The GST Network said it has introduced a functionality which simplifies the returns filing process for taxpayers. “A new functionality has been introduced on the GST portal for ease of the taxpayers under which questions will be posed as soon as the taxpayer enters the Returns dashboard and only relevant tiles will be displayed to the taxpayers based on the answers to the questions posed,” the GST Network said in a statement.
This has been started first with GSTR-3B returns (initial sales return), it added.
For ‘nil’ GSTR 3B returns, one-click filing has been introduced as no tile will be shown to such taxpayers. Also, a help section has been provided on each page for the convenience of the taxpayer.
“Until now, taxpayers were shown all tiles with payments when they enter the Returns dashboard but now they will be shown only those tiles which are relevant for them.
Foreign Trade Policy: More incentives for exports, focus on ease of trading
Commerce Minister Suresh Prabhu unveiled more incentives to boost labour-intensive and employment-oriented merchandise and services exports while releasing the much-awaited mid-term review of the Foreign Trade Policy 2015-20. The annual incentive increased by 33.8 per cent or Rs 8,450 crore.
This financial year (FY18), it will be an additional incentive of Rs 2,816 crore.
This will benefit leather, handicraft, carpets, sports goods, agriculture, marine, electronic components, and project exports in merchandise, and legal, accounting, architecture, and education in services. Exporters demanded the incentives be extended to other products as well since they were facing challenging times because of demonetisation last year and the goods and services tax (GST) roll-out this year.
The government assured exporters that it would release their blocked funds expeditiously, but advised them to file forms correctly, as many were filing for more input credit than taxes paid.
I-T crackdown on bitcoin dealers
In the first such move against bitcoin dealers, the income-tax (I-T) department on Wednesday conducted surveys in Delhi, Mumbai, and Hyderabad. I-T investigative teams began surveys to gather information related to the dealer’s source of income, bank accounts, and tax liability, among others, amid tax evasion concerns.
Although a clarification from the government on bitcoin regulation and taxation is awaited, a source in the I-T department said capital gains tax must be paid on profits made from the sale of bitcoins. “Bitconis are not recognised as currency. So, capital gains tax liability arises at the time of sale of bitcoins on gains made on it, whether held for short-term or long-term. They are not tax exempt,” the official said.
Short-term capital gains tax of 30 per cent is likely to be levied if bitcoin is held for less than three years and 20 per cent if held for longer than 36 months. Another official warned that not declaring earnings from bitcoin while filing I-T returns could attract penalty and interest. A penalty of 50-200 per cent could be levied during assessment, under underreporting or misreporting of income. Besides, an interest of 12 per annum could also be imposed.
Tax friendly regime likely in Budget 2018-19
The Budget might overhaul the income tax administration and assessment system to lower taxpayer harassment and improve efficiency of officers.
The Income Tax Act might be amended to give effect to “jurisdiction free assessment”, which means that any officer can send a notice to any taxpayer in any jurisdiction electronically.
Assessments would be done through emails, eradicating human interface.
“The move is aimed to lower corruption and harassment cases and also improve the department´s efficiency.
It is a tax payer friendly measure.
It is expected to come into effect from the next fiscal year,” said a government official.
He explained the Act states the assessing officer would issue a notice for the return on income.
A taxpayer could challenge a notice issued by a computer or another jurisdiction´s official by saying it was not issued by his designated assessing officer.
Stressed unlisted firms may get tax incentives
Transfer of shares of unlisted stressed companies at a price below its fair market value might soon be exempt from the tax net, according to the government´s plans.
The move, if implemented, would bring down the cost of investment and benefit buyers.
Fair market value is the company´s adjusted The government is also allowing carry forward of per cent shares of a stressed change hands.
The tax on transfer of companies was becoming insolvency cases.
Under of the IncomeTax (IT) transfer of shares in an unlisted company at price below the fair market value is considered income in the hands of transferee, and is subject under the head ´other income´ effectively translates into rate of 30 per cent.
This brought in as an anti abuse provision to prevent tax evasion.
For Launderers, It’s No Longer Dubai Duty Free
From January 1, Dubai will lose some of its charm for money launderers with the United Arab Emirates (UAE) imposing value-added tax (VAT). The new and the first-ever tax in the Gulf region will not only make laundering more expensive but compliance with VAT regulations will leave a paper trail.
For decades, paper transactions between newly formed entities in UAE were shown as genuine business deals to legitimise undisclosed, untaxed income. Once the colour of money changed from black to white, the funds were parked with banks in Dubai or invested in other countries or found its way back to India as foreign direct investment in Indian companies. In regularising undeclared funds from Switzerland or other tax havens that came under glare, money moved from these jurisdictions to accounts of companies floated in Dubai.
These companies booked such inflows as trading income, or commission or consultancy fee. Such transactions will now attract VAT of 5%.
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