GST hike proposal by handset makers and mobile retailers on mobile phones is a "counter-intuitive and insensitive" move that will put an extra Rs 15,000 crore burden on the common man, result in immediate job losses and Potential investment in production will seriously dampen. At the GST Council meeting chaired by finance minister Nirmala Sitharaman, the decision to increase GST on mobile phones to 18% from 12% was taken. However, handset makers said the reasoning for correcting the inverted duty structure by increasing GST is misguided.
Parliament passed a bill on Friday that will give taxpayers the ability to resolve their tax disputes by paying only due taxes with a complete waiver of interest and penalty by 31 March. The Direct Tax Vivad Se Vishwas Bill was passed by voters and returned as a money bill by Rajya Sabha. It was authorized on 4 March by Lok Sabha. Under the plan, an extra tax contested by 10% must be collected in excess of tax liability.
In order to attract new buyers, there are many kinds of policies available in the market. Insurers are giving various benefits like lowering prices by minimizing expenses. According to 80C and 80D Income Tax act, for life insurance and health insurance plans, taxpayers are allowed to claim tax benefits on premiums. But there is another benefit for GST paid as per the policy. The amount paid as GST also qualifies for tax exemption. So, the implementation of GST has been beneficial for buyers.
In budget 2020, the govt has announced Vivad se Vishwas, an income tax dispute settlement scheme. Under the scheme, if a taxpayer has already paid the disputed tax while litigation is on-going, then govt will refund the paid amount which is in excess of the tax payable under the scheme to the payer. It aims resolution in income tax disputes and reduces pending litigation. Subsequently, it has been also proposed to reduce the compliance burden on taxpayers.
The collection of the goods and services tax crossed the bar of crore Rs 1 lakh for the fourth consecutive month in February due to anti-evasion measures. GST revenue collection amounted to Rs 1.05 lakh crore in February, recording growth of 8% compared to the same month last year. The collection, however, was lower than the crore of Rs 1.10 lakh received in January 2020. It is for the eleventh time since the introduction of the GST in July 2017 that monthly income has crossed the bar of Rs 1 lakh crore.
Revenue secretary Ajay Bhushan Pandey said they will request the Supreme Court to give a final verdict on the issues identified as disputes. There are 20 issues where the maximum number of disputes occur every year. They want to know who is in the right in the intractably fractious disputes between the taxman and taxpayers. About 70& to 80% of disputes of direct tax are pending now. The Vivad Se Vishwas scheme could help to resolve, according to Pandey.
Govt is working on the newly launched e-assessment scheme. The best income tax department investigator and revenue collector among others working in the scheme will be honoured by CBDT. There will be five categories of honours on a monthly and yearly basis as per the order issued on 20 February. They will be honoured on 'Income Tax Day' celebrated in July every year. The officers will be selected from April 2020.
In budget 2020 Finance Minister Nirmala Shitaraman announced a new tax regime where individual taxpayers will not be allowed to take benefits of certain tax deductions available in the Income Tax Act,1961. The premium of life insurance policy and PPF investments, which come under the 80C tax Act, will not be available in the new tax regime. But the sum assured on the maturity of the life insurance plan is tax-free, according to Section 10D Income Tax Act.
Rs 5.9858630140000004! This is not a figure from an S Ramanujan-G H Hardy conversation but a demand notice given by tax officials to the companies. The tax department is pushing hard to meet the GST indirect tax revenue target for 2019-20. After directions from the Central Board of Indirect Taxes and Customs (CBIC) to recover GST interest, worth Rs.460 billion, field officials are busy sending notices for recoveries, which sometimes are in single digits.
You are eligible to receive an income tax refund when you have paid more tax to the government than your actual tax liability. A person can claim the refund of the excess tax paid/deducted during a financial year by filing his or her income tax returns for that year. They can file returns either by uploading the filled excel/java utility form or by providing the required data in the online forms (Only for those eligible to file ITR 1 or ITR 4 form). This year, the tax department has started providing pre-filled ITRs on the online platform.