Officials close to the development said the I-T department's suggestion is to amend Section 11, which specifies the manner in which income from charitable bodies is exempt from income tax. The I-T department has said charitable organisations enjoy a double deduction by claiming tax breaks through both depreciation and capital expenditure write-offs.
Officials explained that the basic condition for charitable bodies to claim exemption is that the income should be derived from property held under a trust and the income should be applied to charitable or religious purposes in India.
The income tax department has recommended that TDS rates should be structured in three slabs of between one and five per cent for any stream of income. At present, there are multiple tax rates for TDS, starting from one per cent to over 30 per cent. Also, some rates are specified in individual sections that deal with the tax treatment of a particular income; others are included in separate schedules, making TDS payments difficult to monitor.
The income tax department has recommended that TDS rates should be structured in three slabs of between one and five per cent for any stream of income. At present, there are multiple tax rates for TDS, starting from one per cent to over 30 per cent. Also, some rates are specified in individual sections that deal with the tax treatment of a particular income; others are included in separate schedules, making TDS payments difficult to monitor.
Data show manufacturing still down, unlike banking
Official sources said the government was of the view that while de-regulating, the rates on small savings' interest rates could either be cut 25 to 50 basis points or linked to the sovereign rate, which is the interest rate on government securities for a specific maturity. The move follows demands from banks and suggestions from RBI.
This follows a recommendation by the Income Tax department after the Satyam accounting fraud issue broke in January following founder Ramalinga Raju's confession. I-T officials said since the returns were e-filed, there was no provision to check whether or not the tax audit reports were certified by the chartered accountant.
Officials said the IBA had three major agendas to discuss, the most important being to persuade the unions to accept the new pension scheme, otherwise known as the contributory pension scheme, for new bank employees. Currently, the bank unions are vehemently opposing it since unions of no other sector has accepted it to date.
According to official sources, complaints were received by the department that TDS was being collected arbitrarily by the payers. Another reason for this decision is that refunds from the department have also gone up. Sources said it should not affect the assessee who may be paying a high rate of TDS and is not compensated even after the employer or broking firm or any other organisation gets a refund on higher rate of TDS which may not be applicable to such income.
Members of the Securities and Exchange Board of India have suggested a phased reduction of the securities transaction tax, as part of a package of measures to develop the capital markets that was discussed with Finance Minister Pranab Mukherjee last week.
Assessment reports will be shared with all employees
In the first move of its kind in the country, the Securities and Exchange Board of India has decided to finance investor associations that propose to fight collective suits - which resemble US or European-style class action suits - in Indian courts
The clauses on corporate debt restructuring (CDR) are being reworked in view of the huge foreign exchange exposure of several companies, which have already opted for restructuring debt or are on their way to seeking approval for one.
Failed attempt to acquire stake in Kolhapur-based bank seen as trigger.
Demand on capital gains on Idea share sale by Mauritius subsidiary; Fema and telecom regulation violations also alleged
The Reserve Bank of India (RBI) has decided "in principle" to bring under its regulatory ambit holding companies floated by business groups and companies that also own non-banking finance companies (NBFC).
The department had sent a notice to the company seeking details and clarifications on a host of issues besides the original agreement between Hutch and Vodafone to establish the jurisdiction of the tax authorities to determine the tax liability. This follow an SC order in January 2009 to the effect that Vodafone should present its case to the tax authorities first and submit a copy of the share purchase agreement, the deadline for which expires by the end of this month.
Internal assessment follows banks' worries over systemic risks.
Sources said a notification to this effect will be released soon. Indian arms of foreign firms make it a rule that audits must be conducted by their foreign partners for Indian companies approaching the overseas markets for any reason. No such rule exists, the source said, although the practice is common. "We are screening partnership agreements of all these firms to analyse the legal basis on which the foreign firms audit Indian companies," the source added.
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