Mauritius keeps tax treaty with India outside purview of MLI 

Mauritius has kept its double taxation avoidance treaty with India out of the purview of the global agreement that seeks to prevent companies from avoiding taxes. Mauritius has notified 23 of its tax treaties for modification by OECD’s Multilateral Instrument (MLI) to implement tax treaty-related measures to prevent Base Erosion and Profit Shifting (BEPS). The island nation has opted for Principal Purpose Test (PPT) for the purpose of combating treaty abuse. Under this rule treaty benefit is denied where principal purpose of investment is to gain tax benefit. The island nation has conveyed to the OECD that Mauritius will have a bilateral discussions with countries not covered to adopt a limitation of benefits provision. This means that investors using the nation to route their investments into India will have to

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Demonetisation effect: Advance tax given by individuals in June quarter rises more than 40% 

People are rushing to pay tax in much bigger numbers than before with the tax authorities having turned up the heat on evaders after demonetisation. Advance tax payments for the current financial year by individuals rose more than 40% in the June quarter from the year-earlier period. Meanwhile, the government estimates the number of payers to cross 60 million for the year ended March, an increase of about 10 million from FY16. Returns filed up to June have already risen by 15% as more people pay self-assessment tax. The deadline for filing income tax returns for FY17 is July 31. The government expects a bigger bump next year because of the goods and services tax (GST), which came into force on July 1. “There is improved compliance… It is reflecting

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Direct Tax Collections for F.Y. 2017-2018 show Growth of 14.8% ​

  Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 6th July, 2017. PRESS RELEASE Direct Tax Collections for F.Y. 2017-2018 show Growth of 14.8% The provisional figures for Direct Tax collections up to June, 2017 show that net collections are at Rs. 1.42 lakh crore which is 14.8% higher than the net collections for the corresponding period of last year. Net direct tax collections represent 14.5% of the total Budget Estimates of direct taxes for F.Y. 2017-18 (Rs. 9.8 lakh crore). While the gross collection under Corporate Income Tax (CIT) grew at 4.8%, the growth under Personal Income Tax (PIT) including Securities Transaction Tax (STT) is 12.9%. However, after adjusting for refunds, the net growth in CIT collections is 22.4% while that

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Income-tax (19th Amendment) Rules, 2017

  MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 4th July, 2017 INCOME-TAX G.S.R. 826(E).—In exercise of the powers conferred by section 295 read with section 195 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes, hereby, makes the following rules further to amend the Income-tax Rules, 1962, namely:— 1. (1) These rules may be called the Income-tax (19th Amendment) Rules, 2017. (2) They shall come into force from the date of their publication in the Official Gazette. 2. In the Income-tax Rules, 1962 (hereafter referred to as the Principal rules), in rule 29B, in sub-rule (1), clause (i), for the words “interest on securities” the words and brackets and figures “interest on securities (other than interest payable

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CBDT sends names of 12 CAs indulging in tax evasion to ICAI; govt mulling stricter penalties

  In a move to crackdown on Chartered Accountants indulging in unethical tax evasion, Central Board of Direct Taxes (CBDT) has sent a list of 12 CAs to the Institute of Chartered Accountants of India (ICAI) for action. The move comes a day after Prime Minister Narendra Modi urged CAs to work against tax evasion and not to help those who are trying to evade tax. CNBC-TV18’s Timsy Jaipuria learns from sources that CBDT has pitched for ICAI to take stringent actions against erring CAs. Sources also suggest that a task force has been appointed by the PMO to look into shell companies and is in talks with CBDT, CBEC and ICAI for stricter penalties. Under Income Tax Act, Section 278, any CA found indulging in tax evasion or helping

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CBDT Chairman on Preventive Vigilance as Management Function

  GOVERNMENT OF INDIA Ministry of Finance/Department of Revenue Central Board of Direct Tax North Block, New Delhi-110001 E-mail : chairmancbdt@nic.in Tele : 23092648 & Telefax – 23092544 D.O. No.F.No.DGIT(Vig)/PV/2016-17 Dated the 24th June, 2017. My dear Pr Chief Commissioner, Please refer to my D.O. letter dated 4.11.2016 vide which I had requested you to give immediate attention to inspections and reviews and ensure that the targets and timelines in this regard are strictly adhered to. This was also reiterated in subsequent video conferences. After perusal of statistics in this regard it is noticed that not much progress has been made. The reviews and inspections which should have been a regular part of work of your officers, are not taken up in right earnest despite my unambiguous directions. This is

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From July 1, PAN must be linked to Aadhaar 

  All those allotted permanent account number (PAN) as on July 1 will have to link it with their existing 12-digit biometric Aadhaar number, the government has said. Those applying for a new PAN will have to also mandatorily quote their Aadhaar number or Aadhaar enrolment ID. Both Aadhaar and PAN have already been made mandatory for filing tax returns, opening of bank accounts and financial transactions over Rs 50,000. “Every person who has been allotted permanent account number as on the 1st day of July 2017, and who in accordance with the provisions of sub-section (2) of section 139AA is required to intimate his Aadhaar number, shall intimate his Aadhaar number to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or the person authorised

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India’s Advance Pricing Agreement regime Moves Forward with Signing of More APAs by CBDT

  Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 28th June, 2017. PRESS RELEASE India’s Advance Pricing Agreement regime Moves Forward with Signing of More APAs by CBDT The Central Board of Direct Taxes (CBDT) entered into Five Unilateral Advance Pricing Agreement with Indian taxpayers during June, 2017. A Bilateral Advance Pricing Agreement (involving United Kingdom) was also signed during the month. The APA Scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the arm’s length price of international transactions in advance for the maximum of five future years. Further, the taxpayer has the option to rollback the APA for four preceding years, as a result of which, tax certainty

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Income –tax (17th Amendment) Rules, 2017

  MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 27th June, 2017 G.S.R. 642(E).—In exercise of the powers conferred by section 139A and section 139AA, read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:— 1. (1) These rules may be called the Income –tax (17th Amendment) Rules, 2017. (2) They shall come into force from the 1st day of July, 2017. 2. In the Income-tax Rules, 1962,- I. in rule 114, for sub-rule (5), following shall be substituted, namely:- “(5) Every person who has been allotted permanent account number as on the 1st day of July, 2017 and who in accordance

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Central Govt specifies Joint Secretary (Ops.), NATGRID

  U/s 138(1) of IT Act 1961 – Central Government specifies Joint Secretary (Ops.), NATGRID, Ministry of Home Affairs, Government of India Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Notification No. 54/2017 New Delhi, the 21st of June, 2017 NOTIFICATION In pursuance of sub-clause (ii) of clause (a) of sub-section (1) of Section 138 of the Income-tax Act, 1961, the Central Government, hereby specifies Joint Secretary (Ops.), NATGRID, Ministry of Home Affairs, Government of India, for purposes of the said clause. This Notification has to be read with order under section 138(1)(a) of Income-tax Act, 1961 dated 21.06.2017 in file of even number, issued by the Central Board of Direct Taxes, notifying Principal Director General of Income-tax (Systems) as the ‘designated authority’ for furnishing the ‘bulk information’ on

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