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: empanelment :: VAT RATES :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: cpt :: articles on VAT and GST in India :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: form 3cd :: TDS :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD
 
 
« General »
 The most thrilling idea before every Budget: No income tax
 Finance Ministry likely to tweak Minimum Alternate Tax norms to boost industry
 Income tax department warns people to keep away from benami transactions
 New helpline for income tax e-filing
 The Central Government notifies the Companies (Amendment) Act, 2017
 GST Returns: Government Relaxes Rectification Norms
 Will govt bring change in income tax slab? here's the present structure
 No income tax exemption to cooperative banks
 Bitcoin investors may have to pay capital gains tax
 What industry expected when Modi government implemented GST
  The Finance Resolution And Deposit Insurance Bill, 2017

Pay 45% tax, move your black to white: Govt's new plan
February, 18th 2011

This Budget, Finance Minister Pranab Mukherjee may announce a last and final call for all tax evaders who have stashed away black money here or abroad, to come clean after paying tax plus a penalty, collectively amounting to 45 per cent.

The Central Board of Direct Taxes has worked out an immunity not amnesty scheme where people can voluntarily disclose their hidden earnings without being prosecuted.

However, there would be no respite from tax compliance. Tax would be levied at normal structure wherein the real tax rate comes to about 23 per cent, and there would be a 100 per cent penalty on it, said government officials.

But for easy administration and low compliance cost, the unaccounted income would be taxed at a flat 45 per cent, they added.

The public perception is that money parked abroad should be brought back into the country. This would be the easiest way as taking legal recourse for confiscation is a litigious and time-consuming route, said the officials.

Therefore, the voluntary disclosure of income proposal is primarily aimed at bringing money stashed offshore but onshore may also be included.

Officials said that the scheme has the consent of the minister, but it is yet to get political approval.

They clarified that it would not be an amnesty scheme where tax is not levied on the undisclosed income as was the case under National Housing Bank (Voluntary Deposits) Scheme, India Development Bonds Scheme and Remittances in Foreign Exchange (Immunities) Scheme in 1991.

The scheme would incorporate a clause asking immunity seekers to furnish details of their foreign accounts as is being done by the US Internal Revenue Service, said the officials.

There are negatives that weigh against the scheme. While it would be unfair to persons who are voluntarily tax compliant, it could turn counter-productive with people expecting similar schemes to be floated in the future.

People then take further risk in disclosure and it also shifts the tax liability with immunity seekers paying lump sum during VDIS so that future years they escape taxes, said the officials.

The last VDIS in 1997 generated Rs 9,750 crore as tax with 4.75 lakh people disclosing Rs 33,290 crores as unaccounted income.

The new scheme, coming more than 13 years after the last one, would be a final chance to evaders to bring back the wealth stashed away in banks of Switzerland, Mauritius, Liechtenstein, etc. before the Income Tax Department gets cracking.

Officials clarified that the proposal had not stemmed out of the multi-disciplinary committee appointed by Mukherjee last month to estimate the quantum of black money as well as the feasibility of introducing an immunity scheme.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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