Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: VAT Audit :: due date for vat payment :: cpt :: articles on VAT and GST in India :: empanelment :: TDS :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: form 3cd
 
 
« General »
 Govt sets up task force to review income tax laws
 Tax queries: Contact employer to get Form 16 error rectified
 Finance Ministry may hike monetary limit for filing tax appeals
 Compilation of all notifications issued ON
 Banking transaction tax to have cascading effect: NIPFP
 While filing tax in India, NRIs do not have to state overseas income
 Tax ease on cards, some daily use items may become cheaper
 It’s one year of GSTN, too
 SBI home, auto loan interest rates cut, set to be effective from Nov 1
 MNCs will have to furnish extra disclosures from March 2018
 High Court Allows Woman To File Income Tax Returns Without Quoting Aadhaar

Now, income tax twist
December, 31st 2009

There is a new twist to the Singur kahani. Something that might ignite fresh trouble this time among "willing" land-losers.  Ironically, neither chief minister Buddhadeb Bhattacharjee nor Trinamool chief Mamata Banerjee has anything to do with this mess. A provision of the Income Tax Act does.

It's a rule that has come as a bolt from the blue to all concerned. Section 194 LA of the I-T Act applies to requiring bodies (WBIDC or KMDA in this case), to deduct 10% tax (at source) from the compensation money paid to land-losers. The compensation amount paid to each land loser should be more than Rs 1 lakh. Even though West Bengal, and many other states weren't even aware of such a provision, which came into effect in 1999 and was withdrawn soon after, the Centre has now implemented it. That, too, with retrospective effect from October, 2004.

When told about the rule, Jahar Das, a land-loser at Bajemelia village off Singur, said, "If the government tries to extract this money from us we shall demand our land back. Das has received around Rs 15 lakhs as compensation. Sushil Mal of Malpara, who after giving up two acres, has now become a daily wager, said he would move court against the government. "I have put my share of Rs 10 lakh in the bank. But my son, who was promised a job, has also turned a daily wager. We feel cheated. There's no question of making more sacrifices."

The official intimation has been conveyed by the Income Tax department (under the ministry of finance) to the state government. And the latter, is especially peeved because its biggest land acquisition amount paid so far has been for the abandoned Nano project at Singur where around Rs 140 crore has been paid to 12,000 land losers for 997 acres.

"The compensation circle for this project is complete and the provision would apply here more than the ongoing aerotropolis project or the Jindal Steel plant or, for that matter, the other steel plants at Purulia and elsewhere," an official at Writers' Buildings confided.

Land and land reforms minister Abdur Rezzak Mollah said, "It's impossible to deduct 10 % from the compensation cheques given to the Singur land-losers. Or, for that matter, any other poor farmer from whom land has been acquired for industry." The minister, known for his loud criticism of the government's land acquisition "haste", added, "Doesn't the Centre realise what kind of impact this would have on the land-losers?"

He was quite right. Krishi Jami Rakhsa Committee convener Becharam Manna, a key person in Mamata's Singur agitation, said, "The farmers who didn't listen to us will now begin their own agitation." Sanat Das of Khaserberi village, now no longer the owner of his acre of land refused to pay "even a paise from my Rs 9.5 lakhs compensation amount."

Bureaucrats at Writers' Buildings have started looking for escape route and counter provisions. A senior official pointed out, "The land-losers can be provided with exemption certificates to prove they don't come under the income tax net." But he didn't know how district magistrates (who also doubles up as the land acquisition officer) would have the exemption certificates issued after each and every land-loser were recalled and made to receive deduction notices.

Economist Dipankar Dasgupta found provision absurd, "How can land-losers be charged for this one-time payment there is no income flow here. Even if the provision is seen as capital gains tax, it doesn't apply to poor farmers."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multimedia Presentations Multimedia Solutions 3D Solutions Corporate Presentations Business Presentations Multimedia Presentation India M

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions