KEY FEATURES OF BUDGET 2017 – 18 - CA ANIL K JAIN

KEY FEATURES OF BUDGET 2017 – 18

INTRODUCTION

1. In the last two and half years administration has moved from discretionary, favouritism based to system and transparency based.

2. Inflation brought under control. CPI-based inflation declined from 6% in July 2016 to 3.4% in December, 2016.

3. Economy has moved on a high growth path. India’s Current Account
Deficit declined from about 1% of GDP last year to 0.3% of GDP in the first half of 2016-17. FDI grew 36% in H1 2016-17 over H1 2015-16, despite 5% reduction in global FDI inflows. Foreign exchange reserves have reached 361 billion US
Dollars as on 20th January, 2017.

4. War against black money launched.

5. Government continued on path of fiscal consolidation, without compromising on……..click here to read further
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PLACE OF EFFECTIVE MANAGEMENT

CLARIFICATORY CIRCULAR BY GOVERNMENT OF INDIA

Circular No. 06 of 2017 / F. No. 142/11/2015-TPL / Government of India / Ministry of Finance / Department of Revenue / Central Board of Direct Taxes / Dated: 24th January, 2017

Section 6(3) of the Income-tax Act, 1961 (the Act), prior to its amendment by the Finance Act, 2015, provided that a company is said to be resident in India in any previous year, if it is an Indian company or if during that year, the control and management of its affairs is situated wholly in India. This allowed tax avoidance opportunities for companies to artificially escape the residential status under these provisions by shifting insignificant or isolated events related with control and management outside India. To address these concerns, the existing provisions of section 6(3) of the Act were amended vide Finance Act, 2015, with effect from 1st April,2016 to provide that……..click here to read further

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FUTURE CURRENCY : DIGITALISED BITCOIN

Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros they’re produced by running computers using software. It is a crypto-currency. Bitcoin is designed around the idea of using cryptography to control the creation and transfer of money, rather than relying on central authorities. The first Bitcoin concept was published in 2009 by Satoshi Nakamoto. However, Satoshi left the project in late 2010 without revealing much about himself. The community has since grown manifolds……..click here to read further

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ASSET DISPOSAL – GOVERNMENT E-COMMERCE PLATFORM CAN SAVE BILLIONS

NEED FOR E- COMMERCE PLATFORM

General lack of transparency and inefficiencies in the handling and disposal of the seized, confiscated, obsolete, surplus, unused assets has time and again created embarrassing situation for the government’s functionaries. Non – standardized assets disposal policies have also resulted into enormous financial losses, bribery, bungling, corruption and crime in this sector.

1. GENERATION OF DISPOSABLE ASSETS

High value disposable assets in considerable quantum are regularly generated by all Government departments, financial institution, banks, public sector organization, local bodies etc. Besides, revenue departments like Income Tax, Customs, VAT, Excise regularly seize / confiscate valuable assets in course of raids or at the time of recovering their dues. NPA accounts are also generating disposal assets in the hands of government ……..click here to read further

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REVIEW AND HIGHLIGHTS – BUDGET 2016

ANALYSIS: The 2016 Budget of the Narendra Modi Government, which was delivered on 29th February, was eagerly awaited. With increasing criticism of the perceived gap between promises made and action taken on the ground, this Budget was the key opportunity to regain lost ground and accelerate the process of converting the ‘Make in India’ dream into a reality. Indeed, there was little in the run-up to the Budget that generated cheer or optimism. The data from the manufacturing, banking, and real estate sectors were depressing. The ill-timed notice from the Indian tax department of over Rs. 14,000 crore to Vodafone two weeks ago seriously cast doubts on whether the Prime Minister’s Office and the Finance
Ministry were pursuing a common agenda of making India an investment-friendly destination. The only large silver lining on the dark economic cloud was the drastic fall in oil prices………….click here to read further

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“STARTUP INDIA” A Step Forward in Right Direction

STARTUP INDIA is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities. The Government through this initiative aims to empower Startups to grow through innovation and design. In order to meet the objectives of the initiative, Government of India is announcing this Action Plan that addresses all aspects of the Startup ecosystem.……..click here to read further

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INDIAN
GOVERNMENT OPENS COMPLIANCE WINDOW FOR BLACK MONEY DISCLOSURE

SCHEME OPEN UPTO SEPT. 30, 2015

Those assessee with any undeclared overseas income or assets will have a 3 month window to come clean beginning on July 1, 2015 and a further 3 months to deposit the appropriate tax and penalty till Dec 31, 2015. Ministry of Finance,
Government of India has announced details of a compliance window to curb black money. Central government has notified on 30^th September, 2015, as the date on or before which a person can make a declaration in respect of an undisclosed asset located outside India. The last date for depositing tax is December 31, 2015……..click here to read further

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HIGHLIGHTS UNDISCLOSED
FOREIGN INCOME & ASSETS BILL, 2015 INTRODUCED IN LOK SABHA ON 20TH, MARCH 2015

The Finance Minister, in his budget speech, while acknowledging the limitations under the existing law, had conveyed the considered decision of the Government to enact a comprehensive new law on black money to specifically deal with black money stashed away abroad. He also promised to introduce the new Bill in the current Session of the Parliament.

In order to fulfil the commitment made by the Government to the people of India through the Parliament, the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 has been introduced in the Parliament on 20.03.2015. The Bill provides for separate taxation of any undisclosed income in relation to foreign income and assets. Such income will henceforth not be taxed under the Income-tax
Act but under the stringent provisions of the proposed……..click here to read further

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PM NARENDRA
MODI NEEDS NEW FISCAL SYSTEM TO GOVERN

A few years back, when the world was looking at us with high expectation of growth and stability, the apathetic fiscal management severely dented the Indian economic system. The erstwhile Indian Government failed to appreciate the ground rules and requirements of a growing Indian economy. When Indian corporate was looking at world map for their next destination, some over-enthusiastic
Economists did everything possible to rattle the aspiration, ambition and dignity of the entrepreneurs and their enterprise. Why did they do it? This is a question for everyone.

Anyway, that is past. India has to come back and cover the losses of sixty seven years. In 1947, one rupee was giving us one dollar and today we have to pay almost sixty rupees for a dollar. As a person of basic virtues, I am more than confident that, an emotional connect to country and little financial sensibilities in economic policy framing can progressively take us back to 1917.
I am sure, our new PM will show us again, those respectable days.

Although, Mr. Modi has the best of the technology and talent around him to coordinate his plans and proposal, with all the humbleness, I would like to mention some suggestive ideas for the desired upgradation of Indian Fiscal
System.

www.youtube.com/watch?v=v-jQnv8rL2w

It is foremost important that the fiscal system should not be draconian, excruciating and compelling. It should be appeasable and amenable. Present
Indian fiscal system is not only perplexing but also mystifying for a common person. In existing format, Government is collecting revenue through multiple and multilevel tax legislation. The basic concept of Indian tax laws is centuries old and had its origin somewhere in Egypt. It is written in thousands of pages and most seasoned tax professional are often found totally befuddled in their interpretation and application. That is why the end result is recent cases of Nokia and Vodaphone. These two cases have disgraced and embarrassed the country around the world. We need to have fundamentally something very different from the present……..click here to read further

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INDIAN GOVT. CAN COLLECT RS.
80,000 CRORES LYING INSIDE NEW DELHI RAILWAY STATION

INTRODUCTION

Railway Minister Shri D. V. Sadananda Gowda, in his 2014 Budget Speech has mentioned, “in the last 10 years, 99 New Line projects worth` 60,000 crore were sanctioned out of which only one project is complete till date. In fact, there are 4 projects that are as old as 30 years, but are still not complete.” The principal reason attributed by the Hon’ble Minister for the dismal performance is lack of availability of adequate financial resources. The Hon’ble Minister has further announced some new projects. But the big question is how the Railways will fund these schemes.

Traditional funding sources have already been exploited to their optimum level.
Now the Railway Board has to look for some unconventional sources to fund the operational and developmental projects.….. including Prime Minister, Narendra
Modi’s Bullet Train. If, the authorities involved in the process look beyond their centuries old rule book…….solutions are not far from reach. To be more precise, the freely available Railway Real Estate assets have the required potential to generate enormous surplus to meet its financial needs and also to strengthen the Railways Balance Sheet to the envy of any successful corporate in the world. India has at least 500 – 700 major Railway Stations Real Estates assets, which can be developed for augmenting Railway revenue. Each of the Railway Station occupies sizable land. This station land over the platforms and adjoining Railway lines can be easily monetized. A multi-story multipurpose complex can be constructed without disturbing the regular functioning and movement, over the Railway platforms. This real estate can be easily marketed to generate capital and revenue profits. The monetary valuations of these properties can run into astronomical figures. Keeping in view the size of the city, a multistory complex can be erected over any railway stations. The construction can be done on BOT basis or contract basis etc. depending on various factors. The research data suggests, the space available can be easily marketed as the railway stations are always city centers and enjoy tremendous locational advantages………click here to read further

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BUDGET 2014-2015 BY FINANCE MINISTER ARUN JAITLEY

The final Budget for the year is on the floor and will be shortly enacted to rule the country. This time, the expectations from Budget were extremely high but for the reasons best known to the Budget Makers, much has been left to be addressed in future. Whatever may be the reasons for going cautious, if India has to progress and survive in this competitive world and amongst aggressively progressing neighbouring countries, then some out of the box thinking, dynamic decision making and fearless actions are the only choices. We hope to look forward an aggressive Indian regime determined to put India on self sustaining growth course of over 10%. May be by 15th August our Hon’ble Prime Minister Mr.
Narendra Modi will chalk out his new economic and development programme and unfurl the same with the flag of the nation.

Various Budget provisions have been comprehensively summarized herein below. We note from the detailed budget document that, with regards to Income Tax budget proposals several changes have been proposed which will have far reaching impact on the economy and business. These subtle changes although very important have not become the headlines of any media. Particularly changes about advance against assets, survey / search rules, charitable institutions, long term capital gains, dividend distribution tax, debt based mutual funds, investment allowance, institutions governed by section 35, overseas borrowing and divided, transfer pricing, FII income clarifications, MAT, TDS, anonymous donation, presumptive taxation u/s 44AE, commodity transaction tax, compulsory acquisitions, speculative gains, asset valuations, loan transactions u/s 269SS, attachment of property etc. must be studied meticulously.

The Current Economic Situation And The Challenges

Decisive vote for change represents the desire of the people to grow, free themselves from the curse of poverty and use the opportunity provided by the society. Country in no mood to suffer unemployment, inadequate basic amenities, lack of infrastructure and apathetic governance

………click here to read further

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INDIA DESPERATELY NEEDS NEW FISCAL SYSTEM
TO ACCOMPLISH MODI DREAM

A few years back, when the world was looking at us with high expectation of growth and stability, the apathetic fiscal management severely dented the Indian economic system. Anyway, that is past. Let’s look forward to a brighter future in the hands of indomitable team of Governors. In 1947, one rupee used to fetch one dollar and let’s hope the time returns. I am confident that, an emotional connects to nation and financial sensibilities in economic policy framing can show us again those respectable days.

Present Indian fiscal system is perplexing to all concerned. Government is collecting revenue through multiple tax legislations. The basic tax concept is centuries old and had its origin somewhere in Egypt and travelled through Greece
U. K. to India with British. Revenue laws are written in thousands of pages and most seasoned tax professional are often found totally befuddled in their interpretation and application. That is why the end result is recent cases of Nokia and Vodaphone. These two cases have disgraced the country around the world. We need to have fundamentally something very different from the present and aptitude to accept out of box thinking.

With complete new mindset, the entire revenue collection law can be framed in less than hundred pages. A suggestive scheme which will be manageable without the fleet of tax collecting agencies can be drafted on following lines. The simplicity itself will boost revenue collection by manifolds. The scheme may be referred as “Consolidated Revenue Act of India.”………click here to read further

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DOUBLE TAXATION AVOIDANCE AGREEMENTS

To finance the welfare and the administrative expenditure, governments around the world impose certain taxes on their subjects. The taxation system helps in collecting revenue besides it also provides direction to the economic growth and also brings economic equilibrium amongst various classes. In any taxation system, the residential status of the taxpayer is of crucial significance.
Residential status confirms the jurisdiction and the application of taxation account abilities.

However, in cases, where cross country economic activity is carried out, it is a tricky affair to identify and justify the appropriate jurisdiction of tax authorities. In order to mitigate the hardships of multiple jurisdictions, the Governments enter into bilateral arrangements, which are commonly denoted as “Double Taxation Avoidance Agreements” (DTAA). DTAA refers to an accord between two countries, aiming at elimination of double taxation. These are bilateral economic agreements wherein the countries concerned assess the sacrifices and advantages which the treaty brings for each contracting nation. It would promote exchange of goods, persons, services and investment of capital among such countries.

Indian Government is actively pushing DTAA negotiations with several countries to help its residents in understanding their tax jurisdictions and accountability towards the appropriate authorities. So far India has signed DTAA with 81 countries and discussion is on with many others. The natures of DTAA’s entered by India are greatly diverse in their nature and contents.

OECD and DTAAs
The first international initiative regarding DTAA was taken by the Organization for Economic Co-operation and Development. OECD presented the first draft of DTAA in ‘Model Tax Convention on Income and on Capital’. DTAA was proposed as a tool of standardization and common solutions for cases of double taxation to the taxpayers who are engaged in industrial, financial or other activities in other countries. The double tax treaties are negotiated under international law and governed by the principles laid down under the Vienna Convention on the Law of Treaties………click here to read further

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GENERAL ELECTION YOUR ELECTION MANIFESTO WILL BE ROAD TO SUCCESS

The next General Elections are due in 2014. All political aspirants have already started working out policies and strategies to approach public for support and vote. However, it is no longer an easy mission to convince Indian voters to vote for any party or individual. Television programmes and print media have turned
Indians into a conscious and informed class. Now, people are looking forward towards strong programmes and policies rather than traditional individuals and parties. It will be now be very tricky to play sentimental issues for electoral success.

In this note, we are providing a evocative programme for effectively setting forth election strategy to the aspiring national players. We are confident, if an organization adopts policies and programme on the lines suggested herein below and delivers on promises, nothing can restrain them from winning and ruling this country for next several decades.

The suggestive programme is outlined herein below………click here to read further

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GIFT RECEIVED
FROM HUF IS NOT TAXABLE

Rajkot Bench of ITAT in the case of Vineetkumar Raghavjibhai Bhalodia v. Income tax Officer, Rajkot has discussed the controversial issue of tax ability of gifts from HUF to its members. The issues taken up were.

1. Whether a gift received from ‘relative’, irrespective of whether it is from an individual relative or from a group of relatives is exempt from tax under provisions of section 56(2)(vi)?
Answer: Held, yes.

2. Whether HUF is a group of relatives and therefore, gift received from HUF would be exempt from tax under section 56(2)(vi)?
Answer: Held, yes

3. Whether for getting exemption under section 10(2) two conditions are to be satisfied, firstly, a person must be a member of HUF and secondly he should receive sum out of income of such HUF, may it be income of earlier year? Answer: Held, yes………click here to read further

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AN OVERVIEW – COPYRIGHT LAW

INTRODUCTION

Copyright is a legal term refers to protecting a creator’s work. It is a type of intellectual property that provides exclusive publication, distribution, and usage rights for the creator. This means whatever content is created cannot be used or published by anyone else without the consent of the creator. The length of copyright protection may differ from country to country, but it usually lasts for the life of the author plus 50 to 100 years.

Copyright is generally given by the law to creators of literary, dramatic, musical and artistic works and producers of cinematograph films and sound recordings. It is a pack of rights including, inter alia, rights of reproduction, communication to the public, adaptation and translation of the work. In modern times, copyright protection has been extended to websites and other online content. This is important in the digital age, since large amounts of content can be easily copied.………click here to read further

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INFORMATION TECHNOLOGY
PANACEA FOR POLICE PROBLEMS

With the development of Net Based Technologies along with availability of advanced software and hardware systems, it has become feasible to systematize and present the most complex data system in simple formats. This facilitates the quality of data storage system and also improves the retrieval of the information efficiently and accurately. Through the application of software based technologies it has become possible to design and maintain large database structures and provide user friendly application. These databases can be used for criteria based queries and also can be supplemented with other technologies like Biometric Solution etc.

Delhi Police is handling extremely complex and multi dimensional activities. The operations of Delhi Police are spread over very large area which needs to be constantly monitored and controlled. In fact, the operation of Delhi Police is as complex and multifaceted as any top corporate house. The operations just do not end with crime recording / investigation but also involve the application of finest management techniques, personal management skills, financial management acumen, deep knowledge of engineering and medicine sciences .The application of Information Technology can make many complex and strenuous tasks of Delhi Police
Executives effortless and error free.……..click here to read further

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DON’T PANIC, IF INCOME TAX
DEPARTMENT RAIDS YOU

The term “Raid in Indian Income Tax Law” is incredulous and any unexpected encounter with IT sleuths generally leads to chaos and vacuity. If you are likely to experience such action it is better to familiarise with the subject, so that, the situation can be faced with confidence and serenity. Income Tax
Raid is conducted with the sole objective to unearth tax avoidance. It is the process which authorizes IT department to search any residential / business premises, vehicles and bank lockers etc. and seize the accounts, stocks and valuables.

To face the situation efficiently, it is extremely important to understand some nitty-gritty of I.T. law on the subject. Lack of knowledge leads to panic and all the discomfort. The knowledge of your legal rights and responsibilities always protects you………click here to read further

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SURVEY UNDER INCOME TAX ACT, 1961

Survey has not been defined in the Income Tax Act. According to Concise Oxford
Dictionary, The expression “survey” means general view, casting of eyes or mind over somethings, inspection or investigation of the condition, amount, etc. of something, account given of result of this etc.

According to Chambers 20th Century Dictionary, the meaning of the word
‘survey’ is to view comprehensively and extensively, to examine in detail, to examine the structure of a building, to obtain by measurements data for mapping, to perceive, collection of data, an organisation or body of men for that purpose.

In short the term ‘survey’ in context of the Income Tax Act means collection of data or information for the purposes of the Act.

Objects of Survey

Survey is an important weapon in the armoury of the Income Tax Department to call for information of various kinds as may be found necessary for making proper assessments. Survey is mainly conducted with the object of broadening the tax base by discovering new assessees,to gather information about possible tax evasions by assessees, spot checking of available cash and stock and to verify in a surprise and systematic manner, whether or not accounts are maintained properly and on day to day basis etc.………click here to read further

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