Issue of Income Tax Refunds of Smaller Amounts

Issue of Income Tax Refunds of Smaller Amounts

In an initiative to reduce taxpayer grievances and enhance the taxpayer satisfaction, the Central Board of Direct Taxes had issued instructions to Central Processing Center (CPC), Bengaluru and the field officers in December, 2015 to issue refunds of amounts less than Rs.50,000/- expeditiously.

As a result of the special drive to issue smaller refunds, 18,28,627 refunds below Rs.50,000/- involving a sum of Rs.1,793 crore have been issued between 1st December, 2015 and 10th January, 2016. These refunds relate to Assessment years 2013-14 to 2015-16.

In order to further expedite the process of issue of small refunds, CBDT has also directed CPC-Bengaluru and the field units that refunds up to Rs.5,000/-, and refunds in cases where outstanding arrears are up to Rs.5,000/- may be issued without any adjustment of outstanding arrears. Office Memorandum F. No. 312/109/2015-OT dated 14th January 2016, conveying these directions of CBDT is available on the website of the Department www.incometaxindia.gov.in.

Government of India for the following fiscal benefits including tax rebate and relaxations

Tax Benefits to Tourism Industry

The Tourism Industry has requested the Government of India for the following fiscal benefits including tax rebate and relaxations:

i. Inclusion of tourism infrastructure like hotels/resorts/tourist lodges/banquet halls/convention and exhibition centres etc. for benefits of Section 32 AC of Income Tax Act 1961 by lowering the minimum threshold investment limit to Rs.5.00 crores.

ii. Extension of benefits under Section 35 AD of Income Tax Act 1961 to business concerns who are making capital investment in setting up of smaller category of hotels/guest houses/dharamsalas/tourist hostels/motels/wellness facilities/medical facilities and other associated infrastructure like installation of house boats/ adventure and leisure tourism facilities.

iii. Weighted deduction of 200% in line with Research & Development sectors in India for expenditure incurred towards marketing and promotional activities of the country as inbound tourism destination.

iv Establishment of special tourism zones in India.

v. Lower withholding of tax and interest paid to foreign banks or financial institutions for loan taken in tourism sector.

vi. Deduction in respect of profit and gains from taxable income for business of hotels, convention centres and other tourism specific infrastructure.

vii. Foreign exchange earning linked deduction on profits for Income Tax computation.

viii. Exemption on Service Tax from Heritage Hotels and Heritage Trains.

ix. Exemption on Service Tax on room tariff to be increased.

x. Service Tax to be exempted for unit to be set up within special tourism zones.

xi. Exemption on Service Tax on all the incidental activities or services like hotel stay, Rent a Cab, Tour Operators etc. if the main event is exempted by Government from the ambit of Service Tax.

xii. Extend CENVAT credit on the entire tourism components of Travel intermediaries on abated value (tour operators, travel agents, rent a cab operators) as against just on the same line of business.

In order to ascertain the incidence of high taxations on tourism sector and its impact in making Indian tourism industry products un-compatible, a study on Taxes levied on tourism sector vis-à-vis Export sector has been conducted, and the findings of the study have been shared with the stakeholders

This information was given by The Minister of State for Tourism (Independent Charge), Culture (Independent Charge) and Civil Aviation, Dr. Mahesh Sharma in reply to a starred question in the Rajya Sabha today.

Source : PIB News

The Central Board of Direct Taxes , Extended the due date of filing return of income for AY 2015-16 from 31st July 2015 to 31st August 2015

Extension of due date of filing return of income for Assessment Year 2015-16

G.I., Department of Revenue, Central Board of Direct Taxes, O.M.F.No.225/154/2015/TA.II, dated 10.6.2015

Order under Section 119 of the Income-tax Act 1991

Subject- Extension of due date of filing return of income for Assessment Year 2015-16 – regarding;

The Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the income-tax Act. 1961, hereby extends the ‘due-date‘ for filing Returns of income, in terms of clause (c) of Explanation 2 to sub-section (1) of section 139 of the income-tax Act 1961, for Assessment Year 2015-16 from 31st July. 2015 to 31st August, 2015 in respect of income tax assessees concerned.

Authority : CBDT

No Change in the Rate of Personal Income Tax and The Rate of Tax for Companies on Income in Financial Year 2015-16

No Change in the Rate of Personal Income Tax and The Rate of Tax for Companies on Income in Financial Year 2015-16

Surcharge @12% Levied on Individuals, HUFs, AOPs, BOIs, Artificial Juridical Persons, Firms, Cooperative Societies and Local Authorities Having

 Income Exceeding Rs 1 Crore

The Union Finance Minister Shri Arun Jaitley in his Budget Speech in Lok Sabha today proposed no change in the rate of personal Income-tax. He announced the tax proposals with no change in the rate of tax for companies in respect of the income earned in the financial year 2015-16, assessable in the assessment year 2016-17.

However, Finance Minister Shri Arun Jaitley proposed to levy a surcharge at the rate of 12% on individuals, HUFs, AOPs, BOIs, artificial juridical persons, firms, cooperative societies and local authorities having income exceeding Rs 1 crore. Surcharge in the case of domestic companies having income exceeding Rs 1 crore and upto Rs 10 crore is proposed to be levied @ 7% and surcharge @ 12% is proposed to be levied on domestic companies having income exceeding Rs 10 crore.

Shri Jaitley further proposed that in the case of foreign companies the surcharge will continue to be levied @ 2% if the income exceeds Rs 1 crore and is upto Rs 10 crore, and @ 5% if the income exceeds Rs 10 crore.

It is also proposed to levy a surcharge @ 12% as against current rate of 10% on additional income-tax payable by companies on distribution of dividends and buyback of shares, or by mutual funds and securitization trusts on distribution of income.

The education cess on income-tax @ 2% for fulfillment of the commitment of the Government to provide and finance universalized quality based education and 1% of additional surcharge called ‘Secondary and Higher Education Cess’ on tax and surcharge is proposed to be continued for the financial year 2015-16 for all taxpayers.

Source: www.7thpaycommissionnews.in

Benefits to Middle Class Tax Payers in the Budget 2015-16

Benefits to Middle Class Tax Payers in the Budget 2015-16

Payments to the Beneficiaries Including Interest Payment on Deposit in Sukanya Samriddhi Scheme to be Fully Exempt

The Union Minister of Finance Shri Arun Jaitley in his Budget Speech in Lok Sabha today proposed rationalization of various tax exemptions and incentives to reduce tax disputes and improve tax administration. He said, with a view to encourage savings and to promote health care among individual tax payers, it is proposed to increase the limit of reduction of health insurance premium from Rs 15,000 to Rs 25,000 and for senior citizen this limit is increase from Rs 20,000 to Rs 30,000.

For senior citizen above the age of 80 years, not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure. Deduction limit of Rs 60,000 on expenditure on account of specified diseases is enhanced to Rs 80,000 in the case of senior citizens.

Additional deduction of Rs 25,000 is allowed for differently-abled persons, increasing the limit from Rs 50,000 to Rs 75,000. It is also proposed to increase the limit of deduction from Rs 1 lakh to Rs 1.25 lakh in case of severe disability.

The Finance Minister Shri Jaitley also proposed to provide that investment in Sukanya Samriddhi Scheme will be eligible for deduction under section 80C of the income-tax and any payment from the scheme shall not be liable to tax.

Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.

Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5 lakh.

Details of tax deductions proposed are as follows:

Deduction u/s 80C – Rs 1,50,000

Deduction u/s 80CCD – Rs 50,000

Deduction on account of interest on house property loan (Self occupied property) – Rs 2,00,000

Deduction u/s 80D on health insurance premium – Rs 25,000

Exemption of transport allowance – Rs 19,200

Total – Rs 4,44,200

Source: www.7thpaycommissionnews.in