After social media outrage over a Budget proposal making it mandatory to get <keyword id="22574399" type="General" weightage="100" keywordseo="tax-clearance-certificate" source="keywords">tax clearance certificate</keyword>s for going abroad, the government on Sunday clarified that the proposed amendment is not for all, and only those accused of financial irregularities or having substantial tax arrears need such clearance. The <keyword id="19955404" type="General" weightage="20" keywordseo="finance" source="keywords">finance</keyword> ministry, in the Finance Bill, 2024, has proposed to add the reference of the <keyword id="20961832" type="General" weightage="20" keywordseo="Black-Money-Act" source="keywords">Black Money Act</keyword>, 2015, to the list of Acts, under which any person should clear his liabilities to obtain the tax clearance certificate. "The proposed amendment does not require all the residents to obtain the tax clearance certificate," the ministry said in a statement. As per section 230 of the Income-tax Act, 1961, every person is not required to obtain a tax clearance certificate. Only in the case of certain persons, in respect of whom circumstances exist, which make it necessary to obtain a tax clearance certificate will be required to obtain such a certificate. The ministry said that the Income Tax department through a 2004 notification has specified that the tax clearance certificate may be required to be obtained by persons domiciled in India only in certain circumstances. These include - where the person is involved in <keyword id="22576180" type="General" weightage="20" keywordseo="serious-financial-irregularities" source="keywords">serious financial irregularities</keyword> and his presence is necessary in the investigation of cases under the Income-tax Act or the Wealth-tax Act and it is likely that a tax demand will be raised against him, or where the person has direct tax arrears exceeding Rs 10 lakh outstanding against him, which have not been stayed by any authority. The I-T department said that a person can be asked to obtain a tax clearance certificate only after recording the reasons for the same and after taking approval from the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax. Such a certificate is required to be issued by the income-tax authority, stating that such person has no liabilities under the Income-tax Act, or the Wealth-tax Act, 1957, or the Gift-tax Act, 1958, or the Expenditure-tax Act, 1987, it added.

After outrage, Govt clarifies: tax clearance certificate only for people with tax dues, high-value defaulters

<img class="gwt-Image" src="/photo/49181906.cms" />The finance ministry said it has received Rs 3,770 crore from 638 declarations under the one-time <a href="http://www.businessinsider.in/searchresult.cms?query=black+money">black money</a> compliance window under the new anti-Black Money Act. 
 
The deadline to make <a href="http://www.businessinsider.in/Fin-Min-cracks-the-whip-on-black-money-Disclose-your-foreign-incomeand-assets-or-face-consequences/articleshow/47899820.cms">declarations</a> was September 30. 
 
"638 number of declarations have been received under the compliance window declaring undisclosed foreign assets amounting to Rs 3770 crore. These figures are subject to final reconciliation," the Finance Ministry said in a statement based on figures provided to it by the CBDT. 
 
The ministry further stated tax at 30% rate and penalty at 30% is to be paid by December 31 this year. 
 
READ ALSO: <a href="http://www.businessinsider.in/Black-money-blues-Promoters-are-working-overtime-to-utilise-unaccounted-funds/articleshow/49149924.cms">Black money blues? Promoters are working overtime to utilise unaccounted funds!</a> 
 The <keyword id="6356023" type="UNKNOWN" weightage="20" keywordseo="Black-Money">Black Money</keyword> (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 was enacted to deal with <a href="http://www.businessinsider.in/Heres-what-Indians-residing-abroad-can-do-to-avoid-law-suit-under-the-Black-Money-Law/articleshow/47989798.cms">black money stashed abroad</a>. 
 
"The Act also provided for a compliance window for a limited period to persons who have undisclosed foreign assets which they had not disclosed for the purposes of Income-tax so far," the statement added. 
 
The compliance window opened on July 1 this year. 
 
(Image: Thinkstock)

Govt’s Black Money declaration drive has flopped! Only 638 declarations made amounting to just Rs 3,770 cr

<ul><li><keyword id="1673591" type="General" weightage="20" keywordseo="indian-residents" source="Orion">Indian residents</keyword> are required to report their foreign investments, which may include holdings in foreign <keyword id="6354298" type="General" weightage="20" keywordseo="stocks" source="Orion">stocks</keyword>, bonds, or other financial instruments. </li><li>Ownership of foreign real estate, whether residential or commercial, must be reported to Indian tax authorities. </li><li>If you possess ESOPs from a foreign company, you are required to disclose these foreign holdings when filing your <keyword id="6354751" type="General" weightage="20" keywordseo="income-tax" source="Orion">income tax</keyword> return. </li></ul>Recently, the IT Appellate Tribunal of Mumbai imposed a penalty of ₹10 lakh per year on <keyword id="59866" type="General" weightage="20" keywordseo="taxpayers" source="Orion">taxpayers</keyword> who failed to report <keyword id="466213" type="General" weightage="20" keywordseo="foreign-assets" source="Orion">foreign assets</keyword> under schedule FA of the income tax return (ITR) form. The penalty was levied under black money Act. Compared to the Income Tax Act, the penalty under the black money act is enormous. "The ITAT decision is a wake-up call for many working professionals and NRIs regarding the complexity of tax compliance in India; even if the taxpayer has paid their taxes, mere non-disclosure results in hefty penalties,” says Suneel Dasari, CEO and founder, EZtax.in. Here's a breakdown of the key foreign assets and income that must be disclosed in the income tax returns. <cmsannotation type="cmsannotation" annotationid="Foreign investments" comment="Subhead" text="Foreign investments">Foreign investments</cmsannotation>: Indian residents are required to report their foreign investments, which may include holdings in foreign stocks, bonds, mutual funds, or other financial instruments. This reporting extends to income generated from these investments, such as dividends, interest, or capital gains. Individuals need to disclose the nature and value of these investments in their tax returns. For example, if you have invested in shares of Microsoft or Apple, the investments and any income from them, need to be disclosed when filing your tax returns. <cmsannotation type="cmsannotation" annotationid="ESOPs" comment="subhead" text="ESOPs">ESOPs</cmsannotation>: If you possess employee stock ownership plans (ESOPs) from a foreign company, you are required to disclose these foreign holdings when filing your income tax return, typically under schedule FA. “In India, when an Indian employee is allotted shares of a foreign parent company as a part of their compensation or as an employee stock option plan (ESOP), it is considered an investment in foreign assets,” says Abhishek Soni, CEO, Tax2Win.in, a tax filing platform. Foreign bank accounts: Any foreign bank accounts, whether savings, current, or fixed deposit accounts, must be reported. This includes accounts held individually or jointly, along with details such as the name of the bank, account numbers, and the highest balance maintained during the financial year. <cmsannotation type="cmsannotation" annotationid="Foreign real estate" comment="Subhead" text="Foreign real estate">Foreign real estate</cmsannotation>: Ownership of foreign real estate, whether residential or commercial, must be reported to Indian tax authorities. This includes details about the property's location, current market value, and any income generated from it, such as rental income. “Any rental income or capital gains from selling these assets may be subject to taxation,” says Soni. <cmsannotation type="cmsannotation" annotationid="Financial or beneficial interest in overseas entities" comment="Subhead" text="Financial or beneficial interest in overseas entities">Financial or beneficial interest in overseas entities</cmsannotation>: In case an individual possesses a financial or beneficial stake in any overseas entity, such as serving as a partner in an overseas limited liability partnership (LLP) or firm, or receiving benefits from a foreign private trust, it is imperative to disclose this interest in accordance with tax regulations. “Residents in India with foreign income from ESOPs, or the voluntary purchase of foreign stock or other non-tangible instruments are at risk due to country or central bank level reciprocity agreements that would allow the Indian government access to information that would otherwise be unavailable,” says Dasari. Non-declaration also revokes your right to claim relief under the double taxation avoidance agreement for your foreign income. Hence it is critical to disclose such foreign assets in the schedule FA of ITR.

Have foreign assets or income? Not disclosing it may lead to heavy penalties

The income tax department has sought to prosecute <keyword id="54268" type="General" weightage="50" keywordseo="reliance-group" source="Orion">Reliance Group</keyword> Chairman <keyword id="9171" type="General" weightage="50" keywordseo="anil-ambani" source="Orion">Anil Ambani</keyword> under the Black Money Act for allegedly evading Rs 420 crore in taxes on undisclosed funds worth more than Rs 814 crore held in two Swiss bank accounts. The department has charged <keyword id="10924" type="General" weightage="100" keywordseo="ambani" source="Orion">Ambani</keyword>, 63, with "wilful" evasion, saying he "intentionally" did not disclose his foreign bank account details and financial interests to Indian tax authorities.A show cause notice in this context was issued to Ambani early this month. The department said he was liable to be prosecuted under Sections 50 and 51 of the Black Money (undisclosed foreign income and assets) Imposition of Tax Act of 2015 that stipulates a maximum punishment of 10 years imprisonment with a fine.It has sought his response to the charges by August 31.Ambani's office had not responded to a query sent on the matter till the time of this story being filed. The businessman has been charged with evading tax, by way of holding undisclosed assets abroad, for the assessment years 2012-13 to 2019-20.According to the notice, a copy of which was accessed by PTI, tax officials found that Ambani was an "economic contributor as well as beneficial owner" of a Bahamas-based entity called '<keyword id="14796281" type="General" weightage="50" keywordseo="diamond-trust" source="Orion">Diamond Trust</keyword>' and another company called Northern Atlantic Trading Unlimited (NATU) which was incorporated in the British Virgin Islands (BVI). In the case of the Bahamas trust, the department found it had a company called Dreamwork Holdings Inc. This firm was the owner of a Swiss bank account, which had a peak balance of USD 32,095,600 (USD 3.2 crore) as on December 31, 2007.The notice said the trust got initial funding of USD 25,040,422 (USD 2.5 crore). The department alleged that the "source of funding" for this was from Ambani's "personal account". It found that Ambani gave his passport as the KYC document for the opening of this trust in 2006. The beneficiaries of this trust were his family members too.The BVI company, incorporated in July 2010, has an account in Bank of Cyprus, Zurich. The department claimed Ambani was the "ultimate beneficial owner" of this company and the funds that it has.The company is also alleged to have received USD 10 crore in 2012 from a Bahamas registered entity called PUSA, whose "settlor and beneficial owner" is stated to be Ambani, as per the department. "From the evidence available, it is obvious that you are the economic contributor as well as beneficial owner of the foreign trust Diamond Trust, the bank account of underlying company <keyword id="14796280" type="General" weightage="50" keywordseo="dreamworks-holding-inc" source="Orion">Dreamworks Holding Inc</keyword>, settlor and beneficial owner of NATU and PUSA. Therefore, the funds/assets available with the above entities belong to you," the department said. The department alleged that Ambani "failed to disclose" these foreign assets in his income tax return (ITR) filings and hence contravened the provisions of the Black Money Act, brought by the Modi government soon after it was first elected to power in 2014. Tax officials said such "omission was not bona fide in nature and is intentional". "Thus, you have wilfully attempted to evade tax, penalty or interest chargeable or imposable under this Act (Black Money) on the undisclosed foreign asset....since you have wilfully attempted to evade tax you are liable to be prosecuted under section 51 of the Black Money Act, 2015," the order said.The total value of the undisclosed funds in the two accounts has been assessed by tax officials at Rs 8,14,27,95,784 (Rs 814 crore) and tax payable on this amount at Rs 4,20,29,04,040 (Rs 420 crore). SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/dreamfolks-services-ipo-opens-today-check-out-important-details-related-to-the-ipo/articleshow/93740178.cms">DreamFolks Services IPO opens today — Check out important details related to the IPO</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/10000-investment-in-gensol-engineering-ev-stock-gave-2-77-lakh-return-in-a-year/articleshow/93740070.cms">This EV firm rose 2600% in a year: ₹10,000 invested in this stock a year ago is worth ₹2.77 lakh</a>

IT dept seeks to prosecute Anil Ambani for holding secret funds in Swiss accounts

<ul><li>The <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword> stayed an order by the <keyword id="6355014" type="UNKNOWN" weightage="20" keywordseo="delhi-high-court">Delhi High Court</keyword> that prevented the Income Tax (IT) Department from trying <keyword id="1561203" type="PERSON" weightage="20" keywordseo="Gautam-Khaitan">Gautam Khaitan</keyword> - the main accused in the Agusta Westland chopper scam - under the Black Money Act of 2016. </li><li>The central government had asked the Delhi HC to allow the 2016 law to be applied to Khaitan’s case, which was filed in July 2015. </li><li>The 2016 law is much more stringent when it comes to dealing with previously undisclosed income and assets held abroad. </li><li>The punishment for conviction under this law for wilful evasion is enhanced, and tax authorities have more power when it comes to inspection and issue of summons. </li></ul>The Supreme Court today stayed an order by the Delhi High Court that prevented the Income Tax (IT) Department from trying Gautam Khaitan - the main accused in the Agusta Westland chopper scam - under the Black Money Act of 2016. The Delhi HC’s order, which was handed out on May 16, prohibited the IT Dept. from taking action against Khaitan - retroactively - under the law. Khaitan filed a petition against the government for trying to invoke the law, which came into effect in April 2016. The central government had asked the Delhi HC to allow the 2016 law to be applied to Khaitan’s case, which was filed in July 2015. The 2016 law is much <a href="https://www.thehindu.com/news/national/10-things-to-know-about-blackmoney-bill/article7194290.ece">more stringent</a> when it comes to dealing with previously undisclosed income and assets held abroad. The punishment for conviction under this law for wilful evasion is enhanced, and tax authorities have more power when it comes to inspection and issue of summons. As things stand, the Supreme Court’s decision requires Khaitan, a lawyer by profession, to submit a formal response to the central government’s allegations against him, within six weeks. Khaitan had been investigated by a slew of regulators, including the <keyword id="6357808" type="DEFINITION" weightage="20" keywordseo="enforcement-directorate">Enforcement Directorate</keyword> (ED) and the Central Bureau of Investigation (CBI) for his role in the ₹36 billion scam. The Agusta Westland scam came to light in 2013, and pertains to the UPA government’s purchase of 12 helicopters to transport top officials. The deal was cancelled in 2014 following allegations that Bruno Spagnolini, CEO of <keyword id="252971" type="COMPANY" weightage="20" keywordseo="AgustaWestland">AgustaWestland</keyword>, along with other executives had bribed officials from the <keyword id="15141" type="COMPANY" weightage="20" keywordseo="Indian-Air-Force">Indian Air Force</keyword> to make the deal go through. SEE ALSO: <a href="https://www.businessinsider.in/miscellaneous/10-landmark-judgements-indias-supreme-court-passed-in-2018/slidelist/67254190.cms">10 landmark judgements India’s Supreme Court passed in 2018</a>

Agusta Westland case: India’s apex court allows taxman to try accused under new black money law

The Central Board of Direct Taxes (CBDT) on Friday launched the Centre's much-publicised reform measure of <keyword id="9884180" type="UNKNOWN" weightage="20" keywordseo="faceless-income-tax-appeals">faceless income tax appeals</keyword>. Under faceless appeals, all income tax appeals will be finalised online under the <keyword id="10000490" type="UNKNOWN" weightage="20" keywordseo="faceless-ecosystem">faceless ecosystem</keyword> with the exception of appeals relating to serious frauds, major tax evasion, sensitive and search matters along with international tax and the Black Money Act. On August 13, while launching the Faceless Assessment and Taxpayers' Charter as part of "Transparent Taxation - Honoring the Honest" platform, Prime Minister Narendra Modi announced the launching of 'Faceless Appeals' on September 25. "From now on in income tax appeals, everything from e-allocation of appeal, e-communication of notice/questionnaire, e-verification/e-enquiry to e-hearing and finally, e-communication of the appellate order, the entire process of appeals will be online, dispensing with the need for any physical interface between the appellant and the department," said the statement. There will be no physical interface between the taxpayers or their counsel/s and <keyword id="2236838" type="COMPANY" weightage="20" keywordseo="The-Income-Tax-department">the Income Tax Department</keyword>, it said, adding that the taxpayers can make submissions from the comfort of their home and save their time and resources. According to the CBDT, the faceless appeal system will include allocation of cases through data analytics and artificial intelligence under the dynamic jurisdiction with central issuance of notices which would be having <keyword id="404284" type="COMPANY" weightage="20" keywordseo="Document-Identification-Number">Document Identification Number</keyword> (DIN). As part of dynamic jurisdiction, the draft appellate order will be prepared in one city and will be reviewed in some other city resulting in an objective, fair and just order. As per the CBDT, the faceless appeal will provide not only great convenience to the taxpayers but also it will ensure that it will ensure just and fair appeal orders and minimise any further litigations. The new system will also be instrumental in imparting greater efficiency, transparency and accountability in the functioning of the Income Tax Department, it said. As on date, there is a pendency of almost 4.6 lakh appeals at the level of the Commissioner (Appeals) in the Department. Out of this, about 4.05 lakh appeals, or about 88 per cent of the total appeals, will be handled under the faceless appeal mechanism and almost 85 per cent of the present strength of Commissioners (Appeals) shall be utilised for disposing off the cases under the faceless appeal mechanism. SEE ALSO: <a href="https://www.businessinsider.in/business/auto/news/the-list-of-global-auto-companies-exiting-india-in-last-five-years-including-harley-davidson-fiat-and-general-motors/slidelist/78315633.cms" data-type="tilCustomLink">Harley Davidson is the latest to join the list of global auto companies exiting India in last five years — Here’s a closer look</a> <a href="https://www.businessinsider.in/india/news/pictures-of-farmers-protests-across-india-against-the-countrys-new-agricultural-bills-2020/slidelist/78316310.cms" data-type="tilCustomLink">IN PICS: Farmer protests erupt across India against the country’s new agricultural bills</a>

Income Tax Department introduces faceless income tax appeals, says it will ensure just and fair appeal orders

New Delhi, Jan 24 () The Income-Tax Department's searches on the Bharat Hotels group, that runs the chain of Lalit Hotels, has led to the detection of "undisclosed" foreign assets of more than Rs 1,000 crore and huge black money that the business house has "stashed" abroad, the CBDT said on Friday.
 While the policy-making body of the department did not take any names in the statement issued after the raids, official sources confirmed it to be the Bharat Hotels Group that functions under its CMD Jyotsna Suri.
 "The investigation has successfully lifted the veil, leading to detection of undisclosed foreign assets of more than Rs 1,000 crore, apart from domestic tax evasion of more than Rs 35 crore which may lead to consequences under the Black Money Act, 2015, as also, action under the I-T Act respectively," the Central Board of Direct Taxes (CBDT) said.
 "Foreign assets include investment in a hotel in UK, immovable properties in UK and UAE and deposits with foreign banks," it said.
 The CBDT said the group is a "leading member of the hospitality industry, running a hotel abroad and a chain of luxury hotels under a prominent brand name situated at various locations in India".
 "The search operation has so far resulted in seizure of unaccounted assets valued at Rs 24.93 crore that includes Rs. 71.5 lakh in cash, jewellery worth Rs 23 crore and expensive watches valued at Rs 1.2 crore," the statement said.
 The department had launched raids at 13 premises of the group, Suri and others on January 19 in and around Delhi.
 The Bharat Hotels group owns the chain of Lalit hotels in the country. It runs over a dozen such luxury facilities at present.
Jyotsna Suri has been associated with the Bharat Hotels group since 1989 and took over as the Chairperson and Managing Director (CMD) in 2006, after the death of her husband and hotelier Lalit Suri. NES NES RDM
RDM

Raids on Lalit hotels group, promoter led to Rs 1,000-cr black foreign assets: CBDT

A three-month <keyword id="45210" type="ORGANIZATION" weightage="20" keywordseo="extension">extension</keyword> in deadlines for tax payment and filing of returns notwithstanding, the Income-Tax Department has asked field formations to contact large taxpayers over phone or email to follow up on pending collections. <keyword id="331683" type="PERSON" weightage="20" keywordseo="Rakesh-Gupta">Rakesh Gupta</keyword>, Commissioner of <keyword id="47201" type="COMPANY" weightage="20" keywordseo="income">Income</keyword> Tax (Coordination &amp; Systems), Central Board of Direct Tax (CBDT), last week asked field formations to submit a daily report on follow-ups on pending tax collections from large taxpayers. While most tax officers working from home in view of the lockdown announced to check the spread of Covid-19, it is possible to continue working in today's connected world, the message to officials said. "While the ITBA (Income Tax Business Application) platform is not available to the officers for discharging statutory functions, it is still possible to follow up the pending collection matters by contacting large taxpayers telephonically/electronically," Gupta wrote. The message came within days of Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> announcing three months extension in the deadline for filing of income tax returns as well as payment of delayed advanced tax, self-assessment tax, regular tax, tax deducted at source, tax collected source, and securities transaction tax. The directive from CIT (C&amp;S) has not gone down well with officers with their association writing to CBDT Chairman against it. The joint body of Income Tax Employees <keyword id="22143" type="COMPANY" weightage="20" keywordseo="federation">Federation</keyword> &amp; Income Tax Gazetted Officers' Association in the letter expressed surprise at the direction "to pressurize the assesses/defaulters to pay taxes when the Finance Minister has recently announced various extensions of the statutory compliances including the extension of the last date for the (dispute resolution scheme) Vivad se Vishvash scheme and also reduced the penal interest rates." "The people's backlash in the wake of such pressures to pay taxes in the present scenario is very much evident," the convenor Ravi Shankar wrote. The association said it was not possible for assessing officers (AOs) to furnish a daily report for daily collection of current/arrear demand or applications received under the Vivad se Vishvash Scheme as the contact information of assessees/defaulters was not available at homes of the officers.Also, the officers did not have access to the ITBA platform. It asked the chairman to direct the authorities below him "to remain positive, sensitive towards the present situation, adopt a humane approach and avoid pressing the panic button within the department". The Finance Minister had on March 24 announced an extension in last for filing income tax returns for 2018-19 fiscal to June 30 as well as linking of income tax PAN with biometric ID Aadhaar by a similar three months. Also, a three-month extension in the deadline was announced for those opting for the tax dispute resolution scheme 'Vivad se Vishwas' scheme by paying the principal amount. Previously the deadline for payment of such amount was March 31 and any payment after that was to be charged with an additional 10 per cent. Now, no additional 10 per cent amount requires to be paid if payment made by June 30, 2020. Similarly, "due dates for issue of notice, intimation, notification, approval order, sanction order, filing of appeal, furnishing of return, statements, applications, reports, any other documents and time limit for completion of proceedings by the authority and any compliance by the taxpayer including investment in saving instruments or investments for rollover benefit of capital gains under Income Tax Act, Wealth Tax Act, Prohibition of Benami Property Transaction Act, Black Money Act, STT law, CTT Law, Equalization Levy law, Vivad Se Vishwas law where the time limit is expiring between March 20, 2020, to June 29, 2020, shall be extended to June 30, 2020," an official statement issued on March 24 had said. For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between March 20, 2020 and June 30, 2020, the reduced interest rate at 9 per cent instead of 12/18 per cent per annum will be charged for this period, it had said adding no late fee/penalty would be charged for the delay. ANZ MKJ

Tax department asks officers to chase 'large dues' as they work from home

<ul><li>There has been a growing clamour for respite both financial as well as regulatory (like taxation and other compliances).</li><li>Over 500 people have been infected by the virus while nine of them have died as of March 23.</li><li>Follow the comprehensive coverage of the coronavirus pandemic and its impact, and other useful resources that can help you in the fight on <a href="https://www.businessinsider.in/searchresult.cms?query=coronavirus&amp;sortorder=effectivedate">Business Insider India</a>.</li></ul>Indian Finance Minister Sitharaman had announced a series of measures to deal with the economic crash as India, along with the rest of the world, battles the Coronavirus pandemic. Over 500 people have been infected by the virus while nine of them have died as of March 23. As many as 22 Indian states and 80 districts are under lockdown and that has brought an already weak economy to its knees. There has been a growing clamour for respite both financial as well as regulatory (like taxation and other compliances).These are some of the big announcements made by Sitharaman on March 24: <ol><li>Tax returns for financial year 2018-19 can be filed by June 30.</li><li>No extension of penalty on delayed deposit of TDS (tax deducted at source). However, the penalty has been halved to 9% from 18% currently.</li><li>The deadline for linking Aadhaar with PAN (Permanent Account Number) has been extended to 30 June 2020.</li><li>All investments for rollover benefit of capital gains under Income Tax act, Wealth Tax act, Prohibition of Benami Property Transfer Act, Black Money Act, Securities Transaction Tax law, equalisation levy law, 'vivaad se vishwaas' law — the amnesty scheme for tax disputes where the time limit was expiring on March 20 — now increased to 30 June.</li><li>The last date of filing returns for the months of March, April, and May 2020, including composition scheme, extended to June 30.</li><li>For companies with turnover less than Rs 5 crore, no late fees, penalties, and interest on deferred payment. </li><li>For companies with turnover over Rs 5 crore, there will be no late fees, penalties but there will be an interest of 9%, down from 18% currently.</li><li>Customs clearance will operate 24x7. It will be doing its duty as an essential service.</li><li>MCA-21 Registry: Moratorium issued from April 1 to September 30. No additional fees for late filing. The mandatory requirements for holding meetings of Board of Directors relaxed by 60 days. </li><li>Applicability of auditors' report order was supposed to be in force from financial year ending March 2020, that has now been delayed by a year.</li><li>For the year financial year 2020, independent directors will not be held for violation if they haven't held even one meeting.</li><li>For newly incorporated companies, there is a requirement to file declarations for commencement of business within 6 months. Now, we’re giving them an additional time of 6 more months.</li><li>There is a need to create a reserve for 20% of all the deposits maturing next financial year by April, that has been deferred to June.</li><li>Similarly, there was a need to invest 15% of the amount from maturing debentures during the next financial year (April to March 2021) by April. That has been deferred to June.</li><li>Threshold for default under the Insolvency and Bankruptcy Code has been raised by 100 times to ₹1 crore. This is effective immediately to stop the triggering of insolvency proceedings against micro, small, and medium enterprises. If the situation doesn't improve by April 30, the government may consider suspending Section 7, 9, and 10 of the bankruptcy law for a period of six months. </li><li>All sanitary import permits (shrimp, broodstock, and any aquaculture) set to expire by April 1 and April 15 2020, are being extended by three months. Even if your import is coming a month later, that will not be seen as a delay.</li><li>Re-booking for quarantine cubicles, for those cancelled consignments in aquatic quarantine facilities, will not entail additional booking charge.</li><li>The grant of no objection certificate and verification of documents for quarantine will be relaxed from 7 days to 3 days. </li><li>Debit card holders can withdraw cash from any bank ATMs for the next three months.</li><li>No fee will be charged for not having minimum balance in the savings account.</li><li>Bank charges will be reduced for digital transactions for trade and finance consumers.</li><li>The principle to be followed by Commerce Department: For procedural and eligibility point of view, extension of timeline will be given but there won't be an extension of scheme guidelines for modification. </li><li>We, both government and the regulator SEBI, are monitoring the stock market thrice a day. Various sub-groups of the task force on economy, as well outsiders, have made suggestions and we will soon come with an announcement.</li><li>Under Section 149(3) of the new Companies Act, every company is required to have at least one director who has stayed in India for a total period of not less than 182 days in the previous calendar year. A violation will be condoned in the wake of the current coronavirus crisis.</li><li>Department of Financial Services will decide if there are to be any changes on equal monthly installments for borrowers. </li></ol>The clamour for radical measures ahead of these announcements from the Finance Minister Earlier, the CEO of government think tank NITI Aayog Amitabh Kant also batted for direct benefit transfer to those who lost their livelihoods due to the lockdown aimed at containing the virus. The state’s first responsibility should be towards people who are at the margin and are going to lose their jobs, and should be able to provide them with a source of livelihood. And that should be in the form of a direct benefit transfer,” he said in a <a href="https://www.youtube.com/watch?v=dGWsdvJBcgo&amp;feature=youtu.be">virtual interview</a> with the Observer Research Foundation. Here's a thread of some important demands for financial relief before the lockdown came into full force. 
	
	
	
	
	
	
	
	
	
	<div type="twitter" handle="iyer_sriram" handlename="Sriram Iyer" image="http://pbs.twimg.com/profile_images/1205780479690997763/9fDDa6o6_normal.jpg" favoritecount="6" retweetcount="2" status="It is great to see @FollowCII echoing the same sentiment as @BiIndia a few days ago We discussed this at length in… https://t.co/lUDXiQR1e3" createdat="1584771674000" id="1241248483350175745"></div>




















 The former governor of RBI Raghuram Rajan said that it is hard to assess the economic impact of the pandemic. However, he said that the government needs to put medical supplies etc on priority as it heads to contain the virus. "We need to spend money on medical supplies, ventilators, masks — on getting protective equipment for medical workers. That means getting every resource in. pvt, public, defence, retired — every resource. And quickly. All this will require fiscal resources and this is the higher priority," Rajan said in a TV interview. While <a href="https://www.businessinsider.in/india/news/while-pm-modi-called-for-a-janata-curfew-the-kerala-government-implemented-some-serious-steps/articleshow/74717250.cms">Kerala</a> and <a href="https://www.businessinsider.in/india/news/coranavirus-cases-in-tamil-nadu-news-and-updates/articleshow/74785909.cms">Tamil Nadu</a> announced measures like free ration and a handout, no national level programme to support daily labourers and other small businesses has been announced. <ul></ul>SEE ALSO: <a href="https://www.businessinsider.in/india/news/coranavirus-cases-in-delhi-news-and-updates/articleshow/74773842.cms">The third stage of coronavirus spread in India can be delayed but not stopped, says ICMR</a> <a href="https://www.businessinsider.in/finance/news/live-sensex-and-nifty-news-updates/articleshow/74786064.cms">Sensex sinks to 26,193 after opening in the green, Nifty follows down to 7,000 mark</a> <a href="https://www.businessinsider.in/searchresult.cms?query=coronavirus&amp;sortorder=effectivedate">Follow the comprehensive coverage of the coronavirus pandemic and its impact, and other useful resources that can help you in the fight on Business Insider India.</a> <a href="https://www.businessinsider.in/finance/news/aadhar-pan-linking-itr-filing-deadline-extended-to-30th-june/articleshow/74790726.cms">Aadhar-PAN linking, ITR filing deadline extended to 30th June</a> <ul></ul>

The big announcements from India's Finance Minister Nirmala Sitharaman

<img class="gwt-Image" src="/photo/52220574.cms" /> 
 In order to zip up the flow of <keyword id="6356023" type="UNKNOWN" weightage="100" keywordseo="Black-Money">black money</keyword>, the Indian government is now looking at ways of promoting cashless economy, which would include creating an ecosystem to incentivise cashless transactions. "We are holding consultations with all stakeholders, including the Reserve Bank of India," said a finance ministry official on the condition of anonymity. 
 
Not only this, a task force has been set up under the Department of Investment and Public Asset Management (DIPAM) secretary Neeraj Kumar Gupta, which has suggested measures for promoting cashless transactions and has advised both banks and National Payment Corporation of India (NPCI) to focus on creating an ecosystem that would promote and incentivise cashless transactions. 
 
These measures include encouraging installation of point of sale (POS) machines by rationalising merchant discount rate (MDR), while also allowing first five inter-bank transactions free of cost so that people opt for online money transfer. 
 
Other than this, more ATM installations was also a part of the suggestions, so that more people start using plastic money. 
 
"We have the Jan Dhan platform under which RuPay cards have been issued. Now we have to ensure that infrastructure platforms like ATMs, POS machines are available so that there is ease to withdraw as well," the official said. 
 
Yesterday, we had reported about the finance ministry stating the amount of black money unearthed in the past two years. It also talked about the steps taken by the government for curbing black money, a new Black Money Act, and new income disclosure schemes. 
 
<a href="http://www.mbctv.co.in/media/k2/items/cache/8f7997ac35b97e9818117af746ef5397_XL.jpg">Image source</a>

Black money can be dealt with by creating a cashless economy, says the Indian government

<img class="gwt-Image" src="/photo/50296641.cms" style="width: 800px; height: 600px;" /> A government crackdown on <keyword id="6356023" type="UNKNOWN" weightage="80" keywordseo="Black-Money">black money</keyword> has led to detection of undisclosed income of over Rs 16,000 crore since March 2014, while assets worth Rs 1,200 crore have been seized, Revenue Secretary <keyword id="6377137" type="PERSON" weightage="80" keywordseo="Hasmukh-Adhia">Hasmukh Adhia</keyword> said today. 
 "In 2014-15 and 2015-16 (up to November), the <keyword id="6354751" type="COMPANY" weightage="80" keywordseo="Income-Tax">Income Tax</keyword> Department by its enforcement actions has detected undisclosed income worth more than Rs 16,000 crore and seized assets worth Rs 1,200 crore," he said. "Prosecution has been filed in 774 cases (up to September 2015)." 
 
The measures included a one-time 90-day window to come clean on undisclosed wealth, which led to declarations worth over Rs 4,160 crore, and the government is expecting Rs 2,500 crore as tax and penalties by month-end, he told PTI here. 
 "The present government is very serious on the issue of black money. Various pronouncements of Prime Minister <keyword id="6354477" type="PERSON" weightage="80" keywordseo="Narendra-Modi">Narendra Modi</keyword> and Finance Minister <keyword id="42575" type="PERSON" weightage="80" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> have made it very clear that this government does not want to spare any effort to bring people with black money to book," Adhia said. 
 
To deal with illegal wealth stashed abroad, the government legislated the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 which provides for stringent penalty and jail term. A one-time compliance window was provided to illegal foreign wealth holders to pay a tax and penalty of 60 per cent and escape the new law's penal provisions. 
 
In all, 635 declarations worth Rs 4,160 crore of illegal wealth were made in the three-month compliance window. 
 
"The last date for paying income tax for those people who made disclosures under the Black Money Act is December 31, 2015. We are hopeful of getting approximately Rs 2,500 crore as tax in the current year," he said. 
 
Articulating steps taken by the government to curb black money, he said the requirement of mandatory furnishing of PAN for money transactions above certain limits is a way of making people report their income legitimately. 
 
In addition, the government will initiate enforcement action in a big way in those cases where it gets definite information. 
 
"Our attempt to get more information from governments of other countries about the resident tax payers is likely to get more traction in 2016," he said. 
 
Also, international cooperation on tax matters is gaining momentum now, with a multilateral agreement on automatic exchange of information taking final shape. 
 
Image credit: Indiatimes

Undisclosed income worth over Rs 16,000 crore detected in 20 months: Revenue Secretary Hasmukh Adhia

<img class="gwt-Image" src="/photo/48514870.cms" /> 
The <a href="http://www.businessinsider.in/searchresult.cms?query=Finance+Ministry+">Finance Ministry</a> will soon come up with the second set of Frequently Asked Questions (FAQs) to help various stakeholders! The CBDT would answer around two dozen questions based on inputs received from stakeholders since the notification of the Compliance Window under the <a href="http://www.businessinsider.in/searchresult.cms?query=Black+Money+">Black Money</a> Act on July 1. 
 
The compliance window might clarify on the period for which foreign bank account details have to be provided after concerns were expressed over the availability of records beyond a few years, reported the PTI. 
 
 "The tax department has received queries with regard to disclosure of bank accounts. Many people are saying that they do not have details of the foreign bank account since its opening," a source told PTI. 
 
The <a href="http://www.businessinsider.in/searchresult.cms?query=Central+Board+of+Direct+Taxes+">Central Board of Direct Taxes (CBDT)</a> had asked people having undisclosed foreign bank accounts to provide sum total of credits since the opening of the account, under the new rules released by the <a href="http://www.businessinsider.in/searchresult.cms?query=Income+Tax+department">Income Tax department</a>. 
 
Earlier, in the first set of FAQs released on July 6, the CBDT had answered 32 questions on various aspects of the black money law. 
 
The source said that some stakeholders have raised an issue that if someone has account for long, say 20-30 years, how will that person provide details for that period. 
 
There were instances when people do not keep record of bank passbooks for long and banks too might not provide printed details for such a long period of time. So the new set of FAQs will provide solutions for such problems. 
 
The 90-day compliance window under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, that ends on September 30, provides opportunity to people to disclose their unaccounted wealth, pay 60% tax and penalty and come clean. They will have time till December 31 to pay the tax and penalty. 
 
In his <a href="http://www.businessinsider.in/searchresult.cms?query=Independence+Day+">Independence Day</a> speech, <a href="http://www.businessinsider.in/searchresult.cms?query=Prime+Minister+Narendra+Modi+">Prime Minister Narendra Modi</a> said that Rs 6,500 crore of unaccounted overseas wealth has already been disclosed by persons having unaccounted assets abroad. 
 
According to the source, the tax department has also received queries from professionals who have stayed abroad for some years and enrolled in social security schemes of foreign countries. 
 
"Further clarity would be provided on the queries we have received following stakeholder consultation as well as through e-mails and letters. The FAQs would comprise of around 20-25 questions," the source added. 
 
(Image: Indiatimes)

Black money on Govt. radar! CBDT to clarify on bank a/c disclosures

<img class="gwt-Image" src="/photo/51140912.cms" /> The <keyword id="6356023" type="UNKNOWN" weightage="20" keywordseo="Black-Money">Black Money</keyword> Act (the Act) had been promulgated with the intention to pursue black money stashed overseas. The Act levies tax at the rate of 30% on any undisclosed foreign income and assets held abroad by a person who is ordinarily resident in India. Additionally, the act provides for a penalty equivalent to three times the value of tax. Therefore, the total tax exposure can be as high as 120%. Further, the incumbent may be subject to imprisonment for a maximum term of 10 years. 
	 
	With a view to provide relief to the taxpayer and to encourage him/her to disclose their undeclared foreign income and assets, the Act provided for a one-time compliance window for declaration of undisclosed foreign income and assets by the taxpayer. Upon declaration, the taxpayer was liable to tax at the rate of 30% of the fair market value of the assets and a penalty of 100% of the tax, bringing the tax rate to 60% of the value of the assets. It was also clarified that the contents of the declaration will be used as evidence against the taxpayer under the Income Tax Act, 1961, the Wealth Act, 1957, or Foreign Exchange Management Act, 1999 and the value of the assets will not be chargeable to wealth tax. The time period for declaration expired on 30 September 2015. 
	 
	Black money: The current scenario 
	 
	However, the one-time relief received a tepid response and as per the government announcement, it received details of undisclosed foreign assets worth Rs3,770 crore from 638 declarants which translates into an average of INR6 crore per declarant. However the Revenue Secretary Hasmukh Adhia in a press conference on October 6, revised the figure from INR3,770 crores to INR 4147 crores. The miserly value of declaration further strengthened the belief that many of the big evaders have chosen not to avail the benefit of the compliance window. 
	 
	There are many reasons for the defeated response to this one-time opportunity. Lack of trust that the information provided may not remain confidential has been cited as the major reason for people not opting for this route. The government laid down stringent penal provisions and achieved its objective of creating fear in the minds of people, thereby acting as a deterrent for future creation of black money. But the existing evaders were also fearful that the declarations made by them may be used against them under some other law. 
	 
	Another major reason for people to back out was the possibility of a probe into interrelated transactions, with some of the people involved in a transaction willing to make a declaration, while the others may choose not to declare. Further, there also exists the possibility of routing money into India through the stock market. 
	 
	In addition to the above, many other reasons such as insufficient time provided to make the declaration, a steep tax rate of 60 per cent (including penalty) and above all a lack of clarity on the interpretation of certain provisions of the Act, have led to people not opting for the one-time option. 
	 There are numerous estimates of the amount of black money stashed abroad, ranging from 10 to 100 per cent of India's GDP. As per <keyword id="6354572" type="ORGANIZATION" weightage="20" keywordseo="CBI">CBI</keyword> estimates, Indian black money amounts to $500 billion. 
	 
	Therefore a problem this large, cannot be resolved through a single Act. An effective all round strategy is required to be formulated and struck from all directions. 
	 
	What can the Govt do? 
	 
	One of the biggest factors for creation of black money has always been high rates of taxation. The Finance Minister is his last full-budget made a commitment to bring down the corporate tax rate to 25% over the next four years. A reasonable tax rate can serve as a big incentive for people to pay tax and, thereby automatically curbing black money creation. 
	 
	Further, the government has entered into several bilateral and multi-lateral agreements with several countries for automatic exchange of information about Indian account holders in their banks. As a consequence of these agreements, banks are adopting a cautious approach while opening back accounts of Indian residents. Some are even going to the extent of seeking an undertaking/CA certificate certifying that the money proposed to be deposited is in compliance with Indian laws. 
	 
	Another constructive measure which may act as a deterrent for creation of black money is the requirement of quoting PAN for cash transactions beyond a certain threshold. 
	 
	Apart from the measures being taken by the government, some trends emerging on account of a change in life style of the urban population, such as increased use of plastic money, opening of a large number of payment gateways, internet banking and e-commerce are expected to bring about more transparency in transactions. 
	 
	Further, black money creation and corruption at various levels go hand in hand. One cannot think of curbing black money creation without curbing corruption. Therefore, the government in its effort to control foreign based and domestic black money should take effective punitive action reduce corruption and curb black money creation. 
	 
	Finally, it is only through a combination of events and actions on the part of the government and people at large, can India’s dream of achieving a black money free and prosperous economy. It is a transition in which the gestation period is expected to be very long. 
	 
	The article has been authored by Prashant Kapoor, partner, M&amp;A Tax, and Suvira Agarwal, technical director, KPMG in India. The views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of the organisation.

You Searched For "Black Money Act" and got 13 results

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The big announcements from India's Finance Minister Nirmala Sitharaman

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Black money can be dealt with by creating a cashless economy, says the Indian government

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Undisclosed income worth over Rs 16,000 crore detected in 20 months: Revenue Secretary Hasmukh Adhia

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