News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
General »
 States object to plan to create defence fund out of divisible central taxes
 5% tax on foreign fund transfers that may go up to 10% for some
 After hike, tax collection of Delhi government falls in August
 I-T Deptt launches functionality for banks to check ITR filing status of entities
 How nudges can improve tax compliance
 What does entertainment tax mean?
 Catching elusive taxpayers still a work in progress
 Government clarifies on proposal to modify income tax returns
 Can buying shares in a rights issue leave you in a tax mess?
 Income tax scrutiny down in AY18; Delhi faced the highest, Bihar the least
 Delhi govt warns strict action against companies defaulting on tax payments

Stricter rules on dealing with tax evasion kicks in from today
June, 18th 2019

A stricter set of norms that govern the option of paying additional fee to avoid prosecution for income tax offences has kicked in from today.

The new guidelines on compounding of offences under direct tax laws, 2019 that the government announced on Friday disallows compounding of offences related to benami transactions and undisclosed foreign income. The tougher approach in dealing with tax evasion comes at a time when direct tax revenue collections in FY19 is estimated to be below the revised target of ?12 trillion. Finance ministry had set a direct tax collection target of ?13.8 trillion for FY20 in the interim budget presented in February.

The Central Board of Direct Taxes (CBDT), the apex direct tax policy making body, said in the new guidelines that any offence connected to undisclosed foreign bank account or assets in any manner cannot be compounded. India had introduced the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act in 2015 to curb unaccounted wealth kept abroad and to impose tax and penalty on such wealth. CBDT also said in the new guidelines that offences linked to any wrongdoing covered under the Benami Transactions (Prohibition) Act 1988 are also not compoundable.

"Compounding of offences is not a matter of right," said the new guidelines. The guidelines will apply to requests for compounding filed from Monday onwards, while the pending ones will be governed by the norms that existed earlier.

India has been tapping all available sources of information from its tax treaty partner countries to identify those who have foreign income which is not disclosed. India and the US now share information about financial assets their respective citizens have in the other country but have not disclosed to tax authorities back home. Such sharing of information across national borders have made it harder to hide wealth abroad.

Home | About Us | Terms and Conditions | Contact Us | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting