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New Delhi, The government's decision on mandatory payment of at least 1% of <keyword id="10497869" type="UNKNOWN" weightage="20" keywordseo="gst-tax-liability">GST tax liability</keyword> in cash will impact only around 40,000 to 45,000 taxpayers but help the entire system curb the menace of fake ITC availment and <keyword id="38388" type="ORGANIZATION" weightage="20" keywordseo="operation">operation</keyword> of fly-by-night operators, sources in <keyword id="1549446" type="COMPANY" weightage="20" keywordseo="The-Finance-Ministry">the finance ministry</keyword> said on Saturday. Based on the recommendations of <keyword id="10283255" type="COMPANY" weightage="20" keywordseo="the-gst-law-committee">the GST Law Committee</keyword>, the government has notified <keyword id="10497871" type="UNKNOWN" weightage="20" keywordseo="new-indirect-tax-rules">new indirect tax rules</keyword> that makes cash payment of 1% of GST tax liability mandatory for businesses whose <keyword id="10497870" type="UNKNOWN" weightage="20" keywordseo="taxable-supply-value">taxable supply value</keyword> exceeds ₹50 lakh. This change will come into effect from January 1, 2021. Sources in department of revenue said data indicated out of the total GST tax base of 1.2 crore taxpayers only around 4 lakh taxpayers have supply value greater than ₹50 lakh, and only around 1.5 lakh out of these 4 lakh taxpayers pay less than 1% tax in cash. So, the changes would include only a <keyword id="4473154" type="PERSON" weightage="20" keywordseo="small-section">small section</keyword> of taxpayers. Moreover, the DoR sources said with exclusions around 1.05 lakh taxpayers get further excluded from these 4 lakh. Thus, the rule would apply only to about 40,000 to 45,000 taxpayers. This would be around 0.37% of the total GST tax base of 1.2 crore taxpayers. "The data clearly indicates that a small fraction of taxpayers would need to pay 1% of GST liability in cash. Moreover, the rule is clearly for businesses whose taxable value of supply exceeds ₹50 lakh, so the measure would not affect small businesses or increase their working capital requirement," sources said. Under the new rule cash payment of 1% is to be calculated on the tax liability in a month and not turnover of the month. For example, if the turnover of taxable supplies of a taxpayer is ₹100 in a month and he is required to pay GST of 12% on his output taxable supplies, then he will be required to pay 1% of ₹12, i.e., ₹0.12 (12 paisa) only in the month through cash under this rule. Therefore, the net requirement of cash payment will be only 0.12% of the turnover in such a case, finmin sources said citing another example, if a dealer has made sale of ₹1 crore of the goods whose tax rate is 12 per cent and if he is discharging his tax liability more than 99% through input tax credit (ITC) then he has to pay only ₹12,000 under this rule. The rule clearly identifies where the risk to revenue is high and imposes very reasonable cost to deter the fraudsters in a multi-layered fraud of ITC, said the sources. The government had notified the cash rule to curb fake ITC availment and passing on of such credit by unscrupulous persons who generally pay no tax in cash, particularly in those risky cases where GST turnover does not match with the income tax returns. Such registered person will not be able to use the amount of ITC available in electronic credit ledger to discharge his liability towards output tax in excess of 99% of such tax liability. At least 1% liability would need to be discharged in cash. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-mrs-bectors-ril-bharti-airtel-vodafone-idea-ilfs-interglobe-aviation-future-group-deepak-nitrite-jubilant-foodworks-and-others/articleshow/79933826.cms">Top stocks to watch – Mrs Bectors, RIL, Bharti Airtel, Vodafone Idea, IL&amp;FS, InterGlobe Aviation, Future Group, Deepak Nitrite, Jubilant FoodWorks, and others</a> <a href="https://www.businessinsider.in/stock-market/news/there-are-one-of-only-17-indian-companies-out-of-500-that-aced-the-du-pont-test/articleshow/79911627.cms">There are one of only 17 Indian companies out of 500 that aced the Du Pont test</a> <a href="https://www.businessinsider.in/business/corporates/news/wipro-buyback-offer-details-and-700-million-metro-ag-deal-drives-share-price/articleshow/79911875.cms">Wipro offers 10% more to buy back shares and signs a $700 million deal with Metro AG – everything that’s driving the IT services stock higher today</a>

Payment of 1% GST in cash only for 45,000 taxpayers: DoR sources

New Delhi, Feb 15 () Interest payable on delayed payment of GST will henceforth be calculated on net tax liability and the law is being amended to give effect to it, the Central Board of Indirect Taxes and Customs (CBIC) said on Saturday. Amid worry in the industry regarding CBIC's recent directive to field formations to begin recovery of about Rs 46,000 crore of unpaid interest on delayed GST payment, the CBIC, in a series of tweets, clarified that the central and several state governments have prospectively amended the GST Acts to collect interest on net tax liability. The CBIC said GST laws, as of now, permit interest calculation on delayed GST payment on the basis of gross tax liability. This position has been upheld in the Telangana High Court's decision dated April 18, 2019. "In spite of this position of law and Telangana High Court's order, the central government and several state governments, on the recommendations of the GST Council, amended their respective CGST/SGST Acts to charge interest on delayed GST payment on the basis of net tax liability," the CBIC said. "Such amendment will be made prospectively. The states of Telangana and West Bengal are in the process of amending their state GST Acts. After the process of amendment is complete, the changed provisions can be put in operation for the entire country," it added. Businesses, other than those under the composition scheme, registered under goods and services tax (GST) have to file returns (GSTR-1) showing tax liability by 11th of following month and pay taxes by filing GSTR-3B by 20th. There have been cases where GST assessees have paid taxes after due date but did not pay the interest due on account of delayed payment. There were doubts on whether the interest was to be paid on gross tax liability or net tax liability. The CBIC had said that interest was to be paid on tax liability either through cash or utilisation of input tax credit. JD HRS

Interest on delayed GST payment will now be calculated on net tax liability

shapecharge/GettyCertain deductions and credits can help reduce your tax liability.<ul class="summary-list"><li>Tax liability is the amount of taxes you owe to the IRS or your state government.</li><li>Your income tax liability is determined by your earnings and <a href="https://www.businessinsider.com/what-is-my-filing-status-for-taxes">filing status</a>. </li><li>Certain <a href="https://www.businessinsider.com/tax-deductions-tax-credits-save-money-taxes">deductions and credits</a> can help reduce your tax liability. </li><li>If there's a difference between your tax liability and what you paid through employer withholdings or estimated payments during the year, it's due by April 15.</li><li>This post has been been reviewed for accuracy by Thomas C. Corley, CPA.</li><li><a href="https://www.businessinsider.com/what-is-best-tax-software">See Business Insider's picks for the best tax software »</a></li></ul>Most Americans who earn an income are responsible for giving a cut to the government.How much you owe to the IRS depends on your filing status and earnings and is known as your tax liability. <h2>What is tax liability?</h2>America has a <a href="https://www.businessinsider.com/us-progressive-taxes-alexandria-ocasio-cortez-tax-plan-2019-1">progressive tax system</a> with seven income tax rates ranging from 10% to 37%.Each filing status has its own <a href="https://www.businessinsider.com/what-tax-bracket-am-i-in-federal-income-tax">tax brackets</a> (although married filing jointly and qualifying widow(er) use the same tax table); these represent the rates at which the individual or couple's income is taxed as they reach certain thresholds. The tax calculated is your tax liability, but not necessarily the tax due.Below are the tax brackets for single filers and married filers that applied to income earned in 2019. They're adjusted each year for inflation.Shayanne Gal/Business InsiderIf you add up every dollar you earned in 2019 - or simply took your annual salary figure - and applied it to the tax brackets above, you will likely get a higher number than what you're actually responsible for paying. That's because certain deductions will lower the amount of your income that's taxed to begin with.For example, if you contributed to a <a href="https://www.businessinsider.com/what-is-a-health-savings-account-hsa-save-money">health savings account</a> or an employer-sponsored <a href="https://www.businessinsider.com/how-to-invest-in-a-401k-for-retirement">retirement plan</a> that allows pre-tax deferrals, those amounts won't be included in your gross income.Further, if you paid interest on student loans or are self-employed and paid health insurance premiums throughout the year, for example, you can subtract those amounts from your gross income. These are referred to as adjustments to income, or above-the-line deductions. This results in your adjusted gross income (AGI).From there, you can subtract either the standard deduction - $12,200 for single filers and $24,400 for married joint filers in 2019 - or itemized deductions (like mortgage interest or state and local taxes), whichever is higher. This brings you to your total taxable income. That's the figure the IRS applies to the tax brackets above to determine your true tax liability.<h2>Is tax liability the same as tax due?</h2>When you start a new job, you're required to fill out <a href="https://www.businessinsider.com/how-do-i-fill-out-new-w-4-tax-withholding-form">Form W-4</a>. This tells your employer how much to withhold from your paychecks for income taxes based on your filing status, family situation, and any additional jobs you have.Your employer sends the amount withheld for income taxes from each paycheck to the IRS on your behalf. At the beginning of the next calendar year, you'll receive a W-2 - or 1099 if you're an independent contractor - from each employer you had, detailing how much you earned and how much was withheld for taxes. Self-employed taxpayers generally pay their <a href="https://www.businessinsider.com/how-to-pay-quarterly-taxes-business-owner">taxes quarterly</a> rather than through withholdings.In preparing your <a href="https://www.businessinsider.com/how-to-file-taxes-tax-return-instructions">tax return</a>, you'll compare the taxes you already paid for that tax year to your total tax liability. If it turns out you overpaid, you'll likely get a <a href="https://www.businessinsider.com/wheres-my-tax-refund-federal-tax-refund">refund</a>. If the opposite is true - your tax liability is more than the amount withheld - you'll probably have a tax bill.If there are changes to your financial situation during the year, you're responsible for updating and resubmitting your W-4 to your employer to make sure the correct amount of money is withheld to cover your tax liability.If you qualify for <a href="https://www.businessinsider.com/what-is-a-tax-credit-definition-explainer">tax credits</a>, you can apply them to your tax bill to lower the amount due on a dollar-for-dollar basis. Some credits are even refundable, meaning that if their total value wipes out your tax bill completely, you can get the remaining money back as a refund.<h2>How do you estimate tax liability?</h2>You can estimate your tax liability for the year by adding up all your income and subtracting any applicable deductions, and then applying that figure to the tax brackets for your filing status. If the math feels confusing, try an online calculator. <ul class="read-more-links"><li>More <a href="https://www.businessinsider.com/category/tax-day-2020">tax day</a> coverage:</li><li><a href="https://www.businessinsider.com/when-are-taxes-due-tax-filing-deadline-2019-1">When are taxes due?</a></li><li><a href="https://www.businessinsider.com/how-to-file-taxes-tax-return-instructions">How to file taxes for 2019</a></li><li><a href="https://www.businessinsider.com/what-is-a-tax-credit-definition-explainer">What is a tax credit?</a></li><li><a href="https://www.businessinsider.com/hr-block-vs-turbo-tax-2018-1">H&amp;R Block vs. TurboTax</a></li></ul>Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team. <h3>NOW WATCH: <a href="https://www.businessinsider.com/how-to-make-submit-your-own-emoji-start-finish-2019-8">62 new emoji and emoji variations were just finalized, including a bubble tea emoji and a transgender flag. Here's how everyday people submit their own emoji.</a></h3>

What is tax liability? It's how much you owe in taxes depending on your filing status and income

<keyword id="15492" type="CITY" weightage="100" keywordseo="Vodafone">Vodafone</keyword> India is facing <keyword id="45031" type="PERSON" weightage="100" keywordseo="Tax">tax</keyword> liability and interest amounting to more than Rs 27,000 crore, the company said in its annual report. Vodafone said its Indian subsidiary had received a letter in January 2013, reminding it of the tax demand of Rs 14,200 crore regarding the dispute over acquisition of Hutchinson in 2007. 
 
The company faces tax demand following the retrospective tax amendment brought about in 2012. 
 The report said, “Vodafone International Holdings BV (VIHBV) has not received any formal demand for taxation following the <keyword id="6374292" type="UNKNOWN" weightage="100" keywordseo="Finance-Act">Finance Act</keyword>, 2012, but it did receive a letter on January 3, 2013, reminding it of the tax demand raised prior to the Indian Supreme Court’s judgment and purporting to update the interest element of that demand in a total amount of Rs 142 billion.” 
 
Besides, the UK-based telecom company is also facing tax liability of more than £1billion. These claims pertain to transfer pricing and value-added tax. 
 
According to the report, “Vodafone India (VIL) and Vodafone India Services Pvt Ltd (VISPL) are involved in a number of tax cases with total claims exceeding £1 billion plus interest and penalties of up to 300% of the principal.” 
 
At current rate, £1 billion is worth Rs 9,900 crore. 
 
The Supreme Court had ruled in favour of Vodafone. However, the government of India amended the law with retrospective effect in 2012.

Vodafone India Faces Tax Liability Of More Than Rs
27,000 Crore

The deadline to file your <keyword id="19948101" type="General" weightage="20" keywordseo="income-tax-returns" source="keywords">income tax returns</keyword> is approaching fast, and Sana is perplexed. All of 23, she's just started earning and working at an MNC, earning Rs 7,00,000 per annum, and can't figure out which <keyword id="20301439" type="General" weightage="20" keywordseo="tax-regime" source="keywords">tax regime</keyword> would work best for her. If you're having the same concerns and can't seem to wrap your head around the <keyword id="19935168" type="General" weightage="20" keywordseo="new-tax-regime" source="keywords">new tax regime</keyword>, here's a ready reckoner for you: When should I choose new tax regime? Think of choosing a tax regime as having to choose a friend in office. The <keyword id="8706677" type="General" weightage="20" keywordseo="old-tax-regime" source="Orion">old tax regime</keyword> is that aged, wise senior who has answers and hacks for everything. Want to get over with a boring project quickly? They will certainly have a trick up their sleeve! On the other hand, the new regime is far more chilled out, lax and is a no-nonsense person who wants nothing to do with long documents and longer meetings. The new regime was introduced in budget 2020 to simplify taxation, and offer lower rate of taxes as compared to the old regime. However, there's a catch. You cannot claim the 70+ exemptions and deductions that help bring down your taxable income and hence, reduce your tax liability. This option is exclusively available under the old tax regime. The main USP of this tax regime? Lower tax rates, and fuss of deductions! Consider this. If your income is within the range of Rs 5,00,000-Rs 12,00,000, and you have no investments, <keyword id="99916" type="General" weightage="20" keywordseo="house-rent-allowance" source="Orion">house rent allowance</keyword> (<keyword id="19944588" type="General" weightage="20" keywordseo="hra" source="keywords">HRA</keyword>), health/life insurance premiums or other such deductions to claim, the new tax regime would obviously make more sense to you, given the significant difference in tax liabilities (just 5% under new regime, and a whopping 20% in old regime for those in the Rs 5-6 lakh bracket!) <div type="image" title="Tax rates under old and new regime" msid="111685908" hostid="261"></div> So, if you're someone who hates complex tax calculations, wants minimal tax deductions, the new regime might just be for you! But remember, there are two conditions under which this new regime will be automatically chosen for calculating your taxes: <ul><li>If you keep procrastinating and don't file your <keyword id="6374875" type="General" weightage="20" keywordseo="ITR" source="Orion">ITR</keyword> till July 31, 2024</li><li>If you do not specifically opt for the old tax regime on your employer's HR portal</li></ul>Also, if you earn less than Rs 3,00,000 per annum, you are completely exempted from paying any tax at all. In the old regime, this basic limit is slightly lower at Rs 2,50,000. Also read: <a href="https://www.businessinsider.in/personal-finance/income-tax/all-you-need-to-know-about-the-new-tax-regime/articleshow/111578840.cms" data-type="tilCustomLink">All you need to know about the new tax regime</a> So, what do I get under this regime? Thanks to a rebate under Section 87A, if you earn up to Rs 7 lakh per annum, your tax liability (and Sana's as well) will effectively be zero. This is limited to Rs 5 lakh under the old regime. While a <keyword id="20429578" type="General" weightage="20" keywordseo="standard-deduction" source="keywords">standard deduction</keyword> of Rs 50,000 is available under both of them (so you can directly deduct Rs 50,000 from your total income before even beginning to calculate your tax liability), there are a lot more deductions and exemptions that this regime DOES NOT allow you to avail: <ul><li>Leave Travel Allowance (LTA)</li><li>House Rent Allowance (HRA) (Comes in handy if you're paying hefty rents in metros)</li><li>Interest on housing loan (on self-occupied property or vacant property)</li><li>Own contribution to NPS (If there's any)</li><li>Interest earned on savings bank A/Cs </li><li>Investments made in ELSS, PPF</li><li>Premiums paid towards life, health insurance policies</li></ul>As for the deductions that are allowed, that makes for a pretty small list: <ul><li>Transport allowances (only if you are specially abled)</li><li>Gifts of up to Rs 50,000</li><li>Employer’s contribution to your NPS account</li><li>Interest paid on home loan only on let-out property</li></ul>But that's the trade-off. You get to pay taxes at low rates, yes, but you also don't get to claim a whole lot other deductions. Notes CA Nitesh Buddhadev, "Which regime is beneficial for you depends upon the allowances and deduction available to you during a relevant financial year. So, if your total income from salary is Rs 10.5 lakh and if the aggregate of any of the deductions / allowances you can claim is less than Rs. 3.15 lakh, you should opt for the new tax regime. If you have not invested in multiple tax-savings scheme, the new regime will work better. So, don't make this decision in any haste. You can choose your tax regime only once in a financial year. And if your income from business or other professions, be even more careful, because this will then become a once in a lifetime choice for you (quite literally!). So, take a good hard look at your finances, and then decide what works best for you!

Confused about the new tax regime? Here's when you should opt for it

The <keyword id="124006" type="ORGANIZATION" weightage="100" keywordseo="authority-for-advance-ruling">Authority for Advance Ruling</keyword> (<keyword id="300790" type="ORGANIZATION" weightage="100" keywordseo="AAR">AAR</keyword>) has said that payments done by foreign parents to expats who work in India for local arms of multinationals won't be attracting service tax from now on. This decision is expected to bring some relief to MNCs who have been served with notices in similar cases. 
 
"There shall be no liability to pay service tax on the salary and the allowances payable by the applicant to the employee in terms of the dual employment agreement and such salary will not be eligible to levy the service tax as per the provisions of the Finance Act," the ruling states. 
 This followed a plea submitted by <keyword id="3179201" type="UNKNOWN" weightage="100" keywordseo="North-American-Coal-Corp">North American Coal Corp</keyword>. India, which is the local subsidiary of US-based North American Coal Corp. The plea was seeking a ruling on the application of service tax on social security benefits that the parent company gives to an employee working in India on contractual basis. 
 
In some recent instances, tax authorities have issued notices to MNCs where an expat employee who has received payments from the parent in his home country. They argue that salaries paid for work in India and transferred to foreign accounts by the parent company which then get reimbursed to it by the Indian subsidiary make it akin to supply of manpower and therefore should be taxable. 
 
"Service tax authorities have been taking a view that where an employee of a group company is deputed to work in an associate company for a specified period/assignment, the transaction amounts to creating a service provider-service recipient relationship between the two companies," Saloni Roy, senior director, Deloitte India, told ET. 
 
Even though rulings by the AAR are specific to different cases, they would still have an effect on the tax assessment of other firms facing similar circumstances. AAR, which is a quasi-judicial body, is set up to guide companies on potential tax liabilities that they may face, and give opinions regarding these liabilities. 
 
<a href="http://blogs.reuters.com/india-expertzone/files/2013/07/r1.jpg">Image source</a>

Payments to expats working in local arms of MNCs not liable for service tax, says AAR

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Alex Wong/Getty ImagesWarren Buffett</div></div></div><ul><li>Warren Buffett's <a href="http://markets.businessinsider.com/stock/BRK-B-Quote">Berkshire Hathaway</a> could be one of the biggest beneficiaries of tax reform, according to Barclays. </li><li>Analysts estimate that its book value could rise by about $37 billion because of the lower corporate tax rate. </li><li>The tax cut reduces Berkshire's deferred tax liability, which represents what it would owe the government if it sold its portfolio and took profits. </li></ul> Warren Buffett's <a href="http://markets.businessinsider.com/stock/BRK-A-Quote">Berkshire Hathaway</a> could be one of the biggest beneficiaries of tax reform in the insurance sector, according to Barclays. The company's book value could increase by about $37 billion, said Jay Gelb, an insurance analyst at Barclays, in a note on Monday. That's $10 billion more than what he estimated in a November note before the tax plan was finalized and signed. Gelb estimated this because Berkshire would have a lower deferred tax liability, which represents what the company would owe the federal government if it sold its equity portfolio and took profits. The <a href="http://www.businessinsider.com/trump-gop-tax-reform-bill-pass-house-bracket-rates-changes-2017-12">Tax Cuts and Jobs Act</a>, signed by President Trump in December, permanently cuts the corporate tax rate from 35% to 21%. This means Berkshire's deferred tax liability - about $78 billion - would fall because of the lower rate. "We would view this magnitude of book value increase as favorable for BRK shares since it is generally valued based on price-to-book value," Gelb said. He has a price target of $357,000 on Berkshire's A shares, about 19% more than where they opened for trading on Monday.Berkshire Hathaway could also benefit from tax reform because its biggest investments are in the financials sector. Companies in this sector have historically paid the highest effective tax rate in the S&amp;P 500, according to <a href="https://www.reuters.com/article/us-usa-tax-stocks-winners-graphic/lower-taxes-big-gains-the-stocks-poised-to-win-from-tax-cuts-idUSKBN1DV61N">Wells Fargo</a>. That could be a boon for some companies in the share of Berkshire's public portfolio - about 40% - that's in in financials.<div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://markets.businessinsider.com/stock/BRK-A-Quote">Markets Insider</a></div></div></div> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/apple-stock-price-iphone-x-cycle-could-send-shares-tumbling-2017-12">The end of the iPhone X cycle could send Apple's stock tumbling</a></h3> <div> </div> </div>

Warren Buffett's Berkshire Hathaway could get a $37 billion windfall from tax cuts

The <keyword id="65338" type="ORGANIZATION" weightage="20" keywordseo="Income-Tax-Department">income tax department</keyword> has come to acquire an image of an agency that has usually harassed taxpayers, including the honest ones. But recently several individuals were surprised to receive a 'Certificate of Appreciation' in their mailbox, with some even mistaking it for a spam mail. 
 The certificate is signed by <keyword id="128665" type="ORGANIZATION" weightage="20" keywordseo="CBDT">CBDT</keyword> chairman <keyword id="3737431" type="UNKNOWN" weightage="20" keywordseo="rani-singh-naira">Rani Singh Naira</keyword> and mentions the taxpayer's name and permanent account number (PAN) and acknowledges his/her contribution "towards the building of this great Nation". 
 
Even though it comes with a barcode at the bottom, it does not entitle you to any benefit but it does make a distinction between how much an individual has paid in taxes during the last financial year. A majority of those who receive the certificate are in the bronze category, "contributing" between Rs 1 lakh and 10 lakh and those who have paid Rs 10-50 lakh have been put in the silver category. A contribution of Rs 50 lakh to Rs 1 crore will be in the <keyword id="18712" type="ENTERTAINMENT" weightage="20" keywordseo="Gold">gold</keyword> club and the top segment, which has only a few persons, is platinum with <keyword id="45031" type="PERSON" weightage="20" keywordseo="Tax">tax</keyword> payments of Rs 1 crore or more. 
 
The certificates are sent to taxpayers who have cleared their entire liability and have no outstanding tax liabilities and had filed their returns electronically in the prescribed time by July 31. This year the deadline had been extended by five days. 
 <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">Finance</keyword> minister <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> had handed over some of them at the end of last month while most of them are being sent through mails. The move is a result of tax department trying to change its image and appear to be more "customer-friendly" through a series of measures, including less intrusive assessment, and a more polite behavior.

The Income Tax department is sending out thank you notes- did you get one?

The <keyword id="15492" type="CITY" weightage="60" keywordseo="Vodafone">Vodafone</keyword> tax issue, having triggered a lot of turbulence among the corporate, has been hinted by the <keyword id="46149" type="POSITION" weightage="60" keywordseo="Telecom-minister">Telecom Minister</keyword> <keyword id="6354886" type="PERSON" weightage="60" keywordseo="Ravi-Shankar-Prasad">Ravi Shankar Prasad</keyword> as the case with alternative options to solve. 
 
 In a Press Trust of India (PTI) report, the minister was quoted saying, "I know taxing is a problem. Let me make an observation on this, taxing scenario of India should not begin with and end with Vodafone (tax case), I know that Vodafone issue could had been handled differently.” 
 Vodafone has been imposed a tax liability of over Rs 11,200 crore, along with interest, on its 2007 acquisition of Hong Kong-based <keyword id="127031" type="COMPANY" weightage="60" keywordseo="Hutchison-Whampoa">Hutchison Whampoa</keyword>'s stake in India's telecom major, Hutchison Essar. 
 PTI has further quoted Prasad who said, “On a second tax dispute involving Vodafone, the government has decided not to appeal in a higher court after the telecom firm won the case in <keyword id="48485" type="ORGANIZATION" weightage="60" keywordseo="Bombay-high-court">Bombay High Court</keyword>.” 
 
 The Vodafone case involves a tax liability of Rs 3,200 crore , which the Supreme Court said private companies cannot use ‘corporate veil’ to avoid taxations. 
 
 "We are very clear that the taxing regime has to be stable and predictable but those who do businesses also need to understand they are obliged to pay tax," Prasad said clearing the confusion of government backing the corporate. 
 
(Image: Reuters) 
 
 Prasad has made it clear that whole debate on taxing scenario should not revolve around just Vodafone and therefore this kind of a campaign that Vodafone case is the end, is not right.

Vodafone case isn’t the end, clarifies Telecom Minister

New Delhi, Jul 5 () Amid rising number of coronavirus cases, the tax department may have to come out with more measures and further extend the timelines to help the taxpayers comply with the statutory norms, according to experts. Although tax experts have welcomed the host of initiatives taken by the Finance Ministry to help the taxpayers in times of unprecedented crisis created by coronavirus pandemic, they feel that something more may have to be done till the normalcy returns. Among other measures, the Income Tax Department has extended various timelines to help the taxpayers remain on the right side of the law even during the times of pandemic and repeated extensions of lockdowns to prevent spread of coronavirus. Observing that major relief measures in terms of extension of timelines and interest waivers were undertaken by the government through an Ordinance on March 31, Gaurav Mohan, CEO AMRG &amp; Associates said, "Considering the current situation, more and more relief measures are needed for the taxpayers to keep the economy rolling which are being introduced with time". The coronavirus cases in the country have exceeded 6.5 lakhs and it may take months before the vaccine is developed or the normalcy is restored. Commenting on the government's decision extend the date of filing of income tax return in view of the pandemic, Naveen Wadhwa, DGM, Taxmann said, "The due date of furnishing return of income for all assessee for the financial year 2019-20 has been extended to November 30, 2020 in place of July 31 and October 31, 2020. Hence, all the assessee who are required to file ITR by July 31, 2020, or October 31, 2020 can file their return of income till November 30, 2020, without paying any late fee charges". Taxpayers will not have to pay any interest if the self-assessment tax liability remains within Rs 1 lakh and the return is filed within the due date of November 30. However, "if the self-assessment tax liability of a taxpayer exceeds Rs 1 lakh, he would be liable to pay interest under section 234A from the expiry of original due dates provided in the Income-tax Act," Wadhwa added. On the government's decision to extend the investment deadline to July 31 for claiming tax deduction for 2019-20, Kapil Rana, Founder Chairman, HostBooks Limited said, "This relief will help taxpayer to make their tax planning and reduce tax liability, who could not make their saving for the financial year 2019-20 due to this COVID-19 situation". The government had introduced a new schedule namely Schedule DI and had extended the due date for making investment in tax saving instruments for the financial year 2019-20 from March 31, 2020 to June 30, 2020. The date has been further extended to July 31, 2020. NKD CS BAL BAL

Govt may need to further extend tax return deadline if COVID cases continue to rise: Experts

<table class="image-container float_right" width="200"><tr><td><div class="image"></div>Getty Images / Andreas Rentz</td></tr></table>Grammy Award-winning singer Dionne Warwick is the latest <keyword id="6355064" type="ORGANIZATION" weightage="60" keywordseo="celebrity">celebrity</keyword> to hit rough financial waters. 
Warwick filed for <keyword id="43550" type="EVENT" weightage="60" keywordseo="Bankruptcy">bankruptcy</keyword> less than a week ago in New Jersey, blaming her money problems on tax liabilities and financial mismanagement, <a href="http://music.yahoo.com/news/singer-dionne-warwick-files-bankruptcy-052633022.html" target="_blank">Reuters reports.</a>
The numbers are pretty staggering. Warwick reportedly owes $10.7 million in back taxes (state and federal) and other debts and has just over $25,000 to her name. 
"In light of the magnitude of her tax liabilities, Warwick has repeatedly attempted to offer re-payment plans and proposals to the IRS and the California Franchise Tax Board for taxes owed," her publicist, Kevin Sasaki, said in a statement Tuesday. "These plans were not accepted, resulting in escalating interest and penalties."
Most of her money woes can be traced back to the late 1980s and mid-1990s. For this kind of gross mismanagement to go on under Warwick's nose for more than two decades, it's hard to imagine why she hasn't threatened to sue whomever is responsible. 
A month ago, best-selling crime writer Patricia Cornwell walked away with a massive $51 million award in a lawsuit against her financial advisory firm. Her advisors allegedly squandered nearly $90 million of her fortune.

Grammy Award-Winner Blames $10 Million Debt On 'Financial Mismanagement'

<div class="KonaFilter image-container display-table"><div><div class="image on-image">John Moore/Getty ImagesManhattan, New York.</div></div></div><ul class="summary-list"><li>25 counties in the United States paid more than a quarter of the total income tax collected in 2016, according to <a href="https://www.irs.gov/statistics/soi-tax-stats-county-data-2016">IRS data</a>.</li><li>Los Angeles County alone, with a population of over <a href="https://www.census.gov/quickfacts/fact/table/losangelescountycalifornia,ca/PST045217">10 million</a>, paid 3.67% of all income tax liability in 2016.</li><li>New York County, which covers Manhattan, has a population of about <a href="https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk">1.6 million</a>, but it ranked second among counties, paying 2.7% of all US income taxes.</li></ul> There are a total of 3,141 counties in the United States, according to <a href="https://www.usgs.gov/faqs/how-many-counties-are-there-united-states">USGS</a>. The top 25 of those counties - less than 1% - paid 28.85% of all income taxes in 2016. To some extent, the data show the concentration of population in large cities. Los Angeles, New York, and Chicago (Cook County), the <a href="https://www.politifact.com/largestcities/">three most populous</a> cities in the US, are in the three counties that contributed the most.But the numbers also illustrate the concentration of wealth in America. A review of <a href="https://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml?src=bkmk">census data</a> shows that these 25 counties represent only 9% of the total US population of <a href="https://www.census.gov/popclock/">328 million</a>. New York County, which covers just the borough of Manhattan, is home to 0.5% of the US population but it pays 2.7% of US income taxes. The five Bay Area counties pay a combined 5% of US taxes but are home to less than 2% of the population, due in no small part to the <a href="https://www.businessinsider.com/silicon-valley-palo-alto-super-rich-keep-economy-booming-2018-9">millionaires</a> (and <a href="https://www.recode.net/2018/5/19/17370288/silicon-valley-how-many-billionaires-start-up-tech-bay-area">billionaires</a>) paying income taxes in Silicon Valley.Here are the 25 counties that had the highest income tax liabilities in 2016.

These 25 US counties are paying most of the federal income taxes

<ul class="summary-list"><li>The <keyword id="3798493" type="PERSON" weightage="60" keywordseo="trump-administration">Trump administration</keyword> is reportedly weighing whether it can go around Congress to implement economic-relief measures, such as enacting liability protections for businesses and pushing the tax filing deadline back several months.</li><li>Trump supports shielding businesses from coronavirus-related lawsuits, saying it would be "litigation heaven."</li><li>The White House also backs the idea of a payroll tax cut and cutting capital gains taxes.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>The White House is reportedly weighing going around Congress to implement several economic relief measures as it pushes to reopen the country, <a href="https://www.nbcnews.com/politics/white-house/white-house-considers-measures-boost-economy-without-congress-n1202246">NBC News reported</a>.Among the proposed measures is the implementation of liability protections designed to shield businesses from coronavirus-related lawsuits, as well as a delay of the tax-filing deadline beyond July 15.Citing two sources familiar with the discussions, the outlet reported that the Trump administration is considering pushing this year's tax deadline further to September 15 or December 15.The White House is also trying to determine whether it is within the executive branch's authority to enact a so-called <keyword id="9184773" type="UNKNOWN" weightage="60" keywordseo="liability-shield">liability shield</keyword> to prevent businesses from being sued by workers who contract the <keyword id="1754604" type="PERSON" weightage="60" keywordseo="coronavirus">coronavirus</keyword>. Administration officials told NBC News there have not been final decisions made so far, suggesting plans are still fluid.President Trump supports enacting liability protections for businesses. He <a href="https://twitter.com/ddale8/status/1258483860486193156">said on Thursday</a> that "it would be litigation heaven" if no action was taken as the <keyword id="34412" type="ORGANIZATION" weightage="60" keywordseo="economy">economy</keyword> started to reopen.Read more: <a href="https://www.businessinsider.com/how-gold-prices-could-hit-record-high-stocks-climb-rbc-2020-5" target="_blank" rel="noopener">RBC explains how gold could surge 9% to a record high, even as stocks climb — a scenario that would shatter how investors have thought about the commodity for decades</a>However, it is unlikely the president would be able to create a liability shield on his own without setting off a firestorm of criticism from Democrats and worker groups that staunchly oppose the idea.Trump has also repeatedly called for a slew of <keyword id="44809" type="PERSON" weightage="60" keywordseo="Tax-cuts">tax cuts</keyword>, including temporarily scrapping payroll taxes and capital gains taxes in a bid to jumpstart growth. On Tuesday, he appeared to <a href="https://www.businessinsider.com/trump-tweets-federal-coronavirus-aid-may-depend-on-sanctuary-cities-2020-5">connect further federal aid to states</a> to achieving key Republican priorities on immigration and the economy.The White House <a href="https://markets.businessinsider.com/news/stocks/trump-payroll-tax-cut-economy-useless-low-income-americans-impact-2020-3-1028987243">floated a payroll-tax cut</a> early on in the pandemic, but it abandoned the plans amid opposition from Democrats and many Republicans as well.Over 33 million Americans have filed for unemployment in the past two months, and the Friday jobs report is set to be the worst in recent memory.Read more: <a href="https://www.businessinsider.com/investing-strategy-how-fund-manager-has-beaten-benchmark-3-etfs-2020-5" target="_blank" rel="noopener">Chad Glauser has dominated his benchmark for 28 months straight using just 3 ETFs. Here's what they are, and how they've combined to beat the market.</a>Read the original article on <a href="https://www.businessinsider.com/trump-administration-circumvent-congress-coronavirus-economic-relief-measures-report-2020-5">Business Insider</a>

You Searched For "tax liability" and got 13 results

Payment of 1% GST in cash only for 45,000 taxpayers: DoR sources

IANS

Interest on delayed GST payment will now be calculated on net tax liability

PTI

What is tax liability? It's how much you owe in taxes depending on your filing status and income

Tanza Loudenback

Vodafone India Faces Tax Liability Of More Than Rs 27,000 Crore

BI India Bureau

Confused about the new tax regime? Here's when you should opt for it

Ira Alok Puranik

Payments to expats working in local arms of MNCs not liable for service tax, says AAR

BI India Bureau

Warren Buffett's Berkshire Hathaway could get a $37 billion windfall from tax cuts

Akin Oyedele

The Income Tax department is sending out thank you notes- did you get one?

PTI

Vodafone case isn’t the end, clarifies Telecom Minister

BI India Bureau

Govt may need to further extend tax return deadline if COVID cases continue to rise: Experts

PTI

Grammy Award-Winner Blames $10 Million Debt On 'Financial Mismanagement'

Mandi Woodruff

These 25 US counties are paying most of the federal income taxes

Laura McCamy

The Trump administration might circumvent Congress to enact new economic-relief measures, new report says

Joseph Zeballos-Roig

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