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
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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
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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.
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
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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
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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
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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
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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
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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
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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
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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.
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.
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| www.youtube.com/watch?v=v-jQnv8rL2w |
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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
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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
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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. Anyway, that is past. Let’s look forward to a brighter future
in the hands of indomitable team of Governors. In 1947, one rupee used to fetch
one dollar and let’s hope the time returns. I am confident that, an emotional
connects to nation and financial sensibilities in economic policy framing can
show us again those respectable days.
Present Indian fiscal system is perplexing to all concerned. Government is
collecting revenue through multiple tax legislations. The basic tax concept is
centuries old and had its origin somewhere in Egypt and travelled through Greece
U. K. to India with British. Revenue laws are 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 the country around the
world. We need to have fundamentally something very different from the present
and aptitude to accept out of box thinking.
DOUBLE TAXATION AVOIDANCE AGREEMENTS
To finance the welfare and the administrative expenditure, governments around
the world impose certain taxes on their subjects. The taxation system helps in
collecting revenue besides it also provides direction to the economic growth and
also brings economic equilibrium amongst various classes. In any taxation
system, the residential status of the taxpayer is of crucial significance.
Residential status confirms the jurisdiction and the application of taxation
account abilities.
However, in cases, where cross country economic activity is carried out, it is a
tricky affair to identify and justify the appropriate jurisdiction of tax
authorities. In order to mitigate the hardships of multiple jurisdictions, the
Governments enter into bilateral arrangements, which are commonly denoted as
“Double Taxation Avoidance Agreements” (DTAA). DTAA refers to an accord between
two countries, aiming at elimination of double taxation. These are bilateral
economic agreements wherein the countries concerned assess the sacrifices and
advantages which the treaty brings for each contracting nation. It would promote
exchange of goods, persons, services and investment of capital among such
countries.
Indian Government is actively pushing DTAA negotiations with several countries to help its residents in understanding their tax jurisdictions and accountability towards the appropriate authorities. So far India has signed DTAA with 81 countries and discussion is on with many others. The natures of DTAA’s entered by India are greatly diverse in their nature and contents.
OECD and DTAAs
The first international initiative regarding DTAA was taken by the Organization for Economic Co-operation and Development. OECD presented the first draft of DTAA in ‘Model Tax Convention on Income and on Capital’. DTAA was proposed as a tool of standardization and common solutions for cases of double taxation to the taxpayers who are engaged in industrial, financial or other activities in other countries. The double tax treaties are negotiated under international law and governed by the principles laid down under the Vienna Convention on the Law of Treaties.........click here to read further
Indian Government is actively pushing DTAA negotiations with several countries to help its residents in understanding their tax jurisdictions and accountability towards the appropriate authorities. So far India has signed DTAA with 81 countries and discussion is on with many others. The natures of DTAA’s entered by India are greatly diverse in their nature and contents.
OECD and DTAAs
The first international initiative regarding DTAA was taken by the Organization for Economic Co-operation and Development. OECD presented the first draft of DTAA in ‘Model Tax Convention on Income and on Capital’. DTAA was proposed as a tool of standardization and common solutions for cases of double taxation to the taxpayers who are engaged in industrial, financial or other activities in other countries. The double tax treaties are negotiated under international law and governed by the principles laid down under the Vienna Convention on the Law of Treaties.........click here to read further
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The next General Elections are due in 2014. All political aspirants have already
started working out policies and strategies to approach public for support and
vote. However, it is no longer an easy mission to convince Indian voters to vote
for any party or individual. Television programmes and print media have turned
Indians into a conscious and informed class. Now, people are looking forward
towards strong programmes and policies rather than traditional individuals and
parties. It will be now be very tricky to play sentimental issues for electoral
success.
In this note, we are providing a evocative programme for effectively setting
forth election strategy to the aspiring national players. We are confident, if
an organization adopts policies and programme on the lines suggested herein
below and delivers on promises, nothing can restrain them from winning and
ruling this country for next several decades.
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Rajkot Bench of ITAT in the case of Vineetkumar Raghavjibhai Bhalodia v. Income
tax Officer, Rajkot has discussed the controversial issue of tax ability of
gifts from HUF to its members. The issues taken up were.
1. Whether a gift received from 'relative', irrespective of whether it is from
an individual relative or from a group of relatives is exempt from tax under
provisions of section 56(2)(vi)?
Answer: Held, yes.
Answer: Held, yes.
2. Whether HUF is a group of relatives and therefore, gift received from HUF
would be exempt from tax under section 56(2)(vi)?
Answer: Held, yes
Answer: Held, yes
3. Whether for getting exemption under section 10(2) two conditions are to
be satisfied, firstly, a person must be a member of HUF and secondly he should
receive sum out of income of such HUF, may it be income of earlier year? Answer: Held, yes.........click
here to read further
INTRODUCTION
Copyright is a legal term refers to protecting a creator’s work. It is a type of intellectual property that provides exclusive publication, distribution, and usage rights for the creator. This means whatever content is created cannot be used or published by anyone else without the consent of the creator. The length of copyright protection may differ from country to country, but it usually lasts for the life of the author plus 50 to 100 years.
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INTRODUCTION
Copyright is a legal term refers to protecting a creator’s work. It is a type of intellectual property that provides exclusive publication, distribution, and usage rights for the creator. This means whatever content is created cannot be used or published by anyone else without the consent of the creator. The length of copyright protection may differ from country to country, but it usually lasts for the life of the author plus 50 to 100 years.
Copyright is generally given by the law to creators of literary, dramatic,
musical and artistic works and producers of cinematograph films and sound
recordings. It is a pack of rights including, inter alia, rights of
reproduction, communication to the public, adaptation and translation of the
work. In modern times, copyright protection has been extended to websites and
other online content. This is important in the digital age, since large amounts
of content can be easily copied..........click
here to read further
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With the development of Net Based Technologies along with availability of
advanced software and hardware systems, it has become feasible to systematize
and present the most complex data system in simple formats. This facilitates the
quality of data storage system and also improves the retrieval of the
information efficiently and accurately. Through the application of software
based technologies it has become possible to design and maintain large database
structures and provide user friendly application. These databases can be used
for criteria based queries and also can be supplemented with other technologies
like Biometric Solution etc.
Delhi Police is handling extremely complex and multi dimensional activities. The
operations of Delhi Police are spread over very large area which needs to be
constantly monitored and controlled. In fact, the operation of Delhi Police is
as complex and multifaceted as any top corporate house. The operations just do
not end with crime recording / investigation but also involve the application of
finest management techniques, personal management skills, financial management
acumen, deep knowledge of engineering and medicine sciences .The application of
Information Technology can make many complex and strenuous tasks of Delhi Police
Executives effortless and error free.........click
here to read further
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The term “Raid in Indian Income Tax Law” is incredulous and any unexpected
encounter with IT sleuths generally leads to chaos and vacuity. If you are
likely to experience such action it is better to familiarise with the subject,
so that, the situation can be faced with confidence and serenity. Income Tax
Raid is conducted with the sole objective to unearth tax avoidance. It is the
process which authorizes IT department to search any residential / business
premises, vehicles and bank lockers etc. and seize the accounts, stocks and
valuables.
To face the situation efficiently, it is extremely important to understand some
nitty-gritty of I.T. law on the subject. Lack of knowledge leads to panic and
all the discomfort. The knowledge of your legal rights and responsibilities
always protects you.........click
here to read further
In short the term 'survey' in context of the Income Tax Act means collection of data or information for the purposes of the Act.
Survey is an important weapon in the armoury of the Income Tax Department to call for information of various kinds as may be found necessary for making proper assessments. Survey is mainly conducted with the object of broadening the tax base by discovering new assessees,to gather information about possible tax evasions by assessees, spot checking of available cash and stock and to verify in a surprise and systematic manner, whether or not accounts are maintained properly and on day to day basis etc..........click here to read further
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Survey has not been defined in the Income Tax Act. According to Concise Oxford
Dictionary, The expression "survey" means general view, casting of eyes or mind
over somethings, inspection or investigation of the condition, amount, etc. of
something, account given of result of this etc.
According to Chambers 20th Century Dictionary, the meaning of the word 'survey' is to view comprehensively and extensively, to examine in detail, to examine the structure of a building, to obtain by measurements data for mapping, to perceive, collection of data, an organisation or body of men for that purpose.
According to Chambers 20th Century Dictionary, the meaning of the word 'survey' is to view comprehensively and extensively, to examine in detail, to examine the structure of a building, to obtain by measurements data for mapping, to perceive, collection of data, an organisation or body of men for that purpose.
In short the term 'survey' in context of the Income Tax Act means collection of data or information for the purposes of the Act.
Objects of Survey
Survey is an important weapon in the armoury of the Income Tax Department to call for information of various kinds as may be found necessary for making proper assessments. Survey is mainly conducted with the object of broadening the tax base by discovering new assessees,to gather information about possible tax evasions by assessees, spot checking of available cash and stock and to verify in a surprise and systematic manner, whether or not accounts are maintained properly and on day to day basis etc..........click here to read further
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