The reason for the largesse, a first in the revenue department, is on account of direct and indirect tax collections exceeding the target (Budget estimate) for 2006-07. Total revenue collections stood at Rs 470,987 crore (Rs 4,709.87 billion) for the year, against the targeted Rs 439,952 crore (Rs 4399.52 billion).
This 20 per cent increase will allow a taxpayer to save up to Rs 2,000 in taxes every year, a senior government official said.
Despite increasing loan disbursements in the last three financial years, the number of farmers who were financed by banks have declined considerably.
She had shown some cash and other assets as gifts from party men "given to her out of love and affection", an argument the department rejected.
This is an initial assessment, but the actual loss to insurers will be known after the fire is completely doused and claims start pouring in.
Under this scheme, North Block may waive both interest and penalty for defaulters and an announcement to this effect is expected in Budget 2008-09 due next month, according to a senior finance ministry source.
Mumbai leads the list of cities with highest tax collections, say the tax figures of the first nine months of this fiscal.
FM is likely to introduce tax return prepares scheme for small service tax payers in the upcoming budget.
The likely relaxation, however, will not apply to foreign banks.
From April 1, individual and corporate taxpayers who pay Rs 50,000 and more as tax in a single payment, may have to make the payment electronically. A formal announcement to this effect from the Central Board of Direct Taxes is expected shortly, finance ministry sources confirmed.
Come April 2008 and Delhi will become the first state in the country to do away with printed "stamp paper", which is currently mandatory for property-related documentation.
Petroleum products such as crude, motor spirit and diesel, and alcohol beverages will be kept outside the dual goods and service tax (GST) structure, which will be implemented from April 2010.
Besides central cess, the Empowered Committee of State Finance Ministers has also recommended to keep purchase tax and octroi, which are collected at state and local levels, outside the GST framework.
The government will soon finalise a reshuffle of top management teams in the country's leading 11 public sector banks (PSBs), 10 of which are listed on the stock exchanges. They include the country's third largest bank, Canara Bank, and fifth largest bank, Bank of Baroda.
A special bench of the Delhi Income Tax Appellate Tribunal has ruled that the income tax that an employer pays on behalf of its employee is a non-monetary benefit in kind and, therefore, exempt from tax.
Compliance levels in India have improved significantly over the past few years with 85 per cent of the country's 31.9 million tax payers filing income tax returns in 2006-07. But this is still below the near-100 per cent compliance levels in developed countries.
The taxman is rapidly catching up with foreign companies operating in India through agents. After Star, Morgan Stanley and Sony, it was the turn of UK-based Rolls Royce to be asked to pay taxes on a part of profits earned from Indian operations.
With an eye on channelising domestic savings into the power sector, the finance ministry is considering granting income-tax exemptions for individual investments up to Rs 50,000 in power infrastructure bonds.
A decision in this regard will be taken by the empowered committee of state finance ministers in its meeting on December 20.
In a move that will significantly reduce paperwork for producers of goods and services, the draft recommendations submitted by the all-states joint working group on goods and services tax (GST) have said one document will have to be filed.
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