Category: Income Tax

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There lies a legal presumption that every Hindu family is joint in food, worship and estate : Adiveppa v. Bhimappa(SC)

“…………22. It is a settled principle of Hindu law that there lies a legal presumption that every Hindu family is joint in food, worship and estate and in the absence of any proof of division, such legal presumption continues to operate in the family. The burden, therefore, lies upon the member who after admitting the existence of jointness in the family properties asserts his claim that some properties out of entire lot of ancestral properties are his self-acquired property. (See-Mulla – Hindu Law, 22nd Edition Article 23 “Presumption as to co-parcenary and self acquired property”- pages 346 and 347).

[2017] 85 taxmann.com 170 (SC) SUPREME COURT OF INDIA : 06-09-2017:Adiveppa v.Bhimappa

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Tax authorities to notify CERSAI of any attachment order already issued and to be issued in future (Letter dated 06-09-2017)

–          The SARFAESI Act has been amended on 12-8-2016 to extend the scope of the Act to provide for registration of security interest held by all other creditors, in addition to the banks and financial institutions defined as secured creditors under the Act

–          Section 26B(4) of SARFESI Act enjoins every authority or officer of the Central Government or any State Government or local authority entrusted with the function of recovery of tax or other Government dues and for issuing any order for attachment of any property of any person liable to pay the tax or Government dues, to file with the Central Registry (CERSAI) any order of attachment of any property issued by them.

–          As per section 26C(1) of SARFESI Act registration with CERSAI shall be deemed to constitute a public notice of such a transaction

–          Section 26C(2)  lays down that such a registered security interest shall have priority over any subsequent security interest created upon such property in any fashion like sale, lease or attachment by any other authority/person

–          Therefore it becomes very important that as soon as an attachment order is issued under the Income-tax Act, a copy of the same is sent to CERSAI as well.

Registration  would have to be done in the for prescribed for the purpose which can be downloaded from the website of CERSAI i.e. www.cersai.org.in.

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DIRECT TAX COLLECTIONS UP TO AUGUST, 2017 SHOW GROWTH OF 17.5 PER CENT PRESS RELEASE, DATED 11-9-2017

The Direct Tax collections up to August, 2017 continue to register steady growth. Direct Tax collection, net of refunds, stands at Rs. 2.24 lakh crore which is 17.5% higher than the net collections for the corresponding period of last year. This collection is 22.9% of the total Budget Estimates of Direct Taxes for the Financial Year 2017-18.

So far as the growth rate for Corporate Income Tax (CIT) and Personal Income Tax (PIT) in terms of gross revenue collections is concerned, the growth rate for CIT is 5.0% while that for PIT (including STT) is 16.0%. However, after adjusting for refunds, the net growth in CIT collections is 18.1% while that in PIT collections is 16.5%. Refunds amounting to Rs. 74,089 crore have been issued during April, 2017 to August, 2017 which are 7.2% lower than the refunds issued during the corresponding period of Financial Year 2016-17.

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Financial Insclusion brought by PM Jan Dhan Yojna : PRESS RELEASE, DATED 13-9-2017

–          When the PMJDY was launched in August 2014, only 58% people had their bank accounts and 42% were outside the banking network.

–          The number of total bank accounts opened under PMJDY is more than 30 crore

–          The number of zero balance accounts under PMJDY has declined from 76.81% in September 2014 to less than 20% as of now

–          Pradhan Mantra Jeevan Jyoti Bima Yojana (PMJJBY) and accident insurance through Pradhan Mantra Suraksha Bima Yojana (PMSBY):  As on 7th August, 2017, total enrollment was 3.46 crore under the PMJJBY and 10.96 crore under PMSBY. In both schemes, close to 40 percent of the enrollees are women.

–          92% of our people have Aadhar cards

–          Aadhar has helped in targeting the subsidies which, in turn, helped in avoiding wastage of resources

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TDS on FDR of Deceased Persons under Capital Gain Account Scheme: NOTIFICATION NO.8/2017, DATED 13-9-2017

  1. TDS certificate on the interest income for and upto the period of death of the depositor is required to be issued on the PAN of the deceased depositor
  2.  TDS certificate on the interest income for the period after death of the depositor is required to be issued on the PAN of the legal heir.
  3. Any wrong deduction of TDS may be claimed as refund by filing form 26B read with Rule 31(3A) effective from 19-02-2013
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MOU Between MCA and CBDT for Complete Interchange of Information : Press Release dt 14-09-2017

–          MOU entered on 06-09-2017

–          It will enable sharing of specific information such as Permanent Account Number (PAN) data in respect of corporates, Income Tax returns (ITRs) of corporates, financial statements filed with the Registrar by corporates, returns of allotment of shares, audit reports and statements of financial transactions (SFT) received from banks relating to corporates.

–          The MoU will ensure that both MCA and CBDT have seamless PAN-CIN (Corporate Identity Number) and PAN-DIN (Director Identity Number) linkage for regulatory purposes

–          The information shared will pertain to both Indian corporates as well as foreign corporates operating in India.

–          A Data Exchange Steering Group also has been constituted for the initiative, which will meet periodically to review the data exchange status and take steps to further improve the effectiveness of the two agencies.

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If out of the total consideration received by the operator some part is adjusted against receivable from the supplier, should tax be collected at source by the operator even on such amount which is adjusted against other amounts received from the supplier

Yes, as per section 52, irrespective of the mode of recovery of consideration by the supplier from the operator, tax should be collected at source on the net value as defined in section 52(1) of the CGST Act, 2017. There is no deduction envisaged in the CGST Act, 2017 in this regard.

(ICAI FAQ PUBLICATIONS 06-09-2017 TAX PAYMENTS, INTEREST, PENALTIES AND OTHER AMOUNTS: FAQ NO. 57)