The Union Finance Minister Shri Pranab Mukherjee will review the annual performance of banks and financial institutions tomorrow relating to Agriculture Credit, MSME (Micro, Small and Medium Enterprises) Credit, Housing Loans, Education Loans, Gross and Net Non Performing Assets (NPAs) along with slew of measures initiated by the Department of Financial Services, Ministry of Finance in the areas of improving productivity and efficiency in the PSBs.

Rising litigation with the tax payers and amount locked-up in appeal before Commissioners of Income Tax (Appeals)/CIT (A), Income Tax Appellate Tribunals (ITATs), High Courts and the Supreme Court has been a matter of serious concern. I am informed that a total amount of Rs. 4,36,741 Crore was locked-up in 2,59,523 cases as on 31st December, 2011. Out of this Rs. 2,52,846 Crore is locked-up in 1,93,525 cases which are pending before CIT(A). The main reason for pendency of cases before CIT(A) appears to slower disposal rate vis-à-vis the pace of cases being filed. I am told that on an average it takes one and a half years to dispose off a case. The Department needs to ensure that after proposed cadre restructuring sufficient manpower is deployed to reduce the time taken for disposal of appeals and that it is not more than six months.

The Union Finance Minister Shri Pranab Mukherjee said that the Government is fully seized of the current situation and he is confident that there will be a turnaround in our growth prospects in the coming months. The Finance Minister Shri Mukherjee was reacting to the S&P recent report suggesting that India could be the first BRIC country to falter. The Finance Minister Shri Mukherjee said that this is not based on a fresh rating action. S&P had issued India’s sovereign credit rating on April 25, 2012 reaffirming India’s long-term sovereign credit rating at BBB(-). It had, however, revised India’s outlook to negative from stable.

The Union Finance Minister Shri Pranab Mukherjee asked the Chairpersons of Debt Recovery Appellate Tribunals (DRATs) and Presiding Officers of Debt Recovery Tribunals (DRTs) to suggest ways and means to expedite the unlocking of resources of various banks locked in the form of Non Performing Assets (NPAs) etc. The Finance Minister Shri Mukherjee said that there can be no lending unless there is recovery.

A ‘Negative List’ approach for taxation of services is being introduced in the current fiscal. Under the new approach, all services except those in the ‘Negative List’ or otherwise exempted, would come into the tax net. The new system will come into effect from 1st July, 2012.

The Income Tax Office, Civic Centre, Delhi known as Pratyaksh Kar Bhawan is inaugurated by Hon’ble Union Finance Minister Sh. Pranab Mukherjee on 30th of May 2012 at 11:15 AM. The occasion is also graced by Sh. Namo Narain Meena, Minister of state (Expenditure, Banking & Insurance), Ms Meera Aggarwal, Mayor, North Delhi Municipal Corporation, Sh. R.S. Gujral, Finance & Revenue secretary and other dignitaries.

On the issue of retrospective amendment, Union Finance Minister, Shri Pranab Mukherjee has said that he had given a commitment in the Parliament with regard to retrospective amendments that CBDT will issue a policy circular to clarify that in cases where assessment proceedings have become final before first day of April, 2012; such cases shall not be reopened. Now CBDT has issued a circular in this regard, the Finance Minister has stated.

Normally my advise would be that if there be no point of law, if its a matter of fact, then I think with the two appeals at the commissioner’s level the department need not rush to the High Court if there be no point of law concerned, Mukherjee said which addressing I-T officials here.

Union Finance Minister, Shri Pranab Mukherjee will inaugurate the biggest office building of the Income tax Department in India tomorrow. The building will house the offices of salary charges, non-corporate charges, International Taxation, Exemption and other allied charges, accommodating approximately 800 Officers and 1500 staff. It will also have an assessee friendly ASK (Aayakar Sewa Kendra) Centre. Pratyaksh Kar Bhawan at Civic Centre is a ‘green’ building.

Honourable President of India has Given its Assent to Finance Bill 2012 or Budget 2012-13 on 28.05.2012. The Finance Bill 2012 already received the assent of Lok Sabha & Rajya Sabha. You can also download Finance Bill 2012, We have provided link for the same at the bottom of the post.