The recent move of the Indian government to demonetise the currency notes of Rs. 500 & Rs. 1000 denominations has resulted in a huge furore throughout India. It has thrown up a large number of tax related issues. Some of these are covered in this presentation that was prepared on 20th November.
What is Annual Information Statement (AIS)? What information is shown in AIS? How AISis different from 26AS? How to access AIS? How to give feedback on AIS?
What are the advantages of GST registration? Who are liable to register under GST? What are the documents required for GST registration? How to obtain GST Registration?
The recent move of the Indian government to demonetise the currency notes of Rs. 500 & Rs. 1000 denominations has resulted in a huge furore throughout India. It has thrown up a large number of tax related issues. Some of these are covered in this presentation that was prepared on 20th November.
What is Annual Information Statement (AIS)? What information is shown in AIS? How AISis different from 26AS? How to access AIS? How to give feedback on AIS?
What are the advantages of GST registration? Who are liable to register under GST? What are the documents required for GST registration? How to obtain GST Registration?
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
Tax management paper BBA University of PeshawarEmmaSidd
Q.1. Withholding tax is levied on the withdrawal of cash from the bank accounts by the customer. The current rate of the withholding tax is 0.3% for Tax filers and 0.6% for Non-Tax Filer. What is your opinion; is withholding tax meant to be a major source of earning for the government or helpful for documentation of the economy?
Q.3 Wealth Tax Return form used for the return of net wealth under section 14 of the Wealth Tax Act, 1963 (XV of 1963). Explain the legal importance of Wealth Tax Return proforma?
Undisclosed foreign income and assets and imposition of tax actAmeet Patel
The Black Money Act of India has garnered a lot of attention in India and abroad. It is being projected as a harsh law to tackle the menace of unaccounted wealth accumulated in foreign countries by Indians. This presentation gives some idea about the various provisions of the law.
Income Tax Ready and quick Referencer for FY 2017-18 and AY 2018-19. Complete coverage with latest ammendments and cash limits specified by the Hon'ble Prime Minister in Budget 2017. Revised penalties, limits and changes income tax rates included
Can I file my ITR for FY 2020-21 after 31stDecember 2021? What is a belated return? What is the penalty for late filing of return?Till when can I file the belated return?
Income tax is generally considered as Complicated subjects, so in this HAND BOOK we covered entire syllabus in such a manner in easiest language that student find it intresting.
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
Tax management paper BBA University of PeshawarEmmaSidd
Q.1. Withholding tax is levied on the withdrawal of cash from the bank accounts by the customer. The current rate of the withholding tax is 0.3% for Tax filers and 0.6% for Non-Tax Filer. What is your opinion; is withholding tax meant to be a major source of earning for the government or helpful for documentation of the economy?
Q.3 Wealth Tax Return form used for the return of net wealth under section 14 of the Wealth Tax Act, 1963 (XV of 1963). Explain the legal importance of Wealth Tax Return proforma?
Undisclosed foreign income and assets and imposition of tax actAmeet Patel
The Black Money Act of India has garnered a lot of attention in India and abroad. It is being projected as a harsh law to tackle the menace of unaccounted wealth accumulated in foreign countries by Indians. This presentation gives some idea about the various provisions of the law.
Income Tax Ready and quick Referencer for FY 2017-18 and AY 2018-19. Complete coverage with latest ammendments and cash limits specified by the Hon'ble Prime Minister in Budget 2017. Revised penalties, limits and changes income tax rates included
Can I file my ITR for FY 2020-21 after 31stDecember 2021? What is a belated return? What is the penalty for late filing of return?Till when can I file the belated return?
Income tax is generally considered as Complicated subjects, so in this HAND BOOK we covered entire syllabus in such a manner in easiest language that student find it intresting.
IT and data protection from legal aspect - IT és adatvédelem jogi szempontbólKatalin Horváth
Legal defence against data loss, data leaks and data breaches - Jogi védelem az adatvesztéssel, adatlopással és adatszivárgással szemben - presented on Antidotum Conference in April, 2016
Cправа № 136-26.13/2-14 за ознаками вчинення Державіаслужбою порушення законо...Agiya Zagrebelska
Cправа № 136-26.13/2-14 за ознаками вчинення Державіаслужбою порушення законодавства про захист економічної конкуренції у вигляді антиконкурентних дій органів влади.
Canada hiện là một trong những quốc gia đầu tư cho giáo dục lớn nhất thế giới nhằm đảm bảo lực lượng lao động tay nghề cao phục vụ nhu cầu phát triển kinh tế.
Sinh viên quốc tế được đánh giá là nguồn cung quan trọng đối với thị trường lao động tại đây. Do vậy, trong những năm gần đây, chính phủ Canada và các tỉnh bang như British Columbia, Alberta, Manitoba, Ontario, Quebec ... liên tục đưa ra nhiều chính sách ưu đãi về nhập cư, việc làm, học bổng hay visa nhằm đảm bảo mục tiêu thu hút lao động nhập cư có trình độ từ sinh viên quốc tế.
Với sự ra đời của chính sách visa CES (Canada Express Study) không chứng minh tài chính vào tháng 3/2016, lượng sinh viên quốc tế tới Canada đã gia tăng nhanh chóng chỉ trong thời gian ngắn. Tuy vậy, chính sách này sẽ chỉ kéo dài đến tháng 9/2017. Do đó, nếu dự định du học Canada, bạn cần tận dụng quãng “thời gian vàng” này và chuẩn bị ngay!
Demonetisation + GST Law + Income tax = combating black money and demonetisat...Vishal Malpani
Sharing a submission made to ICAI (Institute of Chartered Accountant of India) in the period when India was going through Demonetisation. Hope this brings a recollection of impacts and events occurred due to this sudden and unheard decision making of Indian Government.
Pre Budget Memorandum 2024-25-Tax Base, Avoidance, Litigations.pptxtaxguruedu
The Pre Budget Memorandum for Union Budget 2024-25 lays out a strategic roadmap for enhancing India’s taxation framework. Addressing critical areas such as tax base expansion, avoidance mitigation, litigation reduction, and Direct Tax Laws rationalization, the memorandum seeks to shape a tax ecosystem that is responsive, fair, and conducive to economic growth.
INCOME DECLARATION SCHEME A time to come cleanNeha Sharma
The IDS scheme announced by the government is open till 30th September, 2016. It is an important opportunity and the government has committed to not to seek any details or source of money earned and assets created once disclosed in terms of the scheme.
The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 - An...D Murali ☆
The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 - An analysis - K. R. Girish - Article published in Business Advisor, dated April 10, 2015 http://www.magzter.com/IN/Shrinikethan/Business-Advisor/Business/
Vivaad Se vishwas scheme has been introduced by Government of India to provide one time opportunity for settlement of pending litigation by paying the basic tax amount and complete waiver of interest and penalty.
You can-run-but-you-can-t-hide-special-voluntary-disclosure-programmeHumanology
Voluntary disclosure? Why should I bother?” “I would not so lucky to be audited!”, “IRBM would send my information to another
enforcement agency to go against me if I joined this voluntary disclosure.”; “Can I trust this initiative of the new government?” All these are common perceptions among taxpayers when discussing on the special voluntary disclosure programme. Are these statements true? Let’s Explore…
Happy New Year 2017
For Lunawat Monthly Bulletin – January 2017 click at http://lunawat.com/Uploaded_Files/Attachments/F_3529.pdf
The same is also available on www.lunawat.com as well as on free Mobile App ‘LUNAWAT’ available through playstore.
I hope the same shall be of use to you.
Warm Regards
CA. Pramod Jain
This book is a ready referencer to understand the tax implication of cash deposited during demonetization or in the routine course and the guidance on how to give responses to the notices of Department. It also provides a complete understanding of the provisions relating to unexplained Income and Prohibition of Benami Property Transaction Act, 1988. This book has been written with the following objectives:
· Provides an idea about the tax consequences of
demonetization;
· Provides an insight into various modes used by the taxpayers
to explain their cash deposited in the bank;
· Explains the conditions under which various deeming
provisions under Income Tax Act can be applied;
· Highlights the requirement of documentary evidence in support
of explanation furnished by the assessee;
· Covers the circumstances under which enhancement, revision
or reopening can be done; and
· Highlight the circumstances under which penal provisions in
relation to cash deposits can be invoked.
The present publication is the first edition, authored by D.C. Agarwal & updated till 15th August 2020, with the following noteworthy features:
· Chapter are designed in the form of independent articles so
that all the material relating to the issue is compiled in one
place
· Chapter on selected questions and answers – FAQs on the
issues relating to the assessment of cash deposits has also
been inserted
· Topics such as power of enhancement by CIT(A) and Tribunal,
re-opening and re-assessment and revision under Section 263
have also been incorporated
· Contents of this book are as follows:
o Introduction
o After effects of Demonetization
o Various Modes of Cash Deposits
o Cash Deposits and Bogus Sales & Purchases
o Cash Deposits and Section 68
o Cash Deposits and Section 69
o Cash Deposits and Section 69A
o Cash Withdrawal and Deposit
o Bank Passbook and Section 68
o Books and Books of Account
o Burden of Proof
o Legal Fiction under Section 68, 69 and 69A
o Concept of Telescoping and Peak Credit in relation to Cash
Transaction
o Substantive – Protective assessments
o Cash Deposits and Presumptive Taxation
o Nature of amendment in Section 115BBE by Taxation Laws (Second Amendment) Act, 2016
o Related Issues
o Power of Enhancement
o SBN Deposits in Banks and Prohibition of Benami Property
Transactions Act, 1988
o Cash Transactions and Penalties
o Reopening and Reassessment
o Revision under Section 263
o FAQs
What is GST?
How GST works?
Concept of GST
Major taxes that are Subsumed.
Section 3 – Meaning and Scope of Supply
Levy of, and Exemption from Tax
Time and Value of supply
Input Tax Credit
Utilization of Input Credit
Registration
Returns
Section 29A - Matching, reversal and reclaim of input tax credit
Levy of late fee
Payment of Tax
Offences And Penalties
Benefits of GST
ZGB - The Role of Generative AI in Government transformation.pdfSaeed Al Dhaheri
This keynote was presented during the the 7th edition of the UAE Hackathon 2024. It highlights the role of AI and Generative AI in addressing government transformation to achieve zero government bureaucracy
Presentation by Jared Jageler, David Adler, Noelia Duchovny, and Evan Herrnstadt, analysts in CBO’s Microeconomic Studies and Health Analysis Divisions, at the Association of Environmental and Resource Economists Summer Conference.
Up the Ratios Bylaws - a Comprehensive Process of Our Organizationuptheratios
Up the Ratios is a non-profit organization dedicated to bridging the gap in STEM education for underprivileged students by providing free, high-quality learning opportunities in robotics and other STEM fields. Our mission is to empower the next generation of innovators, thinkers, and problem-solvers by offering a range of educational programs that foster curiosity, creativity, and critical thinking.
At Up the Ratios, we believe that every student, regardless of their socio-economic background, should have access to the tools and knowledge needed to succeed in today's technology-driven world. To achieve this, we host a variety of free classes, workshops, summer camps, and live lectures tailored to students from underserved communities. Our programs are designed to be engaging and hands-on, allowing students to explore the exciting world of robotics and STEM through practical, real-world applications.
Our free classes cover fundamental concepts in robotics, coding, and engineering, providing students with a strong foundation in these critical areas. Through our interactive workshops, students can dive deeper into specific topics, working on projects that challenge them to apply what they've learned and think creatively. Our summer camps offer an immersive experience where students can collaborate on larger projects, develop their teamwork skills, and gain confidence in their abilities.
In addition to our local programs, Up the Ratios is committed to making a global impact. We take donations of new and gently used robotics parts, which we then distribute to students and educational institutions in other countries. These donations help ensure that young learners worldwide have the resources they need to explore and excel in STEM fields. By supporting education in this way, we aim to nurture a global community of future leaders and innovators.
Our live lectures feature guest speakers from various STEM disciplines, including engineers, scientists, and industry professionals who share their knowledge and experiences with our students. These lectures provide valuable insights into potential career paths and inspire students to pursue their passions in STEM.
Up the Ratios relies on the generosity of donors and volunteers to continue our work. Contributions of time, expertise, and financial support are crucial to sustaining our programs and expanding our reach. Whether you're an individual passionate about education, a professional in the STEM field, or a company looking to give back to the community, there are many ways to get involved and make a difference.
We are proud of the positive impact we've had on the lives of countless students, many of whom have gone on to pursue higher education and careers in STEM. By providing these young minds with the tools and opportunities they need to succeed, we are not only changing their futures but also contributing to the advancement of technology and innovation on a broader scale.
Russian anarchist and anti-war movement in the third year of full-scale warAntti Rautiainen
Anarchist group ANA Regensburg hosted my online-presentation on 16th of May 2024, in which I discussed tactics of anti-war activism in Russia, and reasons why the anti-war movement has not been able to make an impact to change the course of events yet. Cases of anarchists repressed for anti-war activities are presented, as well as strategies of support for political prisoners, and modest successes in supporting their struggles.
Thumbnail picture is by MediaZona, you may read their report on anti-war arson attacks in Russia here: https://en.zona.media/article/2022/10/13/burn-map
Links:
Autonomous Action
http://Avtonom.org
Anarchist Black Cross Moscow
http://Avtonom.org/abc
Solidarity Zone
https://t.me/solidarity_zone
Memorial
https://memopzk.org/, https://t.me/pzk_memorial
OVD-Info
https://en.ovdinfo.org/antiwar-ovd-info-guide
RosUznik
https://rosuznik.org/
Uznik Online
http://uznikonline.tilda.ws/
Russian Reader
https://therussianreader.com/
ABC Irkutsk
https://abc38.noblogs.org/
Send mail to prisoners from abroad:
http://Prisonmail.online
YouTube: https://youtu.be/c5nSOdU48O8
Spotify: https://podcasters.spotify.com/pod/show/libertarianlifecoach/episodes/Russian-anarchist-and-anti-war-movement-in-the-third-year-of-full-scale-war-e2k8ai4
Understanding the Challenges of Street ChildrenSERUDS INDIA
By raising awareness, providing support, advocating for change, and offering assistance to children in need, individuals can play a crucial role in improving the lives of street children and helping them realize their full potential
Donate Us
https://serudsindia.org/how-individuals-can-support-street-children-in-india/
#donatefororphan, #donateforhomelesschildren, #childeducation, #ngochildeducation, #donateforeducation, #donationforchildeducation, #sponsorforpoorchild, #sponsororphanage #sponsororphanchild, #donation, #education, #charity, #educationforchild, #seruds, #kurnool, #joyhome
What is the point of small housing associations.pptxPaul Smith
Given the small scale of housing associations and their relative high cost per home what is the point of them and how do we justify their continued existance
Canadian Immigration Tracker March 2024 - Key SlidesAndrew Griffith
Highlights
Permanent Residents decrease along with percentage of TR2PR decline to 52 percent of all Permanent Residents.
March asylum claim data not issued as of May 27 (unusually late). Irregular arrivals remain very small.
Study permit applications experiencing sharp decrease as a result of announced caps over 50 percent compared to February.
Citizenship numbers remain stable.
Slide 3 has the overall numbers and change.
Canadian Immigration Tracker March 2024 - Key Slides
Demonetisation and income tax
1. K.VAITHEESWARAN
ADVOCATE &TAX CONSULTANT
‘VENKATAGIRI’
Flat No.8/3 & 8/4, Ground Floor,
No.8 (Old No.9), Sivaprakasam Street,
T. Nagar, Chennai - 600 017, India
Tel.: 044 + 2433 1029 / 4048
402, Front Wing,
House of Lords,
15/16, St. Marks Road,
Bengaluru – 560 001, India
Tel : 080 22244854/ 41120804
Mobile: 98400-96876
E-mail : vaithilegal@yahoo.co.in / vaithilegal@gmail.com
www.vaithilegal.com
2. On 12th January 1946, Rs. 500 was demonetized and people were given
10 days for exchange. After this period explanation was required as to
why exchange was not done in the first 10 days.
The Scheme was a failure as out of the total issue of Rs. 143.97 crores of
High Denomination Notes, Rs. 134.90 crores were exchanged. Thus only
Rs. 9 crores were demonetized.
1946 exercise turned out to be only an exchange.
3. On 16th January 1978, Demonetization Ordinance was announced
via AIR at 9 AM.
The Ordinance provided that banks and treasuries would be closed
on 17th January 1978 for all business except preparation and
presentation or receipt of returns.
Only 3 days time was given to exchange Rs. 1000, Rs. 5000 and Rs.
10000 notes.
Long queues formed in front of RBI and SBI to collect declaration
forms.
Rs. 73 crores was the demonetized figure though Rs. 1067 crores
were added through Rs. 100 notes and smaller denominations
made up for another Rs. 650 crores.
Very few people were using Rs. 10000 notes.
4. In 2011, the Supreme Court in the case of Ram Jethmalani and Others
Vs. UOI had directed appointing of an SIT for investigating matters
pertaining to black money and money stashed abroad.
Application for review dismissed in 2011.
No action was taken for 3 years
The new Government in 2014 constituted a Special Investigation Team
(SIT) consisting of two retired judges for recommending steps to curb the
menace of black money.
Black Money Act, 2015 was enacted to unearth undisclosed foreign income
and assets.
One time compliance scheme for voluntary disclosure of undisclosed
foreign assets.
DTAA between India and Mauritius / Cyprus renegotiated.
Understanding with Switzerland for getting information on bank
accounts held by Indians
Income Declaration Scheme , 2016.
5. RURAL : 15.67 crore bank accounts
URBAN : 9.84 crore bank accounts
TOTAL : 25.51 crore bank accounts
NO OF RUPAY CARDS : 19.44 crores
AADHAAR SEEDED : 13.69 crores
BALANCE IN ACCOUNTS : Rs. 45636.61 crores
% OF ZERO-BALANCE-ACCOUNTS : 23.27%
Recent press reports state that nearly 21,000 Crores
have been deposited in Jan Dhan.
6. “I propose a limited period compliance window for domestic taxpayers to
declare undisclosed income or income represented in the form of any asset
and clear up their past tax transgressions by paying tax at the rate of 30%;
surcharge at 7.5% and penalty at 7.5% , which is the total of 45% of
undisclosed income. Our Government is fully committed to remove black
money from the economy. Having given one opportunity for evaded income
to be declared once, we would then like to focus all our resources for
bringing people with black money to books…..” - Hon’ble Finance Minister,
Budget Speech 2016.
7. Mere pyaare Deshwasiyon…
“Why don’t we, on our own, give the correct details of our income and
property to the government, so that we can rid ourselves from the
burden of hitherto undeclared assets?”
“I appeal to the countrymen to do this. To the people who have
undisclosed income, the Government of India has given a chance to
declare such income. The government has presented before the
country a special facility to disclose undisclosed income by the 30th of
September.”
For those who voluntarily declare to the government their assets and
their undisclosed income, no enquiry will be conducted. No questions
as to from where all this wealth came and how it was acquired.
8. At the same time, I want to tell the people of the country
that please consider this plan, which is up to 30th
September as your last chance.
If any citizen is put through any difficulty, the one who does not
want to follow due rules of government, then it will not be possible
to help them.
“I want to say this to the people of the country that we do not
wish that after the 30th September anything should happen that
will cause difficulties for you. And so I say that please avail of
this facility before this date and save yourselves from any
possible trouble after the 30th of September.”
9. 8th November 2016 at 8 PM
Disbelief
Panic Mode
Gold Rush
ATM Rush on 10th November
Pressure on Banks
Withdrawal Limits and changes
Reasons for new norms and additional conditions
Cash and Liquidity Crunch
Initial lull in trade and business
Reaction of Opposition Parties
Media Reaction
10. Cash has been sucked out of the system
It would take months to replace equal amount of cash
Initial reaction would be to buy on need basis and conserve /
accumulate new notes
Slow and steady shift to cashless transactions such as RTGS/
NEFT/ debit card/ credit card/e-wallet
Contrary to popular theory, urban and rural would easily adapt
whereas semi-urban and semi-rural could struggle
Cluster Banking / ATM on call / outsourced banking centers will
have to be created if society has to move from cash to cashless
rapidly
Thrust would be towards cashless transactions.
11. Business would come down due to shock
Next 6 months would see a dip in GDP
Inflation would come down significantly
Banks are expected to receive nearly Rs. 10 lakhs crores
Money not deposited and simply retained is gain for RBI and
the Government
Deficit could be wiped out
More window for huge budget outlay
If demonetized notes are written off, possibility of
Government printing that much of currency
Government will have to pump in money by increasing
expenditure
12. Lesser appetite for non accounting of transactions in the short term
period
Increased reporting and compliance
Loss for certain businesses could be very significant
Huge impact on corrupt politicians, authorities and others
Impact on commerce and industry which are in possession of
unaccounted but not illegal income
Some businesses could disappear
Government vigil and further action would follow since media and
opposition have criticized the Government by stating that black money
exists only in other assets
Re-start of economic activity
Whether the problem of corruption has been arrested?
Prime Minister should follow it up with Surgical Strike III on corruption
if the strike on black money has to succeed.
13. Huge Direct tax collections on account of new assesses /
fresh taxes by old assesses / disclosure / higher tax
compliance for future
Possible huge increase in advance tax payments on
15.12.2016.
Huge work load for the Department
Information may be sought by the assessing officer under
Section 133 (6) of the Income Tax Act based on bank deposits
or details furnished by the Banks
Indirect tax notices
14. When cash balance is available in the properly
maintained books of accounts duly audited, deposit
of such cash cannot be considered as income.
This is subject to
• Availability of source of income
• Availability of cash balance
• Explanation being accepted by the Authorities in case
notice is issued.
15. If any sum is found credited in the books of an assessee for any previous
year and
The assessee offers no explanation about the nature and source thereof
or the explanation is not satisfactory
The sum so credited may be charged to income tax at the income of
the assessee of that previous year
Where the assessee is a company not being a company in which public is
substantially interested and the sums so credited consists of share
application money or share premium or share capital etc. any
explanation will be considered as not satisfactory unless
The other person being a resident in whose name the credit is recorded also
offers an explanation about the nature and source and
Such explanation is satisfactory in the opinion of the AO
16. Where in any financial year Assessee is found to be the
owner of any money, bullion, jewellery or other valuable
article and
Such items are not recorded in the books of accounts for any
source of income and
No explanation is offered about the nature and source
The money/ value of bullion, jewellery or other valuable article
may be deemed to be the income of the Assessee for such
financial year.
17. Section 69 – Unexplained investments
Section 69B – Investments not disclosed in books of
accounts
Section 69C – Unexplained expenditure
Section 69D – Amount borrowed or repaid in hundi
18. Where income includes income referred to in Section 68 / 69
/ 69A / 69B / 69C / 69D, the income tax payable shall be the
aggregate of
• Tax at the rate of 30% on income referred to in Section 68 /
69 / 69A / 69B / 69C / 69D and
• Tax which the Assessee would have been charged on his
total income as reduced by the amount referred to above.
No deduction of expenditure or allowance or set off is
available.
19. Under reporting of income.
Under reporting if income assessed is greater than
the returned income.
Under reporting attracts penalty equal to 50% of
tax.
If under-reporting is in consequence of mis-
reporting, penalty is equal to 200% of the tax on
under reported income.
20. Misreporting would cover
• Misrepresentation or suppression of facts
• Failure to record investments in books of
accounts
• Claim of expenditure not substantiated by
evidence.
• Failure to record any receipt in the books of
account having a bearing on the total income.
21.
22. Bill No.229 of 2016 introduced in the Lok Sabha.
Section 115BBE proposed to be amended from
01.04.2017.
Amendments to Section 271AAB(1)
Insertion of Section 271AAB(1A)
Insertion of Section 271AAC
Amendment to Section 2(9), Chapter II, Finance
Act 2016
Introduction to Chapter IXA (Section 199A to
199R) to Finance Act 2016
23. Where total income of an assessee includes
(a) any income referred to in Section 68 / 69 / 69A / 69B / 69C /
69D, and reflected in the return under Section 139; or
(b) income determined by the Assessing Officer includes any
income referred to in Section 68 / 69 / 69A / 69B / 69C / 69D if
not covered above, …..
Then the income tax payable shall be the aggregate of
• Tax at the rate of 60% on income referred to in Clause (a) or
(b) above and
• Tax which the Assessee would have been charged on his
total income as reduced by the amount referred to above.
Section 115BBE(2) which provides that no deduction of expenditure
or allowance or set off would be granted continues.
24. Section 271AAB(I) to have a sunset clause upto the date the Amendment
Bill receives the assent of the President.
Where a search is initiated under Section 132 after the Amendment Act
receives the assent of the President, penalty is payable in addition to the
tax
• @ 30% of the undisclosed income of the specified previous year if the
Assessee through a statement under Section 132(4) admits
undisclosed income and specifies the manner in which it was derived
and substantiates the same and
• Pays tax with interest is any before the specified date in respect of
the undisclosed income and
• Furnishes return for specified previous year declaring undisclosed
income.
Penalty at 60% of the undisclosed income if it is not covered under the
provisions of clause (a) above.
25. AO not withstanding anything contained in the Act other
than Section 271AAB direct that if the income determined
includes income under Section 68 / 69 / 69A / 69B / 69C /
69Dfor any previous year.
The Assessee shall pay penalty in addition to tax under
Section 115BBE @ 10% of the tax payable under Section
115BBE(1)(i).
No penalty if income included in the return and tax under
Section 115BBE has been paid on or before the end of the
relevant previous year.
No penalty under Section 270A.
Section 274 & 275 shall apply in relation to the penalty.
26. Existing surcharge rates on advance tax in
respect of tax determined under Section
115BBE deleted.
Surcharge rates at 25% of advance tax in
respect of income chargeable to tax under
Section 115BBE(I)(i).
27. Chapter IXA of Finance Act 2016 effective from date
notified.
Taxation and Investment Regime for Pradhan
Mantri Garib KalyanYojana 2016.
Declaration of undisclosed income in the form of
cash or deposit.
In an account maintained with a specified entity.
Chargeable to tax for any AY commencing on or
before 01.04.2017.
No deduction
28. Specified Entity shall mean RBI, Banking Company, Co-operative bank to
which Banking Regulation Act applies, Head Post Office, Sub-Post Office
or any other notified entity
Undisclosed income declared under Section 199C shall be chargeable to
tax @ 30% notwithstanding anything contained in the Income Tax Act or
any Finance Act.
Surcharge @ 33% of the tax called as Pradhan Mantri Garib Kalyan
Cess.
Penalty @ 10% of the undisclosed income.
Effective outflow 49.9%
Section 199F provides that person making declaration should deposit an
amount not less than 25% of the undisclosed income in the Pradhan Mantri
Garib Kalyan Deposit Scheme 2016.
29. No interest on said deposit
Lock in for 4 years from date of deposit.
Amount can be withdrawn after 4 years subject to conditions
specified in the scheme.
Section 199G requires a declaration under Section 199C by a
person competent to verify the return of income
Declaration to the Principal Commissioner or the Commissioner
notified.
Tax, Surcharge and Penalty payable before filing declaration
Deposit before filing declaration
Proof of payment of tax, surcharge, penalty and deposit should
accompany the declaration.
30. Section 199I provides that undisclosed income declared as
per Section 199C shall not be included in the total income of
the declarant for any AY under the IT Act.
Undisclosed income declared cannot affect finality of
completed assessments.
No refund of amount paid
Section 199L provides notwithstanding anything contained
in any other law for the time being in force nothing contained
in the declaration made under Section 199C(1) shall be
admissible in evidence against the declarant for the purpose of
any proceeding under any Act other than the Acts mentioned in
Section 199O.
31. Section 199O provides that the scheme shall not apply to
• Person in respect of whom an order of detention has been
issued under COFE POSA.
• Prosecution of offence under Chapter IX to XVII of IPC, NDPS
Act, Unlawful Activities Prevention Act 1967, Prevention of
Corruption Act 1988, Prohibition of Benami Property
Transactions Act 1988, Prevention of Money Laundering Act,
2002.
• Any person notified under Section 3 of the Special Court (Trial
Of Offences RelatingToTransaction In Securities) Act 1992
• In relation to any undisclosed income and asset which is
chargeable under the Black Money (Undisclosed Foreign
Income and Assets) and Imposition ofTax Act, 2015.
32. Section 199P provides that nothing contained in the
Scheme shall be construed as conferring any
benefit, concession or immunity on any person
other than the person making the declaration under
the Scheme.
Form of declaration, verification to be prescribed
through the Rules.
33. This scheme is wider in scope than the earlier scheme
Exclusions are very limited in the new scheme
Earlier scheme contemplated a deferred outflow of 45%
whereas new scheme contemplates an instant outflow of
49.9% with the additional deposit requirement
No restrictions in the new scheme in the context of pending
proceedings or notices
Earlier scheme covered income chargeable to tax either in
the form of income or in the form of investments whereas
new scheme covers income in the form of cash or deposits in
a specified entry
34. Higher level of compliance
W.e.f. AY 01.04.2017, if income includes income referred to in
68 / 69 / 69A / 69B / 69C / 69D and reflected in the return or is
determined by the officer, the tax rate is 60% under
Section 115BBE.
Surcharge at 25% of the tax
Section 271 AAC provides for a penalty of 10% of the tax
payable under Section 115BBE(i)
35. K.VAITHEESWARAN
ADVOCATE &TAX CONSULTANT
‘VENKATAGIRI’
Flat No.8/3 & 8/4, Ground Floor,
No.8 (Old No.9), Sivaprakasam Street,
T. Nagar, Chennai - 600 017, India
Tel.: 044 + 2433 1029 / 4048
402, Front Wing,
House of Lords,
15/16, St. Marks Road,
Bangalore – 560 001, India
Tel : 080 22244854/ 41120804
Mobile: 98400-96876
E-mail : vaithilegal@yahoo.co.in vaithilegal@gmail.com
www.vaithilegal.com