News About Income Tax – Checkout Highlights of Union Budget 2016 – 17
Over 6.53 Lakh IT Return errors Processed in 2015-16 ( 27 Apr 2016 )
The Income Tax Department has processed 6,53,763 rectifications of Income Tax Returns until February 29, 2016, for the fiscal year 2015-16, a statement from the Central Board of Direct Taxes (CBDT) said.
The CBDT told taxpayers to utilise the online services available at https://incometaxindiaefiling.gov.in if they were not satisfied by the services of Centralised Processing Centre (CPC), Bengaluru. The website also contains a detailed manual on how to make rectification to their tax returns online.
If there is some mistake in data entry of tax payment or TDS details, you can select the “Rectification Request Type => Taxpayer is correcting data for Tax Credit mismatch only”, and fill in the correct details. If there is a data entry mistake or omission of details in any other Schedule, you can select the option “Taxpayer is correcting Data in Rectification” and enter the reason for seeking corrections.
IT Department to use New Technology for Duplicate PANs ( 19 Apr 2016 )
The Income Tax Department has turned to technology to combat rising cases of duplicate PAN cards, utilising a unique electronic platform. Termed Income Tax Business Application-Permanent Account Number or ITBA-PAN, this new system will help weed out duplicate PANs from the system. ITBA-PAN uses technology to identify duplicate numbers when new applications are requested, putting an end to the manual system which was in place earlier.
This technology will be used for all new applications, with the manual system continuing to be used for old PAN cards. ITBA-PAN will help identify duplicate PAN cards, simplifying the process to track duplicates in the system, ensuring the data base is free of errors.
Annual Liability Calculator by the Income Tax Department ( 12 Apr 2016)
An annual tax calculator has been launched by the Income Tax Department of India that is supposed to help tax payers calculate their annual tax liabilities online. This calculator is hosted on the income tax filing portal manged by the Government of India.
Last year’s tax filing had been delayed due to controversies regarding the fourteen page document that needed tax payers to fill in information regarding foreign travel and bank accounts. A simpler three page form was then released and now the ITR 1 and ITR 4S are operating online along with the tax liability calculator. Other forms will soon be operational in a short time.
All Interest Income to be declared in ITR – IT Department ( 01 Apr 2016 )
CBDT has warned taxpayers to declare their interest income from all sources in the ITR that they file. The department has asked people who have not done so to rectify and resubmit their ITRs for the year 2013-14 onwards. Interest income where form 15G/H has been filed also need to be declared. 31st March is the deadline for this activity, failing which a penalty of Rs. 5000 is likely to be levied. A survey conducted recently showed that most taxpayers believed that an interest income of up to Rs.10,000 is exempt from tax however the truth is that this is exemption on the savings bank account and not on the FD instrument.
Agricultural Income Tax to be abolished in Karnataka ( 31 Mar 16 )
The long-standing demand from plantation workers to abolish tax has finally yielded fruit. Responding to the petition of coffee, tea, spices, and rubber growers the Chief Minister of Karnataka Siddaramaiah has proposed to eradicate the tax.
Owing to severe drought in around 137 talukas across Karnataka, the gross state domestic product fell from 7.8% in 2014-15 to 6.2% in 2015-16. Foodgrain production also declined from 126 lakh tonne in 2014-15 to 110 lakh tonne in the current fiscal year.
The tax exemption on commodity plantations will be with effect from April 1, 2016.
New Tech Tool to track and destroy duplicate PAN ( 23 Mar 2016 )
The Income Tax Department has finally got its hands on a new technology that will furnish sure-shot relief from duplicate PANs. This technology will not just track duplicate PANs but will also destroy the same. Income Tax Business Application-Permanent Account Number (ITBA-PAN) has been brought into operations to help track applications for new PAN and identify any duplication that might occur in the system.
Earlier, duplicacy was checked manually which was not a fool-proof method to track duplicate PANs.
Structure dedicated to Monitor Taxpayer Services (08 Mar 2016 )
In order to reduce grievances of the taxpayers, a dedicated structure for monitoring and delivery of taxpayer services has been set up by the revenue department. Directorate of Taxpayer services I and Directorate of Taxpayer services II has been set up. The Directorates will be responsible for monitoring services in field offices and e-services. They will coordinate matters relating to grievances and ensure that they are redressed on time. This move will reduce the taxpayer’s grievance and enhance their satisfaction.
Income Tax Rates Moderation in Budget 2016 shows Analysis done internally by Finance Ministry (01 Mar 2016)
India is said to have lower income tax rates as against countries such as China at 45%, US at 39.6% and in some brackets 55.9% and even in the UK it is 45%. The inheritance/estate tax rate in India is 0%, similar in China but 40% in the United States and 40% in the UK. In Australia the rate is 45% while in Austria and Belgium it is at 50%.
India’s tax to GDP ratio is at 16.7%, which is much lower than China’s 19.4% and USA’s 25.4%. France has a tax to GDP ratio of 45% while Denmark as is pegged at 48.6%, data available with the finance ministry showed. India’s tax GDP ratio is closer to the levels in Ghana (16.1%) and Tanzania (16.8%).