New Delhi: Only 150,000 income tax filers have declared earnings of more than Rs 1 crore in the current assessment year, a majority of them being salaried individuals and not companies, said Sushil Chandra, chairman of the Central Board of Direct Taxes (CBDT).
“It is a very sorry state of affairs that in a country with 1.2 billion people, and economic growth at 7 per cent, with rising consumption, where all the 5-star hotels are running full, only 150,000 people have declared incomes of more than Rs 1 crore,” Chandra said at a tax conference organised by Assocham. He expressed surprise at the low turnout of companies filing returns with incomes of more than Rs 1 crore.
If companies do not come forward by “self-motivation”, the tax department would need to take stringent measures, he said.
Income tax filers’ data maintained by the tax department showed that the number of crorepatis (including companies) was only marginally higher than nearly 140,000 returns by crorepatis filed in the assessment year (AY) 2017-18. However, while the number of individual crorepatis grew by 68 per cent from 2014-15 to 2017-18, companies with gross total income more than Rs 1 crore grew at a slower rate — 40 per cent over three years. Besides salaries, individual income includes that from business, property and other sources.
“We are chasing those persons (and companies evading income tax payments) looking at their consumption patterns. We want India to become a high compliance moderate tax society,” he said.
He said that under the new non-filer management system, the CBDT is facilitating return filing for those who do not file returns despite carrying out high-value transactions. In less than a month, about 300,000 people have visited the e-filing portal for the same, and about 33,000 of those have already filed I-T returns, he said.
On black money and foreign assets, he said that if a domestic or foreign asset is not disclosed, the current data analytics system recognises the incorrectness of the returns, which the CBDT then uses to generate accurate demands.
chart Chandra said that from the Automatic Exchange of Information system, under treaties with various countries, “mind-boggling information” has been obtained and it has given an “impetus” to catch hold of persons with undeclared foreign assets.
A large number of high-profile corporates are currently facing prosecution by the tax department on account of defaulting on TDS payments. Chandra said a “tough stand” is required in such cases. “Some corporate taxpayers are using the leverage of low-interest rate and delaying their payments. Some of them have filed returns, but haven’t deposited the money,” he said.
With regard to the new system for single-day return processing, he said that service providers who will process returns within 24 hours for taxpayers would get some incentives.
While personal income tax is projected to remain at the level of the Budget estimates at Rs 5.29 trillion in the current financial year, corporate tax is expected to grow by Rs 50,000 crore in the revised estimates. It is the latter that is expected the revenue gap created by lower goods and services tax collection.
Sensex jumps over 250 points, rupee rises 3 paise to 71.31 against US dollar
Mumbai: The 30-share index was trading 269.24 points, or 0.76 per cent, at 35,621.85. Similarly, the 50-share NSE Nifty rose 74.40 points, or 0.70 per cent, to 10,678.75.
The Sensex had settled 145.83 points lower at 35,352.61 in the previous session, while the Nifty had fallen 36.60 points to 10,604.35.
Top gainers in the Sensex pack on Wednesday include ONGC, Vedanta, Yes Bank, Bajaj Finance, Axis Bank, Sun Pharma, L&T, Tata Steel, HDFC, Reliance and Bharti Airtel, rising up to 2.12 per cent.
On the other hand, HCL Tech, Hero MotoCorp, Bajaj Auto and M&M were the losers, falling up to 0.76 per cent.
According to traders, investor sentiment was positive on strong buying by domestic institutional investors (DIIs).
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On a net basis, DIIs were net buyers to the tune of Rs 1,163.85 crore, while foreign institutional investors sold shares worth a net of Rs 813.76 crore on Tuesday, provisional data available with BSE showed.
Investors also took cues from other Asian equities that were trading positive on hopes of a resolution to US-China trade tiff.
US President Donald Trump Tuesday said that negotiations with China on a trade deal were going very well, but refrained from committing any extension of the March 1 deadline to arrive at such an understanding. Global markets are also eyeing minutes from the US Federal Reserve, scheduled for release later in the day, for clues on key interest rates, traders said.
Elsewhere in Asia, Hong Kong’s Hang Seng was up 0.50 per cent, Kospi jumped 1.17 per cent, and Japan’s Nikkei gained 0.70 per cent; while Shanghai Composite Index slipped 0.15 per cent in earlytrade.
On Wall Street, Dow Jones Industrial Average ended almost flat at 25,891.32 points on Tuesday. The benchmark Brent crude futures rose 0.08 per cent to USD 66.50 per barrel.
The rupee inched up 3 paise to 71.31 against the US dollar in early trade Wednesday even as foreign fund outflows continued amid firming oil prices.
At the Interbank Foreign Exchange (forex) market, the domestic unit opened strong at 71.29 but gave up the gains to trade at 71.31. The rupee had closed at 71.34 versus the greenback Monday. Money markets were closed Tuesday on account of Chhatrapati Shivaji Jayanti.
Foreign institutional investors (FIIs) remained in sell-off mode, offloading shares worth a net Rs 813.76 crore Tuesday, while domestic institutional investors (DIIs) bought equities to the tune of Rs 1,163.85 crore, provisional data showed.
Brent crude futures, the global oil benchmark, was trading 0.14 per cent higher at USD 66.54 per barrel.
Reliance Group stocks under pressure; tank up to 10.3% on SC move
New Delhi: Shares of Reliance Group companies tumbled up to 10.3 per cent Wednesday after the Supreme Court held RCom chairman Anil Ambani guilty of contempt of court for willfully violating its order and not paying Rs 550 crore dues to telecom equipment maker Ericsson.
Reliance Capital tumbled 10.26 per cent, Reliance Communications tanked 9.46 per cent, Reliance Infrastructure 8.75 per cent, Reliance Power 5.52 per cent and Reliance Home Finance 5 per cent on BSE.
The Supreme Court on Wednesday held RCom chairman Anil Ambani and two others guilty of contempt of court for violating its order by not paying dues of Rs 550 crore to Ericsson, and said they faced a three-month jail term if Rs 453 crore was not paid to Ericsson in four weeks.
The apex court said Ambani and the others will have to purge contempt by paying Rs 453 crore to Ericsson in four weeks.
Sops for all in Gujarat’s Interim Budget, focus on fishermen, farmers
Gandhinagar: After presenting a surplus budget of 12,241 crore in the Assembly, Deputy Chief Minister Nitin Patel said that perks announced for various communities in the Interim Budget were part of the existing schemes of the government. He also said that he decided not to increase tax because of the jump in the state’s “own tax income”that shot up by over 11 per cent in 2017-18.
“We have increased allowances provided for various schemes that are already operational… New schemes or items can also be introduced while presenting a full budget. Whatever we have done here — for instance, widow pension, allowances of aanganwadi workers — are all part of the current schemes,” Patel, who holds the Finance portfolio, told mediapersons after presenting the budget in the House.
Sops for all in Gujarat’s Interim Budget, focus on fishermen, farmers
Finance Department officials said that of the total provisions made in the Interim Budget of Rs 1,91,817 crore, the government plans to spend Rs 63,939 crore in the four months, between April and July, 2019.
“The House will be able to discuss the demand for the whole year when the modified budget will be presented,” Patel said, indicating that Assembly will hold a special session after the Lok Sabha elections.
With an eye on the Koli community votes, the BJP government increased the VAT (Value Added Tax) subsidy in diesel, used in fishing boats, by Rs 3. This is expected to benefit nearly 10,600 boatmen in the state.
The government also doubled the daily livelihood allowance — from Rs 150 to Rs 300 — provided to the families of fishermen held captive in jails of Pakistan. At present, there are about 503 Indian fishermen in Pakistani custody, as per the figures shared in Lok Sabha in February 2019. Most of them are from Gujarat. The government has also decided to allot an additional 5,000 hectares of land to encourage prawn culture in the state. This land is in addition to the 7,500 hectares and will generate employment of 25,000 aqua-culturalists, said Patel in his budget speech. The government also announced setting up new fish landing centres in Valsad which has a population of 23,000 fishermen.
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While the government did not announce any farm-loan waiver as demanded by the Opposition Congress, it announced to set up a Rs 500 crore “revolving fund” to provide crop loans at zero percent interest to farmers in the state.
Patel, however, reiterated on the floor of the House that his government will waive of Rs 691 crore of outstanding dues of 6.74 lakh farmers, poor and medium class power consumers under a one-time waiver scheme.
“The state government has decided to waive of principal and interest and penalty amount of electricity bills of all eligible domestic power connections of BPL consumers of urban areas, all agricultural power connections, power connections of all residences of rural areas, commercial power connections of small traders of rural areas,” the Deputy CM said.
Talking about the vote on account presented by the state government, Patel said, “This year, the Union Government has presented a vote on account. Therefore it is befitting that the state’s economic approach is shaped in accordance with the policies of Union of India. We have accordingly decided to present and seek vote on account for the period of four months, ie up to July 31, 2019.”
Chief Minister Vijay Rupani termed the Interim Budget “progressive and sensitive”. “This vote-on-account has been prepared and presented keeping in mind the well-being of all sections of society, be it backward communities, tribals, Dalits, youth, women and minorities. This is a progressive and sensitive budget which takes care of even the last man in the last line,” Rupani said.
Listing the schemes, he said, “This vote-on-account reflects our sensitiveness, transparency, progressiveness and decisive approach. There is something for everyone in this,” the CM said.
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