Based on a Times of India news report, Pune had the highest net direct tax collection zone in India from April 2017 till mid-January this year. The country comprises of 18 zones in total. Bengaluru, Mumbai, Delhi and Hyderabad are other significant zones. Pune accounts for all places in Maharashtra, except districts in Vidarbha and Mumbai. The region has accounted for 24% growth, while the national average is 18%.
A C Shukla, Principal Chief Commissioner of income tax informed, “With the economic growth being 6%, the state has managed to achieve 75% as against the national average of 69%. The credit goes to the fear of law and not the law enforcement agency. People who do not disclose their income are being dealt with to ensure that income of the state is accounted.”
The Indian Express reported that Pune has successfully collected 100% taxes. The total amount received was Rs 13,143. The growth of personal tax has been 12.81%, Rs 5,312 crore this financial year. 9, 846.19 crore in corporate tax was collected.
“The results of 220 surveys conducted by the income tax department state that undisclosed income has been Rs 500 crore in the region,” Shukla added.
Delhi Chief Minister, Arvind Kejriwal has demanded the setting up of an independent commission to look into the source of funding of political parties. It will look into the five-year records of that party. This announcement came after the center declared that no tax will be levied on the deposits made by political parties in their bank accounts.
Kejriwal has asked the center to bring into the public domain the amount of money deposited by parties post demonetization. According to him, it would be wrong if individuals depositing 2.5 lakh are investigated but political parties depositing Rs. 2,500 Crore are not. The finance ministry has said that the tax exemption of political parties is done keeping the law into consideration. The section 13A of Income Tax Act exempts political parties from income tax until they maintain the accounts of donations of over Rs.20,000.
According to the Times of India, Arvind Kejriwal has drawn a link between the meeting of Prime Minister Narendra Modi and Congress Vice President Rahul Gandhi about the central governments decision of tax exemption.
Global entities like Apple, Netflix and Amazon are under the radar of the Ministry of Finance in India. The Government of India is the first in the global scenario to impose a tax on digital transactions by introducing the equalization levy, also known as the ‘Google Tax’.
A source reveals, “The gamut of equalization levy could now cover cloud computing and entertainment services provided to Indians by multinationals. The change in law could come in the upcoming Budget,” as reported in the Economic times.
If this levy is imposed on other companies providing similar services, they are bound to shift the tax burden to their customers. Customers will be paying 6-8% more for these services, which were otherwise available freely or for a minimal cost.
Industry pundits say that cloud computing and other such online entertainment and retail services may feel the heat of this move as soon as it’s applicable.
If the budget incorporates these changes and takes places on February 1st as scheduled, these taxes will be applicable from the financial year starting 1st April 2017.
So far, the equalization tax was only applicable to companies like Facebook, Google, and LinkedIn, of which only LinkedIn passes on its tax burden to its customers.
Apart from this, the next year would also require companies to provide a detailed report of their revenue, turnover, employee base and taxes as required by the OECD guidelines, mainly to restrain tax evasions.
New Delhi: The Civil Aviation Ministry of India has put off its plan to impose two per cent levy on most domestic and international air tickets. The government had earlier intended to come up with this draft from January 1, which would have made air tickets more expensive.
Sources at the Ministry attribute the delay to the Draft Aviation Policy that is e
xpected to be proposed next month. The Ministry had, on October 30, presented a policy plan to refine the infrastructure of regional air travel. This policy is also expected to boost regional air connectivity. It also includes levying additional excise and providing viability gap funding.
The Civil Aviation Ministry is formulating a draft note for the cabinet that is supposed to be read by December 25, after which it will sent to the other Ministers for their comments.
Some excerpts from the draft proposal suggested that in the wake of this policy implementation, Regional Connectivity Fund will be funded from this two percent levy on air tickets from January 1, 2016. This excise will applied for routes other than Cat IIA routes and also the Regional Connectivity Schemes routes.
The Government of Maharashtra has decided to allow a increase of one percent in stamp duty on transactions of property, because of which the overall costs for home buyers will increase in Mumbai, the country’s most expensive real estate market.
Earlier on Tuesday, the cabinet had approved a proposal for the increase in stamp on property transactions to fund major transportation projects such as Monorail corridors and Metro. With this, the rise in the stamp duty will go up to 6 per cent although senior officials in the revenue department admitted that the Centre had issued guidelines urging states to cap stamp duty on property transactions at 5 per cent. It will only come into effect once the government issues a notification.
According to the sources, the senior officials, the government of Maharashtra was actively considering a move to levy cess on Transferrable Development Rights certificates as means to raise extra revenue. With increased revenue expenditure and revenue collection below par worsening the state’s overall financial position, the finance department is pushing for the move.