indian tax laws is centuries old and had its origin somewhere in Egypt. It is written in thousands of pages and most seasoned tax professional are often found totally befuddled in their interpretation and application. That is why the end result is recent cases of Nokia and Vodaphone. These two cases have disgraced and embarrassed the country around the world. We need to have fundamentally something very different from the present........click here to read further
------------------------------------------------------------
INTRODUCTION
Railway Minister Shri D. V. Sadananda Gowda, in his 2014 Budget Speech has mentioned, “in the last 10 years, 99 New Line projects worth` 60,000 crore were sanctioned out of which only one project is complete till date. In fact, there are 4 projects that are as old as 30 years, but are still not complete.” The principal reason attributed by the Hon’ble Minister for the dismal performance is lack of availability of adequate financial resources. The Hon’ble Minister has further announced some new projects. But the big question is how the Railways will fund these schemes.
Traditional funding sources have already been exploited to their optimum level. Now the Railway Board has to look for some unconventional sources to fund the operational and developmental projects.….. including Prime Minister, Narendra Modi’s Bullet Train. If, the authorities involved in the process look beyond their centuries old rule book…….solutions are not far from reach. To be more precise, the freely available Railway Real Estate assets have the required potential to generate enormous surplus to meet its financial needs and also to strengthen the Railways Balance Sheet to the envy of any successful corporate in the world. India has at least 500 - 700 major Railway Stations Real Estates assets, which can be developed for augmenting Railway revenue. Each of the Railway Station occupies sizable land. This station land over the platforms and adjoining Railway lines can be easily monetized. A multi-story multipurpose complex can be constructed without disturbing the regular functioning and movement, over the Railway platforms. This real estate can be easily marketed to generate capital and revenue profits. The monetary valuations of these properties can run into astronomical figures. Keeping in view the size of the city, a multistory complex can be erected over any railway stations. The construction can be done on BOT basis or contract basis etc. depending on various factors. The research data suggests, the space available can be easily marketed as the railway stations are always city centers and enjoy tremendous locational advantages.........click here to read further
------------------------------------------------------------
The final Budget for the year is on the floor and will be shortly enacted to rule the country. This time, the expectations from Budget were extremely high but for the reasons best known to the Budget Makers, much has been left to be addressed in future. Whatever may be the reasons for going cautious, if India has to progress and survive in this competitive world and amongst aggressively progressing neighbouring countries, then some out of the box thinking, dynamic decision making and fearless actions are the only choices. We hope to look forward an aggressive Indian regime determined to put India on self sustaining growth course of over 10%. May be by 15th August our Hon’ble Prime Minister Mr. Narendra Modi will chalk out his new economic and development programme and unfurl the same with the flag of the nation.
Various Budget provisions have been comprehensively summarized herein
below. We note from the detailed budget document that, with regards to
Income Tax budget proposals several changes have been proposed which will
have far reaching impact on the economy and business. These subtle changes
although very important have not become the headlines of any media.
Particularly changes about advance against assets, survey / search rules,
charitable institutions, long term capital gains, dividend distribution
tax, debt based mutual funds, investment allowance, institutions governed
by section 35, overseas borrowing and divided, transfer pricing, FII
income clarifications, MAT, TDS, anonymous donation, presumptive taxation
u/s 44AE, commodity transaction tax, compulsory acquisitions, speculative
gains, asset valuations, loan transactions u/s 269SS, attachment of
property etc. must be studied meticulously.
The Current Economic Situation And The Challenges
-
Decisive vote for change represents the desire of the people to grow, free themselves from the curse of poverty and use the opportunity provided by the society. Country in no mood to suffer unemployment, inadequate basic amenities, lack of infrastructure and apathetic governance .........click here to read further
