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<keyword id="20207838" type="General" weightage="20" keywordseo="dsp-mutual-fund" source="keywords">DSP Mutual Fund</keyword>'s September 2024 Netra report credits <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>'s strong economic recovery to increased fiscal expenditure. The report, which tracks current economic trends and market insights through various charts, emphasizes the need for the private corporate sector and households to play a larger role in sustaining the ongoing growth momentum. Netra also pointed out an unsettling calm in the markets, with the Nifty 50 TRI index maintaining an impressive 53-month streak without a 5% decline and 13 years without a drop greater than 10%. Sahil Kapoor, Head of Products and Market Strategist, DSP Mutual Fund, said, "The calm in the markets, marked by an unnerving lack of volatility, is a double-edged sword. While it provides a sense of stability, it also masks underlying risks that could surface unexpectedly, catching investors off guard. To ensure a sustainable recovery, there is a need for the private sector and households to take the lead, transforming fiscal stimulus into lasting economic growth." However, the report notes a shift in market dynamics, with the momentum factor, which has outperformed since the COVID-19 bottom, beginning to lose its dominance. At the same time, the quality factor, which had underperformed over the last four years, is now seeing a resurgence, potentially indicating a change in market leadership that could favour quality-orientated funds, both active and passive. The report highlights the critical role government spending has played in the recovery, with a focus on capital investments crucial for future growth. However, contributions from the private corporate sector and households have lagged. It also draws attention to a slowdown in India's per capita consumption, approaching lows seen in previous cycles. Given that consumption accounts for around 60% of GDP, it is vital that this sector grows at a rate exceeding GDP growth to stimulate private capital expenditure. India's <keyword id="487578" type="General" weightage="20" keywordseo="tax-collections" source="Orion">tax collections</keyword> have demonstrated robust growth, with gross tax revenue showing a five-year compound annual growth rate (CAGR) of 14 %. This growth, largely driven by <keyword id="6354751" type="General" weightage="20" keywordseo="income-tax" source="Orion">income tax</keyword>, indicates a rising dependency on capital gains and stock market performance, introducing new vulnerabilities to the economy. The banking and financial services sector (<keyword id="19910880" type="General" weightage="20" keywordseo="bfsi" source="keywords">BFSI</keyword>) has emerged as a key driver of market earnings, recording a 12 % increase in profit after tax (PAT) growth, significantly outpacing the 4.6 % growth observed in non-BFSI Nifty 50 companies. This disparity underscores the sector's importance in India's economic story and highlights promising investment opportunities.

India's strong economic recovery is led by fiscal expenditure: DSP MF

The government has officially announced October 1, 2024, as the starting date for <keyword id="23245808" type="General" weightage="100" keywordseo="Vivad-Se-Vishwas-2-0" source="keywords">Vivad Se Vishwas 2.0</keyword>, the direct tax dispute resolution scheme. If you're involved in a tax dispute, this scheme might be your chance to resolve it efficiently. Originally introduced during the 2024-25 Union Budget, the scheme is designed to handle <keyword id="22518437" type="General" weightage="20" keywordseo="income-tax-disputes" source="keywords">income tax disputes</keyword> that are currently tied up in appeals. Confirming the news, the <keyword id="19900485" type="General" weightage="20" keywordseo="Finance-Ministry" source="keywords" meta.keywordsubtype="org" meta.entityname="Finance Ministry" meta.hostid="261" meta.entityid="Finance Ministry">finance ministry</keyword> said in its notification: "The central government hereby appoints the 1st day of October, 2024 as the date on which the Direct Tax Vivad Se Vishwas Scheme, 2024 shall come into force." <h2>The scope of the disputes</h2>To give you an idea of the scale, about 2.7 crore direct tax demands are currently being contested, amounting to a staggering Rs 35 lakh crore. These disputes are scattered across various legal forums, and Vivad Se Vishwas 2.0 aims to help clear this backlog. <div type="Article" hostid="261" msid="113444994" title="In the long run, rate cut by Fed will be favourable for most US banks: Moody&amp;#39;s" mstype="2" mssubtype="0"></div>In her Budget speech, <keyword id="19912360" type="General" weightage="20" keywordseo="Finance-Minister-Nirmala-Sitharaman" source="keywords">Finance Minister Nirmala Sitharaman</keyword> highlighted the government’s dedication to simplifying taxes and minimising litigation. She said, "The government will continue its efforts to simplify taxes, improve <keyword id="20404572" type="General" weightage="20" keywordseo="taxpayer-services" source="keywords">taxpayer services</keyword>, provide tax certainty and reduce litigation while enhancing revenues." <h2>Who can avail the scheme?</h2>If you have any pending disputes or appeals, including writs and special leave petitions, whether filed by you or the tax authorities, as of July 22, 2024, you are eligible to take advantage of this scheme. The list of eligible cases includes those pending before the Supreme Court, high courts, Income Tax Appellate Tribunal, and Commissioner/Joint Commissioner (Appeals). It also covers cases before the Dispute Resolution Panel (DRP) and revision petitions awaiting a decision from the Commissioner of Income Tax. <div type="Article" hostid="261" msid="113417255" title="Individuals earning over Rs 10 cr rise by 63% in India; financial assets of high net worth individuals to nearly double by 2028" mstype="2" mssubtype="0"></div>However, the window to decide whether or not to participate in the scheme is limited. As Karishma R. Phatarphekar, Partner at <keyword id="20006170" type="General" weightage="20" keywordseo="Deloitte-India" source="keywords" meta.keywordsubtype="org" meta.entityname="Deloitte India" meta.hostid="261" meta.entityid="Deloitte India">Deloitte India</keyword>, said: "Given the limited time window, an informed decision on opting for the scheme should be made promptly." The rules and forms for the scheme are expected to be published "imminently in the coming week." <h2>Success of the original Vivad Se Vishwas</h2>For those who are wondering about the potential impact, the first Vivad Se Vishwas scheme, introduced in 2020, resolved a significant number of cases. More than 1 lakh taxpayers participated, and the government collected about Rs 75,000 crore in taxes. With this track record, the expectations from Vivad Se Vishwas 2.0 are high. With October 1 just around the corner, now is the time to prepare if you are considering resolving your tax dispute through Vivad Se Vishwas 2.0. As the rules and forms are expected shortly, it’s wise to consult your <keyword id="23245810" type="General" weightage="20" keywordseo="tax-advisor" source="keywords">tax advisor</keyword> and make a decision soon. This scheme could provide the relief you’ve been waiting for while contributing to a more efficient tax system for all. (With inputs from PTI)

New Vivad Se Vishwas 2.0 tax resolution scheme to start on Oct 1 — what you need to know

<keyword id="19896018" type="General" weightage="20" keywordseo="kerala" source="keywords">Kerala</keyword> Chief Minister <keyword id="19901169" type="General" weightage="20" keywordseo="pinarayi-vijayan" source="keywords">Pinarayi Vijayan</keyword> on Thursday said that the cess and surcharge levied by the Centre was showing a "rising trend" and resulting in "shrinkage" of states' share in the divisive pool of taxes. Vijayan said the rise in surcharges and cesses, which are not included in the divisive pool, was happening at a time when the <keyword id="20015455" type="General" weightage="100" keywordseo="finance-commission" source="keywords">Finance Commission</keyword> has been recommending a higher share for the states from the net proceeds of the taxes collected by the Centre. Vijayan was speaking at a conclave of five non-BJP-ruled states organised by Kerala to discuss the key issues related to the 16th <keyword id="25455" type="General" weightage="20" keywordseo="finance" source="Orion">Finance</keyword> Commission. He said that the 16th Finance Commission needs to factor in this rising trend in surcharges and cesses, when it recommends the prescribed share of the states from the net proceeds of taxes collected by the union government. The CM further said that the share of the states in the divisive pool needs to be increased further from the 41 per cent recommended by the <keyword id="23137017" type="General" weightage="20" keywordseo="last-finance-commission" source="keywords">last Finance Commission</keyword>. He said that Kerala and many other states have made this demand in the past with the southern state suggesting that it be increased to 50 per cent. "The demand for a higher share for the states in the taxes collected by the Union is having continued relevance and it is my request to the eminent scholars and colleagues who are here to formulate this in a concrete manner," Vijayan said. "This will help the states to make an effective case before the 16th Finance Commission for raising the share of taxes which are distributed to the states, in view of the widening vertical fiscal Imbalances."

Rise in cess, surcharge shrinking states' share in divisive pool of taxes: Kerala CM

<div type="image" title="For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire" height="900" width="1200" msid="114064202" hostid="261" caption="&amp;lt;p&amp;gt;For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire&amp;lt;/p&amp;gt;"></div> Once upon a time, there thrived a wild, wild land. Here, it was all about super high monetary stakes, lightning-fast trade deals, and bucketloads of money shifting hands every single second. This wilderness lured millions of individuals with the promise of super duper high returns. But, at what cost? Welcome to the unforgiving, ultra-risky wild west of <keyword id="19991165" type="General" weightage="20" keywordseo="Indian-equity-markets" source="keywords">Indian equity markets</keyword> called the <keyword id="145718" type="General" weightage="100" keywordseo="Futures-and-Options" source="Orion">futures and options</keyword>. Here, everyone seems to just fly right through the bright red-flagged warnings of financial risks to earn even a fraction of these promised returns. Most burn themselves in the process, but carry on nevertheless, as if nothing ever happened. <h2>Chasing the cloudy profits</h2>The data conclusively proves that every 9 out of 10 individuals only lost their hard-earned money in this land. But hey, what do the numbers know? Some hide their losses out of shame, some out of fear. The proponents, meanwhile, proudly boast unusually high returns on their investments, some open social media channels while others encourage their friends and family to take the plunge. Naturally, news of this unstoppable and humongous en-masse migration to the F&amp;O (futures and options) town has reached sheriff <keyword id="19901201" type="General" weightage="20" keywordseo="SEBI" source="keywords" meta.keywordsubtype="org" meta.entityname="SEBI" meta.hostid="261" meta.entityid="SEBI">SEBI</keyword>, galvanising them into action. After all, it was time to put a leash on this madness and save the common man. The inhabitants of this town doubled in the last 2 years, from 51 lakh in FY22 to 96 lakh in FY24—99.8% of whom were small and mid-income traders. But profits? Well, that's a different, rather completely absent story. <h2>Que Sera Sera, much?</h2>A recent report by SEBI (Securities and Exchange Board of India) that studied profits and losses made by traders in the equity derivatives segment between FY22-24 exposed the mad mania of futures and options trading in India, especially since the pandemic. Per the report, 91.1% of individual traders, or about 73 lakh traders had only lost money trading in futures and options in FY24. Between FY 22-24, over 1 crore traders, or about 92.8% of individual traders, had lost Rs 2 lakh each. But once bitten, twice shy? Well, not in this case. More than 75% of individuals, who had only made losses trading in F&amp;O in FY22 and FY23, continued to trade vigorously in FY24 as well, without any changes in the bottom line, which remained deep in red and negative. So, then all these traders must be uber-rich, with tons of cash and not much care to spare? Nope. 76% of traders in the F&amp;O space in FY24 had an annual income of less than Rs 5 lakh. 2 years ago, their share stood at 71%. And their choice of poison? Options! In FY24, 60% of traders made losses trading in futures, but a whopping 91.5% burnt their funds trading in options. Mind you, futures are riskier than options. With futures, which require significant capital investment, the buyer and seller both are contractually bound to adhere to the pre-determined strike price of the futures or options contract, irrespective of whether the prevailing prices are higher or lower (and thus, resulting in losses for either the buyer or seller). With options, since this adherence ain't necessary, individuals end up taking debt to take highly leveraged positions while trading here. <h2>Scale of the explosion</h2>Anyone who trades even infrequently will tell you that a demat account is the mitochondria or powerhouse of the trading cell. As of August 2024, India had over 17.1 crore <keyword id="20957284" type="General" weightage="20" keywordseo="demat-accounts" source="keywords">demat accounts</keyword>, which are a prerequisite for trading in the markets. India is the 9th biggest country in the world, in terms of total demat accounts. Did you know that our demat accounts are at par with the entire population of Bangladesh? Talk about scale! Just 4 years ago, in March 2020, this number was a mere 4 crore. Naturally, the total F&amp;O turnover on both <keyword id="20004725" type="General" weightage="20" keywordseo="NSE" source="keywords" meta.keywordsubtype="org" meta.entityname="NSE" meta.hostid="261" meta.entityid="NSE">NSE</keyword> and BSE has hit the roof, and also broken it. As of October 4, 2024, the total futures and options turnover on NSE stood at a massive Rs 4,78,27,27,750.30 crore. Good luck counting the thousands! <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total Turnover (Both Futures and Options) (In Rs Crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2020-21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">64,36,03,951.51 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021-22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,69,52,33,134.47 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2022-23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,82,23,26,468.06 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2023-24 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,99,27,67,152.43 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source : NSE Another metric that underlines the meteoric growth of trading in India is the collection of STT or <keyword id="20930760" type="General" weightage="20" keywordseo="Securities-Transaction-Tax" source="keywords">Securities Transaction Tax</keyword>. As of September 2024, India's STT mop-up had gone past Rs 26,000 crore. Traders have to pay STT whenever they buy or sell any security in the market. So, more trading brings in more STT, and hence, more revenue for the government, so they're not really complaining. After all, this is certainly what they'd call enviable growth. As of August 2023, our STT collection stood at about Rs 21,599 crores. And in FY20-21, India's STT collection had been Rs 16,000 crore. If only our salaries also managed to grow at this rate! <h2>So, what's happening?</h2>Two things. One, it's the big bulls who are raking in all the moolah. And it's the younger lot (those aged under 30) who are propping them up for this. In FY24, 43% of individual traders in the market were less than 30 years of age. In just one year, this number has swelled by 12 percentage points from just 31% of individual traders. But who says ageing is bad? Wrinkles and silver hair seemingly have a propensity of incurring lesser losses in the market. In FY24, only 79% of traders aged above 60 years made losses, as compared to 93% of those aged below 30. Small and mid-income traders, which make up 98% of the total trader base, witnessed average losses per person of Rs 65,000 and Rs 1.5 lakh in FY24 in futures and options, respectively. The winner here? Clearly, the big bulls, who declared an annual income of over Rs 1 crore, ended up with average profits of Rs 96,000 per person this year. <h2>What’s the sheriff up to?</h2>The government has finally swung into action, hiking the STT rate for F&amp;O during this year’s budget. Effective October 1, 2024, the STT on futures stands at 0.02%, up from 0.0125%. For options, it was upped to 0.1% versus 0.0625% previously. Small margins, but huge impact oncoming. Says Puneet Sharma- CEO and Fund Manager at Whitespace Alpha, “SEBI aims to enhance market stability while safeguarding investor interests, reflecting the regulator's intent to balance risk management with market participation”. But this might come with its own share of challenges, too. “Stricter norms around leverage, transparency, and capital adequacy could limit the ability of investors to determine their own risk appetite, thereby stifling innovation in trading strategies. Over-regulation in an environment that thrives on strategic flexibility and creativity could dampen the market’s dynamism, affecting India's competitiveness in the global derivatives landscape”, he observes. SEBI recently came out with a set of guidelines that aim to thwart <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>' participation in futures and options and hinder them from taking undue risks. Here's a quick recap of what's to come for the residents of the F&amp;O town Margin Requirements: To battle the high volatility and chaos which is generally seen on expiry days(i.e the last mandated date, post which an option becomes invalid), SEBI will put in place an extreme loss margin (ELM) of 2% for all open short options on the day of expiry. Translation? Traders will need to pony up more cash upfront, leaving them with fewer funds to take on risky bets. It ain't a choice: No more of one expiry every single day! Going ahead, an exchange like BSE or NSE will just be able to offer weekly expiries, that too, only on one benchmark index, as opposed to an entire buffet it currently offers. At present, NSE offers weekly options contracts for its financial index, bank and midcap indices. But say goodbye to this, and hello to derivatives on only 1 index per exchange. Raising the bar: Effective November 30, 2024, the minimum contract value for index derivatives will be upped to Rs 15 lakh, from the present Rs 5-10 lakh. The hope is that by making it ultra-expensive to enter these trades, investors will be dissuaded from taking on risky trades. Pay upfront: Starting February 2025, those trading in options will have to pay the entire options premium upfront, even before their trades are executed. This is because options generally carry very high leverage, and paying a significant sum upfront can force traders to think twice. Invigilation Pro Max: Starting April 1 2025, to make sure that the number of positions for equity index derivatives does not slyly slip over the mandated limit, especially on expiry days when trade volumes are huge, the exchanges will have to take a minimum of 4 position snapshots randomly. The question is, will these injections of sobriety be enough to calm down the steroid-fed bull of the futures and options market in India? Well, only time and market turnover will tell! For more insights into the financial markets and business news, stay tuned to our site and social media handles. And don’t forget to subscribe to Business Insider India’s newsletters for your weekly dose of Simply Put! Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

SIMPLY PUT: SEBI is on a mission to take on the wild, wild west of futures and options in India. Here’s why, what, and how

<keyword id="19896016" type="General" weightage="20" keywordseo="new-delhi" source="keywords">New Delhi</keyword>, <keyword id="20791743" type="General" weightage="20" keywordseo="gross-goods-and-services-tax" source="keywords">Gross Goods and Services Tax</keyword> (<keyword id="19951327" type="General" weightage="20" keywordseo="gst" source="keywords">GST</keyword>) revenue collections for February rose by a robust 12.5 per cent year-on-year in February to Rs 1,68,337 crore, according to figures released by the <keyword id="19900485" type="General" weightage="20" keywordseo="finance-ministry" source="keywords">Finance Ministry</keyword> on Friday. The growth was driven by a 13.9 per cent rise in GST from domestic transactions and 8.5 per cent increase in GST from import of goods. GST revenue net of refunds for February 2024 is Rs 1.51 lakh crore which is a growth of 13.6 per cent over that for the same month last year. As of February 2024, the total gross GST collection for the current fiscal year stands at Rs 18.40 lakh crore, which is 11.7 per cent higher than the collection for the same period in FY 2022-23. The average monthly gross collection for FY 2023-24 works out Rs 1.67 lakh crore, exceeding the corresponding figure of Rs 1.5 lakh crore for the previous year. GST revenue net of refunds as of February 2024 for the current fiscal year is Rs 16.36 lakh crore which is a growth of 13.0 per cent over that for the same period last year. Breakdown of February 2024 Collections: *Central Goods and Services Tax (CGST): Rs 31,785 crore *State Goods and Services Tax (SGST): Rs 39,615 crore *Integrated Goods and Services Tax (IGST): Rs 84,098 crore, including Rs 38,593 crore collected on imported goods *Cess: Rs 12,839 crore, including Rs 984 crore collected on imported goods.

GST collections in February rise 12.5% to cross ₹1.68 lakh crore

<ul class="summary-list"><li>Uber-rich business owners in high-tax states can save on income taxes without moving.</li><li>Instead of selling their businesses outright, they put their stock in a trust in a tax-haven state.</li></ul>Top earners continue to flock to states with little to no income tax such as <a target="_blank" href="https://www.businessinsider.com/where-rich-people-are-moving-florida-texas-tennessee-north-carolina-2024-1#:~:text=Wealthy%20people%20are%20moving%20to,even%20for%20the%20highest%20earners.">Florida and Texas</a>. It's an especially smart move if you're about to sell a business. As for rich entrepreneurs who aren't ready to make a move, they can still save on taxes with the right lawyer.By creating a special kind of trust, business owners can take advantage of the loose tax laws of other states. Instead of selling a business outright, they transfer their shares to an incomplete non-grantor trust set up in a <a target="_blank" href="https://www.businessinsider.com/us-states-tax-haven-billions-hidden-untaxed-wealth-assets-2022-9">tax-haven state</a> such as Nevada. When the shares are sold, the trust collects the proceeds without paying any state income or capital-gains taxes. The trust assets grow free of those taxes and are shielded from creditors.Dan Griffith of Huntington Bank expects ING trusts will surge in popularity with dealmaking on the rebound coinciding with a "silver tsunami.""You've got baby-boomer business owners who need to transition, and you also have a ton of capital on the sidelines looking for transactions," Griffith, Huntington's director of wealth strategy, said. "With more deals comes more need for tax-saving strategies."Investors can also benefit from putting their portfolios in ING trusts because that allows the dividends to grow free of state taxes. ING trusts are powerful tax-avoidance tools, so much so that New York and California have enacted laws to render them useless for state residents. California closed the loophole in 2023, estimating it would increase tax revenue by $30 million that year and $17 million each following year.Each state also has its own provisions to navigate, which makes setting up INGs cumbersome. However, Bank of America's Timothy Herbst said it could still be worth it in states without sky-high income-tax rates."That trust can grow conceivably without any state income tax," the wealth-strategy executive said. "That's a significant savings even in a state like North Carolina at 4.5%. It's not necessarily a huge income tax, but you look at a very large portfolio growing over decades, that can be real significant savings."<h2 id="a0857d85-806e-4e72-a9da-646cab9ef538">Here is how ING trusts work</h2>ING trusts come in different flavors. Nevada and Delaware are popular states for domiciling ING trusts, where they're referred to as "NINGs" and "DINGs," respectively. However, Wyoming and South Dakota are also options as they do not tax trust income or capital gains and protect trust assets from creditors.The person who creates the trust, otherwise known as the settlor, does not have to reside in that state, but the trust should be administered by a third party who does.Here's an example of how an ING trust can work.ING trusts are still subject to federal capital gains taxes, but the ultrawealthy users of INGs would likely be subject to that burden anyway. For a centimillionaire, it's not hard to reach the top rate of 37%, which applies to incomes above $578,126."These are superrich people," Bob Lord, a senior advisor on tax policy for the <a target="_blank" href="https://www.businessinsider.com/patriotic-millionaires-want-wealth-tax-congress-reconciliation-build-back-better-2022-7">Patriotic Millionaires</a>, said. "They're still taking in enough to get to the 37% bracket."Furthermore, INGs can be used to take advantage of a <a target="_blank" href="https://www.businessinsider.com/qsbs-qualified-small-business-stock-startups-criteria-taxes-2019-12">tax perk</a> for early shareholders that exempts at least $10 million in profits from the federal capital-gains tax. Steve Oshins, a Nevada lawyer, said founders could double their exemption by setting up an ING trust."This trust can serve as a second taxpayer so that the individual can get a second $10 million exemption," he said. "This can apply even if they don't live in a state with a state income tax."For the ING trust to pass muster with state authorities, there should be multiple beneficiaries in addition to the settlor and their spouse. Since beneficiaries do have to pay state income taxes — if applicable — when they receive distributions. For this reason, lawyers advise that clients take as few distributions as possible and let the assets grow in the trust for their children or future generations."It is usually better that the client knows that distributions won't be coming back to him or her or to their spouse," Herbst said. "If they did need those distributions, then it probably is not going to be the right strategy."That said, sometimes taking a distribution makes sense if there is financial need or the client has moved to a low-tax state since setting up the ING trust, Oshins said."You just have to look at each fact pattern on its own and make the right decision," he said.<h2 id="68a845c4-1176-4c9e-871e-cd1aab5eb265">Buyer beware</h2><ol><li>ING trusts can't be used to avoid state taxes on salaries or rental income.</li></ol>ING trusts cannot be used to defer income taxes on salaries or income from tangible assets in the state. That income, referred to as source income, is subject to state taxes.For instance, Griffith said, an Ohio resident cannot avoid state or local taxes on income from rental properties in the state even if they transfer ownership of the properties to an ING trust in South Dakota.For clients in states with aggressive tax authorities, Griffith recommends they step away from their business' day-to-day operations and collect a minimal salary before transferring their interests to the ING trust."What you really need to do is become essentially just a shareholder, be, as a business owner, somebody who says, 'I am just receiving dividends from this company. I own C-corp stock,'" he said. "In many states, that becomes non-source income."<ol start="2"><li>Setting up an ING trust is like threading a needle.</li></ol>These trusts have to be structured carefully to avoid <a target="_blank" href="https://www.businessinsider.com/real-estate-gift-tax-avoidance-trusts-wealth-planning-rich-inheritance-2023-5">triggering estate taxes of as much as 40%</a> while keeping the income-tax advantages. In addition to navigating the laws in the home state and the tax-haven state, the settlor has to retain certain rights and relinquish others. For instance, the settlor can't have the ability to compel distributions but should have the right to name beneficiaries at death."It's inherently complicated," Griffith said. "You've got to have a fairly sizable transaction to make the juice worth the squeeze."<ol start="3"><li>The trust has to be set up well before the business is sold.</li></ol>It is easier for a state tax authority to pursue income from the sale of a business if it is done shortly after the ING trust is established. Griffith recommends at least a year's delay, but it is the biggest challenge for clients, he said."They're like, 'Oh, I don't want to fund the trust until we know we're going to sell.'" he said. "You have to do it in advance. And if you do, those are the ones that I've seen that have been really successful."

This tactic to avoid income taxes without moving to Florida could surge thanks to a 'silver tsunami'

The government has relaxed provisions of <keyword id="19948097" type="General" weightage="20" keywordseo="tds" source="keywords">TDS</keyword>/<keyword id="19950203" type="General" weightage="20" keywordseo="tcs" source="keywords">TCS</keyword> in the event of the death of the deductee/collectee before the linkage of PAN and <keyword id="19898107" type="General" weightage="20" keywordseo="aadhaar" source="keywords">Aadhaar</keyword> card. TDS is Tax Deducted at Source and TCS is Tax Collected at Source in India. The Central Board of Direct Taxes (CBDT), has issued a circular dated August 5, in view of genuine difficulties being faced by taxpayers. Through the circular, the government said it has relaxed the provisions of TDS/TCS, as per the Income-tax Act, in the event of death of deductee/collectee before linking of PAN and Aadhaar. In order to redress the grievances of the taxpayers wherein instances have been cited, of demise of the deductee/collectee on or before May 31, 2024 and before the option to link PAN and Aadhaar could have been exercised, the circular provides that there shall be no liability on the deductor/collector to deduct/collect the tax under the relevant section of <keyword id="19936187" type="General" weightage="20" keywordseo="income-tax-act" source="keywords">income tax act</keyword>, pertaining to the transactions entered into up to March 31, 2024. On April 23, 2024, CBDT extended the date for linking of PAN and Aadhaar May for the taxpayers (for the transactions entered into up to March 2024) to avoid higher TDS/ TCS, as per the income tax act. Under the provisions of the Income-tax Act, 1961, every person who has been allotted a PAN as on July 1, 2017 and is eligible to obtain <keyword id="20030312" type="General" weightage="20" keywordseo="Aadhaar-Number" source="keywords">Aadhaar Number</keyword>, is required to intimate his Aadhaar to the prescribed authority, on payment of a prescribed fee. Failure to do so shall attract certain repercussions under the income tax act. As per government, the PAN of taxpayers who have failed to intimate their Aadhaar, as required, shall become inoperative and the consequences during the period that PAN remains inoperative will be as follows: 1. No refund shall be made against such PANs 2. Interest shall not be payable on such refund for the period during which PAN remains inoperative 3. TDS and TCS shall be deducted /collected at higher rate, as provided in the income tax act.

Provisions of TDS/TCS, in case of death of deductee or collectee relaxed by govt

My grandparents' vacation cabin in Lake Tahoe is the stuff of legend.In the '90s, when my parents were just friends, my dad "accidentally" invited himself on a ski trip with my mom and her parents. It was an epic winter when the blizzards created berms as tall as the houses. By the time spring came, my parents were dating.My grandparents' little house in South Lake Tahoe, which they bought for $113,000 in 1984, quickly became a haven for my family.I dreamed of getting married there and taking my own kids to the cabin someday. But in May, my mom called to tell me this could be the last year we have the home.A tax on vacation home-owners might make our place in Tahoe too costly to keep.A measure on the ballot today proposes an annual tax on every property occupied less than 51% of the year. If it passes, second-home owners would owe $3,000 in 2026 and $6,000 every year after.In ski towns and cities across the US, home prices have skyrocketed, and young people struggle to pay rent or buy a house. Meanwhile, the wealthy have flocked to mountain retreats where they can vacation and work from home. One of the measure's architects told BI that it will combat this trend by incentivizing second-home owners to rent to local residents, bringing down the cost of housing by increasing the available supply.Supporters project city revenue gains of $4 million to $8 million in the first year and $10 to $20 million every year after that. The money would go toward rebuilding roads, creating more public transit, and paying the administrative costs of implementation.Framers of the Tahoe tax measure took inspiration from Berkeley, California, which adopted a vacancy tax this year. The Hawaiian island of Oahu and the Colorado ski towns of Aspen, Vail, and Breckenridge are also considering vacancy taxes.But some say it's unclear whether the tax will actually lower housing prices for locals.<div type="image" title="View of the mountains around South Lake Tahoe" height="3279" width="4896" msid="114990171" hostid="261" sizebytes="935262"></div>The opposition in South Lake Tahoe is made up of some of its institutionalized powers, including the local Chamber of Commerce, the South Tahoe Association of Realtors, and the restaurant and lodging associations. In interviews, they told BI that a tax would drive second-home owners away, depriving local businesses of their spending while having no impact on housing affordability for locals. The city's report on the economic outcomes of the tax said it may not actually incentivize homeowners to rent or sell to locals.Some long-timers feel squeezed: How do they afford to live in these places, and what measures would actually fix the problem? Is it a tax — or is it, say, zoning changes that allow more homes to be built?Similar battles over housing affordability are happening across the country. I just happen to have a front-row seat to this one.Since the city of South Lake Tahoe was incorporated in 1965, it's been populated by a healthy mix of year-round and seasonal residents.Middle- and upper-middle-class mountain enthusiasts from the Bay Area flocked to the city, which, with 21,000 residents per the most recent census data, is more densely populated than any other town around the lake.This part of Tahoe has long been a relatively more affordable alternative to the ski havens of Colorado and Utah. As of October 2024, the median sales price for homes in South Lake Tahoe was $750,000, according to Realtor.com. By comparison, it was $958,000 in Park City, Utah, $1.4 million in Aspen, and $1.6 million in Vail."It's one of these places where you have folks from really different socioeconomic backgrounds," said Amelia Richmond, who favors the tax and leads a group of other supporters called Locals For Affordable Housing. "It's one of the reasons I think mountain towns are so cool."But that environment doesn't exist without both year-round and seasonal residents in town. Fifty-six percent of Tahoe's 9,125 housing units are filled by renters, while 44% are owner-occupied, according to the US Census' American Community Survey.Because Measure N will appear on the local ballot, most second-home owners directly affected by the tax can't vote. Nearly half of the property-owning population — my family included — is left watching debates over the tax play out among local residents, who are split on where they stand.<h2 id="90a60f06-f278-4362-9ebf-345a4dac61c6">Locals are divided on the tax</h2>Steve Teshara, who has held several roles, including CEO, at the Tahoe Chamber of Commerce, said the tax would hurt the local economy by driving out second-home owners.He pointed to evidence from a previous measure, which banned Airbnbs and other short-term rentals in certain parts of town. That measure was also intended to stabilize area home prices and rents."It has an immediate effect when visitors are not able to spend as much money or when visitors just aren't here anymore," Teshara said.The previous measure effectively reduced the supply of Airbnbs from 3,350 units in January 2018 to 2,635 units in July 2024, according to the short-term rental data company AirDNA. However, it didn't make the expected dent in housing costs, data from the Realtors' Association shows. Median sale prices continued to increase overall, from $440,000 in 2018 to $750,000 in 2024.<div type="image" title="View of Highway 50 in South Lake Tahoe with a light dusting of snow" height="4153" width="5538" msid="114990167" hostid="261" sizebytes="1763634"></div>Teshara believes the housing crisis must be solved in the long term, pointing to the local government's <a target="_blank" class="" href="https://www.cityofslt.us/2332/Affordable-Housing-Properties-Other-Deve">affordable housing construction projects</a>. He is a fan of indirect measures currently in place, like vanpooling, which shuttles people who live further away — where prices are lower — through the mountains to work.Richmond, the pro-tax organizer, said that business from year-round residents is more important to many shops and restaurants than purchases from occasional visitors."How many beers do you have to buy to make up that difference when you're up just once a quarter?" she said. "Local economies are actually robust when you have a healthy middle class that can spend small amounts of money on a regular basis."<h2 id="139d1f43-575b-4368-9419-52d99a68446e">Taxing second home-owners may not make them rent to locals</h2>The city of South Lake Tahoe conducted an independent study on the tax's economic outcomes if it were to go into effect.The findings supported Richmond's assertion that the measure could modestly boost sales tax revenue if second homes vacated by owners were converted into permanent residences or long-term leases.But the report also cautioned that the measure's impact on housing availability will depend largely on how second-home owners react if the tax is adopted — behavior that's nearly impossible to predict.Second-home owners could sell their properties, like my family is considering. But because of current home prices, buyers would likely be people who don't see an additional $6,000-a-year expense as a deterrent. While the city could collect additional tax revenue from a wealthier population of second-home owners, that wouldn't make it any easier for locals to buy.Homeowners could also decide to rent and become landlords instead of selling, as Richmond hopes. But that may be a longer shot, the city report found.Based on the previous leasing programs in the area, "it appears that financial incentives are not particularly effective to motivate owners of vacant property in South Lake Tahoe to rent out their homes for longer terms," the report said.<div type="image" title="A view of South Lake Tahoe in 1974" height="3458" width="5142" msid="114990163" hostid="261" sizebytes="1062714"></div>Some second-home owners told Business Insider they would refuse to rent to tenants.Sherri Maslyar, who has owned a home in South Lake Tahoe with her husband since 2013 and visits monthly, said she heard a horror story about a neighbor's long-term tenant who defied the landlord's no-pets rule and ruined parts of the house. She said she would rather pay the tax than risk renting her home to someone untrustworthy."That's not what we bought the house for," she said.<h2 id="534b0195-f639-4a7b-8fb1-9c677eca426d">Tahoe's character — and prices — have changed over the years</h2>The median income in South Lake Tahoe grew 65% from $40,972 to $67,686 between 2000 and 2022, according to census data. In the same period, median home prices in the area ballooned by 288%, from $189,000 to $732,500.Zillow's rent data, which only goes back to 2020, shows that typical rents in South Lake Tahoe grew from $2,101.52 in October 2020 to $2,653.05 in October 2023. The typical rent as of September 30 was $2,682.50.The neighborhood where our family's cabin sits was once populated by eclectic A-frames and modest one-story structures, whose kitschy exteriors tended to match the eccentricities of their owners. Now, vaguely chic rustic McMansions with smooth angles and wood finishing are common.<div type="image" title="Line of wooden bears carrying &quot;howdy&quot; and &quot;welcome&quot; signs" height="3435" width="5617" msid="114990174" hostid="261" sizebytes="1760630"></div>Part of why building more houses or apartments — which might stabilize prices — has been so difficult is due to strict development laws. In Lake Tahoe, all development projects must be approved by the Tahoe Regional Planning Association (TRPA), whose primary objective is conservation, not housing construction.Jeff Cowen, TRPA's public information officer, told BI the agency's main goals were environmental, adding that "we have to consider community impacts of our regulations." It doesn't have a stance on the tax.One thing opponents and proponents of Measure N agree on: TRPA's mandate has made it difficult to build new housing in Tahoe to address the housing shortage. But they disagree on whether radical and rapid changes should be made to make Tahoe affordable right now.<h2 id="7b8ad7f8-c9b9-4a00-b5a4-14745b01c7cc">It might be the end of Tahoe as we know it</h2>A place that was once accessible as a seasonal destination for a middle-class family risks becoming a playground for the very rich if changes in the Tahoe market continue to make buying a home there relatively unaffordable.I am benefiting from generational wealth stemming from my grandparents' choices, and I will always be grateful for the investment they made.My family isn't sure what we'd do if the tax passes. One option is to rent to a long-term tenant, but we'd likely lose the freedom to come and go seasonally. Another is to sell the house.<div type="image" title="A middle-aged Asian American couple and their 10-year-old daughter standing in front of an old car in a ski resort parking lot." height="537" width="800" msid="114990172" hostid="261" sizebytes="23164"></div>Either way, we'd be saying goodbye to the home as we've known it for the past four decades.It's hard to imagine giving up my ties to a place that has such emotional value — that is very much the second home my grandparents intended it to be. And if the tax doesn't do what proponents hope it will, I'd be losing Lake Tahoe for nothing.All I can do now is wait and see.

My family bought a vacation home in Lake Tahoe for $113,000. A new tax could push us out. 

<ul class="summary-list"><li>Presidential hopeful Donald Trump has proposed getting rid of taxes on tips and overtime.</li><li>Trump said he intends for those proposals to help low earners and incentivize work.</li></ul>If former President Donald Trump gets his way, workers who collect <a target="_blank" class="" href="https://www.businessinsider.com/you-might-be-eligible-for-overtime-pay-2023-8">overtime pay</a> or <a target="_blank" class="" href="https://www.businessinsider.com/drivers-and-servers-share-how-they-earn-extra-money">tips</a> could stop paying taxes on them.During remarks in Arizona earlier in September, he <a target="_blank" class="" href="https://www.cbsnews.com/news/trump-unveils-new-no-tax-on-overtime-pay-policy-in-arizona-remarks/">said</a> that ditching taxes on overtime would give "people more of an incentive to work."The current system treats overtime and tips just like any other income; they're taxed as part of a worker's normal wages. But if Trump's proposal goes into place, it could save hospitality workers a significant amount each year.There were around 4 million workers in tipped occupations in 2023, according to an analysis from <a target="_blank" class="" href="https://budgetlab.yale.edu/news/240624/no-tax-tips-act-background-tipped-workers">The Budget Lab at Yale</a>. And while part of the group had incomes low enough that they paid no income tax, there's a pool of more than 2 million workers that stand to benefit.It's a policy that has broad appeal: an Ipsos <a target="_blank" class="" href="https://www.ipsos.com/en-us/proposed-policy-end-federal-income-tax-tips-has-bipartisan-support">poll</a> from August found that the majority of Americans support ending federal taxes on tips. It's also a rare topic Trump and Kamala Harris can agree on. In mid-August, the vice president and Oval Office hopeful <a target="_blank" class="" href="https://www.businessinsider.com/harris-agrees-trump-tips-service-workers-not-taxed-2024-8">jumped on board</a> with her own proposal for making some tips tax-exempt.Millions more workers — specifically those paid hourly, as well as salaried workers who make under about $44,000 a year — are eligible for overtime, typically receiving 150% of their usual pay for going over 40 hours a week.These measures, if enacted, could fundamentally alter the structure of income across America, especially since both employees and companies are expected to quickly optimize their tax strategies.<h2 id="925f2f99-c64e-4f6e-aec9-6923725b85e3">Tax-strategy adjustments</h2>The first question is when exactly the new changes would go into place. For starters, Trump has to win the election, something that's currently a coin flip, according to <a target="_blank" class="" href="https://projects.fivethirtyeight.com/polls/president-general/2024/national/">polling averages</a> that have Trump and Harris roughly tied in battleground states.If Trump does emerge victorious, implementing these changes would require congressional approval. Given that the former president's 2017 tax laws are set to expire in 2025, lawmakers may seize the opportunity to include these proposals in a new set of laws.As soon as that law is signed, it's likely that employees would quickly look for ways to navigate and optimize the new system in an attempt to lower their tax burdens.Employers would be no different, and shifts to current pay structures should be expected. Heidi Shierholz, senior economist at EPI Action — a left-leaning nonpartisan organization advocating for economic justice — told Business Insider that businesses could pay their workers slightly less to allow employees to have the financial benefit of not having their overtime pay or tips taxed."Their employer can pay less to keep them but the worker is not worse off because now they don't have to pay taxes on that," Shierholz said.It could also result in service-industry businesses further shifting the burden of paying workers a living wage onto customers, and reducing the amount of tax paid into <a target="_blank" class="" href="https://www.businessinsider.com/when-will-social-security-benefits-run-out-retirement-crisis-boomers-2024-5">Social Security</a>.Multiple other experts told BI that such tax-optimization tactics would also be used by both workers and employers outside the service industry.It could mean, for example, that some businesses claim that the fees they charge are actually tips. Or it could mean some salaried workers switch to hourly wages in order to qualify for a higher rate of untaxed overtime pay.Joe Hughes, a senior analyst on federal tax policy at the Institute on Taxation and Economic Policy, told BI that "you would need a lot of safeguards in place to keep this from being just another avenue for tax avoidance."He continued: "It's at least applaudable that Trump says that he wants to help low-income workers. But I think that there are much better avenues to do that than exempting very specific types of income."Alex Muresianu, a senior policy analyst at the Tax Foundation, told BI that a tip has a specific definition: it has to be a voluntary payment given to a worker by a customer that has not been negotiated beforehand. In an extreme case, Muresianu said, some workers could stretch that."Introducing that as the norm in response to the policy would effectively shift some compensation that is normally small business income or something into tax-exempt tips," he said.Hughes said that workers could take a similar approach with the overtime proposal — they might choose to reclassify themselves as wage earners instead of salaried earners so they could earn tax-exempt overtime pay."A lot of lawyers are working 60, 70 hours a week, right? So why not reclassify yourself as a wage employee, then you get to take advantage of overtime rules and not pay taxes on it," he said.Shierholz said that the US already has a complicated tax code, and there are more efficient ways to better help low-income workers, like increasing overtime pay and raising the minimum wage so workers do not have to rely on tips from customers to stay afloat."A problem through this absolutely Rube Goldberg approach is that it has all of these unintended distortionary consequences that you could just address directly," she said.The Trump campaign did not respond to a request for comment on the potential for the tax proposals to lead to avoidance. But Karoline Leavitt, the Trump campaign's national press secretary, told BI that "Trump proudly passed the largest tax cuts for hardworking Americans in history.""When President Trump is back in the White House, he will make the Trump tax cuts permanent and end taxes on tips for service workers, end taxes on overtime pay, and end tax on Social Security," she added.Do you collect tips or overtime pay? What are your thoughts on eliminating taxes on tips and overtime? Share your story with this reporter at <a target="_blank" href="mailto:asheffey@businessinsider.com">asheffey@businessinsider.com</a>.

Trump's plan to scrap taxes on tips and overtime could reshape how millions of Americans get paid

The <keyword id="19994390" type="General" weightage="20" keywordseo="GST-Council" source="keywords">GST Council</keyword> on Saturday decided to tweak <keyword id="20452955" type="General" weightage="20" keywordseo="tax-rates" source="keywords">tax rates</keyword> on items, including accommodation services for students and solar cookers, and took a host of taxpayer-friendly measures including waiver of interest and penalty for demand notices issued in the first three years of <keyword id="6354679" type="General" weightage="100" keywordseo="GST" source="Orion">GST</keyword> rollout. Briefing reporters after the 53rd <keyword id="3680839" type="General" weightage="20" keywordseo="GST-Council-meeting" source="Orion">GST Council meeting</keyword>, Finance Minister <keyword id="129243" type="General" weightage="20" keywordseo="Nirmala-Sitharaman" source="Orion">Nirmala Sitharaman</keyword> said the Council has recommended to roll-out the biometric-based <keyword id="20433416" type="General" weightage="20" keywordseo="Aadhaar-authentication" source="keywords">Aadhaar authentication</keyword> of registration applicants on pan-India basis in a phased manner. This will help check fraudulent registration done to avail input tax credit and evade taxes. To reduce litigation, the Council decided to fix a monetary limit for tax officers to file appeals before the GST Appellate Tribunal, the High Court and the Supreme Court at Rs 20 lakh, Rs 1 crore and Rs 2 crore, respectively. It also recommended reduction of the quantum of pre-deposit required to be paid by taxpayers for filing of appeals under Goods and Services Tax (GST). The maximum amount of pre-deposit for filing appeal with the appellate authority has been reduced from Rs 25 crore CGST and SGST each to Rs 20 crores CGST and SGST each. This will help ease cash flow and working capital blockage for the taxpayers. "The 53rd GST Council meeting has taken a number of decisions on trade facilitation, easing compliance burden and giving relief to taxpayers in terms of easing compliance," Sitharaman said. The Minister said the next meeting of the GST Council will be held in August in which the Group of Ministers (GoM) on GST rate rationalisation under Bihar Deputy Chief Minister Sumant Chaudhary, will give a presentation on the status of the work and aspects covered by the panel and work pending before the panel. "What was decided in the Council is, when we meet in the next GST Council meeting we will start a discussion on rate rationalisation... There will be a presentation by the GoM irrespective of whether the report is draft... and then Council will start the discussion on rate rationalisation in the next meeting in August," Sitharaman said. The GST Council on Saturday recommended to exempt Accommodation Services of up to Rs 20,000 per person per month from GST. This is subject to the condition that these services are supplied for a minimum continuous period of 90 days. "It's primarily meant for students," Sitharaman said. In a taxpayer friendly move, the Council has decided to waive interest and penalties for demand notices issued under Section 73 of the CGST Act (for cases not involving fraud, suppression or wilful misstatement) for the fiscal years 2017-18, 2018-19 and 2019-20, if the full tax demanded is paid by March 31, 2025. GST, which subsumed 17 local taxes and cesses, was rolled out on July 1, 2017. With its introduction, prices of various products and services used by masses have moderated. As per the CBIC data, mobile phones and many household items including TV, refrigerator, washing machine and AC have become cheaper post GST. It has reduced burden on household income and improved affordability. The Council also decided to refer the standing committee's recommendation to exempt GST on fertiliser and cut rates on raw materials to the GoM on rate rationalisation. Currently, GST is levied at 5 per cent on fertilisers, while its raw materials like sulphuric acid and ammonia face 18 per cent tax. Also the Tax Collected at Source (TCS) rate for e-commerce suppliers has been cut from present 1 per cent to 0.5 per cent, which will ease the financial burden on the suppliers making supplies through E-commerce platform. Besides, services provided by Indian Railways to the general public, namely, sale of platform tickets, facility of retiring rooms/waiting rooms, cloak room services and battery-operated car services as well as intra-railway transactions would be exempt from GST. GST Council has prescribed a uniform rate of 12 per cent on all milk cans meaning steel, iron, aluminum which are irrespective of the use. The Council also recommended a uniform GST rate of 12 per cent on all carton boxes and cases of both corrugated and non-corrugated paper or paper board, which in particular, help the apple growers of Himachal Pradesh and Jammu &amp; Kashmir. All types of Sprinklers, including fire water sprinklers, will attract 12 per cent GST. Solar Cookers, whether it has a single or dual energy source, too will attract a 12 per cent tax. The Council also decided that GST anti-profiteering provisions will have a sunset date of April 1, 2025. Current cases and investigations with regard to profiteering complaints will be handled by the Principal bench of GST Appellate Tribunal (GSTAT), instead of the Competition Commission of India (CCI). Also, the time limit to avail input tax credit w.r.t. any invoice or debit note through any GSTR 3B return filed up to November 30, 2021 for FY 2017-18, 2018-19, 2019-20 and 2020-21, has been fixed at November 30, 2021. Sitharaman said less than two per cent of the total 58.62 lakh taxpayers under Central GST administration has been sent tax notices and the intention of the government is to make GST assessees life easier by reducing compliance requirements. "I want to reassure the assessees that our intent is to make GST assessees life easier, we are working towards less and less compliance. On behalf of the CGST, notices are not being sent left, right and centre. Only 1.96 per cent of all active tax assessees have been sent notices from Central GST," Sitharaman said.

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