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.
RBI asks banks to grout ATMs to wall, floor for security by September-end
Mumbai: The Reserve Bank asked banks to ensure their ATMs are grouted to a wall, pillar, or floor by September-end, except those installed in high secured premises such as airports, to enhance security of the cash vending machines.
In 2016, the RBI had st up a Committee on Currency Movement (CCM) to review the entire gamut of security of treasure in transit.
Based on the recommendations of the panel, the central bank has now issued instructions aimed at mitigating risks in ATM operations and enhancing security.
As part of the security measures, all “ATMs shall be operated for cash replenishment only with digital One Time Combination (OTC) locks”.
Also, “All ATMs shall be grouted to a structure (wall, pillar, floor, etc.) by September 30, 2019, except for ATMs installed in highly secured premises such as airports, etc. which have adequate CCTV coverage and are guarded by state/central security personnel”.
Further, banks may also consider rolling out a comprehensive e-surveillance mechanism at the ATMs to ensure timely alerts and quick response, it said.
The new measures to be adopted by banks are in addition to the existing instructions, practices and guidance issued by the RBI and law enforcement agencies.
The RBI also warned the banks that non-adherence of timelines or non-observance of the instructions would attract regulatory action including levy of penalty.
SBI refuses to disclose communication from RBI, govt on electoral bonds
New Delhi: The State Bank of India has refused to disclose any communication it received from the government or the Reserve Bank of India on electoral bonds, terming it “personal information” and held in “fiduciary capacity”.
Responding to an RTI filed by Pune-based activist Vihar Durve who had demanded copies of all letters, correspondence, directions, notifications or e-mails received from the RBI or any government department between 2017 and 2019, the SBI said it cannot be provided by it.
The bank cited two exemption clauses under the RTI Act to deny information — Section 8(1)(e) which pertains to information held in fiduciary capacity and Section 8(1)(J) which pertains to personal information of a person which has no link to any public activity.
“Information sought by the applicant cannot be disclosed as it is in fiduciary capacity, disclosure of which is exempted under Section 8(1)(e) and 8(1)(j) of the RTI Act, 2005,” the Central Public Information Officer of the bank said in his reply.
The bank also refused to give any details of action taken by it on such communications from the RBI and the government.
The electoral bonds, for giving donations to political parties, are being sold through SBI only. The sale opens in SBI branches when the Finance Ministry issues a notification of their sale for a given period.
The scheme of electoral bonds notified by the Centre in 2018 has been challenged in the Supreme Court.
Only the political parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last general election to the House of the People or the Legislative Assembly of the State, shall be eligible to receive the bonds.
The bonds may be purchased by a person who is a citizen of India “or incorporated or established in India,” the government had said in a statement last year.
The bonds remain valid for 15 days and can be encashed by an eligible political party only through an account with the authorised bank within that period only.
A voluntary group working in the field of electoral reforms, Association for Democratic Reforms (ADR), has demanded a stay on the sale while the CPI(M) has challenged it before the Supreme Court in separate petitions.
ADR recently filed an application in the Supreme Court seeking a stay on the Electoral Bond Scheme, 2018 which was notified by the Centre in January last year.
Walmart’s Flipkart, Indian startup GOQii settle dispute over sharp discounting
New Delhi: Walmart unit Flipkart has settled a legal dispute with an Indian startup that alleged it suffered losses because its products were sharply discounted on the global retailer’s website.
GOQii, a seller of smartwatch-type health devices, sued Flipkart last month in a Mumbai court, alleging its devices were discounted by around 70 per cent to the retail price, much more than the two sides had agreed. The court had, as an interim measure, ordered device sales to be halted on Flipkart.
In a joint statement , the companies said the dispute had been resolved and GOQii health devices would again be available on Flipkart. They didn’t say how the settlement was reached.
Vishal Gondal, CEO of GOQii, told Reuters the company would withdraw the case against Flipkart. The e-commerce retailer’s “team worked on a resolution benefitting the brand and the customers”, Gondal said in the statement.
The legal spat was seen as a test case of the giant retailer’s operating strategy in the country.
Small traders and a right-wing group close to Prime Minister Narendra Modi’s ruling party have raised concerns about large e-commerce companies, saying they burn billions of dollars deeply discounting some products to lure customers onto their sites, in the expectation that they will also buy other goods.
GOQii said it signed an agreement last year with a Flipkart unit to sell two of its devices at a price not below 1,999 rupees (USD 28.63) and 1,499 rupees. It later found the devices were being sold for 999 rupees and 699 rupees, calling it “unauthorized” discounting.
In response, Flipkart said it reserved “the right to institute actions for defamation, both civil and criminal”, arguing it wasn’t responsible for any discounts which are determined by third-party firms which sell via its website.
The two companies struck a friendlier tone in their joint-statement on Friday as they brought the legal battle to an end.
“We have ensured constant engagement with GOQii to resolve any differences,” Flipkart said in the statement.
With a 19 per cent market share, GOQii was the second-biggest player in India’s so-called wearables market last year, data from industry tracker IDC showed. The market is dominated by China’s Xiaomi, with Samsung a small player.