Authorization of Pvt Ltd Banks for Disbursement of Pension to Defence Pensioner
In pursuance of Reserve Bank of India's decision on the subject, the following private Sector Banks have been authorised for disbursement of disbursement of pension to Defence pensioners:- (a)HDFC Bank Ltd
(b)UTI Bank Ltd
(c)IDBI Bank Ltd
(d)ICICI Bank Ltd
Exemption of Income Tax on iberalised Family Pension
A case was initiated by PS Dte for exemption of income tax on Liberalised Family Pension in the year 2002. After concerned efforts a Gazette Notification has been issued wef 09 Feb 2005 for exemption of Liberalised Family Pension from the income for purposes of exemption of income tax if death of the member of armed forces (including Para Military Forces) has occurred under following circumstances in the course of the military operation and duties. (a)Acts if violence or kidnapping or attacks by terrorists or anti-social elements.
(b)Action against extremists or anti-social elements
(c)Enemy action in international war
(d)Action during deployment with a peace keeping mission abroad
(e)Border skirmishes
(f)Laying or clearance of mines including enemy mines as also mine sweeping operation
(g)Explosions of mines while laying operationally oriented mine-fields or lifting ornegotiation of mine-field laid by the enemy or own forces in operational areas nearinternational borders or the line of control
(h)In the aid of civil power in dealing with natural calamities and rescue operations
(j)In the aid of civil power in quelling agitation or riots or revolts by demonstrators
NRI Pension- Not to be Stopped on Change of Nationality
A large number of representations were being received from Ex-servicemen Association/ NRIs regarding stoppage of pension of Ex-Servicemen on their acquiring foreign nationality. However, in case of civil pensioners change in citizenship by any NRI pensioners did not affect their entitlement. A case was taken up with the office of PCDA(P), Allahabad and office of CGDA, New Delhi in 2003 for bringing the Armed Forces pensioner at par with civilian pensioners. Govt letter has been issued providing that even in the case of Armed Forces Pensioners the entitlement of pension will remain unaffected on the change of nationality and pension will continue to be paid by his/her pension disbursing agency. However, the pensioner should intimate the change of nationality as per the provision to the Pension Disbursing Agency as well as to the PCDA (Pension), Allahabad for updation of their records.
Eligibility of Unmarried Daughters of Armed Forces Personnel for Grant of Family Pension beyond 25 years of age
The Ministry of Defence vide their letter No. 1(3)2007/-D(Pen/Policy) dated 25 Oct 2007 have issued instructions regarding grant of family pension to unmarried daughters beyond the age of 25 years at par with widowed/divorced daughters subject to their income from all sources not exceeding Rs 2550/-pm.
Col H N Handa (Retd)
President Diwave
Disabled war Veterans
Click here to read more Useful information for the Veterans
Showing posts with label Income Tax India. Show all posts
Showing posts with label Income Tax India. Show all posts
Saturday, August 27, 2011
Sunday, December 5, 2010
Is PAN necessary for senior citizens without taxable income?
Tax Forum: Questions & Answers
PAN: ordeal for taxpayers
QUESTION: I am writing this provoked by your answer titled “Is PAN necessary for senior citizens without taxable income?” in The Hindu, Kochi Edition dated September 27, 2010.
I shall elaborate with a live example. My mother, a widow, aged 82, is drawing a family pension averaging Rs.85,000 annually. Recently, due to pay revision based on one-rank-one-pension as per the rules of the Kerala State, she received arrears of pension in one lump sum in March 2010 covering past four years.
On availing benefit of spreadover under Sec. 89, her total income for the years did not exceed the income tax exemption limit. Since she did not have a PAN (Permanent Account Number) number, State Bank of India, through which her pension is being disbursed, promptly deducted income tax during the last week of March 2010. She had no time either for applying for PAN nor did she have any intimation to the effect that TDS was being deducted. By the time she obtained her PAN number, deduction was already made and the TAN return was submitted by the bank without inserting PAN. When she went to submit her income tax return before July 31, the income tax authorities declined to accept the return for want of PAN. Now after obtaining PAN, the return has been accepted. Since the bank had already furnished its return without the PAN number, in all probability, the refund claim will not get any matching entry with the income tax authorities. What will be the plight of these elderly citizens, who for no fault of theirs, are penalised due purely to the proverbial red tapism and ways of bureaucracy. There will be scores of such people whose little income like interest on deposits and their hard earned pension, have been subjected to such TDS without giving them sufficient time to get PAN number, which is practically of no utility for them other than avoiding TDS.
ANSWER: The ordeal of taxpayers relating to the requirement of PAN in the above letter is aired by the reader, Gerard K. John, retired Assistant General Manager of State Bank of India, Kochi, in respect of his mother's case.
The difficulties as stated above cannot possibly be avoided for one reason or the other, but the situation can be remedied by expediting refund by setting right AS 22 at the earliest opportunity on the basis of PAN details subsequently received.
S. RAJARATNAM
PAN: ordeal for taxpayers
PAN: ordeal for taxpayers
QUESTION: I am writing this provoked by your answer titled “Is PAN necessary for senior citizens without taxable income?” in The Hindu, Kochi Edition dated September 27, 2010.
I shall elaborate with a live example. My mother, a widow, aged 82, is drawing a family pension averaging Rs.85,000 annually. Recently, due to pay revision based on one-rank-one-pension as per the rules of the Kerala State, she received arrears of pension in one lump sum in March 2010 covering past four years.
On availing benefit of spreadover under Sec. 89, her total income for the years did not exceed the income tax exemption limit. Since she did not have a PAN (Permanent Account Number) number, State Bank of India, through which her pension is being disbursed, promptly deducted income tax during the last week of March 2010. She had no time either for applying for PAN nor did she have any intimation to the effect that TDS was being deducted. By the time she obtained her PAN number, deduction was already made and the TAN return was submitted by the bank without inserting PAN. When she went to submit her income tax return before July 31, the income tax authorities declined to accept the return for want of PAN. Now after obtaining PAN, the return has been accepted. Since the bank had already furnished its return without the PAN number, in all probability, the refund claim will not get any matching entry with the income tax authorities. What will be the plight of these elderly citizens, who for no fault of theirs, are penalised due purely to the proverbial red tapism and ways of bureaucracy. There will be scores of such people whose little income like interest on deposits and their hard earned pension, have been subjected to such TDS without giving them sufficient time to get PAN number, which is practically of no utility for them other than avoiding TDS.
ANSWER: The ordeal of taxpayers relating to the requirement of PAN in the above letter is aired by the reader, Gerard K. John, retired Assistant General Manager of State Bank of India, Kochi, in respect of his mother's case.
The difficulties as stated above cannot possibly be avoided for one reason or the other, but the situation can be remedied by expediting refund by setting right AS 22 at the earliest opportunity on the basis of PAN details subsequently received.
S. RAJARATNAM
PAN: ordeal for taxpayers
Wednesday, October 6, 2010
Sanction of Additional Pension for Pre 2006- 80 years and above
Age Proof
The matter of sanction of additional pension/family pension by acceptance of age proof/date of birth certificate by Heads of Offices was considered by Department of Pension and Pensioner's welfare.
The Department has now decided that where the pensioner/family pensioner has submitted any of the prescribed documents as proof of age/date of birth etc., payment of additional pension shall continue on provisional basis for a period of six months from date of submitting proof of age or upto 31.12.2010 whichever is later.
In cases where the Pension is claimed on the basis of some other documents, such cases shall be submitted to the concerned Ministry who shall make final decision.
For further details see the Department's O.M. No.38/37/08/P&PW(A) dated 28.09.2010.
Sanction of Addl pension based on age proof certificates for pre 2006 pensioners
The matter of sanction of additional pension/family pension by acceptance of age proof/date of birth certificate by Heads of Offices was considered by Department of Pension and Pensioner's welfare.
The Department has now decided that where the pensioner/family pensioner has submitted any of the prescribed documents as proof of age/date of birth etc., payment of additional pension shall continue on provisional basis for a period of six months from date of submitting proof of age or upto 31.12.2010 whichever is later.
In cases where the Pension is claimed on the basis of some other documents, such cases shall be submitted to the concerned Ministry who shall make final decision.
For further details see the Department's O.M. No.38/37/08/P&PW(A) dated 28.09.2010.
Sanction of Addl pension based on age proof certificates for pre 2006 pensioners
Friday, August 27, 2010
Tax Exemption Limit to go up to Rs 2 Lakhs
Outlook India New Delhi | Aug 26, 2010
In a move that could leave more money in the hands of people, the Government today proposed to raise exemption limit on income tax from the present Rs 1.6 lakh to Rs 2 lakh.
The Cabinet approved the much-awaited Direct Taxes Code (DTC) Bill, which is likely to be tabled in Parliament during the ongoing Monsoon session and thereafter it may be referred to a select committee of members of both houses of Parliament.
The bill also seeks to remove surcharge and cesses on corporate tax, which could provide relief to business houses.
When asked what will be the limit of exemptions for income tax, Finance Minister Pranab Mukherjee told reporters after the Cabinet meeting that it is proposed to be raised to Rs 2 lakh from the current Rs 1.6 lakh.
"The whole objective is that a plethora of exemptions will be limited. (Income) tax slabs will be three. Rate of taxes will be taken in the schedule so that they need not be changed every year," he said.
On the corporate tax, he said it is sought to be retained at the present level of 30 per cent, but there will not be any surcharge or cesses on it.
According to sources, the DTC bill is likely to be tabled in Parliament on Monday. Thereafter, it will be referred to the select committee, they added.
When asked what the new income tax slabs would be, Mukherjee said, "that will be discussed in Parliament."
Sources, however, said income between Rs 2-5 lakh is likely to attract a rate of 10 per cent, 20 per cent for Rs 5 -10 lakh bracket and 30 per cent above Rs 10 lakh.
For senior citizens and females, the tax slabs are likely to be relaxed further, they added
When contacted, senior officials in the Finance Ministry declined to comment on the slabs.
At present, income between Rs 1.65 lakh and Rs 5 lakh attracts 10 per cent tax, while the rate is 20 per cent for the Rs 5-8 lakh bracket and 30 per cent for income above Rs 8 lakh.
The first draft of the bill had suggested 10 per cent tax on income between Rs 1.60 lakh and Rs 10 lakh, 20 per cent on income between Rs 10 and Rs 25 lakh and 30 per cent beyond that.
However, finance ministry officials had later said those slabs were just illustrative.
The Bill, approved by Cabinet today, also seeks to impose minimum alternate tax (MAT) at 20 per cent of the book profit, compared to 18 per cent at present.
The first draft had proposed to impose MAT on assets, which drew strong criticism from the industry. The MAT on book profit has been maintained in the revised draft as well.
The first draft had also proposed to tax long-term savings like provident funds at the time of withdrawal. However, the revised draft exempted them, after the first draft drew flak.
"Concerns were expressed for shifting from EEE (exempt, exempt, exempt) to EET (exempt, exempt, tax)," the Finance Minister said.
This would also address the issue of taxing surplus funds of charitable institutions, he added.
When enacted, the DTC will replace the archaic Income Tax Act and simplify the direct tax regime in the country.
Finance Ministry officials exuded confidence that the Bill will come into force by the deadline of April 1, 2011.
The code aims at reducing tax rates, but expanding the tax base by minimising exemptions.
"DTC will help in streamlining various tax exemptions, deductions and thereby bring in moderate tax rates. DTC would address most of the issues raised by corporate India, like, not imposing tax on gross assets, clarifying EEE, introducing graded deduction for capital gains among others," Ernst & Young Tax Market Leader Sudhir Kapadia said.
Tax Exemption Limit to go up to Rs 2 Lakhs
In a move that could leave more money in the hands of people, the Government today proposed to raise exemption limit on income tax from the present Rs 1.6 lakh to Rs 2 lakh.
The Cabinet approved the much-awaited Direct Taxes Code (DTC) Bill, which is likely to be tabled in Parliament during the ongoing Monsoon session and thereafter it may be referred to a select committee of members of both houses of Parliament.
The bill also seeks to remove surcharge and cesses on corporate tax, which could provide relief to business houses.
When asked what will be the limit of exemptions for income tax, Finance Minister Pranab Mukherjee told reporters after the Cabinet meeting that it is proposed to be raised to Rs 2 lakh from the current Rs 1.6 lakh.
"The whole objective is that a plethora of exemptions will be limited. (Income) tax slabs will be three. Rate of taxes will be taken in the schedule so that they need not be changed every year," he said.
On the corporate tax, he said it is sought to be retained at the present level of 30 per cent, but there will not be any surcharge or cesses on it.
According to sources, the DTC bill is likely to be tabled in Parliament on Monday. Thereafter, it will be referred to the select committee, they added.
When asked what the new income tax slabs would be, Mukherjee said, "that will be discussed in Parliament."
Sources, however, said income between Rs 2-5 lakh is likely to attract a rate of 10 per cent, 20 per cent for Rs 5 -10 lakh bracket and 30 per cent above Rs 10 lakh.
For senior citizens and females, the tax slabs are likely to be relaxed further, they added
When contacted, senior officials in the Finance Ministry declined to comment on the slabs.
At present, income between Rs 1.65 lakh and Rs 5 lakh attracts 10 per cent tax, while the rate is 20 per cent for the Rs 5-8 lakh bracket and 30 per cent for income above Rs 8 lakh.
The first draft of the bill had suggested 10 per cent tax on income between Rs 1.60 lakh and Rs 10 lakh, 20 per cent on income between Rs 10 and Rs 25 lakh and 30 per cent beyond that.
However, finance ministry officials had later said those slabs were just illustrative.
The Bill, approved by Cabinet today, also seeks to impose minimum alternate tax (MAT) at 20 per cent of the book profit, compared to 18 per cent at present.
The first draft had proposed to impose MAT on assets, which drew strong criticism from the industry. The MAT on book profit has been maintained in the revised draft as well.
The first draft had also proposed to tax long-term savings like provident funds at the time of withdrawal. However, the revised draft exempted them, after the first draft drew flak.
"Concerns were expressed for shifting from EEE (exempt, exempt, exempt) to EET (exempt, exempt, tax)," the Finance Minister said.
This would also address the issue of taxing surplus funds of charitable institutions, he added.
When enacted, the DTC will replace the archaic Income Tax Act and simplify the direct tax regime in the country.
Finance Ministry officials exuded confidence that the Bill will come into force by the deadline of April 1, 2011.
The code aims at reducing tax rates, but expanding the tax base by minimising exemptions.
"DTC will help in streamlining various tax exemptions, deductions and thereby bring in moderate tax rates. DTC would address most of the issues raised by corporate India, like, not imposing tax on gross assets, clarifying EEE, introducing graded deduction for capital gains among others," Ernst & Young Tax Market Leader Sudhir Kapadia said.
Tax Exemption Limit to go up to Rs 2 Lakhs
Saturday, May 29, 2010
Governance: Finance Minister to dedicate IT CPC to the Nation
The Union Finance Minister, Shri Pranab Mukherjee will dedicate the Centralized Processing Centre (CPC) of the Income Tax department at Bengaluru to the nation today on 29th May 2010.
The Income Tax department has set up the Centralized Processing Centre (CPC) at Bengaluru for bulk processing of income tax returns. The CPC will process all electronic tax returns of the entire country, and physical returns of Karnataka and Goa regions. It is equipped with a dedicated call centre, where taxpayers can enquire about the status of their returns and refunds, and also has a remote record storage unit, which would reduce congestion in the IT offices.
The CPC is a flagship e-governance project of the Government of India. It promises to significantly improve delivery of citizen-centric services in line with best international practices. DSM/BY
FM to Dedicate I-T Department’s CPC at Bengaluru to Nation
The Income Tax department has set up the Centralized Processing Centre (CPC) at Bengaluru for bulk processing of income tax returns. The CPC will process all electronic tax returns of the entire country, and physical returns of Karnataka and Goa regions. It is equipped with a dedicated call centre, where taxpayers can enquire about the status of their returns and refunds, and also has a remote record storage unit, which would reduce congestion in the IT offices.
The CPC is a flagship e-governance project of the Government of India. It promises to significantly improve delivery of citizen-centric services in line with best international practices. DSM/BY
FM to Dedicate I-T Department’s CPC at Bengaluru to Nation
Sunday, May 23, 2010
Income Tax Helplines for senior citizens
I-T helplines for senior citizens: Courtesy The Hindu dated 23 may 2010
Last date for filing of IT returns is 30 june 2010
The Income Tax Department will soon set up helplines and dedicated counters for senior citizens as the deadline for filing returns approaches.
This was announced here on Saturday by V.Nandakumar, Assistant Director of Income Tax.
He was delivering a talk on ‘Income Tax concessions to senior citizens,' at a meeting organised by the Probus Club, an organisation that caters to the interests of retired persons.
“Most people do not understand the difference between exemption and deduction,” he said. While the exemption limit for senior citizens is Rs.2.4 lakh, deductions can be claimed under Chapter 6(A) on non-taxable income. The last date to file IT returns for those who have a salary income is June 30.
Asking those who are entitled for a refund to fill in their bank account details and quote the MICR number carefully, Mr. Nandakumar said that since processing IT returns had become electronic and centralised, tracking a transaction was almost impossible.
Citing two specific concessions that are available for senior citizens, Mr. Nandakumar said deductions could be claimed for mediclaim insurance premium up to Rs. 20,000 (which is Rs.5,000 more than the ceiling for others). Also, persons suffering from cancer or renal failure can avail a deduction on treatment cost up to Rs.60,000.
For Chennaites
R. Subharaj, Probus Club Secretary, Chennai, said a master health check-up at a concessional rate would be conducted for senior citizens on June 21 jointly by the Club and the Health Department. To register call: 24422839, 24981099, 24995290, and 24936825.
I-T helplines for senior citizens
Sixth Pay Commission Arrears and PB-4 for Lt Cols
The IT for AY 2010- 2011 (FY 2009- 2010) will jump anywhere from tenfold to twentyfold compared to previous years (as arrears and Pension will be in the order of over Rs 7 lakhs). The new IT form SARAL I is easy to fill and submit. ESM whose income exceeds Rs 1.6 Lakhs (and senior citizens aged over 65 years exceed Rs 2.4 lakhs) will need to submit the IT return by 30 Jun 2010. Many JCOs and NCOs too will come under the taxation in view of enhanced Pension and Arrears. The ESM Organisations need to educate and guide JCOs, NCOs and Sepoys on this important aspect.
Last date for filing of IT returns is 30 june 2010
The Income Tax Department will soon set up helplines and dedicated counters for senior citizens as the deadline for filing returns approaches.
This was announced here on Saturday by V.Nandakumar, Assistant Director of Income Tax.
He was delivering a talk on ‘Income Tax concessions to senior citizens,' at a meeting organised by the Probus Club, an organisation that caters to the interests of retired persons.
“Most people do not understand the difference between exemption and deduction,” he said. While the exemption limit for senior citizens is Rs.2.4 lakh, deductions can be claimed under Chapter 6(A) on non-taxable income. The last date to file IT returns for those who have a salary income is June 30.
Asking those who are entitled for a refund to fill in their bank account details and quote the MICR number carefully, Mr. Nandakumar said that since processing IT returns had become electronic and centralised, tracking a transaction was almost impossible.
Citing two specific concessions that are available for senior citizens, Mr. Nandakumar said deductions could be claimed for mediclaim insurance premium up to Rs. 20,000 (which is Rs.5,000 more than the ceiling for others). Also, persons suffering from cancer or renal failure can avail a deduction on treatment cost up to Rs.60,000.
For Chennaites
R. Subharaj, Probus Club Secretary, Chennai, said a master health check-up at a concessional rate would be conducted for senior citizens on June 21 jointly by the Club and the Health Department. To register call: 24422839, 24981099, 24995290, and 24936825.
I-T helplines for senior citizens
Sixth Pay Commission Arrears and PB-4 for Lt Cols
The IT for AY 2010- 2011 (FY 2009- 2010) will jump anywhere from tenfold to twentyfold compared to previous years (as arrears and Pension will be in the order of over Rs 7 lakhs). The new IT form SARAL I is easy to fill and submit. ESM whose income exceeds Rs 1.6 Lakhs (and senior citizens aged over 65 years exceed Rs 2.4 lakhs) will need to submit the IT return by 30 Jun 2010. Many JCOs and NCOs too will come under the taxation in view of enhanced Pension and Arrears. The ESM Organisations need to educate and guide JCOs, NCOs and Sepoys on this important aspect.
Wednesday, October 7, 2009
Beware! Phising, Spamming, Spoofing and Virus attacks
Tuesday, October 06, 2009
No mails for refunds issued from income tax department
18:14 IST
Information has been received from several quarters that people are receiving electronic mails informing them of their income-tax refunds and seeking their credit card details. The e-mail is sent from the following or similar mailing addresses: ihxbkw@accounts.net or cvhfus@accounts.net
It is clarified that the Income Tax Department does not send e-mails regarding refunds and does not seek any information regarding credit cards of taxpayers. Taxpayers are, therefore, cautioned that they should not respond to such mails and if they do so it would be at their risk and responsibility.
BSC/BY-348/09
No mails for refunds issued from income tax department
No mails for refunds issued from income tax department
18:14 IST
Information has been received from several quarters that people are receiving electronic mails informing them of their income-tax refunds and seeking their credit card details. The e-mail is sent from the following or similar mailing addresses: ihxbkw@accounts.net or cvhfus@accounts.net
It is clarified that the Income Tax Department does not send e-mails regarding refunds and does not seek any information regarding credit cards of taxpayers. Taxpayers are, therefore, cautioned that they should not respond to such mails and if they do so it would be at their risk and responsibility.
BSC/BY-348/09
No mails for refunds issued from income tax department
Sunday, September 13, 2009
Proposed rates of tax 2011
A-46, CHAPTER - XVI, RATES OF INCOME TAX
16.1 Tax rates are determined by the size of the tax base; if the tax base is higher, the tax rates can be lower. For the purposes of this Discussion Paper, the tax rates provided are such rates which are expected to yield the existing level of revenues with the revised comprehensive tax base proposed in this Code.
16.2 The rates of taxes are provided in the First Schedule to provide stability to the income tax regime.
16.3 The new tax rate for individual taxpayers can be substantially liberalised to levels (click on tables) below:
In the case of every individual, other than women and senior citizens 
In the case of woman below the age of sixty-five years at any time during the financial year 
In the case of senior citizens 
Direct Taxes code
Discussion Paper
16.1 Tax rates are determined by the size of the tax base; if the tax base is higher, the tax rates can be lower. For the purposes of this Discussion Paper, the tax rates provided are such rates which are expected to yield the existing level of revenues with the revised comprehensive tax base proposed in this Code.
16.2 The rates of taxes are provided in the First Schedule to provide stability to the income tax regime.
16.3 The new tax rate for individual taxpayers can be substantially liberalised to levels (click on tables) below:
Direct Taxes codeDiscussion Paper
Wednesday, July 1, 2009
Implications of tax evasion
June 30th, 2009
Simply put, tax evasion occurs when any trust, individual, or firm, seeks to avoid paying taxes by illegal and unfair means, by, for example, deliberately hiding income from the tax authorities to reduce the liability of tax. People have been known to submit dishonest reports, including declaring less gains, profits, or income than what was actually earned. Other means of evading tax are smuggling, and avoiding paying out customs duty, value added tax, and income tax.
In May 2009, searches and seizures by the Income Tax Department in the NCR, Uttar Pradesh, Maharashtra and Himachal Pradesh revealed astonishing figures: jewellery and cash hauls in hundreds of crores as a result of crackdowns on tax evaders. In the country’s capital alone more than Rs 860 crore is owed, from real estate firms and infrastructure leasing and building companies, to pan masala outfits and retail businesses.
In Bangalore, major global IT players have been hauled up for evading service tax. Industry experts estimate the loss of a billion dollars of revenue from the evasion of tax.
What is tax evasion?
Simply put, tax evasion occurs when any trust, individual, or firm, seeks to avoid paying taxes by illegal and unfair means, by, for example, deliberately hiding income from the tax authorities to reduce the liability of tax.
People have been known to submit dishonest reports, including declaring less gains, profits, or income than what was actually earned. Other means of evading tax are smuggling, and avoiding paying out customs duty, value added tax, and income tax.
Smuggling involves the export or import foreign goods through unauthorised routes, to avoid paying customs duties, or to bring in contraband.
Importers evade paying customs duty by submitting false declarations of the description of the product and the quantity imported.
Producers or retailers that collect VAT from consumers evade paying taxes by showing lowered sales amounts.
The double taxation system that includes VAT and service tax has resulted in a lack of clarity with respect to tax-related issues.
What is the direct result of evading tax?
Tax evasion results in the loss of revenue for the government. It generates more and more black money - money that is acquired through illegal means - that people try and offload as quickly as possible, by purchasing real estate, jewellery, gold, automobiles, paintings, expensive clothes and accessories, and so on. This distressed purchasing artificially inflates prices and therefore the market.
The greater the income in the black money circuit, the greater the freedom of external economic transactions, and the greater the leakage into foreign financial institutions and markets.
Not only is tax evasion detrimental to the progress of the economy, but also harmful to the individual.
Paying taxes, and on time, means better health care and education. The risk-reward for tax evasion is highly unfavourable. It’s better to pay your taxes on time, and sleep well.
If you are a salaried employee, then TDS (Tax deducted at Source), helps you to pay your taxes.
If for any reason it is found that taxes have not be accurately paid the individual or tax payer can come under scrutiny.
Read More: Understanding the implications of tax evasion
Comment: All elected Lokh and Rajya Sabha members, MLA's of state, the local bodies (including councillors) and all Politicians should have a PAN number and ensure submission of income tax. Black money is mostly generated by members of all Political Parties who travel in multiple luxury vehicles donning Party Flags and violate all rules of the land.
Simply put, tax evasion occurs when any trust, individual, or firm, seeks to avoid paying taxes by illegal and unfair means, by, for example, deliberately hiding income from the tax authorities to reduce the liability of tax. People have been known to submit dishonest reports, including declaring less gains, profits, or income than what was actually earned. Other means of evading tax are smuggling, and avoiding paying out customs duty, value added tax, and income tax.
In May 2009, searches and seizures by the Income Tax Department in the NCR, Uttar Pradesh, Maharashtra and Himachal Pradesh revealed astonishing figures: jewellery and cash hauls in hundreds of crores as a result of crackdowns on tax evaders. In the country’s capital alone more than Rs 860 crore is owed, from real estate firms and infrastructure leasing and building companies, to pan masala outfits and retail businesses.
In Bangalore, major global IT players have been hauled up for evading service tax. Industry experts estimate the loss of a billion dollars of revenue from the evasion of tax.
What is tax evasion?
Simply put, tax evasion occurs when any trust, individual, or firm, seeks to avoid paying taxes by illegal and unfair means, by, for example, deliberately hiding income from the tax authorities to reduce the liability of tax.
People have been known to submit dishonest reports, including declaring less gains, profits, or income than what was actually earned. Other means of evading tax are smuggling, and avoiding paying out customs duty, value added tax, and income tax.
Smuggling involves the export or import foreign goods through unauthorised routes, to avoid paying customs duties, or to bring in contraband.
Importers evade paying customs duty by submitting false declarations of the description of the product and the quantity imported.
Producers or retailers that collect VAT from consumers evade paying taxes by showing lowered sales amounts.
The double taxation system that includes VAT and service tax has resulted in a lack of clarity with respect to tax-related issues.
What is the direct result of evading tax?
Tax evasion results in the loss of revenue for the government. It generates more and more black money - money that is acquired through illegal means - that people try and offload as quickly as possible, by purchasing real estate, jewellery, gold, automobiles, paintings, expensive clothes and accessories, and so on. This distressed purchasing artificially inflates prices and therefore the market.
The greater the income in the black money circuit, the greater the freedom of external economic transactions, and the greater the leakage into foreign financial institutions and markets.
Not only is tax evasion detrimental to the progress of the economy, but also harmful to the individual.
Paying taxes, and on time, means better health care and education. The risk-reward for tax evasion is highly unfavourable. It’s better to pay your taxes on time, and sleep well.
If you are a salaried employee, then TDS (Tax deducted at Source), helps you to pay your taxes.
If for any reason it is found that taxes have not be accurately paid the individual or tax payer can come under scrutiny.
Read More: Understanding the implications of tax evasion
Comment: All elected Lokh and Rajya Sabha members, MLA's of state, the local bodies (including councillors) and all Politicians should have a PAN number and ensure submission of income tax. Black money is mostly generated by members of all Political Parties who travel in multiple luxury vehicles donning Party Flags and violate all rules of the land.
Friday, May 8, 2009
Mandate 2009: BJP's Turnaround
Vikas Gupta writes in The Times of India:
Suddenly, there’s a buzz within the BJP. The flagging campaign has been re-energised, and there’s a spring in the step of workers. The party believes that it has put up a strong show in the first three phases of polling, and is now banking on Rajasthan, one of its traditional strongholds, to deliver Delhi to it.
Why has this turnaround happened? Frankly, I have no clue about what is influencing rural voters. But when I speak to middle-class voters, it seems to me that the BJP campaign has struck a chord on at least three issues – which most political pundits seem to have missed.
To begin with, the BJP’s focus on unemployment and job losses seems to be resonating with middle India, which is in the midst of its first major encounter with lay-offs and downsizing. The Congress can argue – with some justification – that it cannot be blamed for a global recession and that India is, in fact, faring better than the rest of the world. Unfortunately for it, people who are scared and insecure are rarely in a mood to listen to logic. The BJP’s promise to exempt tax on income up to Rs 3 lakh has also gone down well with the educated middle-class – which, in any case, is convinced that it gets very little in return for the hard-earned money that it pays as tax.
Finally, the BJP’s promise to introduce one rank, one pay and give tax sops to the defence forces is likely to earn it goodwill and votes from both serving and retired personnel, who otherwise tend to be largely indifferent to the electoral process.
BJP's Turnaround
Making Sense of the UPA Rule and the Need for Change by Shyam Sekhar
LOOKING THE OTHER WAY WHEN ALLIES ERRED
In its anxiety to keep allies happy, the congress gave away key ministries to allies. These ministries were managing the Nation’s growth engines like Roads, Ports, IT, Telecom and Environment management. The damage which has been done to the nation will take a long time to mend. Five years is a long time and we could have had much faster development if these ministries where in better and cleaner hands. The congress did nothing to mend the situation during its entire five year term and Sonia was a silent spectator. Some ministers from the allies’ parties deserve special mention.
Maran, Baalu and Raaja are three DMK ministers who have virtually lorded over IT & Telecom, Surface Transport, Environment & Forests. These critical ministries performance over the past five years must be compared with the NDA rule when these ministries had Arun Shourie and BC Khanduri as the Ministers. Need one say more. We are consciously omitting any reference to Anbumani Ramadoss in Health Ministry.
Read full text: Making Sense of the UPA Rule and the Need for Change by Shyam Sekhar
Suddenly, there’s a buzz within the BJP. The flagging campaign has been re-energised, and there’s a spring in the step of workers. The party believes that it has put up a strong show in the first three phases of polling, and is now banking on Rajasthan, one of its traditional strongholds, to deliver Delhi to it.
Why has this turnaround happened? Frankly, I have no clue about what is influencing rural voters. But when I speak to middle-class voters, it seems to me that the BJP campaign has struck a chord on at least three issues – which most political pundits seem to have missed.
To begin with, the BJP’s focus on unemployment and job losses seems to be resonating with middle India, which is in the midst of its first major encounter with lay-offs and downsizing. The Congress can argue – with some justification – that it cannot be blamed for a global recession and that India is, in fact, faring better than the rest of the world. Unfortunately for it, people who are scared and insecure are rarely in a mood to listen to logic. The BJP’s promise to exempt tax on income up to Rs 3 lakh has also gone down well with the educated middle-class – which, in any case, is convinced that it gets very little in return for the hard-earned money that it pays as tax.
Finally, the BJP’s promise to introduce one rank, one pay and give tax sops to the defence forces is likely to earn it goodwill and votes from both serving and retired personnel, who otherwise tend to be largely indifferent to the electoral process.
BJP's Turnaround
Making Sense of the UPA Rule and the Need for Change by Shyam Sekhar
LOOKING THE OTHER WAY WHEN ALLIES ERRED
In its anxiety to keep allies happy, the congress gave away key ministries to allies. These ministries were managing the Nation’s growth engines like Roads, Ports, IT, Telecom and Environment management. The damage which has been done to the nation will take a long time to mend. Five years is a long time and we could have had much faster development if these ministries where in better and cleaner hands. The congress did nothing to mend the situation during its entire five year term and Sonia was a silent spectator. Some ministers from the allies’ parties deserve special mention.
Maran, Baalu and Raaja are three DMK ministers who have virtually lorded over IT & Telecom, Surface Transport, Environment & Forests. These critical ministries performance over the past five years must be compared with the NDA rule when these ministries had Arun Shourie and BC Khanduri as the Ministers. Need one say more. We are consciously omitting any reference to Anbumani Ramadoss in Health Ministry.
Read full text: Making Sense of the UPA Rule and the Need for Change by Shyam Sekhar
Sunday, April 19, 2009
Terrorism is related to hawala transanctions and black money
WASHINGTON: Cautioning that the 'hawala' money in India is directly linked to terrorist financing, the US has suggested to New Delhi to strengthen its anti- money laundering and counter terrorism- finance legislation's.
It also recommended that New Delhi should work towards becoming a full-fledged member of Financial Action Task Force (FATF), an inter- governmental body for development of policies to combat money laundering and terrorist financing.
While noting that the Indian Parliament passed the Prevention of Money Laundering (Amendment) Bill, early this week, a US State Department report has suggested that India should make necessary legislative amendments to bring its anti money laundering and counter terrorism finance regime in conformity to FATF.
"Given the number of terrorist attacks in India and the fact that in India hawala is directly linked to terrorist financing, India should prioritise cooperation with international initiatives that provide increased transparency in alternative remittance systems," said the report in its section on India related to money laundering.
The report, released by Assistant US Secretary of State for International Narcotics and Law Enforcement Affairs, David T Johnson, quoted RBI estimates that remittances to India sent through legal, formal channels in 2007-2008 amounted to USD 42.6 billion.
According to Indian observers, the report said funds transferred through the billion dollar hawala market are equal to between 30 to 40 per cent of the formal market.
"In that case the hawala market could amount to between USD 13 billion to USD 17 billion," the report on International Narcotics Control Strategy, said.
Given the large number of expatriates, India continues to retain its position as the leading recipient of remittances, according to the World Bank.
India's strict foreign-exchange laws and transaction reporting requirements, combined with banking industry's due diligence policy, makes it difficult for criminals to use formal channels to launder money, the report said.
However, large portions of illegal proceeds are often laundered through "hawala" or "hundi" networks or other informal money transfer systems.
The report appreciated the steps taken by India post 9/11 with regard to money laundering and its possible use by terrorist network. However, several key steps are still required to be taken by New Delhi, it felt.
Listing out the steps New Delhi still needs to take, the report said India should become a party to the UN Conventions against Transnational Organized Crime and Corruption.
"Also, India should pass the Foreign Contribution Regulation Bill for regulating nongovernmental organisations including charities," it said.
"India should devote more law enforcement and customs resources to curb abuses in the diamond trade. It should also consider the establishment of a Trade Transparency Unit (TTU) that promotes trade transparency; in India, trade is the back door to underground financial systems," the report said.
The hawala system can provide the same remittance service as a bank with little or no documentation, at lower rates and with faster delivery, while providing anonymity and security for its customers, the report said.
According to the report, while most money laundering in India aims to facilitate widespread tax avoidance, criminal activity contributes substantially. Some common sources of illegal proceeds in India are narcotics trafficking, illegal trade in endangered wildlife, trade in illegal gems (particularly diamonds), smuggling, trafficking in persons, corruption, and income tax evasion, it said.
Hawala money in India linked to terror funding: US
Related reading:
Black Money In Swiss Bank: Swiss Banking Association report 2006
Black money in Swiss banks people's money : Advani
Campaign to unearth black money in Swiss banks
LS polls to cost more than US prez poll
When the crusade of the West against Swiss banks is succeeding, here Dr Manmohan Singh and his government, instead of celebrating, seem to be worried at their success. Three bits of evidence expose the Congress-led government’s not-so-well-hidden worry. First, when Germany’s finance ministry offered the LTG bank secret data to any country that needed it, the government would not ask for it despite reports that it contained some 100 Indian names. When in April last year, L K Advani wrote to Manmohan, requesting to him to ask Germany for the data, the then finance minister responded evasively. Transparency International noted India’s “stoic silence over the issue” and that it “has not approached the German government for the data’’ (Economic Times, May 25 2008). More, the revenue secretary in Delhi has reportedly advised the Indian ambassador in Berlin not to push Germany for the details as Germany might not like it– clear proof that the government is scuttling, not getting, the details.
A deafening silence on funny money
Comment: "Cash for Votes" is financed from Hawala money transactions. The Government is handicapped and powerless at the might of Hawala and Black money operators/ perpetrators. The Income Tax Department, Home Ministry and RBI are mute spectators and really are extensions of government committing fraud on honest citizens!
It also recommended that New Delhi should work towards becoming a full-fledged member of Financial Action Task Force (FATF), an inter- governmental body for development of policies to combat money laundering and terrorist financing.
While noting that the Indian Parliament passed the Prevention of Money Laundering (Amendment) Bill, early this week, a US State Department report has suggested that India should make necessary legislative amendments to bring its anti money laundering and counter terrorism finance regime in conformity to FATF.
"Given the number of terrorist attacks in India and the fact that in India hawala is directly linked to terrorist financing, India should prioritise cooperation with international initiatives that provide increased transparency in alternative remittance systems," said the report in its section on India related to money laundering.
The report, released by Assistant US Secretary of State for International Narcotics and Law Enforcement Affairs, David T Johnson, quoted RBI estimates that remittances to India sent through legal, formal channels in 2007-2008 amounted to USD 42.6 billion.
According to Indian observers, the report said funds transferred through the billion dollar hawala market are equal to between 30 to 40 per cent of the formal market.
"In that case the hawala market could amount to between USD 13 billion to USD 17 billion," the report on International Narcotics Control Strategy, said.
Given the large number of expatriates, India continues to retain its position as the leading recipient of remittances, according to the World Bank.
India's strict foreign-exchange laws and transaction reporting requirements, combined with banking industry's due diligence policy, makes it difficult for criminals to use formal channels to launder money, the report said.
However, large portions of illegal proceeds are often laundered through "hawala" or "hundi" networks or other informal money transfer systems.
The report appreciated the steps taken by India post 9/11 with regard to money laundering and its possible use by terrorist network. However, several key steps are still required to be taken by New Delhi, it felt.
Listing out the steps New Delhi still needs to take, the report said India should become a party to the UN Conventions against Transnational Organized Crime and Corruption.
"Also, India should pass the Foreign Contribution Regulation Bill for regulating nongovernmental organisations including charities," it said.
"India should devote more law enforcement and customs resources to curb abuses in the diamond trade. It should also consider the establishment of a Trade Transparency Unit (TTU) that promotes trade transparency; in India, trade is the back door to underground financial systems," the report said.
The hawala system can provide the same remittance service as a bank with little or no documentation, at lower rates and with faster delivery, while providing anonymity and security for its customers, the report said.
According to the report, while most money laundering in India aims to facilitate widespread tax avoidance, criminal activity contributes substantially. Some common sources of illegal proceeds in India are narcotics trafficking, illegal trade in endangered wildlife, trade in illegal gems (particularly diamonds), smuggling, trafficking in persons, corruption, and income tax evasion, it said.
Hawala money in India linked to terror funding: US
Related reading:
Black Money In Swiss Bank: Swiss Banking Association report 2006
Black money in Swiss banks people's money : Advani
Campaign to unearth black money in Swiss banks
LS polls to cost more than US prez poll
When the crusade of the West against Swiss banks is succeeding, here Dr Manmohan Singh and his government, instead of celebrating, seem to be worried at their success. Three bits of evidence expose the Congress-led government’s not-so-well-hidden worry. First, when Germany’s finance ministry offered the LTG bank secret data to any country that needed it, the government would not ask for it despite reports that it contained some 100 Indian names. When in April last year, L K Advani wrote to Manmohan, requesting to him to ask Germany for the data, the then finance minister responded evasively. Transparency International noted India’s “stoic silence over the issue” and that it “has not approached the German government for the data’’ (Economic Times, May 25 2008). More, the revenue secretary in Delhi has reportedly advised the Indian ambassador in Berlin not to push Germany for the details as Germany might not like it– clear proof that the government is scuttling, not getting, the details.
A deafening silence on funny money
Comment: "Cash for Votes" is financed from Hawala money transactions. The Government is handicapped and powerless at the might of Hawala and Black money operators/ perpetrators. The Income Tax Department, Home Ministry and RBI are mute spectators and really are extensions of government committing fraud on honest citizens!
Sunday, April 5, 2009
IESM: Fast for Justice Rally- hundred and ninth day
Date: Saturday, 4 April, 2009, 10:21 PM
Dear Colleagues,
The Jantar Mantar continues to remain active.
BJP Manifesto
More details of BJP manifesto are now known. The 49-page document has material relevant to us on Pages 15-16. A Regimental Brigadier I ran into during the evening walk, has two sons in the Army. He tells me of celebrations their unit officers are already having on the income tax exemption. Even though officer-centric (now may also cover JCOs after 6th PC), it is a great psychological shot in the arm. BJP Manifesto: click here
For the veterans, the most significant line is at Para 3 (d) of the Section titled ‘DEFENDING INDIA No Compromise, No Concession’. It reads – “The principle of one rank, one pension will be implemented.”
Best regards,
Lt Gen (Emeritus) Raj Kadyan, PVSM, AVSM, VSM
Chairman IESM
तिथि: शनिवार, 4 अप्रैल, 2009, 10:21
प्रिय साथियों,
इस Jantar Mantar सक्रिय रहने के लिए जारी है.
भाजपा के घोषणा पत्र
भाजपा के घोषणा पत्र के अतिरिक्त विवरण अब जाना जाता है. इस 49 पृष्ठों का दस्तावेज पेज 15-16 पर सामग्री हमारे लिए प्रासंगिक है. एक रेजिमेंटल ब्रिगेडियर मैं में शाम टहलने के दौरान, भागा सेना में दो बेटे हैं. उसने मुझे अपनी इकाई के अधिकारियों को पहले से ही आयकर छूट पर कर रहे हैं समारोह के बताता है. हालांकि अधिकारी केन्द्रित (अब भी 6. पीसी के बाद), यह हाथ में एक महान मनोवैज्ञानिक शॉट है जेसीओ को कवर कर सकते हैं. भाजपा के घोषणा पत्र: क्लिक करें यहाँ
के दिग्गजों के लिए, सबसे अधिक महत्वपूर्ण लाइन पैरा 3 में है (घ) की धारा 'का बचाव भारत कोई समझौता नहीं, कोई रियायत' शीर्षक से. यह पढ़ता है - "एक पद के सिद्धांत, एक पेंशन लागू किया जाएगा."
सादर,
लेफ्टिनेंट जनरल (Emeritus) राज Kadyan, PVSM, AVSM, VSM
अध्यक्ष IESM
BJP Manifesto Rider
The points and assurances in the BJP manifesto concerning Services will carry weight only if they are in consonance with the thinking of the other partners of NDA... The elections are being fought as NDA jointly by the opposition. The assurances raise serious concerns about the financial effects and the capability of the country to make the resources available.
Brig Lakshman Singh VSM (Retd)
Dear Colleagues,
The Jantar Mantar continues to remain active.
BJP Manifesto
More details of BJP manifesto are now known. The 49-page document has material relevant to us on Pages 15-16. A Regimental Brigadier I ran into during the evening walk, has two sons in the Army. He tells me of celebrations their unit officers are already having on the income tax exemption. Even though officer-centric (now may also cover JCOs after 6th PC), it is a great psychological shot in the arm. BJP Manifesto: click here
For the veterans, the most significant line is at Para 3 (d) of the Section titled ‘DEFENDING INDIA No Compromise, No Concession’. It reads – “The principle of one rank, one pension will be implemented.”
Best regards,
Lt Gen (Emeritus) Raj Kadyan, PVSM, AVSM, VSM
Chairman IESM
तिथि: शनिवार, 4 अप्रैल, 2009, 10:21
प्रिय साथियों,
इस Jantar Mantar सक्रिय रहने के लिए जारी है.
भाजपा के घोषणा पत्र
भाजपा के घोषणा पत्र के अतिरिक्त विवरण अब जाना जाता है. इस 49 पृष्ठों का दस्तावेज पेज 15-16 पर सामग्री हमारे लिए प्रासंगिक है. एक रेजिमेंटल ब्रिगेडियर मैं में शाम टहलने के दौरान, भागा सेना में दो बेटे हैं. उसने मुझे अपनी इकाई के अधिकारियों को पहले से ही आयकर छूट पर कर रहे हैं समारोह के बताता है. हालांकि अधिकारी केन्द्रित (अब भी 6. पीसी के बाद), यह हाथ में एक महान मनोवैज्ञानिक शॉट है जेसीओ को कवर कर सकते हैं. भाजपा के घोषणा पत्र: क्लिक करें यहाँ
के दिग्गजों के लिए, सबसे अधिक महत्वपूर्ण लाइन पैरा 3 में है (घ) की धारा 'का बचाव भारत कोई समझौता नहीं, कोई रियायत' शीर्षक से. यह पढ़ता है - "एक पद के सिद्धांत, एक पेंशन लागू किया जाएगा."
सादर,
लेफ्टिनेंट जनरल (Emeritus) राज Kadyan, PVSM, AVSM, VSM
अध्यक्ष IESM
BJP Manifesto Rider
The points and assurances in the BJP manifesto concerning Services will carry weight only if they are in consonance with the thinking of the other partners of NDA... The elections are being fought as NDA jointly by the opposition. The assurances raise serious concerns about the financial effects and the capability of the country to make the resources available.
Brig Lakshman Singh VSM (Retd)
Sunday, January 27, 2008
Income Tax Refunds
I hope all of you are aware that with immediate effect, you can trace the status of your (PERSONAL only , NOT for Corporate) Income Tax Refund(s) due, by visiting the following site http://www.tin-nsdl.com
Click on the last heading to the right column where it says: Status of Tax Refunds New. It will take you to the next page.
https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
Just type in your PAN and the Assessment year that you are interested in. It is supposed to show you how much and when the amount was credited to your Bank.
PT Gangadharan
Brig (Retd)
Blog Team thanks Brig PT Gangadharan for the useful information. Tax Information Network (TIN), a repository of nationwide Tax related information, has been established by National Securities Depository Limited on behalf of Income Tax Department of India (ITD). TIN is an initiative by ITD for the modernisation of the current system for collection, processing, monitoring and accounting of direct taxes using information technology.
Click on the last heading to the right column where it says: Status of Tax Refunds New. It will take you to the next page.
https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
Just type in your PAN and the Assessment year that you are interested in. It is supposed to show you how much and when the amount was credited to your Bank.
PT Gangadharan
Brig (Retd)
Blog Team thanks Brig PT Gangadharan for the useful information. Tax Information Network (TIN), a repository of nationwide Tax related information, has been established by National Securities Depository Limited on behalf of Income Tax Department of India (ITD). TIN is an initiative by ITD for the modernisation of the current system for collection, processing, monitoring and accounting of direct taxes using information technology.
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