Top News
Union Budget 2016 Update: Government turning taxpayer friendly
New Delhi: Terming tax disputes as a scourge of tax-friendly regime, Finance Minister Arun Jaitley, presenting the budget for 2016-17 on Monday, unveiled a new dispute resolution mechanism to minimise litigation.
He also said that Income Tax officials will be responsible for higher interest payout if there was a delay in implementing the orders of Appellate authority.
He said there were around 300,000 tax cases pending with the First Appellate Authority involving a tax dispute of around Rs.550,000 crore.
As per the new dispute resolution mechanism unveiled by Jaitley, a tax payer who has an appeal pending as of Friday before the Commissioner (Appeals) can settle his case by paying the disputed tax and interest up to the date of assessment.
There will be no penalty in respect of income tax cases with a disputed tax up to Rs.10 lakh.
Accoriding to Jaitley, the cases with disputed tax exceeding Rs.10 lakh will be subjected to only 25 percent of the minimum of the imposable penalty for both direct and indirect taxes.
He said any pending appeal against a penalty order can also be settled by paying 25 percent of the minimum of the imposable penalty.
However, certain categories of persons including those charged with criminal offences under specific Acts are proposed to be barred from this scheme.
With special reference to the government’s assurance of not to create retrospectively fresh tax liability, Jaitley reiterated the government’s commitment to provide a stable and predictable taxation regime and not create fresh tax liability retrospectively.
He proposed one-time scheme of dispute resolution for past cases ongoing under retrospective amendment.
One can settle the case by paying only the tax arrears in which case liability of the interest and penalty shall be waived. This is subject to agreeing to withdraw any pending case lying in any Court or Tribunal or any proceeding for arbitration, mediation under Bilateral Investment Protection and Promotion Agreements (BIPA).
Identifying that levy of heavy penalty as a cause for a large number of disputes, Jaitley proposed to modify the scheme of penalty by providing different categories of misdemeanour with graded penalty and thereby substantially reducing the discretionary power of the tax officers.
The penalty rates will now be 50 percent of tax in case of underreporting of income and 200 percent of the tax where there is misreporting of facts. Remission of penalty is also proposed where taxes are paid and appeal is not filed.
Quantification of disallowance of expenditure relatable to exempt income in terms of Section 14A of the Income Tax Act is another issue led to number of disputes. Hence, it has been proposed to rationalize formula in Rule 8D governing such quantification.
Jaitley said the Income Tax department was also issuing instruction making it mandatory for the assessing officer to grant stay of demand once the assessee pays 15 percent of the disputed demand while the appeal is pending before Commissioner of Income Tax (Appeals).
Jaitley also said the government has accepted many of the recommendations of Justice Easwar Committee.
To make the Income Tax officials responsible, Jaitley said the government will pay nine percent interest on where there is a delay in implementing the Appellate orders beyond 90 days.
“The officers who delay it will be accountable for this loss to the government,” Jaitley said.
Top News
Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
Foodman Vishal Singh Honored for Hunger Free World Mission in Bangkok
Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
Cheers and Cheers: Barzilla’s Joyful Ode to Inclusivity and Celebration
Casino Days Reveal Internal Data on Most Popular Smartphones
Meghalaya Reserves Legalized Gambling and Sports Betting for Tourists
IPL 20202 UPDATE: KXIP vs MI IPL Dream11 Team Prediction for Today Match, Update Point Table of all Team.
In a Live debate AAP leader Syed Asad Abbas hurls abuses to BJP spokesperson Nupur Sharma.
‘India’s Most Wanted’ trailer out Arjun Kapoor on hunt of Osama-Bin-Laden
Time to move on: Sonakshi on Shatrughan’s joining Congress
