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Cryptocurrency Taxation

<keyword id="6355261" type="POSITION" weightage="100" keywordseo="Finance-minister">Finance Minister</keyword> Arun Jaitey is busy presenting the <keyword id="3206186" type="UNKNOWN" weightage="100" keywordseo="Union-Budget-2016">Union Budget 2016</keyword> in the parliament, and people are waiting with bated breaths for the tax announcements to be made. 
 
If reports are to be believed, Finance Ministry wants to remove certain unwanted discretions so that the taxation structure can be streamlined and India can come out as an attractive investment destination. 
 By removing these unwanted discretions, the finance ministry aims at making taxation guidelines clear, so that controversies pertaining to retrospective amendment of tax laws can be prevented. In doing so, the ministry will be stressing on transparency, predictability and stability in the <keyword id="3264804" type="UNKNOWN" weightage="100" keywordseo="indian-taxation-system">Indian taxation system</keyword>. 
 
Last year, Jaitley had announced phased reduction in corporate tax to 25% and elimination of tax exemptions to companies in what was his second speech as the Finance Minister. 
 
<a href="http://i0.wp.com/www.tkbsen.in/wp-content/uploads/2016/02/Arun-Jaitley-21022016.jpg?resize=800%2C600">Image source</a>

Budget 2016: Finance Ministry aims to remove unwanted discretion from the Indian taxation system

If economist <keyword id="46540" type="PERSON" weightage="60" keywordseo="Paul-Krugman">Paul Krugman</keyword> were king, how high would <keyword id="6368033" type="UNKNOWN" weightage="60" keywordseo="Taxes">taxes</keyword> be as a percent of GDP and who would pay them, asked Business Insider editor-in-chief Henry Blodget in a recent interview.
"I don't want taxes over 50 percent of GDP. I don't think you need that. I'd like to see enough so you have a strong social safety net," said Prof. Krugman. 
"I think that Sweden is an interesting thing, right? Based on the ideology that governs American politics, there should be grass growing in the streets of Stockholm, there should be Mad-Max-style gangs of anarchists roaming the country, and, in fact, Sweden does fine, because they have a well-run tax system, which supports a strong social safety net."
Watch below Krugman explain why Sweden has close to ideal taxation system, where the French taxation system went wrong, and how we should be taxing the rich. 
<div style="display:none;" id="kalturavideoplaceholder">kalturavideoplaceholder</div>
Produced by Business Insider <keyword id="21654" type="COMPANY" weightage="60" keywordseo="video">Video</keyword>

KRUGMAN: Sweden Has The Answers To Our Taxation Problems

<keyword id="1895647" type="ORGANIZATION" weightage="20" keywordseo="RBI-Governor-Raghuram-Rajan">RBI Governor Raghuram Rajan</keyword> hit back at MNCs and criticised them for bad corporate behaviour. 
 MNCs have often complained about excessive <keyword id="6383566" type="PERSON" weightage="20" keywordseo="Taxation">taxation</keyword>. To this, Rajan said companies weave structures to avoid billions in taxes. 
 "It is also true that MNCs across the world tend to find tax avoidance and sometimes tax evasion as appropriate techniques. Some corporations find that all their <keyword id="388837" type="UNKNOWN" weightage="20" keywordseo="intellectual-property">intellectual property</keyword> is manufactured in Cayman Islands. I haven't seen a lot of smart scientists sitting in Cayman Islands,'' said Rajan. 
 Companies like Vodafone, Shell, etc complain about India's <keyword id="990219" type="UNKNOWN" weightage="20" keywordseo="retrospective-taxation">retrospective taxation</keyword> and claims the tax department makes. 
 
"We have to create tens of millions.. crores of jobs every year. We need to create those jobs because a good job is the best form of inclusion. 
There is tremendous pressure on the political system, and on the regulatory system to deliver those jobs. This is where democracy works through the democratic process coming out as a move towards easing way to growth and easing the way towards making it easier to open businesses,” said Rajan.

MNCs who complain about Indian tax structure, here’s what RBI’s Rajan has to say to you

Budget 2023: The need of clarity on ESOPs taxation

The <keyword id="19994390" type="General" weightage="100" keywordseo="GST-Council" source="keywords">GST Council</keyword> on Monday is expected to deliberate on a host of issues, including <keyword id="20118944" type="General" weightage="20" keywordseo="taxation" source="keywords">taxation</keyword> of insurance premiums, GoM's suggestions on rate rationalisation, and a status report on <keyword id="19939772" type="General" weightage="20" keywordseo="online-gaming" source="keywords">online gaming</keyword>, sources said. Sources said the fitment committee, comprising Centre and state tax officials, will present a report on GST levied on life, health and reinsurance premiums and the revenue implications. The GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, will decide on whether to reduce the tax burden on <keyword id="19894985" type="General" weightage="20" keywordseo="health-insurance" source="keywords">health insurance</keyword> from the current 18% or exempt certain categories of individuals, like senior citizens. The deliberations will also happen with regard to the goods and services tax (GST) cut on <keyword id="23083492" type="General" weightage="20" keywordseo="life-insurance-premium" source="keywords">life insurance premium</keyword>. In 2023-24, the Centre and states collected Rs 8,262.94 crore through GST on health <keyword id="22612491" type="General" weightage="20" keywordseo="insurance-premium" source="keywords">insurance premium</keyword>, while Rs 1,484.36 crore was collected on account of GST on health reinsurance premium. The issue of taxation on insurance premium figured in Parliament discussions with opposition members demanding that health and life insurance premiums be exempt from GST. Even Transport Minister Nitin Gadkari wrote to Sitharaman on the issue. Finance Minister Nirmala Sitharaman in her reply to discussion on the Finance Bill had said 75% of the GST collected goes to states and opposition members should ask their state finance ministers to bring the proposal at the GST Council. West Bengal Finance Minister Chandrima Bhattacharya had raised the issue in the meeting of the Group of Ministers (GoM) on rate rationalisation last month and the matter was referred to the fitment committee for further data analysis. The GoM had opined against any tinkering of four-tier GST slab of 5, 12, 18, and 28 % for the time being. The panel, however, had asked the fitment committee to look into any scope for rationalisation of rates of goods and services. With regard to online gaming, Centre and state tax officers will present a "status report" before the GST Council. The report would include <keyword id="20053837" type="General" weightage="20" keywordseo="GST-revenue" source="keywords">GST revenue</keyword> collection from the online gaming sector before and after October 1, 2023. From October 1, 2023, entry-level bets placed on online gaming platforms and casinos were subject to 28% GST. Prior to that, many online gaming companies were not paying 28% GST, arguing that there were differential tax rates for games of skill and games of chance. The GST Council in its meeting in August 2023 had clarified that online gaming platforms were required to pay 28% tax and subsequently, Central GST law was amended to make the taxation provision clear. Offshore gaming platforms were also mandated to register with GST authorities and pay taxes, failing which the government would block those sites. The council had then decided that the taxation on online gaming sector would be reviewed after six months of its implementation. Sources said the Council would deliberate on the status of taxation on the sector, and any change in tax rates is unlikely. Besides, the Council is likely to be apprised about the ongoing drive against fake registration, the success of the drive and action taken against such entities. The total amount of suspected GST evasion would also be presented before the Council. The drive, from August 16, 2024, to October 15, 2024, is aimed at detecting suspicious/fake GSTINs and to conduct requisite verification and further remedial action to weed out these fake billers. In the first drive between May 16, 2023 to July 15, 2023, against fake registration, 21,791 entities (11,392 pertaining to state tax jurisdiction and 10,399 pertaining to CBIC jurisdiction) having GST registration were discovered to be non-existent. An amount of Rs 24,010 crore (state - Rs 8,805 crore + centre - Rs 15,205 crore) of suspected tax evasion was detected during the special drive. Also, the Council would approve notifications, including that of the amnesty scheme, announced in the last council meeting. The council in June meeting took a host of taxpayer-friendly measures, including waiver of interest and penalty for demand notices issued in the first three years of GST -- 2017-18, 2018-19 and 2019-20 -- if the full tax demanded is paid by March 31, 2025. To reduce litigation, a monetary limit for tax officers, to file appeals before the GST Appellate Tribunal, the High Court and the Supreme Court was fixed at Rs 20 lakh, Rs 1 crore and Rs 2 crore, respectively, by the Council. It also recommended a reduction of the quantum of pre-deposit required to be paid by taxpayers for filing of appeals under goods and services tax (GST).

GST Council to deliberate on taxation of insurance premium, report on online gaming tomorrow

The tax department gave a huge respite to Foreign Portfolio Investors (<keyword id="2005494" type="UNKNOWN" weightage="20" keywordseo="FPIs">FPIs</keyword>) after it put its circular on indirect transfer of shares on hold. 
 
FPIs feared multiple taxations after the Central Board of Direct Taxes (CBDT) came out with a notification giving 19 illustrations with regard to how the indirect transfer regulations would kick in and the tax impact. 
 After receiving several representations from various FPIs, FIIs, Venture Capital Funds and other stakeholders who said that the circular does not address the issue of possible multiple <keyword id="6383566" type="PERSON" weightage="20" keywordseo="Taxation">taxation</keyword> of the same income. 
 
"The representations made by the stakeholders are currently under consideration and examination. Pending a decision in the matter the operation of the above mentioned circular is kept in abeyance for the time being," CBDT said. 
 
Nangia &amp; Co Partner Amit Agarwal said FII/FPIs are highly sensitive breed of investments and the circular had brought in more apprehensions than clarity. 
 
"The withdrawal of the circular is indeed welcome. The consultative process adopted by the government too deserves appreciation," Agarwal said. 
 
The December 21 circular contained responses to questions raised by various stakeholders in the context of the applicability of the indirect transfer provisions under the Indian I-T Act. 
 
While the circular was intended to provide clarity on the circumstances in which the indirect transfer provisions are to be applied, it fails to address the concerns of various stakeholders, chiefly FPIs, with regard to issues like potential double and triple taxation, onerous compliance requirements, and lack of tax neutral foreign corporate restructuring. 
 
Section 9(1) of the I-T Act was amended by Finance Act 2012 with retrospective effect to provide for taxing the gains arising out of transfer of an asset, even if registered or incorporated outside India, which derives its value, directly or indirectly, substantially from an asset situated in India. 
 
(Image: Thinkstock)

Big relief for foreign portfolio investors! Tax dept holds circular on multiple taxations

New Delhi, Nov 27 () The Union Cabinet on Wednesday approved the signing of the Double Taxation Avoidance Agreement (DTAA) and protocol between India and Chile for elimination of double taxation.
 The Union Cabinet chaired by Prime Minister Narendra Modi also approved the prevention of fiscal evasion and avoidance with respect to taxes on income between the two countries, an official statement said.
 Government said the DTAA will facilitate elimination of double taxation.
 "Clear allocation of taxing rights between contracting states through the agreement will provide tax certainty to investors and businesses of both countries while augmenting the flow of investment through fixing of tax rates in source State on interest, royalties and fees for technical services," it said.
 The release said that the agreement and protocol implements the minimum standards and other recommendations of G-20 OECD Base Erosion Profit Shifting (BEPS) Project.
 "Inclusion of Preamble Text, a Principal Purpose Test, a general anti-abuse provision in the Agreement along with a Simplified Limitation of Benefits Clause as per BEPS Project will result in curbing of tax planning strategies which exploit gaps and mismatches in tax rules," it noted.
 After Cabinet approval, necessary formalities for bringing the Agreement and Protocol into force will be completed, it said.
 Implementation would be watched and reported by the ministry, said the statement. KPM DRR

Govt approves pact between India-Chile for avoidance of double taxation

New Delhi, Feb 20 () Tobacco farmers' body FAIFA on Thursday said the hike in taxes on cigarettes announced in the Budget 2020-21 will only increase the smuggled cigarette trade which, in turn, will affect livelihoods of millions of tobacco growers and farm workers. The Federation of All India Farmer Associations (FAIFA) said it had also appealed to Finance Minister Nirmala Sithraman to have a "pragmatic approach" on cigarette taxation at a meeting on Wednesday evening. The hike in national calamity contingent duty (NCCD) on cigarettes proposed in the Budget is a major setback to the FCV tobacco farmers who have been fighting torrential and unseasonal rainfall this year in Andhra Pradesh and Karnataka, FAIFA said in a statement. "Indiscriminate increase of excise duty on cigarettes will result in reduction in legal cigarette production and this will reduce the tobacco purchases of domestic manufacturers, impacting market prices for farmers thereby putting more pressure on farmer's earnings and causing further stress," it said. Commenting on the hike in NCCD on cigarettes, FAIFA President Javare Gowda said, "This tax increase will provide a further boost to the smuggled cigarette trade and (lead to) decline in domestic demand, resulting in weak demand in the ensuing auctions." He further said the hike in NCCD was unexpected as several representations were made to the government to make it aware of the current situation of tobacco farmers and the ground-level realities of the struggles and losses that are being faced by them due to crop damage and also smuggled and illegal cigarette markets. In the Budget, Sitharaman had announced increasing NCCD on cigarettes, ranging from Rs 200-Rs 735 per thousand sticks, depending upon length of cigarette and on filter and non-filter basis. It was increased to 60 per cent from 45 per cent on smoking mixtures for pipes and cigarettes, while on other forms of smoking tobacco (other than smoking mixtures for pipes and cigarettes) and forms of chewing tobacco, it was increased to 25 per cent from 10 per cent. Gowda claimed that due to higher taxation, smuggled, illicit and contraband cigarettes along with WHO regulations, FCV production has come down to 210 million kg in 2019-20 from 325 million kg in 2013-14. It has resulted in "loss of more than Rs 5,000 crore (cumulative) to the FCV Tobacco Farming community", he added. In contrast, he said the market for illicit cigarettes is rising and has doubled from a level of 12.5 billion sticks in 2005 to 26.5 billion sticks in 2018 making India the fourth-largest and fastest-growing illegal cigarette market in the world. "Based on the current tax rates on cigarettes, it is estimated that the government loses Rs 13,000 crore in tax revenues per annum on account of illegal cigarette trade," Gowda claimed. RKL HRS

Tobacco farmers' body urges govt for 'pragmatic' approach on cigarette taxation

<ul class="summary-list"><li><keyword id="12026653" type="UNKNOWN" weightage="60" keywordseo="fiscal-policy" source="Orion">Fiscal policy</keyword> describes how a government uses taxation and spending to influence the <keyword id="11893570" type="UNKNOWN" weightage="100" keywordseo="economy" source="Orion">economy</keyword>.</li><li>Fiscal policies can be neutral, expansionary, or contractionary depending on the goal.</li><li>Changing fiscal policy could affect interest rates, inflation, employment, and your investments. </li></ul>Fiscal policy is how a government manages spending and taxation levels in ways intended to influence the economy. If US officials want to stimulate growth, they might increase spending or cut tax rates. Conversely, they might want to slow down an overheating economy with lower spending and higher taxes. In turn, these changes can have an impact on interest rates, employment, trade deficits, and <a href="https://www.businessinsider.com/what-is-inflation" target="_blank" rel="noopener">inflation</a>.Current US fiscal policy has its roots in Keynesian economics - which makes a case for the proactive government response to crises and up-and-down business cycles. Fiscal policy may be intertwined with, but is separate from, <a href="https://www.businessinsider.com/monetary-policy" target="_blank" rel="noopener">monetary policy</a>.<h2>How does fiscal policy work?</h2>Fiscal policies are always present, but changes in them may be driven by a specific situation or a broad agenda."You can have specialized fiscal policy, such as the response to COVID, where the federal government gets together and provides relief," says Kevin Flanagan, head of fixed income strategy at <a href="https://www.wisdomtree.com/" target="_blank" rel="noopener">WisdomTree</a>.In responding to COVID, the government's emphasis was on increasing spending through relief programs, including direct stimulus payments and Paycheck Protection Program (PPP) loans. Specialized fiscal policy responses also occurred during the <a href="https://www.businessinsider.com/what-caused-the-great-recession" target="_blank" rel="noopener">Great Recession</a>, such as the Troubled Asset Relief Program (TARP). The government's increased spending was driven, in part, by a desire to end the recession.In the news: Changing fiscal policy isn't always easy, as demonstrated in the compromises and arguments over President Biden's <a href="https://www.businessinsider.com/democrats-want-end-reagonomics-trickle-down-infrastructure-except-dozen-moderates-2021-10" target="_blank" rel="noopener">infrastructure proposals</a>. Not all fiscal policy changes are made in response to a crisis. For example, the 2017 Tax Cuts and Jobs Act (TCJA) is an example of an agenda-driven fiscal policy. "One is reactive, and one is more in line with everyday government," explains Flanagan. "They're trying to determine policy going forward." <h2>What are the 3 types of fiscal policy?</h2>Fiscal policy is generally put into one of three categories, depending on its goal:<ul><li>Neutral policy is when the government's fiscal policy isn't intended to influence the economy. Policies may still be enacted, but new expenditures may be completely balanced by increased revenue. </li><li><a href="https://www.businessinsider.com/what-is-expansionary-monetary-policy" target="_blank" rel="noopener">Expansionary policy</a> is when the government increases spending or decreases taxes to stimulate growth. Expansionary policy may be an attempt to avoid or end a recession and prevent high unemployment. </li></ul><ul><li><a href="https://www.businessinsider.com/what-is-contractionary-monetary-policy" target="_blank" rel="noopener">Contractionary policy</a> is when the government decreases spending or increases taxes to prevent unsustainable growth. Contractionary policy may be put in place to slow inflation, decrease government debt, and try to maintain a healthy unemployment rate. </li></ul>Officials may take a neutral approach if there's a stable economy that they want to maintain. However, changing business cycles or a crisis may quickly lead to expansionary or contractionary policies. <h2>Who determines fiscal policy in the US? </h2>In the US, the executive and legislative branches have the most direct impact on fiscal policy. "While the president requests a budget that outlines [their] priorities, Congress ultimately controls the government's purse strings and sets fiscal policy," explains Jason Blackwell, chief investment strategist at <a href="https://www.thecolonygroup.com/" target="_blank" rel="noopener">The Colony Group</a>. The judicial branch could also have an influence on fiscal policy if it finds spending or tax proposals are unconstitutional.<h3>Fiscal policy vs. monetary policy</h3>In the US, the <a href="https://www.businessinsider.com/what-is-the-federal-reserve" target="_blank" rel="noopener">Federal Reserve</a>, or Fed, is an independent federal agency that sets the country's <a href="https://www.businessinsider.com/monetary-policy" target="_blank" rel="noopener">monetary policy</a>. <div type="image" title="Monetary policy explainer" height="1727" width="1668" msid="87172597" hostid="261"></div>While fiscal policy tends to be targeted, Blackwell says monetary policy is often a blunt tool that can influence consumers' and business' interest rates and borrowing. And while they're different and separate from each other, fiscal and monetary policy work in tandem at times.Quick tip: Fiscal and monetary policy can have an impact on inflation. In turn, this can affect your <a href="https://www.businessinsider.com/purchase-power" target="_blank" rel="noopener">purchasing power</a>, a measure of how much you can buy with a unit of currency, such as one dollar. "For example, in the last two recessions, the Federal Reserve lowered the lending cost for banks to incentivize them to make more loans to businesses, while Congress authorized cash infusions more directly to consumers and businesses," says Blackwell.However, at other times, the government's fiscal and monetary policies may counteract each other. "If fiscal policy is being viewed as restrictive, perhaps the Fed would want to counter or offset that," says Flanagan.<h2>How can fiscal policy affect investments </h2>Fiscal policies may have direct and indirect impacts on your investments.Consider, for example, a new tax rate that could leave you with more or less money to invest. And new rules about tax-advantaged accounts could require you to adjust your investment strategy. For investors, the impact fiscal policy can have on the overall economy, <a href="https://www.businessinsider.com/where-to-invest-when-interest-rates-are-low" target="_blank" rel="noopener">interest rates</a>, specific industries, and individual companies can be quite significant, says Blackwell. Fiscal policy can also impact the overall economy, interest rates, specific industries, and individual companies. "For investors, the impact can be significant," says Blackwell.He shares a hypothetical example related to the clean-energy industry to explain: "If the government allocates tax credits and prioritizes spending within the space, it can create risks for traditional energy companies and opportunities for new entrants."Predicting fiscal policy might not be possible. But being aware of changes and their potential consequences is important. <h2>The financial takeaway</h2>Fiscal policy is the government's approach to spending and taxation. Both reactive and agenda-driven policies could affect your household's financial situation, as well as the overall economy. "We tend to focus on fiscal policy during times of crisis," says Blackwell. "For example, the automaker bailouts in 2008 or the PPP-loans in 2020. Those are examples of the government targeting spending to specific sectors of the economy to smooth the economic recessions." However, agenda-driven fiscal policy decisions may have a much longer time horizon. Whether it's a change to the tax code or a new infrastructure plan, the impact of fiscal policy could play out be felt for decades to come.<a data-type="6011da94dc3da472bb064a63">How to take advantage of low interest rates - the best financial moves for investors and borrowers</a><a data-type="6130f96f0d5b750e8a4ba772">What is hyperinflation? Understanding the rapid increase in the cost of goods and services over time</a><a data-type="615b322f440ead1e716e8e27">What is Modern Monetary Theory? Understanding the alternative economic theory that's becoming more mainstream</a><a data-type="613a80502864561673290c31">What to know about the main causes of inflation</a>

Understanding fiscal policy: The use of government spending and taxation to manage the economy

New Delhi, Jan 7 () Finance Minister Nirmala Sitharaman on Tuesday said the government is taking various steps to simplify taxation system and eliminate harassment of honest taxpayers.
Addressing an event organised by Confederation of All India Traders (CAIT), the finance minister said the government is open to suggestions for the betterment of GST filing system.
Based on suggestions received from various stakeholders, the government is taking steps towards simplification of taxation system, she added.
In a bid to curb harassment of taxpayers, she said, a faceless e-assessment scheme was launched in October to eliminate interface between an assessing officer and a taxpayer.
The tax department has implemented a computer-generated document identification number (DIN) to ensure greater transparency and accountability in tax administration.
The DIN system, which became operative from 1 October 2019, will apply to all kind of communications from the income tax department, whether it is related to assessment, appeals, investigation, penalty and rectification, among others.
This development will also help taxpayers to detect fake notices and letters as the notice would be verifiable on the department's e-filing portal.
Besides, the finance minister said, such cases have to be closed within 30 days.
She also said that there would be shopping festival held across the country soon.
In a bid to boost trade, Sitharaman had in September last year announced Dubai-like mega shopping festivals in India, starting March 2020.
The commerce ministry is working on this and it will provide a big platform for traders to sell their goods.
The government is expected to hold these festivals in four Indian cities, and the move is likely to boost textiles, leather industry &amp; promote yoga tourism. 
The government is planning various themes for these festivals, ranging from gems and jewellery, textiles and leather to yoga. DP BAL

You Searched For "Taxation" and got 11 results

Cryptocurrency Taxation

Budget 2016: Finance Ministry aims to remove unwanted discretion from the Indian taxation system

KRUGMAN: Sweden Has The Answers To Our Taxation Problems

Kamelia Angelova

MNCs who complain about Indian tax structure, here’s what RBI’s Rajan has to say to you

BI India Bureau

Budget 2023: The need of clarity on ESOPs taxation

Others

GST Council to deliberate on taxation of insurance premium, report on online gaming tomorrow

PTI

Big relief for foreign portfolio investors! Tax dept holds circular on multiple taxations

BI India Bureau

Govt approves pact between India-Chile for avoidance of double taxation

PTI

Tobacco farmers' body urges govt for 'pragmatic' approach on cigarette taxation

PTI

Understanding fiscal policy: The use of government spending and taxation to manage the economy

Louis DeNicola

Govt taking steps to simplify taxation; curb harassment of honest taxpayers: FM

PTI

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