Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: VAT Audit :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: form 3cd :: list of goods taxed at 4% :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: VAT RATES :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company
 
 
л News Headlines »
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions

Notices on RBI, HSBC former staff for claiming tax refund
July, 05th 2006
The income tax department has issued penalty notices to former employees of the Reserve Bank of India (RBI) and the Hongkong and Shanghai Banking Corporation (HSBC) for wrongfully claiming refund of taxes paid on amounts received under early retirement schemes in 2003.

According to sources, the optional early retirement scheme (OERS) of RBI and early voluntary retirement scheme (EVRS) of HSBC do not qualify for tax exemption as is the case for normal voluntary retirement scheme (VRS) under Section 89 of the Income Tax Act.

It was clearly defined in the scheme document which was distributed to the employees before they decided to opt for it.

Even then these employees filed their income tax returns with refund claims ranging between Rs 1.66 lakh and Rs 2 lakh each.

The total refund claim worth around Rs 20 crore till date has also made the Central Board of Direct Taxes (CBDT) to issue notices to income tax department all over India to reopen such income tax returns for scrutiny for the past two years.

It has also suggested to the Institute of Chartered Accountants of India (ICAI) for measures to punish the chartered accountants who prompted the retired employees to file refund claims.

For HSBC employees, most of the claims were handled by unauthorised practitioners not registered with the income tax department.

In the case of OERS offered by the RBI, it was not a voluntary scheme and was designed as per the suggestion of the employees. The employer RBI had already deducted taxes before making payments.

HSBC has clearly cited in its policy document that the EVRS offers perquisites which are far in excess of the normal limit of VRS and hence does not attract tax exemption.

After being denied of the refund claims, the employees approached the income tax tribunal which also rejected the appeal and ordered a levy of penalty to each of these employees of the same amount as that of the claim. The penalty proceeding has been filed under section 270(1)(1) of the I-T Act.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

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